Vistra to repay $800 million notes, expects 2.5x ratio by end of 2020

By Devika Patel

Knoxville, Tenn., May 3 – Vistra Energy Corp. management expects the company will reach its target leverage ratio of 2.5x net debt to EBITDA by the end of 2020 through repaying $800 million of senior notes this year and possibly conducting refinancing transactions as well.

“We believe we remain on track to achieve our long-term leverage target in the range of 2.5x net debt to EBITDA by year-end 2020,” president and chief executive officer Curtis A. Morgan said on the company’s first quarter ended March 31 earnings conference call on Friday.

“Balance sheet strength is a core tenet of Vistra’s operating model, and we plan to manage our business and cash flows accordingly with the opportunity to continue to improve our credit profile, which we believe strengthens our business and ultimately our stock price,” Morgan said.

The company plans to repay $800 million of senior notes this year and plans to conduct refinancing transactions as well.

“We are still forecasting we will repay approximately $800 million of senior notes in 2019 as we work toward achieving our long-term leverage target of approximately 2.5x net debt to EBITDA by year-end 2020,” executive vice president and chief financial officer J. William Holden said on the call.

“We will also continue to opportunistically optimize our balance sheet through refinancing transactions in the future,” Holden said.

As of March 31, Vistra had total available liquidity of approximately $2,324,000,000. This included cash and cash equivalents of $546 million, $1,753,000,000 of availability under the company’s revolving credit facility, which remained undrawn but had $922 million of letters of credit outstanding as of March 31, and $25 million of availability under Vistra’s alternate letter of credit facilities.

As of March 31, Vistra’s outstanding long-term debt was approximately $11.1 billion.

Vistra is a Dallas-based power generator and retail electric provider.

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