Southern California Edison trust to price $150 million fixed-to-floating trust preference shares

By Stephanie N. Rotondo

Seattle, March 1 – Southern California Edison Co.’s SCE Trust V plans to sell $150 million of fixed-to-floating rate trust preference securities (expected ratings: Baa1/BBB-/BBB+), according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is 5.5% to 5.625%, a market source reported.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC are the joint bookrunners.

The cumulative dividends will be paid on the 15th day of March, June, September and December. From issuance to March 15, 2026, the perpetual preference shares will have a fixed-rate dividend. After that date, the dividend will float at Libor plus a spread.

The securities become redeemable on or after March 26, 2026 at par plus accrued dividends. Additionally, the company can redeem the issue prior to that date, in whole, upon the occurrence of certain changes in tax or investment company law or interpretation.

The company plans to list the new issue on the New York Stock Exchange under the ticker symbol “SCEPK.”

Proceeds will be used to redeem $125 million of 6.5% $100-par series D preference stock and for general corporate purposes.

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

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