Vistra gets tenders for $845.2 million of 7 3/8%, 7 5/8% notes so far

By Sarah Lizee

Olympia, Wash., June 20 – Vistra Energy Corp. announced the early results of its offer to purchase or redeem for cash any and all of its outstanding 7 3/8% senior notes due 2022 and up to $760 million of its outstanding 7 5/8% senior notes due 2024, both issued by Dynegy Inc., using proceeds from an offering of new notes.

As of the early tender deadline at 5 p.m. ET on June 19, holders had validly tendered $173,692,000 of the 7 3/8% notes and $671,503,000 of the 7 5/8% notes, according to a Thursday press release.

The company said it will accept for purchase all of those notes without proration.

As previously reported, an early tender premium of $30 per $1,000 principal amount of notes will be paid on both offers for holders who validly tendered their notes by the early tender deadline.

For the notes due 2022, the total consideration is $1,039 per $1,000 principal amount of notes, which includes the $30 early tender premium and the tender offer consideration of $1,009. The total consideration will also include accrued interest.

For the 2024 notes, the total consideration is the tender offer consideration of $1,025 per $1,000 principal amount of notes plus the $30 early tender premium for a final total consideration of $1,055. Accrued interest will be added to the total consideration.

Holders who tender after the early tender date but at or prior to midnight ET on July 3 will receive $1,009 per $1,000 principal amount of the 2022 notes and $1,025 per $1,000 principal amount for the 2024 notes plus accrued interest.

The amount of 2024 notes to be purchased may be prorated.

The company may increase the 2024 maximum tender amount.

The settlement date for notes tendered by the early tender date is expected to be June 21.

The settlement date for notes tendered by the expiration date is expected to be July 5.

The company also intends to issue conditional notices of redemption for all outstanding 2022 notes that are not accepted for purchase in the tender offer and a portion of the 2024 notes up to an aggregate principal amount pursuant to the indenture governing the notes.

The redemptions would occur on or about July 8.

The 2022 notes would be redeemed at a redemption price of 103.688, and the 2024 notes would be redeemed at par plus the applicable premium and accrued interest.

Vistra priced an upsized $1.3 billion offering of senior notes due 2027 on Thursday. Proceeds from the new notes will also be used for general corporate purposes. The offering was upsized from $1 billion.

The tender offers are conditioned upon the receipt of the proceeds from the new notes.

Goldman Sachs & Co. LLC (800 828-3182) is serving as the lead dealer manager for the tender offers.

Global Bondholder Services Corp. (212 430-3774 for banks and brokers and 866 470-3900 for others) is working as the information agent.

The integrated power company is based in Irving, Texas.

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