By Andrea Heisinger
New York, May 12 - Southern California Edison Co. (SoCal Edison) sold an upsized $500 million of 3.875% 10-year first and refunding mortgage bonds, series 2011A, on Thursday to yield Treasuries plus 75 basis points, said a market source away from the trade.
The notes were priced at the low end of talk in the range of 75 bps to 80 bps, a source said. The size was increased from $400 million.
The bonds (A1/A/A+) were sold at 99.423 to yield 3.945%.
The bonds have a make-whole call at 15 bps over Treasuries until March 1, 2021 and afterward can be redeemed at par.
Blaylock Robert Van LLC, Credit Suisse Securities (USA) LLC and RBS Securities Inc. were the active bookrunners. Passive bookrunners were BNY Mellon Capital Markets LLC and Guzman & Co.
Co-managers were Great Pacific Fixed Income Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey, Inc.
Proceeds will be used to repay commercial paper or for general corporate purposes.
The electric utility is based in Rosemead, Calif.
| Issuer: | Southern California Edison Co.
|
| Issue: | First and refunding mortgage bonds, series 2011A
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | June 1, 2021
|
| Bookrunners: | Blaylock Robert Van LLC, Credit Suisse Securities (USA) LLC, RBS Securities Inc. (active), BNY Mellon Capital Markets LLC, Guzman & Co. (passive)
|
| Co-managers: | Great Pacific Fixed Income Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc.
|
| Coupon: | 3.875%
|
| Price: | 99.423
|
| Yield: | 3.945%
|
| Spread: | Treasuries plus 75 bps
|
| Call: | Until March 1, 2021 make-whole at Treasuries plus 15 bps, after at par
|
| Trade date: | May 12
|
| Settlement date: | May 17
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A
|
| Fitch: A+
|
| Price talk: | 75 to 80 bps
|
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