8-KOther Events

EDISON INTERNATIONAL 8-K Report (Oct 16, 2003)

Filed October 16, 2003For Securities:EIX

Summary

Edison International (EIX) filed an 8-K on October 16, 2003, reporting significant cash inflows from its subsidiaries and detailing plans for debt repayment and preferred security distributions. The company received aggregate dividends of $1.17 billion from Southern California Edison Company ($945 million) and Edison Capital ($225 million). These funds bolster Edison International's liquidity, bringing its cash on hand to approximately $1.3 billion.

Key Highlights

  • 1Edison International received $945 million in dividends from Southern California Edison Company on October 16, 2003.
  • 2Edison International received $225 million in dividends from its nonutility subsidiary, Edison Capital.
  • 3The company's cash on hand increased to approximately $1.3 billion after receiving these dividends.
  • 4Edison International plans to use $205 million to pay all deferred distributions on two series of trust preferred securities (QUIPS) by November 30, 2003, and then resume quarterly distributions.
  • 5The company intends to use $618 million of the dividend proceeds to repay its 6-7/8% Notes due September 2004.
  • 6Edison International aims to declare a common stock dividend by year-end 2003, payable in early 2004, contingent on financial condition and liquidity.
  • 7Resumption of dividends from Southern California Edison and payment of deferred QUIPS amounts are necessary conditions for common stock dividends.

Frequently Asked Questions

This 8-K filing primarily reports the receipt of significant cash dividends from Edison International's subsidiaries and outlines the company's plans for using these funds, including debt repayment, preferred security distributions, and the potential resumption of common stock dividends.

Edison International is using the dividend proceeds to make aggregate payments of approximately $205 million on November 30, 2003, to cover all deferred distributions on its QUIPS and resume quarterly payments. Additionally, $618 million will be used to repay the principal amount of its 6-7/8% Notes due in September 2004.

Edison International intends to declare a dividend for common stockholders by the end of 2003, to be paid in early 2004. However, this declaration is contingent upon the company's financial condition, liquidity, and other factors considered by the board. The resumption of dividends from Southern California Edison and the full payment of deferred QUIPS amounts are necessary prerequisites.

After receiving the dividends from its subsidiaries, Edison International has approximately $1.3 billion in cash on hand.