Chicago, Oct. 12 – Vistra Corp. sold $1 billion of series A fixed-rate reset cumulative redeemable perpetual preferred stock (Ba3/B) on Tuesday, according to a market source.
The company sold 1 million shares at $1,000 per share.
The first reset date is Oct. 15, 2026 when the dividend will reset to the five-year U.S. Treasury plus a spread of 693 basis points with a 1.07% floor for the Treasury note.
Dividends will be payable semiannually.
The preferreds are redeemable at par at any time after the first reset date or for certain events, including a rating event, a change-of-control trigger event or a rejected transaction.
The Rule 144A and Regulation S offering is not expected to be listed on any exchange.
Goldman Sachs & Co. LLC is the bookrunner.
Proceeds will be used to repurchase outstanding shares of common stock.
Vistra is an Irving, Tex.-based energy company.
| Issuer: | Vistra Corp.
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| Issue: | Series A fixed-rate reset perpetual preferred stock
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| Amount: | $1 billion, or 1 million shares
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| Maturity: | Perpetual
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| Bookrunner: | Goldman Sachs & Co. LLC
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| Counsel to issuer: | Sidley Austin LLP
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| Counsel to bookrunner: | Sullivan & Cromwell LLP
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| Dividend: | 8%; resets on Oct. 15, 2026 to five-year U.S. Treasury plus 693 bps with Treasury floor of 1.07%
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| Price: | Par of $1,000
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| Yield: | 8%
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| Call features: | At par any time after reset date
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| Change of control: | At 103 before Oct. 15, 2022, at 102 before Oct. 15, 2023, at 101 until the reset date; with a 500 bps dividend rate increase if there is a change-of-control trigger event and the preferreds are not redeemed
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| Trade date: | Oct. 12
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| Settlement date: | Oct. 15
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| Ratings: | Moody’s: Ba3
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| S&P: B
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| Distribution: | Rule 144A and Regulation S
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| Cusips: | 92840MAB8, U92266AA0
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