Vistra Zero cuts spread on $700 million term B to SOFR plus 275 bps

By Sara Rosenberg

New York, March 20 – Vistra Zero Operating Co. LLC reduced pricing on its $700 million seven-year senior secured covenant-lite term loan B (Ba2/BBB-/BB) to SOFR plus 275 basis points from SOFR plus 300 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.5 from 99, the source said.

The term loan still has a 0% floor, 101 soft call protection for six months, no CSA and amortization of 1% per annum.

Mandatory prepayments are from 100% of net proceeds from asset sales, subject to customary carve outs and reinvestment rights, and 100% of net proceeds of debt issuances, subject to customary carve outs.

Security is a perfected first-priority lien on substantially all tangible and intangible assets and capital stock held by the borrower and guarantors, subject to customary and appropriate exceptions.

Citigroup Global Markets Inc. is the lead arranger and administrative agent on the deal.

Recommitments were scheduled to be due at noon ET on Wednesday, the source added.

Proceeds will be used for general corporate purposes, including acquiring the projects from other Vistra entities.

Vistra Zero is a Vistra Corp. subsidiary that holds a 1.4 GW portfolio of six unlevered, operating, solar generation and energy storage assets.

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