SCE adds $1.5B term loan maturing in 2027
Rhea-AI Filing Summary
Southern California Edison Company entered into a new Term Loan Credit Agreement providing up to $1.5 billion in term loans maturing on March 22, 2027. The loans bear interest at either term SOFR plus 1.00% or a base rate plus 0.0% and may be prepaid at any time without premium or penalty.
SCE plans to use the proceeds for general corporate and working capital purposes, including repaying all borrowings under its prior $300 million unsecured term loan with Wells Fargo, which was terminated concurrently without early termination penalties. The agreement includes customary covenants and requires SCE to keep its consolidated total indebtedness to consolidated capital ratio at or below 0.65 to 1.0.
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Insights
SCE secures a larger term loan to refinance debt and fund general needs, with a leverage covenant.
Southern California Edison arranged a new Term Loan Credit Agreement providing up to $1.5 billion in term loans maturing on March 22, 2027. Interest is based on either term SOFR plus 1.00% or a base rate plus 0.0%, and the loans are prepayable without penalty.
The company expects to use the proceeds for general corporate and working capital purposes, including repayment of all borrowings under the prior $300 million unsecured term loan that was terminated with no early termination penalties. The facility carries a financial covenant requiring a consolidated total indebtedness to consolidated capital ratio not exceeding 0.65 to 1.0, which frames how much leverage SCE can maintain under this agreement.
8-K Event Classification
FAQ
What new credit facility did Southern California Edison Company (SCE) enter into?
How will SCE use the proceeds from the new $1.5 billion term loan?
What are the interest rate options on SCE’s new term loan credit agreement?
What key financial covenant is included in SCE’s new term loan agreement?
What happened to Southern California Edison’s prior $300 million term loan agreement?
Can Southern California Edison prepay the new term loans without penalty?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
Commission | | Exact Name of Registrant | | State or Other Jurisdiction of | | IRS Employer |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Item 1.01Entry into a Material Definitive Agreement
On February 20, 2026, Southern California Edison Company (“SCE”) entered into a Term Loan Credit Agreement (the “Term Loan Agreement”) with Wells Fargo Bank, National Association (“Wells Fargo”), as Administrative Agent and the several banks and other financial institutions from time to time parties thereto. The Term Loan Agreement provides for up to $1.5 billion in term loans that mature on March 22, 2027. The term loans may be prepaid in whole or in part at any time without any premium or penalty. SCE expects to use the proceeds of the term loans for general corporate and working capital purposes, including the repayment of all borrowings under the $300 million unsecured Term Loan Credit Agreement, dated as of February 11, 2026, with Wells Fargo, as the lender (the “Prior Term Loan Agreement”). The term loans bear interest at either term SOFR plus a margin of 1.00% or a base rate plus a margin of 0.0%. The Term Loan Agreement contains customary representations and warranties, covenants and events of default and has one financial covenant, requiring that SCE maintain at the end of each quarter a ratio of consolidated total indebtedness to consolidated capital at a level that does not exceed 0.65 to 1.0.
The lenders that are a party to the Term Loan Agreement or their affiliates have in the past performed, and may in the future from time to time perform, investment banking, financial advisory, lending and/or commercial banking services for SCE and certain of its subsidiaries and affiliates, for which service they have in the past received, and may in the future receive, customary compensation and reimbursement of expenses. In addition, each of the lenders party to the Term Loan Agreement are currently lenders under the $3.35 billion revolving credit facility of SCE and the $1.5 billion revolving credit facility of its parent, Edison International.
The foregoing descriptions are qualified in its entirety by reference to the full text of the Term Loan Agreement, filed as Exhibit 10.1 hereto and incorporated by reference herein.
Item 1.02. Termination of a Material Definitive Agreement.
On February 20, 2026, concurrently with the execution of the Term Loan Agreement described in Item 1.01 above, SCE terminated the Prior Term Loan Agreement, which was due to mature on March 11, 2027. SCE incurred no early termination penalties as a result of such termination.
Item 2.03Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
See Item 1.01.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
See the Exhibit Index below.
EXHIBIT INDEX
Exhibit No. | | Description |
10.1 | Term Loan Credit Agreement, dated as of February 20, 2026, among Southern California Edison Company, the several banks and other financial institutions from time to time parties thereto and Wells Fargo Bank, National Association, as Administrative Agent | |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
SOUTHERN CALIFORNIA EDISON COMPANY | |
(Registrant) | |
/s/ Kara G. Ryan | |
Kara G. Ryan | |
Vice President, Chief Accounting Officer and Controller | |
Date: February 20, 2026 |