Summary
Edison International (EIX) and its subsidiary Southern California Edison (SCE) have entered into new material definitive agreements, specifically term loan credit agreements, to secure significant funding. Edison International has secured a $400 million term loan maturing in November 2023, while SCE has obtained a $600 million term loan maturing in May 2024. Both loans can be prepaid without penalty and will be used for general corporate purposes. These new debt facilities introduce specific financial covenants related to leverage ratios. Edison International must maintain a consolidated total recourse indebtedness to consolidated capital ratio not exceeding 0.70 to 1.0, and SCE must maintain a consolidated total indebtedness to consolidated capital ratio not exceeding 0.65 to 1.0. The interest rates for these loans are tied to SOFR or a base rate, with specified margins. This filing primarily informs investors about the company's efforts to manage its liquidity and capital structure through new debt issuances.
Key Highlights
- 1Edison International entered into a $400 million term loan agreement maturing November 6, 2023.
- 2Southern California Edison (SCE) entered into a $600 million term loan agreement maturing May 7, 2024.
- 3Proceeds from both term loans are designated for general corporate purposes.
- 4Both loans offer flexibility for prepayment without premium or penalty.
- 5Edison International's loan includes a financial covenant requiring a consolidated total recourse indebtedness to consolidated capital ratio not to exceed 0.70 to 1.0.
- 6SCE's loan includes a financial covenant requiring a consolidated total indebtedness to consolidated capital ratio not to exceed 0.65 to 1.0.
- 7Interest rates are based on Adjusted Term SOFR plus a margin or a base rate.