Edison International accepts all $145.72 million tendered preferreds

By Marisa Wong

Los Angeles, Nov. 16 – Edison International announced the results of its tender offers for two series of fixed-rate reset cumulative perpetual preferred stock.

Edison launched the offers on Oct. 11, offering to purchase for cash its outstanding $750 million 5% fixed-rate reset cumulative perpetual preferred stock, series B, and $1.25 billion 5.375% fixed-rate reset cumulative perpetual preferred stock, series A, for a maximum aggregate purchase price of up to $750 million, plus accrued dividends.

As of the expiration of the offer at 8 a.m. ET on Nov. 16 (previously extended from 8 a.m. ET on Nov. 8), holders had tendered $84,223,000 liquidation preference of series B preferreds and $61,497,000 liquidation preference of series A preferreds. The company has accepted for purchase all of the tendered securities, according to a Thursday press release.

The company will pay $895 per $1,000 liquidation preference per share of series B preferred stock and $915 per $1,000 liquidation preference per share of series A preferred stock.

The company will also pay accrued dividends up to but excluding the settlement date, which is expected to be Nov. 21.

All conditions to the offers have been met or waived by the expiration date.

Originally, the offers were conditioned on the tender of a number of securities that would result in a total purchase price of at least $300 million. The company previously decided to waive this minimum tender condition.

The series B preferreds had priority in acceptance over the series A preferreds. Had the offer been oversubscribed, tendered series A preferreds would have been subject to proration.

The company said before that it intends to fund the offer with cash on hand, proceeds of debt issuances, which may include commercial paper and junior subordinated notes, or a combination of those. In any case, the company intends to replace the equity content of any repurchased securities.

Barclays (800 438-3242 or 212 528-7581), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Mizuho Securities USA LLC (866 271-7403 or 212 205-7562) are the dealer managers for the offers.

Global Bondholder Services Corp. (212 430-3774 or 855 654-2015) is acting as the tender agent and information agent.

The electric utility holding company is based in Rosemead, Calif.

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