Southern California Edison (EIX) has announced they will be selling a new issue of trust preferred securities.
It is possible the company will be redeeming one of their outstanding trust preferred issues of which there are a number of issues.
The preliminary prospectus can be read here.
does anyone know what symbol it will actually start trading at? not showing at sce.n and know it will eventually trade at that, but trying to find the initial trading symbol.
I don’t see an FWP for the trust preferred. Is 6.95% the expected coupon or the actual coupon?
Here we go, Steve.
https://www.sec.gov/Archives/edgar/data/92103/000119312524133191/d797073dfwp.htm
thanks
6.95 coupon…additionally offering 1st mtg lien 5.45 due 6/1/31 750mil.
$750mm is enough to take out both Series E and Series H
I thought Jerry was suggesting the $750 m was the 5.45% mortgage lien debt issuance. No way in hell would they move the preferred capital stack onto their debt ledger.
The new preferred is where the call risk would come from.
Yeah, I read that too fast. $750 is the Mortgage Bond
https://www.sec.gov/Archives/edgar/data/92103/000119312524132054/d833107dfwp.htm
Still don’t know how much of the Pfd they were able to sell. Would need $625 to take out Series E+H
Priced To Yield: 6.950%
Deal Size: $350,000,000 (14mm $25 par securities)
Settlement Date: 5/13/2024
Seems likely they will use this to take out Series E, which has $350 outstanding. Series H may be safe for now
You are correct!
Southern California Edison Announces Redemption of SCE Series E Preference Stock
Business Wire2:32 PM Eastern Daylight Time May 07, 2024
We’ve been praying they’d survive, much less call any existing issues!!
As a rate ho it has been just too easy buying them. Which, by definition, is always a reason for concern!
Do you know if it’s fixed or a 5 year reset?
I’d be very happy if they retire any of their issues. Though I’d be surprised if they did seeing they’ve been paying thru the teeth
H is floating at 8.5% and Series E about 9.75%. They can improve on that. Since the 2 I own are in the crosshairs, I would be interested in a 7.5% or above fixed to flip again like their last issuance. Of course they tend to split issuances between retail and institutional so that may affect whether they go fixed or reset.
Tim, considering it says this, I would say your correct, ha… We currently expect to use the net proceeds from the sale of the Series N Preference Shares for general corporate purposes, including but not limited to the redemption of outstanding preference stock.
Likely candidates are SCE-H which just went floating, and The $1000 Series E floating and past call 2 years at a very bloated yield. Not surprising.