By Cristal Cody
Chicago, Feb. 28 – Southern California Edison Co. priced $1.6 billion of mortgage bonds (A2/A-/A-) in three parts on Tuesday, according to multiple FWP filings with the Securities and Exchange Commission and details from a market source.
The utility priced $600 million of series 2024C bonds due March 2026 with a 5.35% coupon at par. The spread came at Treasuries plus 62 basis points, versus talk in the Treasuries plus 85 bps area.
The second tranche, the series 2024D bonds due June 2029, also is sized at $600 million. The bonds priced with a 5.15% coupon at 99.954 to yield 5.162%, or at Treasuries plus 83 bps. Spread talk was in the 110 bps area.
The third tranche is the smallest. The $400 million of series 2024E bonds due April 2054 priced with a 5.75% coupon at 99.435 to yield 5.789%, or at Treasuries plus 135 bps. Talk had the bonds coming in the Treasuries plus 162.5 bps area.
The bonds due 2026 will be callable with a make-whole premium at Treasuries plus 10 bps throughout the life of the bonds. The series D and series E bonds will be callable first with a make-whole premium and then will later be callable at par. The premium is Treasuries plus 15 bps for the series D bonds and Treasuries plus 25 bps for the series E bonds.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Mizuho Securities USA LLC led the sale as joint bookrunners.
BMO Capital Markets Corp., SG Americas Securities, LLC and TD Securities (USA) LLC joined as joint bookrunners.
Proceeds will be used to fund the payment of wildfire claims related to the amount above expected insurance proceeds, 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.
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| Amount: | $1.6 billion
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| Issue: | First and refunding mortgage bonds
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, BMO Capital Markets Corp., SG Americas Securities, LLC and TD Securities (USA) LLC
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| Co-managers: | Cabrera Capital Markets LLC, CastleOak Securities, LP, CAVU Securities LLC, C.L. King & Associates, Drexel Hamilton, LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., Penserra Securities LLC and Telsey Advisory Group LLC
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | In-house
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| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
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| Trade date: | Feb. 27
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| Settlement date: | March 1
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
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| Bonds due 2026
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| Amount: | $600 million
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| Issue: | Series 2024C bonds
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| Maturity: | March 1, 2026
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| Coupon: | 5.35%
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| Price: | Par
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| Yield: | 5.35%
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| Spread: | Treasuries plus 62 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps
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| Price talk: | Treasuries plus 85 bps area
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| Cusip: | 842400JB0
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| Bonds due 2029
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| Amount: | $600 million
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| Issue: | Series 2024D
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| Maturity: | June 1, 2029
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| Coupon: | 5.15%
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| Price: | 99.954
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| Yield: | 5.162%
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| Spread: | Treasuries plus 83 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps; par call starts May 1, 2029
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| Price talk: | Treasuries plus 110 bps area
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| Cusip: | 842400JC8
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| Bonds due 2054
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| Amount: | $400 million
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| Issue: | Series 2024E bonds
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| Maturity: | April 15, 2054
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| Coupon: | 5.75%
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| Price: | 99.435
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| Yield: | 5.789%
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| Spread: | Treasuries plus 135 bps
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| Call features: | Make-whole call at Treasuries plus 25 bps; par call starts Oct. 15, 2053
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| Price talk: | Treasuries plus 162.5 bps area
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| Cusip: | 842400JD6
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