8-KMaterial AgreementsFinancial EventsExhibits & Filings

EDISON INTERNATIONAL 8-K Report, Material Agreement (Mar 24, 2020)

Filed March 24, 2020For Securities:EIX

Summary

Edison International (EIX) announced on March 24, 2020, the entry into a $800 million Term Loan Credit Agreement on March 20, 2020, to enhance its financial flexibility. The company immediately drew the full amount on March 23, 2020, with the funds intended for general corporate purposes, including potential debt repayment. This move provides EIX with additional liquidity during a period of economic uncertainty. The term loan matures in one year and can be prepaid without penalty, offering significant flexibility. A key financial covenant requires EIX to maintain a consolidated total recourse indebtedness to consolidated capital ratio not exceeding 0.70 to 1.0, which investors should monitor.

Key Highlights

  • 1Edison International secured an $800 million term loan facility on March 20, 2020.
  • 2The full $800 million was borrowed on March 23, 2020, to bolster financial flexibility.
  • 3Proceeds are designated for general corporate purposes, potentially including debt repayment.
  • 4The term loan has a maturity date of March 19, 2021, a one-year term.
  • 5The loan can be prepaid at any time without premium or penalty.
  • 6A financial covenant requires maintaining a consolidated total recourse indebtedness to consolidated capital ratio below 0.70 to 1.0.

Frequently Asked Questions

Edison International entered into the term loan agreement to enhance its financial flexibility, which is a common strategy to ensure sufficient liquidity, especially during uncertain economic times. The funds may be used for general corporate purposes, including repaying existing debt.

The term loan matures on March 19, 2021, which is approximately one year from the date the agreement was entered into.

No, the term loan agreement allows Edison International to prepay the loan in whole or in part at any time without incurring any premium or penalty.

The primary financial covenant requires Edison International to maintain a ratio of consolidated total recourse indebtedness to consolidated capital at a level that does not exceed 0.70 to 1.0 at the end of each quarter.