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 (NYSE: EIX) today 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:
Wells Fargo Securities, LLC
608 2nd Avenue South, Suite 1000
Minneapolis, MN 55402
ATTN: WFS Customer Service
BofA Securities, Inc.
200 North College Street, 3rd floor
Charlotte NC 28255-0001
Attn: Prospectus Department
J.P. Morgan Securities LLC
c/o Broadridge Financial Solutions,
Attn: Prospectus Department
1155 Long Island Avenue
Edgewood, NY 11717
RBC Capital Markets, LLC
200 Vesey Street, 8th Floor
New York, NY 10281
Attention: DCM Transaction Management
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Edison International
Edison International (NYSE: EIX) is one of the nation’s largest electric utility holding companies, providing clean and reliable energy and energy services through its independent companies. Headquartered in Rosemead, California, Edison International is the parent company of Southern California Edison Company, a utility that delivers electricity to 15 million people across Southern, Central and Coastal California. Edison International is also the parent company of Edison Energy, a global energy advisory company delivering comprehensive, data-driven energy solutions to commercial and industrial users to meet their cost, sustainability and risk goals.
Safe Harbor Statement for Investors
Statements contained in this press release about expectations of capital spending and financing, and other statements that do not directly relate to a historical or current fact, are forward-looking statements. In this press release, the words "expects," "will" and variations of such words and similar expressions, or discussions of strategy, plans or actions, are intended to identify forward-looking statements. Such statements reflect our current expectations; however, such statements necessarily involve risks and uncertainties. Actual results could differ materially from current expectations. Other important factors are discussed in Edison International’s Form 10-K and other reports filed with the Securities and Exchange Commission, which are available on our website: edisoninvestor.com. Edison International has no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005349/en/
Sam Ramraj, (626) 302-2540
Jeff Monford, (626) 476-8120