Debt and Credit Agreements

12 Months Ended

Dec. 31, 2021

Debt and Credit Agreements

Debt and Credit Agreements

Note 5.Debt and Credit Agreements

Long-Term Debt

The following table summarizes long-term debt (rates and terms are as of December 31, 2021) of Edison International and SCE:

	December 31,
(in millions)	2021		2020
Edison International Parent and Other:
Debentures and notes:
2022 – 2028 (2.40% to 5.75%)	$	3,150	$	3,150
Current portion of long-term debt		(700)		—
Unamortized debt discount/premium and issuance costs, net		(13)		(17)
Total Edison International Parent and Other		2,437		3,133
SCE:
First and refunding mortgage bonds:
2022 – 2051 (0.70% to 6.05%)		20,314		16,843
Pollution-control bonds:
2023 – 2035 (1.45% to 2.63%)		752		135
Debentures and notes:
2029 – 2053 (5.06% to 6.65%)		306		306
Senior secured recovery bonds1:
2033 – 2045 (0.86% to 2.51%)		333		—
Other long-term debt2		518		324
Current portion of long-term debt		(377)		(1,029)
Unamortized debt discount/premium and issuance costs, net		(113)		(80)
Total SCE		21,733		16,499
Total Edison International	$	24,170	$	19,632

1 The senior secured recovery bonds are payable only from and secured by the Recovery Property at SCE Recovery Funding LLC, and do not constitute a debt or other legal obligation of, or interest in, SCE or any of its affiliates, except for SCE Recovery Funding LLC. For further details, see Note 3.

2 Amounts represent short-term obligations refinanced on a long-term basis subsequent to the balance sheet dates. For further details, see "Debt Financing Subsequent to December 31, 2021."

Edison International and SCE long-term debt maturities over the next five years are as follows:

	Edison
(in millions)	International		SCE
2022	$	1,077	$	377
2023		2,598		2,198
2024		2,063		1,563
2025		1,314		914
2026		364		364

Liens and Security Interests

Almost all of SCE's properties are subject to a trust indenture lien. SCE has pledged first and refunding mortgage bonds as collateral for borrowed funds obtained from pollution-control bonds issued by government agencies. SCE has a debt covenant that requires a debt to total capitalization ratio to be less than or equal to 0.65 to 1. At December 31, 2021, SCE's debt to total capitalization ratio was 0.55 to 1 and was in compliance with all other financial covenants that affect access to capital. Edison International Parent's credit facility requires a consolidated debt to total capitalization ratio as defined in the applicable agreements of less than or equal to 0.70 to 1. At December 31, 2021, Edison International consolidated debt to total capitalization ratio was 0.61 to 1.

Credit Agreements and Short-Term Debt

The following table summarizes the status of the credit facilities at December 31, 2021:

(in millions, except for rates)
Execution	Termination	Secured Overnight Financing Rate ("SOFR")				Outstanding		Outstanding		Amount
date	date	plus (bps)	Use of proceeds	Commitment		borrowings		letters of credit		available
Edison International Parent
June 2019	May 2025	128	Support commercial paper borrowings and general corporate purposes1, 3	$	1,500	$	—	$	—	$	1,500
Total Edison International Parent:				$	1,500	$	—	$	—	$	1,500
SCE
June 2019	May 2025	108	Support commercial paper borrowings and general corporate purposes2, 3	$	3,350	$	601	$	195	$	2,554
Total SCE:				$	3,350	$	601	$	195	$	2,554
Total Edison International:				$	4,850	$	601	$	195	$	4,054

1 At December 31, 2021 Edison International Parent did not have any outstanding commercial paper. At December 31, 2020 Edison International Parent had $130 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 0.42%.

2 At December 31, 2021 and December 31, 2020, SCE had $601 million and $725 million outstanding commercial paper, net of discount, at a weighted-average interest rate of 0.45% and 0.43%, respectively.

3 The aggregate maximum principal amount under the SCE and Edison International Parent revolving credit facilities may be increased up to $4.0 billion and $2.0 billion, respectively, provided that additional lender commitments are obtained.

Term loan and other short-term debt

In 2021, SCE borrowed $1.2 billion under a term loan agreement due in May 2022 with a variable interest rate based on SOFR plus 0.60%. SCE used the proceeds to repay outstanding indebtedness and to finance certain capital projects related to wildfire mitigation that meet the green loan principles set forth by international loan market organizations including the Loan Syndications and Trading Association.

Additionally, in 2021, SCE issued $475 million of SOFR plus 0.35% first and refunding mortgage bonds, and $550 million of SOFR plus 0.47% first and refunding mortgage bonds, both due in 2022. The proceeds were used to partially repay floating rate first mortgage bonds due in 2021, commercial paper borrowings and for general corporate purposes.

Debt Financing Subsequent to December 31, 2021

In January 2022, SCE issued $500 million of 2.75% first and refunding mortgage bonds due in 2032 and $700 million of 3.45% first and refunding mortgage bonds due in 2052. The proceeds of these issuances were used to finance or refinance eligible sustainable projects.

In February 2022, SCE Recovery Funding LLC issued $533 million of senior secured recovery bonds, Series 2022-A, in three tranches of $100 million, 1.98% due 2030, $305 million, 2.94% due 2044, and $128 million, 3.24% due 2048 and used the proceeds to acquire SCE's right, title and interest in and to the Recovery Property. SCE used the proceeds it received from the sale of Recovery Property to reimburse itself for previously incurred AB 1054 Excluded Capital Expenditures, including partial repayment of the term loan due in May 2022 as discussed above.