8-KMaterial AgreementsExhibits & Filings

EDISON INTERNATIONAL 8-K Report, Material Agreement (Oct 24, 2006)

Filed October 24, 2006For Securities:EIX

Summary

Edison International (EIX) filed an 8-K on October 24, 2006, detailing a First Amendment to its Credit Agreement, dated October 18, 2006. The primary impact of this amendment for investors is the creation of an exception to a covenant that previously restricted the ability of its subsidiary, Southern California Edison Company, to pay dividends on its capital stock. This modification could have implications for dividend distributions from the subsidiary to the parent company, potentially affecting EIX's cash flow and dividend-paying capacity. This amendment also involved the deletion of two previously applicable sections within the Credit Agreement, indicating a cleanup of outdated provisions. Investors should note that the full details of the amendment are available as an exhibit to this filing, and understanding the scope of this dividend restriction waiver is crucial for assessing the financial flexibility and dividend policy of Edison International and its key subsidiary.

Key Highlights

  • 1Edison International entered into a First Amendment to its Credit Agreement on October 18, 2006.
  • 2The amendment modifies a covenant related to dividend payments by Southern California Edison Company.
  • 3A specific exception is now provided, allowing restrictions on Southern California Edison Company's ability to pay dividends on its capital stock.
  • 4This change could impact the flow of dividends from the subsidiary to the parent company, Edison International.
  • 5Two sections of the original Credit Agreement that are no longer applicable have been deleted.
  • 6The amendment was made with a syndicate of prominent banks including JPMorgan Chase Bank, N.A., Citicorp North America, Inc., Credit Suisse First Boston, Lehman Commercial Paper Inc., and Wells Fargo Bank, N.A.
  • 7The First Amendment to the Credit Agreement is filed as Exhibit 10.1 to the 8-K.

Frequently Asked Questions

The primary purpose of the First Amendment is to create an exception to a covenant that restricted Southern California Edison Company's ability to pay dividends on its capital stock. It also removes outdated sections of the original agreement.

This amendment primarily affects the ability of its subsidiary, Southern California Edison Company, to pay dividends. By creating an exception to a prior restriction, it potentially allows for greater flexibility in dividend distributions from the subsidiary to Edison International, which could indirectly impact Edison International's dividend-paying capacity.

Investors should consider that this amendment could influence the intercompany transfer of funds and the parent company's overall cash flow available for dividends. The exact financial impact depends on the specific terms of the exception and the subsidiary's dividend policy.

The complete details of the First Amendment to the Credit Agreement are filed as Exhibit 10.1 to this 8-K filing and are incorporated by reference.