By William Gullotti and Cristal Cody
Buffalo, N.Y., April 10 – Vistra Corp., via subsidiary Vistra Operations Co. LLC, priced $500 million of 6% senior secured notes due 2034 (Baa3/BBB-/BBB-) at 99.865 on Tuesday in conjunction with its $1 billion offering of 6 7/8% eight-year unsecured notes, according to information provided by a market source.
The Regulation S and Rule 144A secured offering priced with a spread of 165 basis points over Treasuries, 5 bps tighter than guidance. Initial talk was in the Treasuries plus 200 bps area, later revised to guidance at Treasuries plus 170 bps.
Credit Agricole CIB, J.P. Morgan Securities LLC, MUFG Securities Americas Inc., RBC Capital Markets LLC and SMBC Nikko Securities America Inc. are the bookrunners.
As previously reported, 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.
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 Irving, Tex.-based retail electricity and power generation company plans to use the proceeds for general corporate purposes that will include debt repayment, including its upcoming 2024 maturities.
| Issuer: | Vistra Operations Co. LLC
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| Guarantor: | Vistra Corp. and certain subsidiaries
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| Amount: | $500 million
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| Issue: | Senior secured notes
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| Maturity: | April 15, 2034
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| Bookrunners: | Credit Agricole CIB, J.P. Morgan Securities LLC, MUFG Securities Americas Inc., RBC Capital Markets LLC and SMBC Nikko Securities America Inc.
|
| Coupon: | 6%
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| Price: | 99.865
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| Spread: | Treasuries plus 165 bps
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| Pricing date: | April 9
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| Settlement date: | April 12
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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 guidance: | Treasuries plus 170 bps, revised from initial talk in the Treasuries plus 200 bps area
|
| Marketing: | Drive-by
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