Vistra Completes $1.25 Billion Private Offering of Senior Secured Notes

On December 4, 2024, Vistra Operations Company LLC, an indirect wholly-owned subsidiary of Vistra Corp., successfully finalized a private offering of $1.25 billion in aggregate principal amount of senior secured notes. This offering included $500 million in 5.050% senior secured notes due 2026 and $750 million in 5.700% senior secured notes due 2034. The Notes were sold under Rule 144A to qualified institutional buyers and outside the United States to non-U.S. persons in accordance with Regulation S.

The issuance of these Notes was under an indenture supplemented by the Eighteenth Supplemental Indenture. The Subsidiary Guarantors provided a full and unconditional guarantee for the punctual payment of principal, interest, and all other amounts due under the Notes and the Indenture. These Notes are secured by a first-priority security interest in collateral previously pledged for the benefit of lenders.

After expenses, Vistra Operations received around $1.24 billion in net proceeds from the Notes offering. The company intends to utilize this capital, along with cash reserves, for general corporate purposes, including refinancing existing debts, the early payout of purchase price installment payments to Avenue Capital Management II, L.P., and covering fees associated with the offering.

Interest on the Notes will accrue from December 4, 2024, with the 2026 Notes maturing on December 30, 2026, and the 2034 Notes maturing on December 30, 2034. Vistra Operations reserves the right to redeem these Notes either entirely or in part at specific redemption prices.

In the event of a change of control or downgrade in ratings, the Issuer will be obligated to repurchase the outstanding Notes from holders at a specified price. The Indenture also imposes various covenants and restrictions on the Issuer and its subsidiaries.

The description provided here does not encompass all details, and interested parties are encouraged to refer to the Eighteenth Supplemental Indenture and specific forms of the Notes, which have been filed with the Securities and Exchange Commission.

This report is in compliance with the Securities Exchange Act of 1934 and has been signed on behalf of Vistra Corp. by William M. Quinn, Senior Vice President, and Treasurer, on December 9, 2024.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Vistra’s 8K filing here.

About Vistra

Vistra Corp., together with its subsidiaries, operates as an integrated retail electricity and power generation company. The company operates through six segments: Retail, Texas, East, West, Sunset, and Asset Closure. It retails electricity and natural gas to residential, commercial, and industrial customers across states in the United States and the District of Columbia.