Vistra launches secured notes due 2034, unsecured notes due 2032

By William Gullotti

Buffalo, N.Y., April 9 – Vistra Corp. announced a private offering of senior notes due 2032 (BB) and senior secured notes due 2034 (BBB-) to qualified institutional buyers in a press release on Tuesday.

J.P. Morgan Securities LLC is the lead on the secured notes, according to a market source.

Both tranches of Rule 144A and Regulation S notes will be issued by the company; however, the obligor for the secured offering will be 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 the proceeds for general corporate purposes and for refinancing outstanding debt, including debts with maturities in 2024.

Vistra is an integrated retail electricity and power generation company based in Irving, Tex.

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