Published on 11/16/2023 in the Prospect News High Yield Daily, Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Southern California Edison prices $550 million 7.5% trust preference securities
By Marisa Wong
Los Angeles, Nov. 16 – SCE Trust VII priced $550 million of 7.5% $25-par trust preference securities (expected: Baa3/BB+/BBB-) guaranteed by Southern California Edison Co., according to an FWP filing with the Securities and Exchange Commission.
Distributions on the fixed-rate securities will be payable quarterly, in arrears, on March 15, June 15, Sept. 15 and Dec. 15 of each year, beginning on March 15, 2024.
The securities are redeemable in whole or in part at par at any time beginning in November 2028. They are also callable in whole upon the occurrence of certain changes in tax or investment company law or interpretation or upon the occurrence of changes in rating agency equity credit criteria.
BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC and Truist Securities, Inc. are the joint bookrunners.
Proceeds will be used to redeem the issuer’s series M preference stock.
The company plans to list the new issue on the New York Stock Exchange under the ticker symbol “SCEPrM.”
Southern California Edison is a Rosemead, Calif.-based public utility subsidiary of Edison International.
| Issuer: | SCE Trust VII
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| Guarantor: | Southern California Edison Co.
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| Amount: | $550 million
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| Issue: | Trust preference securities
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| Maturity: | Perpetual
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| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC and Truist Securities, Inc.
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| Co-managers: | Academy Securities, Inc., CastleOak Securities, LP, C.L. King & Associates, Inc., Great Pacific Securities, Mischler Financial Group, Inc., R. Seelaus & Co., LLC and Stern Brothers & Co.
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| Counsel to issuer: | Richards, Layton & Finger, PA (Delaware) and in-house counsel; Munger, Tolles & Olson LLP (counsel for the guarantor)
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| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
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| Distribution rate: | 7.5%
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| Price: | Par of $25
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| Call options: | In whole or in part at par at any time beginning Nov. 22, 2028; in whole at 101 upon the occurrence of certain changes in tax or investment company law or interpretation; in whole at 102 upon occurrence of changes in rating agency equity credit criteria
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| Trade date: | Nov. 16
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| Settlement date: | Nov. 22
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| Listing: | NYSE: SCEPrM
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| Expected ratings: | Moody’s: Baa3
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| S&P: BB+
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Cusip: | 783892201
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