Edison International to Redeem 5.45% Trust Securities and 5.375% Preferred Stock
Edison International will redeem its SCE Trust V 5.45% fixed-to-floating rate trust preference securities at par and cease dividend accrual thereafter. It will also redeem its 5.375% fixed-rate reset cumulative perpetual preferred stock, Series A, at par, reducing its outstanding preferred obligations.
1. SCE Trust V Redemption
Southern California Edison will redeem all outstanding SCE Trust V 5.45% fixed-to-floating rate trust preference securities at par, ceasing future dividend payments once the redemption is executed. The move eliminates the transition to floating-rate dividends and simplifies the trust’s payout schedule.
2. Series A Preferred Redemption
Edison International will redeem its 5.375% fixed-rate reset cumulative perpetual preferred stock, Series A, at par, halting all dividend accruals on these securities upon redemption. The reset feature tied to a benchmark index will no longer apply after the call date.
3. Capital Structure Implications
By eliminating both series of preferred securities, the company will reduce fixed financing obligations and streamline its capital structure. Investors will see a reduction in dividend income but may benefit from lower interest costs and simplified balance sheet metrics.