Southern California Edison to price two series of mortgage bonds

By Marisa Wong and Cristal Cody

Los Angeles, Aug. 5 – Southern California Edison Co. will conduct a two-tranche offering of first and refunding mortgage bonds, according to a 424B5 filing with the Securities and Exchange Commission.

The utility company is planning to sell $425 million of two-year bonds with a spread in the Treasuries plus 70 basis points area and $425 million of three-year bonds with a spread in the Treasuries plus 80 bps area, a source noted.

The series 2021J and series 2021K bonds will be callable in whole or in part at any time.

BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and Truist Securities, Inc. are the joint bookrunners.

Proceeds will be used to pay wildfire claims above the amount of expected insurance proceeds. The company also expects to use proceeds to repay commercial paper borrowings that were used to fund the payment of such wildfire claims and for general corporate purposes. The current weighted average interest rate of the company’s commercial paper borrowings is about 0.23%.

Southern California Edison is an electric utility company based in Rosemead, Calif.

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