Summary
Edison International (EIX) announced on April 8, 2022, the entry into a $600 million Term Loan Credit Agreement. This facility matures on April 7, 2023, and the proceeds are intended for general corporate purposes, potentially including debt repayment such as senior notes. The interest rate is tied to either adjusted term SOFR plus a 0.70% margin or a base rate. A key financial covenant requires the company to maintain a consolidated total recourse indebtedness to consolidated capital ratio not exceeding 0.70 to 1.0 at the end of each quarter. This new term loan is part of Edison International's broader 2022 financing strategy, which anticipates issuing securities with $300 to $400 million of equity content and refinancing $700 million of parent debt maturities. The company has confirmed its expectation to proceed with its previously disclosed financing plans, indicating a proactive approach to managing its capital structure and debt obligations.
Key Highlights
- 1Edison International secured a $600 million term loan facility on April 8, 2022.
- 2The term loan matures on April 7, 2023, indicating a short-term financing need.
- 3Proceeds are designated for general corporate purposes, including potential debt repayment.
- 4The interest rate is variable, based on adjusted term SOFR plus a 0.70% margin or a base rate.
- 5A single financial covenant requires maintaining a debt-to-capital ratio of 0.70:1.0 or less.
- 6The company reaffirms its previously disclosed 2022 financing plan, including equity component issuance and debt refinancing.