FWP 1 d143924dfwp.htm FWP FWP

Free Writing Prospectus, dated February 17, 2021

Filed pursuant to Rule 433 under the Securities Act of 1933

Supplementing the Preliminary Prospectus, dated February 8, 2021

Registration Statement Nos. 333-249674 and 333-249674-01

SCE Recovery Funding LLC

(Issuing Entity)

PRICING TERM SHEET

$337,783,000 Senior Secured Recovery Bonds, Series 2021-A

 

Issuing Entity:    SCE Recovery Funding LLC
Sponsor, Depositor and Initial Servicer:    Southern California Edison Company
Trustee:    The Bank of New York Mellon Trust Company, N.A.
Joint Bookrunners:    Barclays Capital Inc. and RBC Capital Markets, LLC
Co-Managers:    Drexel Hamilton, LLC and Loop Capital Markets LLC
Expected Ratings (Moody’s/S&P/Fitch):    Aaa (sf)/AAA (sf)/AAAsf(1)
Closing Date / Settlement Date:    February 24, 2021(2)
Interest Payment Dates:    May 15 and November, commencing November 15, 2021
Applicable Time:    3:42 PM (Eastern time) on February 17, 2021
Proceeds:    The total initial price to the public is $337,774,113. The total amount of the underwriting discounts and commissions is $1,351,132. The total amount of proceeds to the Issuing Entity before deduction of expenses (estimated to be $4,600,486) is $336,422,981.

 

(1)

A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

(2)

The Issuing Entity expects to deliver the bonds against payment for the bonds on or about February 24, 2021, which will be the fifth business day following the date of pricing of the bonds. Since trades in the secondary market generally settle in two business days, purchasers who wish to trade bonds on the date of pricing or the succeeding two business days will be required, by virtue of the fact that the bonds initially will settle in T + 5, to specify alternative settlement arrangements to prevent a failed settlement.

 

Tranche

   Principal
Amount
Offered		     Expected
Weighted
Average
Life
(years)		     Scheduled
Final
Payment
Date		     Final
Maturity
Date		      Interest
Rate		      Initial
Price to
Public(3)		      Underwriting
Discounts and
Commissions		      Proceeds to
Issuing Entity
(Before
Expenses)		  
A-1   $ 137,783,000       5.68       11/15/2031       11/15/2033        0.861 %       99.99940 %       0.40 %     $ 137,231,041  
A-2   $ 100,000,000       14.00       5/15/2038       5/15/2040        1.942 %       99.99697 %       0.40 %     $ 99,596,970  
A-3   $ 100,000,000       20.16       11/15/2043       11/15/2045        2.510 %       99.99497 %       0.40 %     $ 99,594,970  
(3) 

Interest on the bonds will accrue from February 24, 2021 and must be paid by the purchaser if the bonds are delivered after that date.

 

    

Tranche A-1

   

Tranche A-2

   

Tranche A-3

CUSIP    78433LAA4    78433LAB2    78433LAC0
ISIN    US78433LAA44    US78433LAB27    US78433LAC00

EXPECTED SINKING FUND SCHEDULE

 

