By Wendy Van Sickle
Columbus, Ohio, May 10 – Vistra Corp. priced a $1.5 private offering of senior secured notes in two parts on Tuesday, according to a news release.
The company priced $400 million of notes due 2024 at par to yield 4.875%.
The issuer sold $1.1 billion of 5.125% notes due 2025 at 99.808.
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.
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
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| Amount: | $1.5 billion
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| Issue: | Senior secured notes
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| Pricing date: | May 10
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| Settlement date: | May 13
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| Distribution: | Rule 144A and Regulation S
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|
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| 2024 notes
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| Amount: | $400 million
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| Maturity: | 2024
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| Coupon: | 4.875%
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| Price: | Par
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| Yield: | 4.875%
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|
|
| 2025 notes
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| Amount: | $1.1 billion
|
| Maturity: | 2025
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| Coupon: | 5.125%
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| Price: | 99.808
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