Vistra lifts cap of cash tender offer for three series to $750 million

By William Gullotti

Buffalo, N.Y., Dec. 11 – Vistra Corp. subsidiary Vistra Operations Co. LLC upsized to $750 million the cap of its cash tender offer for three series of notes, according to a press release on Monday.

Earlier in the day, the company announced the launch of the offer with an original cap of $500 million. The cap was increased after the company upsized its concurrent tap offerings of 7¾% senior notes due 2031 and 6.95% secured notes due 2033 to $400 million and $350 million respectively.

The issuer is now offering to purchase for up to $750 million the following series, listed in descending order by acceptance priority:

• $1.5 billion 3.55% senior secured notes due 2024 (Cusips: 92840VAD4, U9226VAC1, U9226VAG2), with pricing calculated using the 0.375% U.S. Treasury due July 15, 2024 and a fixed spread of 115 basis points;

• $400 million 4.875% senior secured notes due 2024 (Cusips: 92840VAK8, U9226VAJ6), with pricing calculated using the 0.25% U.S. Treasury due May 15, 2024 and a fixed spread of 105 bps; and

• $1.1 billion 5.125% senior secured notes due 2025 (Cusips: 92840VAL6, U9226VAK3), with pricing calculated using the 2.125% U.S. Treasury due May 15, 2025 and a fixed spread of 135 bps.

In each case, accrued and unpaid interest will also be paid.

The total consideration for the 4.875% notes is capped at $1,000 per $1,000 principal amount of notes.

Tendered notes may be subject to proration and will be accepted in order of purchase priority.

Notes validly tendered, and not subsequently withdrawn, on or before the early tender deadline will also receive an early tender premium of $30 per $1,000 principal amount. Holders who tender their notes after the early tender deadline will not receive the premium.

If the offers are fully subscribed prior to the early deadline, and the company does not further increase the tender cap, notes tendered after the early deadline will not be accepted for purchase, regardless of priority level.

The early tender deadline is 5 p.m. ET on Dec. 22.

Pricing will be determined at 10 a.m. ET on Dec. 26.

Early settlement is expected on Jan. 2.

The offer expires at 5 p.m. ET on Jan. 10, with final settlement expected on Jan. 15.

The dealer manager is Citigroup Global Markets Inc. (800 558-3745).

Global Bondholder Services Corp. (212 430-3774, 855 654-2014) is the depositary and information agent.

The issuer is an integrated retail electricity and power generation company based in Irving, Tex.

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