- Transaction provides approximately $625 million of equity content
- Company will consider additional preferred equity, internal programs, and, if needed, ATM program to satisfy balance of up to $1 billion of equity content previously announced
Edison International announced the pricing of a public offering of 1.25 million shares of its 5.375% Series A Fixed-Rate Reset Cumulative Perpetual Preferred Stock. The transaction is expected to close on March 9, 2021, subject to customary closing conditions, and is expected to result in net proceeds of approximately $1.24 billion.
This $1.25 billion transaction follows from the company’s announcement on its fourth quarter 2020 earnings call that it would issue securities with up to $1 billion of equity content to support its investment grade ratings. The offering provides approximately $625 million of equity content. With a significant portion of the equity content need addressed, Edison International will continue to monitor market conditions and consider additional preferred equity, internal programs, and, if needed, its existing at-the-market program to satisfy the balance of the need.
“We are pleased with this transaction and the strong investor support for the offering,” said Pedro J. Pizarro, president and CEO of Edison International. “Raising this capital further strengthens our balance sheet and demonstrates our commitment to maintaining investment grade credit ratings. Edison International will also use this capital to help Southern California Edison continue to debt-finance the 2017/2018 Wildfire/Mudslide Events claims payments, as we have previously stated.”
Wells Fargo Securities, BofA Securities, J.P. Morgan, RBC Capital Markets, Barclays, Citigroup, Credit Suisse, and Morgan Stanley are serving as joint book-running managers of the offering. AmeriVet Securities, Blaylock Van, LLC, MFR Securities, Inc., Penserra Securities LLC, and Siebert Williams Shank are acting as co-managers of the offering.
This offering is being made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission, and only by means of a prospectus supplement for this offering and a related base prospectus. Copies of the prospectus supplement and accompanying prospectus related to the offering may be obtained by visiting EDGAR on the Securities and Exchange Commission’s website at www.sec.gov, or by contacting: