Southern California Edison (SCE) secures $300M term loan facility
Rhea-AI Filing Summary
Southern California Edison Company entered into a new Term Loan Credit Agreement providing up to $300 million in term loans maturing on March 11, 2027. The loans can be prepaid at any time without premium or penalty, giving the company flexibility in managing this debt.
The term loans bear interest at either term SOFR plus a 1.00% margin or a base rate plus a 0.0% margin. Southern California Edison expects to use the proceeds for general corporate and working capital purposes, which may include repaying other debt.
The agreement includes customary provisions and one financial covenant requiring a consolidated total indebtedness to consolidated capital ratio not exceeding 0.65 to 1.0 at each quarter-end. Existing relationship banks, including Wells Fargo as Administrative Agent, are also lenders under the company’s and its parent’s revolving credit facilities.
Positive
- None.
Negative
- None.
8-K Event Classification
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:
[
[
[
[
Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
Item 1.01Entry into a Material Definitive Agreement
On February 11, 2026, Southern California Edison Company (“SCE”) entered into a Term Loan Credit Agreement (the "Term Loan Agreement") with Wells Fargo Bank, National Association, 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 $300 million in term loans that mature on March 11, 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 which may include the repayment of debt. 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 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 11, 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 | |
| ||
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 and Controller | |
Date: February 11, 2026 |
FAQ
What did Southern California Edison (SCE) agree to in this 8-K filing?
Southern California Edison entered into a Term Loan Credit Agreement providing up to $300 million in term loans maturing on March 11, 2027. The facility adds committed funding capacity for general corporate and working capital purposes, including potential repayment of existing debt.
What are the key terms of Southern California Edison’s new $300 million term loan?
The term loans mature on March 11, 2027 and may be prepaid at any time without premium or penalty. Interest is based on either term SOFR + 1.00% or a base rate + 0.0%, providing rate flexibility under the agreement.
How will Southern California Edison (SCE) use the proceeds from the term loan?
Southern California Edison expects to use the term loan proceeds for general corporate and working capital purposes. This may include the repayment of debt, allowing the company to refinance or manage existing obligations under the new credit arrangement.
What financial covenant is included in Southern California Edison’s new term loan agreement?
The agreement includes one financial covenant requiring SCE to maintain a consolidated total indebtedness to consolidated capital ratio not exceeding 0.65 to 1.0 at each quarter-end. This covenant helps limit overall leverage under the credit arrangement.
Who are the lenders under Southern California Edison’s new term loan agreement?
The agreement names Wells Fargo Bank, National Association as Administrative Agent, with several banks and other financial institutions as lenders. These lenders, or their affiliates, also participate in SCE’s $3.35 billion and Edison International’s $1.5 billion revolving credit facilities.
Can Southern California Edison prepay the new $300 million term loans without penalty?
Yes. The term loans under the agreement may be prepaid in whole or in part at any time without any premium or penalty. This allows Southern California Edison to reduce or retire the borrowing early if that becomes attractive.