Vistra to price $750 million green perpetual preferreds on Tuesday

By Paul A. Harris

Portland, Ore., Dec. 7 – Vistra Corp. plans to price a $750 million offering of series B fixed-rate reset cumulative redeemable green perpetual preferred stock (existing ratings Ba3/B/BB-) in a Tuesday drive-by trailing an investor conference call, according to an informed source.

Goldman Sachs & Co. LLC is the left bookrunner. Credit Agricole CIB, Natixis Securities Americas LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, BMO Capital Markets Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets LLC and Truist Securities Inc. are the joint bookrunners.

The preferreds, which are coming in a Rule 144A and Regulation S for life offering, reset after five years.

The securities are callable at par on or after the first reset date, and at 102 within 120 days of a rating event. They become callable at 103 in year one, 102 in year two, and 101 in years three, four and five.

The preferred shares are not exchangeable or convertible for any other securities.

The shares rank senior to junior stock, including common stock, with respect to the payment of dividends and distributions upon liquidation, junior to all existing and future debt, and pari passu with existing preferred stock.

The Irving, Tex.-based electricity supplier plans to use the proceeds to finance or refinance eligible green projects in the United States in accordance with criteria set forth in the Vistra Green Finance Framework (November 2021).

Pending that use of proceeds the company intends to invest the balance, at its discretion, in the company’s liquidity management policy, including in cash or cash equivalents, or in other liquid marketable instruments.

Eligible green projects include disbursements made in the 18 months prior to the issue date, or any time following the issue date during the term of the preferred shares.

The issuer intends to fully allocate the proceeds within 18 to 24 months from the issue date.

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