Southern California Edison Co. completed a $1.2 billion offering of its first and refunding mortgage bonds to repay commercial paper borrowings and for other general corporate purposes, including making contributions to the California wildfire insurance fund.
The Edison International subsidiary sold $400 million of 2.85% series 2019C bonds due Aug. 1, 2029, and $800 million of 4.0% series 2017A bonds due April 1, 2047, according to company filings. Interest on the 2.85% bonds is payable semiannually Feb. 1 and Aug. 1 each year starting Feb. 1, 2020. Interest on the 4.0% bonds is payable semiannually April 1 and Oct. 1 each year starting Oct. 1.
The 2.85% bonds have a spread to benchmark Treasury of 95 basis points, while the 4.0% bonds have a spread to benchmark Treasury of 130 basis points. The issue was expected to be rated A3 by Moody's, A- by S&P Global Ratings and BBB+ by Fitch Ratings.
J.P. Morgan Securities LLC, BofA Securities Inc., MUFG Securities Americas Inc., SMBC Nikko Securities America Inc. and TD Securities (USA) LLC acted as joint book-running managers. Apto Partners LLC, C.L. King & Associates Inc., CastleOak Securities LP, Drexel Hamilton LLC, Guzman & Co., R. Seelaus & Co. LLC, Siebert Cisneros Shank & Co. LLC and Tribal Capital Markets LLC served as co-managers.
The bond offering comes on the heels of Edison International's offering of 28 million common shares at $68.50 apiece.