By Wendy Van Sickle
Columbus, Ohio, Nov. 4 – Edison International priced $750 million of 5% fixed-rate reset cumulative perpetual preferred stock (Ba2/BB+/BB), series B, with a $1,000 liquidation preference on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The dividend rate resets on March 15, 2027 to a rate equal to Treasuries plus an initial margin of 390.1 basis points; again, on March 15, 2032 to Treasuries plus the initial margin plus a 25-basis points step-up; and finally on March 15, 2047 to Treasuries plus the initial margin plus 100 bps.
Dividends will be payable on March 15 and Sept. 15 of each year.
The preferreds will be callable in whole or in part at par from and including the Dec. 15 immediately preceding each reset date through and including the applicable reset date. The preferreds will also be callable in whole at 102 within 120 days of a ratings event.
Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, BNY Mellon Capital Markets, LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc. are the joint bookrunners.
Proceeds will be used to repay commercial paper or for general corporate purposes.
The series B preferreds will not be listed on any securities exchange.
The company announced that it would issue securities with up to $1 billion of equity content in 2021. With $1.25 billion of preferred stock issued in March, completes the company’s 2021 financing plan.
Edison International is working to support investment-grade ratings.
Edison International is the Rosemead, Calif.-based parent holding company of Southern California Edison Co., an investor-owned public utility.
| Issuer: | Edison International
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| Issue: | Fixed-rate reset cumulative perpetual preferred stock, series B
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| Amount: | $750 million, or 750,000 shares
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| Maturity: | Perpetual
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| Bookrunners: | Citigroup Global Markets Inc., Barclays, Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, BNY Mellon Capital Markets, LLC, SMBC Nikko Securities America, Inc. and Truist Securities, Inc.
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| Co-managers: | Cabrera Capital Markets LLC, CastleOak Securities, LP, C.L. King & Associates, Inc., Guzman & Co., Mischler Financial Group, Inc. and Tribal Capital Markets, LLC
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| Dividend: | 5% initially, resets on March 15, 2027 at Treasuries plus initial margin of 390.1 bps; steps up by 25 bps on March 15, 2032 and by a further 75 bps on March 15, 2047
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| Price: | Par of $1,000
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| Call option: | In whole or in part at par from and including the Dec. 15 immediately preceding each reset date through and including applicable reset date or in whole at 102 within 120 days of a ratings event
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| Ratings: | Moody’s: Ba2
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| S&P: BB+
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| Fitch: BB
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| Pricing date: | Nov. 4
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| Settlement date: | Nov. 12
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| Distribution: | SEC registered
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| Cusip: | 281020AT4
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