Chicago, Sept. 12 – Vistra Operations Co. LLC priced $650 million of 6.95% 10-year senior secured notes (Baa3/BBB-/BBB-) on Tuesday, according to a market source.
The notes priced at 99.85 to yield 6.97%, or at Treasuries plus 270 basis points, after initial talk had them coming in the Treasuries plus 305 bps area.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were 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 Societe Generale CIB.
The company also concurrently priced an upsized $1.1 billion of eight-year notes (Ba2/BB/BB) at par to yield 7¾% off the high-yield desk on Tuesday.
Proceeds from both issues 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 issuer is an integrated retail electricity and power generation company based in Irving, Tex.
Paul A. Harris contributed to this story.
| Issuer: | Vistra Operations Co. LLC
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| Amount: | $650 million
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| Issue: | Senior secured notes
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| Maturity: | 2033
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| Joint bookrunners: | Citigroup Global Markets Inc. (left), 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 Societe Generale CIB
|
| Coupon: | 6.95%
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| Price: | 99.85
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| Yield: | 6.97%
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| Spread: | Treasuries plus 270 bps
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| Trade date: | Sept. 12
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| Settlement date: | Sept. 26
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Treasuries plus 305 bps area
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