By William Gullotti and Cristal Cody
Buffalo, N.Y., May 11 – Vistra Corp. priced a $1.5 billion private offering of senior secured notes in two parts on Tuesday, according to a news release and a market source.
As previously reported, the company priced $400 million of notes due 2024 at par to yield 4.875%. The notes were priced at Treasuries plus 225 basis points, low to initial talk in the 237.5 bps area.
The issuer also sold $1.1 billion of 5.125% notes due 2025 at 99.808. The notes were priced at Treasuries plus 237.5 bps, low to initial talk in the 250 bps area.
The Rule 144A and Regulation S notes will be issued through indirect wholly owned subsidiary Vistra Operations Co. LLC.
The notes will be fully and unconditionally guaranteed by some of the issuer’s current and future subsidiaries that also guarantee the issuer’s credit agreement and will be secured by a first-priority security interest in the same collateral that is pledged for the benefit of the lenders under that credit agreement.
Barclays, BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. are the bookrunners.
As previously reported, the collateral securing the notes will be released if the issuer’s senior unsecured long-term debt securities obtain an investment-grade rating from two out of the three rating agencies, subject to reversion if those rating agencies withdraw that investment-grade rating or downgrade that rating to below investment grade.
The company intends to use proceeds from the new notes, together with cash on hand, to post collateral in connection with its comprehensive hedging strategy, for general corporate purposes and to pay fees and expenses related to the notes offering.
Vistra is an integrated retail electricity and power generation company based in Irving, Tex.
| Issuer: | Vistra Operations Co. LLC
|
| Amount: | $1.5 billion
|
| Issue: | Senior secured notes
|
| Bookrunners: | Barclays, BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co.
|
| Pricing date: | May 10
|
| Settlement date: | May 13
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2024 notes
|
| Amount: | $400 million
|
| Maturity: | May 13, 2024
|
| Coupon: | 4.875%
|
| Price: | Par
|
| Yield: | 4.875%
|
| Spread: | Treasuries plus 225 bps
|
| Initial talk: | Treasuries plus 237.5 bps area
|
|
|
| 2025 notes
|
| Amount: | $1.1 billion
|
| Maturity: | May 13, 2025
|
| Coupon: | 5.125%
|
| Price: | 99.808
|
| Spread: | Treasuries plus 237.5 bps
|
| Initial talk: | Treasuries plus 250 bps area
|
|
|
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