By Cristal Cody
Tupelo, Miss., March 30 – Southern California Edison Co. priced an upsized $600 million reopening of its 3.7% first and refunding mortgage bonds due Aug. 1, 2025 (A3/BBB/BBB-) on Monday at a spread of 275 basis points over Treasuries, according a market source.
Initial guidance was in the Treasuries plus 287.5 bps area.
The deal was upsized from $400 million.
Southern California Edison originally sold $300 million of the 3.7% seven-year bonds on July 30, 2018 at 99.786 to yield 3.735%, or a spread of Treasuries plus 80 bps.
The total outstanding is now $900 million.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used to finance current undercollections of revenues the company is authorized to recover from customers through regulatory balancing accounts.
Southern California Edison is an electric utility company based in Rosemead, Calif.
| Issuer: | Southern California Edison Co.
|
| Amount: | $600 million reopening
|
| Maturity: | Aug. 1, 2025
|
| Description: | Series 2018E first and refunding mortgage bonds
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and TD Securities (USA) LLC
|
| Coupon: | 3.7%
|
| Spread: | Treasuries plus 275 bps
|
| Trade date: | March 30
|
| Ratings: | Moody’s: A3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 287.5 bps area
|
| Total outstanding: | $900 million, including $300 million of notes priced July 30, 2018 at 99.786 to yield 3.735%, or a spread of Treasuries plus 80 bps
|
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