Published on 8/7/2018 in the Prospect News High Yield Daily.
New Issue: Vistra Energy prices upsized $1 billion eight-year notes at par to yield 5˝%
By Paul A. Harris
Portland, Ore., Aug. 7 – Vistra Energy Corp. priced an upsized $1 billion issue of eight-year senior notes (Ba3/BB/BB) at par to yield 5˝% in a Tuesday drive-by, market sources said.
The offering was increased from $800 million.
The yield printed at the tight end of the 5˝% to 5 5/8% yield talk and tight to initial talk in the high 5% area.
Citigroup Global Markets Inc. was the lead bookrunner. 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 were the joint bookrunners.
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. The additional proceeds resulting from the $200 million upsizing of the deal will be used to increase the size of the tender.
Vistra completed its merger with Dynegy in the spring of 2018.
| Issuer: | Vistra Operations Co. LLC
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| Amount: | $1 billion
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| Maturity: | Sept. 1, 2026
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| Securities: | Senior notes
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| Lead bookrunner: | Citigroup
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| Joint bookrunners: | JP Morgan, Credit Suisse, Barclays, BNP Paribas, Deutsche Bank, Goldman Sachs, Mizuho, Morgan Stanley, MUFG, Natixis, RBC
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| Co-managers: | SunTrust, UBS
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| Coupon: | 5˝%
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| Price: | Par
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| Yield: | 5˝%
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| Spread: | 254 bps
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| First call: | Make-whole call at Treasuries plus 50 bps until Sept. 1, 2021, then callable at 102.75
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| Equity clawback: | 40% at 105.5 until Sept. 1, 2021
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| Trade date: | Aug. 7
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| Settlement date: | Aug. 22
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| Ratings: | Moody’s: Ba3
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| S&P: BB
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| Fitch: BB
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5˝% to 5 5/8%
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| Marketing: | Quick to market
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