New Issue: Southern California Edison sells $1.2 billion of mortgage bonds due 2028, 2053

By Mary-Katherine Stinson and Cristal Cody

Lexington, Ky., Feb. 28 – Southern California Edison Co. sold $1.2 billion of first and refunding mortgage bonds in two series, including series 2023A bonds due March 1, 2028 and series 2023B bonds due March 1, 2053 (A2/A-/BBB+), according to FWPs filed with the Securities and Exchange Commission.

The $750 million 5.3% 2023A bonds sold at 99.9 to yield 5.323%, or at Treasuries plus 115 basis points. Price talk was in the Treasuries plus 140 bps area.

The $450 million 5.7% 2023B bonds sold at 99.53 to yield 5.733%, or at Treasuries plus 180 bps. Initial talk was in the Treasuries plus 210 bps area.

The 2023A bonds feature a make-whole call option at Treasuries plus 20 bps until one month before maturity, Feb. 1, 2028, and then a par call option. The 2023B bonds feature a make-whole call option at Treasuries plus 30 bps until six months prior to maturity, Sept. 1, 2052, and then a par call option.

BNP Paribas Securities Corp., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC and TD Securities (USA) LLC are the joint bookrunners.

Proceeds from the offering of the series 2023A bonds will be used to fund the payment of wildfire claims above the amount of expected insurance proceeds. Proceeds from the offering of the series 2023B bonds will be used to repay commercial paper borrowings and for general corporate purposes.

Southern California Edison, a subsidiary of Edison International, is an electric utility based in Rosemead, Calif.

Issuer:	Southern California Edison Co.
Amount:	$1.2 billion
Issue:	First and refunding mortgage bonds
Bookrunners:	BNP Paribas Securities Corp., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC and TD Securities (USA) LLC
Co-managers:	Academy Securities, Inc., AmeriVet Securities, Inc., Apto Partners, LLC, Blaylock Van, LLC, Cabrera Capital Markets LLC, MFR Securities, Inc., R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
Trustee:	Bank of New York Mellon Trust Co., NA
Counsel to issuer:	In-house counsel
Counsel to bookrunners:	Cleary Gottlieb Steen & Hamilton LLP
Ratings:	Moody’s: A2
	S&P: A-
	Fitch: BBB+
Trade date:	Feb. 27
Settlement date:	March 2
2028 bonds
Amount:	$750 million
Issue:	First and refunding mortgage bonds, series 2023A
Maturity:	March 1, 2028
Coupon:	5.3%
Price:	99.9
Yield:	5.323%
Spread:	Treasuries plus 115 bps
Call features:	At a make-whole premium of Treasuries plus 20 bps prior to Feb. 1, 2028; after at par
Price talk:	Treasuries plus 140 bps area
Cusip:	842400HU0
2053 bonds
Amount:	$450 million
Issue:	First and refunding mortgage bonds, series 2023B
Maturity:	March 1, 2053
Coupon:	5.7%
Price:	99.53
Yield:	5.733%
Spread:	Treasuries plus 180 bps
Call features:	At a make-whole premium of Treasuries plus 30 bps prior to Sept. 1, 2052; after at par
Price talk:	Treasuries plus 210 bps area
Cusip:	842400HV8

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