Vistra Corp. has announced the launch of a private offering of senior secured notes due in 2031 and 2036. This initiative aims to attract qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended, along with certain non-U.S. persons in accordance with Regulation S.
The notes, collectively referred to as the “Notes,” will be senior secured obligations of Vistra Operations Company LLC, a wholly owned subsidiary based in Delaware. The offering is designed to raise funds for various corporate purposes, including financing a portion of the recently announced acquisition of Cogentrix Energy.
Details of the Offering
The Notes will carry a full and unconditional guarantee from certain current and future subsidiaries of the Issuer, which also guarantees the Issuer’s Credit Agreement dated October 3, 2016. This agreement involves Citibank, N.A., serving as the administrative and collateral agent, alongside multiple lenders and letter of credit issuers.
The collateral for the Notes includes a first-priority security interest in assets that are pledged under the Credit Agreement. This comprises a significant portion of the property, assets, and rights owned by the Issuer and its subsidiary guarantors. The collateral may be released if the Issuer’s senior, unsecured long-term debt securities receive an investment-grade rating from two out of three major rating agencies, with specific conditions for reversion if ratings change.
According to the company, the proceeds from this offering will also be used for general corporate purposes, such as repaying existing debt and covering fees associated with the offering.
Regulatory Information
It is important to note that the Notes will not be registered under the Securities Act or the securities laws of any state or jurisdiction. Consequently, they cannot be offered or sold in the United States without registration or an applicable exemption. The announcement does not constitute an offer to sell or a solicitation of an offer to buy these securities in any jurisdiction where such actions would be unlawful.
Vistra Corp. is a prominent integrated retail electricity and power generation company headquartered in Irving, Texas. It operates a diverse fleet of power generation facilities, including natural gas, nuclear, coal, solar, and battery storage, while focusing on reliability and sustainability.
As part of its commitment to transparent communication, the company includes a cautionary note regarding forward-looking statements, emphasizing the inherent risks and uncertainties involved in its projections. Such factors can significantly affect financial outcomes and may vary from the anticipated results reported in its filings with the Securities and Exchange Commission.
For more information on Vistra’s operations and initiatives, visit vistracorp.com.
