By Paul A. Harris
Portland, Ore., June 6 – Vistra Energy Corp., priced an upsized $1.3 billion issue of eight-year senior notes (Ba3/BB/BB) at par to yield 5% in a Thursday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield came at the tight end of yield talk in the 5 1/8% area and in line with initial guidance in the low 5% area.
Goldman Sachs & Co. LLC is the left bookrunner. Joint bookrunners are 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.
The notes were issued via Vistra Operations Co. LLC, 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.
The new 5% unsecured notes came 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.
| Issuer: | Vistra Operations Co. LLC
|
| Amount: | $1.3 billion, increased from $1 billion
|
| Maturity: | July 31, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | 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
|
| Co-manager: | UBS Securities LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 296 bps
|
| First call: | July 31, 2022 at 102.5
|
| Trade date: | June 6
|
| Settlement date: | June 21
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5 1/8% area
|
| Marketing: | Quick to market
|
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