Edison International Announces Completion of 2020 Financing Plan
May 13 2020 - 8:30AM
Business Wire
Edison International (NYSE: EIX) today announced it has
completed an $800 million common stock offering in a registered
direct placement. This new equity capital is being provided by a
number of existing investors. The shares will be sold at a price of
$56.41 per share, which was the closing price on May 12, 2020, the
last trading day prior to entering into this transaction. The
transaction is expected to close on May 15, 2020, subject to
customary closing conditions, and is expected to result in net
proceeds of $785 million.
This $800 million transaction adds to the approximately $100
million of equity raised in the first quarter to complete Edison
International’s previously disclosed 2020 financing plan. The 2020
financing plan also included $400 million of debt that was issued
earlier this year.
“The timely execution of this equity issuance further de-risks
our balance sheet,” said Pedro J. Pizarro, president and CEO of
Edison International. “We expect minimal equity requirements to
fund our ongoing capital expenditures program beyond 2020 based on
our underlying assumptions for our core business.”
Pizarro added, “This equity investment, which reflects strong
demand from long-term institutional investors, supports substantial
investment opportunities at our subsidiary, Southern California
Edison, including its ongoing wildfire mitigation efforts and its
role in creating a clean energy future. SCE has a robust capital
program over the next few years that, if approved by its regulator,
will invest more than $5 billion annually on infrastructure
replacement, transportation electrification, transmission
infrastructure and wildfire mitigation.”
Moelis & Company, Citigroup, J.P. Morgan and Barclays are
serving as placement agents to Edison International and are
represented by Cleary Gottlieb Steen & Hamilton LLP. Wachtell,
Lipton, Rosen & Katz and Munger, Tolles & Olson LLP are
serving as legal advisors to Edison International.
About Edison International
Edison International (NYSE: EIX), through its subsidiaries, is a
distributor and generator of electric power, as well as a provider
of energy services and technologies, including renewable energy.
Headquartered in Rosemead, California, Edison International is the
parent company of Southern California Edison, one of the nation’s
largest electric utilities. Edison International is also the parent
company of Edison Energy, a portfolio of competitive businesses
that provide commercial and industrial customers with energy
management and procurement services. Edison Energy is independent
from Southern California Edison.
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, most
recent Form 10-Q 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.
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Media Contact: Jeff Monford, (718) 809-3405 Investor Relations:
Sam Ramraj, (626) 302-2540
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