Vistra Energy to price $800 million eight-year notes in Tuesday drive-by, high 5% area whisper

By Paul A. Harris

Portland, Ore., Aug. 7 – Vistra Energy Corp. plans to price an $800 million offering of eight-year senior notes (expected ratings Ba3/BB/BB) in a drive-by on Tuesday trailing a mid-morning conference call with investors, market sources said.

Initial talk has the deal yielding in the high 5% area, a trader said.

Citigroup Global Markets Inc. is the lead bookrunner for the Rule 144A and Regulation S for life offer. JP Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, BNP Paribas, Deutsche Bank Securities Inc., Goldman Sachs & Co., Mizuho Securities, Morgan Stanley & Co., MUFG, Natixis and RBC Capital Markets LLC are the joint bookrunners.

SunTrust Robinson Humphrey and UBS Investment Bank are the co-managers.

The notes have a make-whole call at Treasuries plus 50 basis points for the first three years and then become callable at par plus 50% of the coupon. They also feature a three-year 40% equity clawback at par plus the coupon.

The issuing entity will be Vistra Operations Co. LLC, a wholly owned subsidiary of Vistra Energy.

The Dallas-based power generator plans to use the proceeds to purchase Dynegy Inc.’s 7 3/8% senior notes due 2022, 7 5/8% senior notes due 2024, 8.034% senior notes due 2024, 8% senior notes due 2025 and 8 1/8% senior notes due 2026, and for general corporate purposes.

Vistra completed its merger with Dynegy in the spring of 2018.

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