Published on 3/12/2019 in the Prospect News Investment Grade Daily.
New Issue: SoCal Edison sells $1.1 billion of first and refunding mortgage bonds in two parts
By Cristal Cody
Tupelo, Miss., March 12 – Southern California Edison Co. priced a $1.1 billion two-tranche offering of first and refunding mortgage bonds (A3/A-/BBB+) on Tuesday, according to FWP filings with the Securities and Exchange Commission.
The company sold $500 million of 4.2% 10-year bonds at 99.599 to yield 4.25%. The notes were placed with a spread of 165 basis points over Treasuries.
A $600 million tranche of 4.875% 30-year bonds priced at 99.846 to yield 4.885%, or a spread of Treasuries plus 190 bps.
Bookrunners were Barclays, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp. and BNY Mellon Capital Markets LLC.
The company held fixed income investor calls on Friday.
Proceeds will be used to repay commercial paper borrowings and for general corporate purposes.
Southern California Edison is a Rosemead, Calif.-based electric utility company and subsidiary of Edison International.
| Issuer: | Southern California Edison Co.
|
| Amount: | $1.1 billion
|
| Description: | First and refunding mortgage bonds
|
| Bookrunners: | Barclays, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC, BNP Paribas Securities Corp. and BNY Mellon Capital Markets LLC
|
| Co-managers: | Blaylock Van, LLC, Cabrera Capital Markets, LLC, MFR Securities, Inc., Mischler Financial Group, Inc., Penserra Securities LLC and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | March 12
|
| Settlement date: | March 15
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Description: | Series 2019A first and refunding mortgage bonds
|
| Maturity: | March 1, 2029
|
| Coupon: | 4.2%
|
| Price: | 99.599
|
| Yield: | 4.25%
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call before Dec. 1, 2028 at Treasuries plus 25 bps; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Description: | Series 2019B first and refunding mortgage bonds
|
| Maturity: | March 1, 2049
|
| Coupon: | 4.875%
|
| Price: | 99.846
|
| Yield: | 4.885%
|
| Spread: | Treasuries plus 190 bps
|
| Call features: | Make-whole call before Sept. 1, 2048 at Treasuries plus 30 bps; thereafter at par
|
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