Vistra plans IG secured notes offering as part of merger financing

Chicago, Sept. 12 – Vistra Operations Co. LLC is planning to sell a benchmark offering of 10-year senior secured notes (expected ratings Baa3/BBB-/BBB-) in a high-grade execution, according to information from a market source.

Initial talk has the spread coming in the Treasuries plus 305 basis points area.

Citigroup Global Markets Inc. is the left bookrunner. BMO Capital Markets Corp., Mizuho Securities USA Inc., Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., Truist Securities Inc., KeyBanc Capital Markets Inc. and SG CIB are the joint bookrunners.

Proceeds will be used to fund the cash component of the company’s merger with Energy Harbor Corp. and for general corporate purposes, including debt refinancing. If the merger is not consummated, then the proceeds will be used for general corporate purposes, including debt refinancing.

The company is also offering $1 billion of eight-year senior notes (expected ratings Ba2/BB/BB) in a Tuesday Rule 144A and Regulation S drive-by offering on the high-yield desk.

The prospective issuer is an integrated retail electricity and power generation company based in Irving, Tex.

Paul A. Harris contributed to this story.

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