Southern California Edison trust doubles preference share sale; Charles Schwab frees up

By Stephanie N. Rotondo

Seattle, March 1 – A new preferred stock issue hit the tape Tuesday, with Southern California Edison Co.’s SCE Trust V pricing a $300 million offering of 5.45% fixed-to-floating rate trust preference securities.

Price talk was in a 5.5% to 5.625% range, according to a market source.

At the close, a source pegged the issue at $25.07 bid, $25.16 offered. Another trader saw the new deal trading at $24.80 bid, par offered in the early gray market.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC ran the books.

Proceeds will be used to redeem $125 million of 6.5% $100-par series D preference stock (OTCBB: SCEDP) and for general corporate purposes.

The series Ds closed down $2.59, or 2.51%, at $100.59. The shares were trading down $1.93, or 1.87%, to $101.25 at mid-morning.

Meanwhile, the Charles Schwab Corp.’s $750 million of 5.95% series D noncumulative perpetual preferreds – a deal priced Monday – freed to trade early in the session, a trader said.

He pegged that issue at $25.20 bid, $25.22 offered.

“It did really well,” the trader commented.

At the bell, the noncumulatives were seen at $25.18.

The deal came upsized from $250 million and tighter than the 6% to 6.125% price talk.

BofA Merrill Lynch, Morgan Stanley, UBS Securities LLC and Wells Fargo Securities led that offering.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.