By Cristal Cody
Chicago, Aug. 5 – Southern California Edison Co. sold $850 million of first mortgage bonds in two parts (A3/A-/BBB+), according to FWP filings with the Securities and Exchange Commission on Thursday.
The company sold $400 million of 0.7% two-year first and refunding mortgage bonds, series 2021J at par. The notes were sold with a Treasuries plus 50 basis points spread, low to talk in the 70 bps area.
Also sold were $450 million of 0.975% three-year first and refunding mortgage bonds, series 2021K at 99.991 to yield 0.978%. The spread on the notes is 60 bps over Treasures, 20 points low to talk in the Treasuries plus 80 bps area.
A market source had noted an expected deal size of $850 million on Thursday morning, but in two equal-sized tranches.
The series 2021J and series 2021K bonds will be callable in whole or in part at any time with a make-whole premium of Treasuries plus 10 bps.
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.
Issuer: | Southern California Edison Co.
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Issue: | First and refunding mortgage bonds
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Amount: | $850 million
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Bookrunners: | BNY Mellon Capital Markets, LLC, J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and Truist Securities, Inc.
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Co-managers: | AmeriVet Securities, Inc., MFR Securities, Inc., Penserra Securities LLC and Siebert Williams Shank & Co., LLC
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Trade date: | Aug. 5
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Settlement date: | Aug. 10
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Ratings: | Moody’s: A3
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| S&: A-
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| Fitch: BBB+
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Distribution: | SEC registered
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|
2023 bonds
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Issue: | Series 2021J bonds
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Amount: | $400 million
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Maturity: | Aug. 1, 2023
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Coupon: | 0.7%
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Price: | Par
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Yield: | 0.7%
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Spread: | Treasuries plus 50 bps
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Call features: | Make-whole call at any time at Treasuries plus 10 bps
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Price talk: | Treasuries plus 70 bps area
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2024 bonds
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Issue: | Series 2021K
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Amount: | $450 million
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Maturity: | Aug. 1, 2024
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Coupon: | 0.975%
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Price: | 99.991
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Yield: | 0.978%
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Spread: | Treasuries plus 60 bps
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Call features: | Make-whole call at any time at Treasuries plus 10 bps
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Price talk: | Treasuries plus 80 bps area
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