Vistra Corp. has announced the initiation of a private offering for senior secured notes to support its acquisition of Cogentrix Energy. This offering, which includes notes due in 2031 and 2036, is aimed at qualified institutional buyers under U.S. regulations.
Key Details of the Offering
- Issuer: Vistra Operations Company LLC, a wholly owned subsidiary of Vistra Corp.
- Notes: Senior secured notes due 2031 and 2036.
- Regulatory Compliance: Offering conducted under Rule 144A of the Securities Act of 1933 and Regulation S for non-U.S. persons.
- Guarantee: The notes will be guaranteed by current and future subsidiaries of the issuer.
- Collateral: Secured by a first-priority interest in the assets of the issuer and subsidiary guarantors.
Purpose of the Funds
The proceeds from the offering will be allocated to various initiatives:
- Funding part of the purchase price for acquiring Cogentrix Energy.
- Repaying existing debt and other corporate purposes.
- Covers fees and expenses related to the offering.
Important Conditions
The collateral for the notes is subject to release if Vistra’s senior unsecured long-term debt gains an investment grade rating from two of three rating agencies. If the ratings change, the collateral may revert.
Vistra Corporation Overview
Vistra Corp., based in Irving, Texas, operates as a prominent integrated energy company. It focuses on delivering reliable, affordable, and sustainable services across the United States.
The company manages a diversified fleet of power generation facilities, including natural gas, nuclear, coal, solar, and battery energy storage. Vistra’s commitment to advancing the energy landscape ensures it meets the needs of its customers effectively.
This announcement serves to inform stakeholders of Vistra’s strategic actions as it seeks to enhance its operational capabilities through the Cogentrix acquisition.
