By Cristal Cody
Tupelo, Miss., Nov. 6 – Vistra Energy Corp. subsidiary Vistra Operations Co. LLC priced $1.1 billion of senior secured notes (Ba1/BBB-/BBB-) in two tranches on top of guidance but better than initial talk on Wednesday, according to a market source and a news release.
A $300 million add-on to the company’s 3.55% notes due July 15, 2024 priced at 101.782 and a spread of 150 basis points over Treasuries.
The original $1.2 billion tranche was priced June 4 at 99.807 and a Treasuries plus 170 bps spread. The total outstanding is now $1.5 billion.
Vistra Operations sold $800 million of new 3.7% notes due Jan. 30, 2027 at 99.789 and with a Treasuries plus 200 bps spread.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and MUFG were the joint bookrunners for the Rule 144A and Regulation S offering.
The notes are guaranteed by certain current and future subsidiaries that guarantee the issuer’s credit agreement.
The Irving, Tex.-based integrated power company plans to use the proceeds, together with cash on hand, to prepay certain amounts outstanding under its senior secured term loan.
| Issuer: | Vistra Operations Co. LLC
|
| Guarantors: | Certain current and future subsidiaries that guarantee the issuer’s credit agreement
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| Amount: | $1.1 billion
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| Description: | Senior secured notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and MUFG
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Notes due 2024
|
| Amount: | $300 million reopening
|
| Maturity: | July 15, 2024
|
| Coupon: | 3.55%
|
| Price: | 101.782
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call until one month prior to maturity; thereafter at par
|
| Price guidance: | Treasuries plus 150 bps; initial talk at Treasuries plus 160 bps-165 bps area
|
| Total outstanding: | $1.5 billion, including $1.2 billion of notes priced June 4 at 99.807 and a Treasuries plus 170 bps spread
|
|
|
| Notes due 2027
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| Amount: | $800 million
|
| Maturity: | Jan. 30, 2027
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| Coupon: | 3.7%
|
| Price: | 99.789
|
| Spread: | Treasuries plus 200 bps
|
| Call features: | Make-whole call until two months prior to maturity; thereafter at par
|
| Price guidance: | Treasuries plus 200 bps; initial talk at Treasuries plus 205 bps-210 bps area
|
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