Edison International (NYSE: EIX) completed the tender offer expirations for its preferred stock and trust preference securities on December 19, 2025. The company accepted all shares offered in two cash tender offers, with a settlement date of December 23, 2025. The aggregate purchase price totaled $1.3418 billion, comprising $415.5 million from Series B preferred stock, $744.98 million from Series A preferred stock, and $181.27 million from the 5.45% fixed‑to‑floating rate trust preference securities issued by SCE Trust V.
By retiring the entire outstanding balance of these instruments, Edison will eliminate $1.3418 billion of preferred‑equity and trust‑security liabilities. Prior to the tender offers, the company’s capital structure was roughly 52% common equity, 5% preferred equity, and 43% long‑term debt. The transaction reduces the preferred‑equity component, lowering the company’s overall cost of capital and freeing up cash that can be deployed toward grid‑modernization projects and other strategic initiatives.
The decision to repurchase preferred stock and trust securities aligns with Edison’s broader strategy to de‑risk its financial outlook amid a regulatory environment that has recently seen progress on wildfire liability matters. By taking advantage of favorable market conditions and lower interest rates, the company can replace higher‑yielding preferred instruments with lower‑cost debt or equity, thereby improving its balance‑sheet resilience and positioning it to meet its $28–$29 billion capital‑expenditure plan for 2025‑2028.
The tender offers also reduce future dividend obligations, as the preferred stock carries cumulative dividends that must be paid before common‑stock dividends. With the preferred instruments retired, Edison can potentially lower the dividend payout ratio and increase the flexibility to raise capital or return value to shareholders. The company has set a 5‑7% core earnings‑per‑share compound annual growth rate target for 2025‑2028, and the improved capital structure supports that outlook.
CEO Pedro J. Pizarro emphasized that the company is focused on de‑risking its financial outlook and strengthening its balance sheet. The move comes after regulatory developments, including the passage of SB 254 and settlements related to wildfire liabilities, which have helped reduce the company’s exposure to catastrophic losses. With the capital‑structure gains from the tender offers, Edison is better positioned to invest in grid reliability, renewable integration, and long‑term growth.
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