Published on 4/20/2023 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Southern California Edison sells $775.42 million secured recovery bonds due 2042, 2049
By William Gullotti and Cristal Cody
Buffalo, N.Y., April 20 – Southern California Edison Co., via issuing entity SCE Recovery Funding LLC, sold $775.42 million of senior secured recovery bonds, series 2023-A, in tranches due 2042 and 2049 (Aaa/AAA) on Wednesday, according to an FWP filed with the Securities and Exchange Commission and additional information provided by a market source.
The offer includes $425 million in an A-1 tranche due June 15, 2042 with a 4.697% coupon priced at a spread of 110 basis points over Treasuries.
The $350,419,000 A-2 tranche due Dec. 15, 2049 priced with a 5.112% coupon at 120 bps over Treasuries.
Each tranche has its own expected sinking fund schedule.
The notes are non-callable.
RBC Capital Markets, LLC, Barclays and Citigroup Global Markets Inc. are the joint bookrunners for the offering.
Proceeds will be used for reimbursement for eligible green expenses connected to wildfire mitigation regulations/projects within the company’s service area.
Southern California Edison, a subsidiary of Edison International, is an electric utility based in Rosemead, Calif.
| Issuer: | SCE Recovery Funding LLC
|
| Amount: | $775,419,000
|
| Issue: | Secured recovery bonds
|
| Bookrunners: | RBC Capital Markets, LLC, Barclays and Citigroup Global Markets Inc.
|
| Senior co-manager: | Atlas SP Securities, a division of Apollo Global Securities, LLC
|
| Co-managers: | Drexel Hamilton, LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Norton Rose Fulbright US LLP, Richards, Layton & Finger, P.A., Munger, Tolles & Olson LLP
|
| Counsel to underwriters: | Hunton Andrews Kurth LLP
|
| Call: | Non-callable
|
| Trade date: | April 19
|
| Settlement date: | April 27
|
| Ratings: | Moody’s: Aaa
|
| S&P: AAA
|
| Distribution: | SEC registered
|
|
|
| 2042 bonds
|
| Amount: | $425 million
|
| Issue: | Secured recovery bonds, series 2023-A-1
|
| Final payment date: | June 15, 2040
|
| Maturity: | June 15, 2042
|
| Average life: | 9.59 years
|
| Coupon: | 4.697%
|
| Price: | 99.99101
|
| Spread: | Treasuries plus 110 bps
|
| Cusip: | 78433LAG1
|
|
|
| 2049 bonds
|
| Amount: | $350,419,000
|
| Issue: | Secured recovery bonds, series 2023-A-2
|
| Final payment date: | Dec. 15, 2047
|
| Maturity: | Dec. 15, 2049
|
| Average life: | 21.19 years
|
| Coupon: | 5.112%
|
| Price: | 99.98938
|
| Spread: | Treasuries plus 120 bps
|
| Cusip: | 78433LAH9
|
|
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