SOUTHERN CALIFORNIA EDISON Co 8-K

What Happened Southern California Edison Company (SCE) announced in an 8-K filed February 20, 2026 that it entered into a Term Loan Credit Agreement with Wells Fargo Bank, N.A. as Administrative Agent and participating lenders for up to $1.5 billion in term loans. The loans mature on March 22, 2027, may be prepaid without penalty, and carry interest at either term SOFR plus 1.00% or a base rate plus 0.0%. SCE expects to use proceeds for general corporate and working capital purposes, including repaying a prior $300 million unsecured term loan dated February 11, 2026.

Key Details

• Amount: up to $1.5 billion in term loans.
• Maturity: March 22, 2027.
• Interest: term SOFR + 1.00% or base rate + 0.0%; prepayment permitted with no premium or penalty.
• Financial covenant: consolidated total indebtedness / consolidated capital must not exceed 0.65 to 1.0 at each quarter end.
• Administrative agent: Wells Fargo; participating lenders also currently lend on SCE’s $3.35B and parent Edison International’s $1.5B revolving facilities.

Why It Matters This transaction provides SCE with near-term liquidity and a committed borrowing capacity to support operations and repay a recent $300M term loan. The one-year maturity means this is short-term financing—useful for working capital but potentially requiring refinancing before March 2027. The single leverage covenant (≤0.65) is a notable contractual limit on indebtedness that investors should monitor, as changes in capital structure or earnings could affect compliance. The interest spread is relatively modest, and participating lenders already have existing relationships with SCE and its parent.