Vistra Energy talks $1 billion eight-year notes at 5 1/8% area yield; pricing Thursday

By Paul A. Harris

Portland, Ore., June 6 – Vistra Energy Corp., issuing via subsidiary Vistra Operations Co. LLC, plans to price $1 billion of eight-year senior notes (existing ratings Ba3/BB/BB) in a Thursday drive-by, according to market sources.

The notes are talked to yield in the 5 1/8% area, in line with initial guidance in the low 5% area.

Books close at 1 p.m. ET on Thursday, and the deal is set to price thereafter.

The offer appears just two days after Vistra Energy priced $2 billion of split-rated senior secured notes (Ba1/BBB-) in tranches of 3.55% notes due 2024 and 4.3% notes due 2029.

Goldman Sachs & Co. LLC is the left bookrunner for the new unsecured notes offering. SunTrust Robinson Humphrey Inc., Citigroup Global Markets Inc., Barclays, BMO Securities, BNP Paribas Securities Corp., Credit Agricole CIB, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG, Natixis Securities and RBC Capital Markets LLC are the joint bookrunners. UBS Investment Bank in the co-manager.

The Rule 144A and Regulation S for life unsecured notes become callable after three years at par plus 50% of the coupon.

Vistra Operations is an indirect, wholly owned subsidiary of Vistra Energy.

The Irving, Tex.-based integrated power company plans to use the proceeds to purchase or redeem any and all of its outstanding 7 3/8% senior notes due 2022 and a portion of its outstanding 7 5/8% senior notes due 2024, both issued by Dynegy Inc., with remaining proceeds, if any, to be used for general corporate purposes.

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