Southern California Edison trust selling at least $200 million preference shares at 5.125%-5.25%

By Stephanie N. Rotondo

Phoenix, Jan. 23 - Southern California Edison Co.'s SCE Trust II will sell at least $200 million of trust preference cumulative perpetual securities, according to a prospectus filed with the Securities and Exchange Commission on Wednesday.

Price talk is 5.125% to 5.25%, a trader said.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

Co-managers are Barclays, BNY Mellon Capital markets LLC, CL King & Associates and J.P. Morgan Securities LLC.

Dividends will be payable on the 15th day of March, June, September and December, beginning June 15. Dividends will only be paid if Southern California Edison makes payments on the trust's series G preference shares.

If the series G shares are redeemed at any time prior to or after March 15, 2018, the same amount of trust preference shares will be redeemed.

The company will list the trust preference shares on the New York Stock Exchange under the symbol "SCEPG."

SCE Trust will use the proceeds from the sale of the trust preference shares to purchase the series G shares from Southern California Edison. Southern California Edison will then use the funds for general corporate purposes and to redeem other outstanding series of preference shares.

Southern California Edison is a Rosemead, Calif.-based subsidiary of Edison International Inc.

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