Semi- Annual
Payment Date

    Tranche A-1 Balance      Tranche A-2 Balance      Tranche A-3 Balance  

11/15/2021

    $ 5,209,292      $ —        $ —    

5/15/2022

    $ 6,590,210      $ —        $ —    

11/15/2022

    $ 6,618,581      $ —        $ —    

5/15/2023

    $ 6,647,074      $ —        $ —    

11/15/2023

    $ 6,675,690      $ —        $ —    

5/15/2024

    $ 6,704,428      $ —        $ —    

11/15/2024

    $ 6,733,291      $ —        $ —    

5/15/2025

    $ 6,762,278      $ —        $ —    

11/15/2025

    $ 6,791,389      $ —        $ —    

5/15/2026

    $ 6,820,626      $ —        $ —    

11/15/2026

    $ 6,849,989      $ —        $ —    

5/15/2027

    $ 6,879,478      $ —        $ —    

11/15/2027

    $ 6,909,094      $ —        $ —    

5/15/2028

    $ 6,938,838      $ —        $ —    

11/15/2028

    $ 6,968,710      $ —        $ —    

5/15/2029

    $ 6,998,710      $ —        $ —    

11/15/2029

    $ 7,028,840      $ —        $ —    

5/15/2030

    $ 7,059,099      $ —        $ —    

11/15/2030

    $ 7,089,488      $ —        $ —    

5/15/2031

    $ 7,120,008      $ —        $ —    

11/15/2031

    $ 2,387,887      $ 4,762,773      $ —    

5/15/2032

    $ —        $ 7,207,186      $ —    

11/15/2032

    $ —        $ 7,277,168      $ —    

5/15/2033

    $ —        $ 7,347,829      $ —    

11/15/2033

    $ —        $ 7,419,177      $ —    

5/15/2034

    $ —        $ 7,491,217      $ —    

11/15/2034

    $ —        $ 7,563,957      $ —    

5/15/2035

    $ —        $ 7,637,403      $ —    

11/15/2035

    $ —        $ 7,711,562      $ —    

5/15/2036

    $ —        $ 7,786,441      $ —    

11/15/2036

    $ —        $ 7,862,048      $ —    

5/15/2037

    $ —        $ 7,938,388      $ —    

11/15/2037

    $ —        $ 8,015,470      $ —    

5/15/2038

    $ —        $ 3,979,381      $ 4,113,919  

11/15/2038

    $ —        $ —        $ 8,183,570  

5/15/2039

    $ —        $ —        $ 8,286,273  

11/15/2039

    $ —        $ —        $ 8,390,266  

5/15/2040

    $ —        $ —        $ 8,495,564  

11/15/2040

    $ —        $ —        $ 8,602,183  

5/15/2041

    $ —        $ —        $ 8,710,141  

11/15/2041

    $ —        $ —        $ 8,819,453  

5/15/2042

    $ —        $ —        $ 8,930,137  

11/15/2042

    $ —        $ —        $ 9,042,210  

5/15/2043

    $ —        $ —        $ 9,155,690  

11/15/2043

    $ —        $ —        $ 9,270,594  

Total Payments(4)

    $ 137,783,000      $ 100,000,000      $ 100,000,000  

 

(4) 

Totals may not add up due to rounding.

EXPECTED OUTSTANDING PRINCIPAL BALANCE PER TRANCHE

 

