On November 18, 2025, Southern California Edison announced it will redeem all outstanding Series J Preference Stock, thereby retiring the SCE Trust IV 5.375% Fixed‑to‑Floating Rate Trust Preference Securities. The redemption will take place on December 18, 2025, with each security priced at $25 plus accrued and unpaid distributions up to, but excluding, the redemption date. Accrued amounts will be calculated using a spread adjustment of 3.39361% to the three‑month SOFR as of December 11, 2025.
The transaction removes all preference‑security liabilities associated with the Series J stock, simplifying Edison International’s capital structure and reducing its overall debt burden. By eliminating future interest obligations on the 5.375% preference securities, the company gains a modest cash‑flow benefit and is expected to improve its debt‑to‑capital ratio.
The redemption aligns with Edison International’s broader strategy to manage its capital mix and optimize its financial position. The company continues to invest heavily in grid modernization and wildfire mitigation initiatives, and the reduction in preference‑security liabilities frees capital that can be deployed toward those priorities.
While the redemption itself is a routine financing action, it is viewed as a positive step toward a leaner balance sheet. The company’s recent Q3 earnings beat, with EPS of $2.34 versus consensus $2.16, and a FY2025 EPS guidance of $5.95‑$6.20, underscore its ability to generate strong earnings while managing debt.
The redemption is a material financing event that will strengthen Edison International’s balance sheet and support its long‑term investment strategy in California’s power grid.
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