By Paul A. Harris
Portland, Ore., Sept. 12 – Vistra Operations Co. LLC priced an upsized $1.1 billion issue of eight-year senior notes (Ba2/BB/BB) at par to yield 7¾% in a Tuesday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield printed in the middle of yield talk in the 7¾% area. Initial guidance was in the high-7% area.
Citigroup Global Markets Inc. was the left bookrunner. Joint bookrunners were BMO Capital Markets Corp., Mizuho Securities USA Inc., Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., Truist Securities Inc., KeyBanc Capital Markets Inc. and SG CIB.
In addition to the speculative grade-rated unsecured notes, Vistra Operations also priced $650 million of 6.95% 10-year senior secured notes (Baa3/BBB-/BBB-) at a 270 basis points spread to Treasuries. The secured notes were issued at 99.85 and will yield 6.97%.
Proceeds from both issues will be used to fund the cash component of the company’s merger with Energy Harbor Corp. and for general corporate purposes, including debt refinancing. If the merger is not consummated, then the proceeds will be used for general corporate purposes, including debt refinancing.
The issuer is an integrated retail electricity and power generation company based in Irving, Tex.
| Issuer: | Vistra Operations Co. LLC
|
| Amount: | $1.1 billion, increased from $1 billion
|
| Issue: | Senior notes
|
| Maturity: | Oct. 15, 2031
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | BMO Capital Markets Corp., Mizuho Securities USA Inc., Barclays, BNP Paribas Securities Corp., BofA Securities Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., Truist Securities Inc., KeyBanc Capital Markets Inc. and SG CIB
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 339 bps
|
| First call: | Oct. 15, 2026 at 103.875
|
| Trade date: | Sept. 12
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| Settlement date: | Sept. 26
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% area
|
| Marketing: | Drive-by
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