Semi- Annual Payment
Date

    Tranche A-1
Balance		      Tranche A-2
Balance		      Tranche A-3
Balance		  

Closing Date

    $ 137,783,000      $ 100,000,000      $ 100,000,000  

11/15/2021

    $ 132,573,708      $ 100,000,000      $ 100,000,000  

5/15/2022

    $ 125,983,498      $ 100,000,000      $ 100,000,000  

11/15/2022

    $ 119,364,917      $ 100,000,000      $ 100,000,000  

5/15/2023

    $ 112,717,843      $ 100,000,000      $ 100,000,000  

11/15/2023

    $ 106,042,153      $ 100,000,000      $ 100,000,000  

5/15/2024

    $ 99,337,725      $ 100,000,000      $ 100,000,000  

11/15/2024

    $ 92,604,434      $ 100,000,000      $ 100,000,000  

5/15/2025

    $ 85,842,156      $ 100,000,000      $ 100,000,000  

11/15/2025

    $ 79,050,767      $ 100,000,000      $ 100,000,000  

5/15/2026

    $ 72,230,141      $ 100,000,000      $ 100,000,000  

11/15/2026

    $ 65,380,152      $ 100,000,000      $ 100,000,000  

5/15/2027

    $ 58,500,674      $ 100,000,000      $ 100,000,000  

11/15/2027

    $ 51,591,580      $ 100,000,000      $ 100,000,000  

5/15/2028

    $ 44,652,742      $ 100,000,000      $ 100,000,000  

11/15/2028

    $ 37,684,032      $ 100,000,000      $ 100,000,000  

5/15/2029

    $ 30,685,322      $ 100,000,000      $ 100,000,000  

11/15/2029

    $ 23,656,482      $ 100,000,000      $ 100,000,000  

5/15/2030

    $ 16,597,383      $ 100,000,000      $ 100,000,000  

11/15/2030

    $ 9,507,895      $ 100,000,000      $ 100,000,000  

5/15/2031

    $ 2,387,887      $ 100,000,000      $ 100,000,000  

11/15/2031

    $ —        $ 95,237,227      $ 100,000,000  

5/15/2032

    $ —        $ 88,030,041      $ 100,000,000  

11/15/2032

    $ —        $ 80,752,873      $ 100,000,000  

5/15/2033

    $ —        $ 73,405,044      $ 100,000,000  

11/15/2033

    $ —        $ 65,985,867      $ 100,000,000  

5/15/2034

    $ —        $ 58,494,650      $ 100,000,000  

11/15/2034

    $ —        $ 50,930,693      $ 100,000,000  

5/15/2035

    $ —        $ 43,293,290      $ 100,000,000  

11/15/2035

    $ —        $ 35,581,728      $ 100,000,000  

5/15/2036

    $ —        $ 27,795,287      $ 100,000,000  

11/15/2036

    $ —        $ 19,933,239      $ 100,000,000  

5/15/2037

    $ —        $ 11,994,851      $ 100,000,000  

11/15/2037

    $ —        $ 3,979,381      $ 100,000,000  

5/15/2038

    $ —        $ —        $ 95,886,081  

11/15/2038

    $ —        $ —        $ 87,702,511  

5/15/2039

    $ —        $ —        $ 79,416,238  

11/15/2039

    $ —        $ —        $ 71,025,972  

5/15/2040

    $ —        $ —        $ 62,530,408  

11/15/2040

    $ —        $ —        $ 53,928,225  

5/15/2041

    $ —        $ —        $ 45,218,084  

11/15/2041

    $ —        $ —        $ 36,398,631  

5/15/2042

    $ —        $ —        $ 27,468,494  

11/15/2042

    $ —        $ —        $ 18,426,284  

5/15/2043

    $ —        $ —        $ 9,270,594  

11/15/2043

    $ —        $ —        $ —    

Subject to the terms and conditions in the underwriting agreement among us, SCE and the underwriters, for whom Barclays Capital Inc. and RBC Capital Markets, LLC are acting as representative, we have agreed to sell to the underwriters, and the underwriters have severally agreed to purchase, the principal amount of the bonds listed opposite each underwriter’s name below:

 

Underwriter

    Tranche A-1    Tranche A-2    Tranche A-3

Barclays Capital Inc.

    $62,002,000    $45,000,000    $45,000,000

RBC Capital Markets, LLC

    $55,113,000    $40,000,000    $40,000,000

Drexel Hamilton, LLC

    $10,334,000    $7,500,000    $7,500,000

Loop Capital Markets LLC

    $10,334,000    $7,500,000    $7,500,000

Total

    $137,783,000    $100,000,000    $100,000,000

The underwriters may allow, and dealers may reallow, a discount not to exceed the percentage listed below for each tranche:

 

    

Selling Concession

   

Reallowance Discount

Tranche A-1    0.240%    0.120%
Tranche A-2    0.240%    0.120%
Tranche A-3    0.240%    0.120%

After the initial public offering, the public offering prices, selling concessions and reallowance discounts may change.

Southern California Edison Company and the Issuing Entity have filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Southern California Edison Company and the Issuing Entity have filed with the SEC as exhibits to the registration statement for more complete information about the Issuing Entity and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Southern California Edison Company, the Issuing Entity, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Barclays Capital Inc. toll free at 1-888-603-5847 or RBC Capital Markets, LLC toll-free at 1-866-375-6829.