Business Context and Reporting Period
Company: Southern California Edison Company (SCE)
Filing Type: Form 8-K (Current Report)
Date of Report: February 20, 2026
Event: Entry into a new Term Loan Credit Agreement and termination of a prior agreement.
Key Financial Metrics and Debt Structure
- New Term Loan Facility: Up to $1.5 billion.
- Maturity Date: March 22, 2027.
- Interest Rate: Term SOFR + 1.00% or Base Rate + 0.0%.
- Prepayment Terms: Allowed in whole or in part at any time without premium or penalty.
- Financial Covenant: Consolidated total indebtedness to consolidated capital ratio must not exceed 0.65 to 1.0 at the end of each quarter.
- Related Facilities: Lenders are also parties to SCE's $3.35 billion revolving credit facility and its parent Edison International's $1.5 billion revolving credit facility.
Material Changes Versus Prior Period
- Termination of Prior Agreement: SCE terminated a $300 million unsecured Term Loan Credit Agreement dated February 11, 2026, which was due to mature on March 11, 2027.
- Net Increase in Capacity: The new facility increases available term loan capacity by $1.2 billion compared to the terminated facility ($1.5 billion new vs. $300 million old).
- Cost of Termination: No early termination penalties were incurred.
Guidance, Outlook, and Management Commentary
- Use of Proceeds: Funds will be used for general corporate and working capital purposes, specifically including the repayment of all borrowings under the terminated $300 million Prior Term Loan Agreement.
- Lender Relationships: Lenders have historically provided and may continue to provide investment banking, financial advisory, and commercial banking services to SCE and its affiliates.
- Risks and Contingencies: The filing references customary representations, warranties, covenants, and events of default within the Term Loan Agreement. The filing text does not provide specific details on unusual items or forward-looking guidance beyond the immediate use of proceeds.
Investor Verification Checklist
- Verify the exact amount drawn from the new $1.5 billion facility versus the total commitment.
- Confirm the current consolidated total indebtedness to consolidated capital ratio to ensure compliance with the 0.65 to 1.0 covenant.
- Review the full text of the Term Loan Agreement (Exhibit 10.1) for specific events of default and negative covenants.
- Assess the impact of the increased debt capacity on the company's overall leverage profile and interest expense.