QUANTUMONLINE.COM SECURITY DESCRIPTION: SCE Trust VIII 6.95% Trust Preference Securities liquidation amount $25 per share, guaranteed by Southern California Edison Co (See our definition of Guaranteed in our Glossary of Income Investing Terms for the technicalities of the guarantee), redeemable at the issuer's option on or after 05/13/2029 at $25 per share plus accrued and unpaid dividends, with no stated maturity. Cumulative distributions of 6.95% per annum ($1.7375 per annum or $0.434375 per quarter) will be paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date which will be one business day prior to the payment date while the securities remain in book-entry form (NOTE: the ex-dividend date is one business day prior to the record date).
Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders (see page 39 of the prospectus for further information).
The Company may redeem the Preference Shares before 05/13/2029 at $25.25 (101%) of their principal amount plus accrued and unpaid dividends, if a Tax event occurs; before 05/13/2029 at $25.50 (102%) of their principal amount plus accrued and unpaid dividends if a rating agency event occurs. (see prospectus for further information).
This security was rated as Baa3 by Moody’s and BB+ by S&P at the date of its IPO. This security was rated as BBB- by Fitch Raitings Co. at the date of its IPO. In regard to the payment of distributions and upon liquidation, the preference shares rank junior to the company's senior debt, equally with other preference shares of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.
