Published on 5/17/2023 in the Prospect News Investment Grade Daily.
New Issue: Southern California Edison sells $1.1 billion of mortgage bonds due 2026, 2053
By Wendy Van Sickle
Columbus, Ohio, May 17 – Southern California Edison Co. sold $1.1 billion of first and refunding mortgage bonds in two series, including series 2023C bonds due June 1, 2026 and series 2023D bonds due Dec. 1, 2053 (A2/A-/A-), on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The $400 million 4.9% three-year bonds sold at 99.89 to yield 4.939%, or at Treasuries plus 112.5 basis points.
The $700 million 5.875% 30-year bonds sold at 99.786 to yield 5.89%, or at Treasuries plus 200 bps.
BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp. and SMBC Nikko Securities America, Inc. are the joint bookrunners.
Proceeds from the three-year bonds will be used to fund the payment of wildfire claims above the amount of expected insurance proceeds. Proceeds from the 30-year 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: | $1.1 billion
|
| Issue: | First and refunding mortgage bonds
|
| Bookrunners: | BMO Capital Markets Corp., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BNP Paribas Securities Corp. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | Academy Securities, Inc., AmeriVet Securities, Inc., Apto Partners, LLC, Blaylock Van, LLC, Cabrera Capital Markets LLC, MFR Securities, Inc., Siebert Williams Shank & Co., LLC and Telsey Advisory Group LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house counsel
|
| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
|
| Trade date: | May 17
|
| Settlement date: | May 22
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 2026 bonds
|
| Amount: | $400 million
|
| Issue: | First and refunding mortgage bonds, series 2023C
|
| Maturity: | June 1, 2026
|
| Coupon: | 4.9%
|
| Price: | 99.89
|
| Yield: | 4.939%
|
| Spread: | Treasuries plus 112.5 bps
|
| Call features: | At a make-whole premium of Treasuries plus 20 bps prior to May 1, 2026; after at par
|
| Cusip: | 842400HW6
|
|
|
| 2053 bonds
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| Amount: | $700 million
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| Issue: | First and refunding mortgage bonds, series 2023D
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| Maturity: | Dec. 1, 2053
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| Coupon: | 5.875%
|
| Price: | 99.786
|
| Yield: | 5.89%
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | At a make-whole premium of Treasuries plus 30 bps prior to June 1, 2053; after at par
|
| Cusip: | 842400HX4
|
|
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