- Vistra (NYSE:VST) announced on Tuesday the pricing of $500 million aggregate principal amount of senior secured notes due 2034 at 99.865% and $1 billion aggregate principal amount of senior unsecured notes due 2032 at a price to the public of 100% of their face value in concurrent private offerings.
- The secured notes will bear interest at the rate of 6.000% per annum, and the unsecured notes will bear interest at the rate of 6.875% per annum.
- The secured notes are secured by a first-priority security interest in collateral, including property, assets, rights, equity interest, and an 85% equity interest in Vistra Vision, owned by Vistra.
- The collateral can be released if the issuer’s senior, unsecured long-term debt securities receive an investment grade rating from two out of three rating agencies, subject to reversion if the rating is withdrawn or downgraded.
- VST plans to use the offering proceeds for general corporate purposes, including to refinance outstanding indebtedness and to pay fees and expenses related to the offerings.
- The offerings are expected to close on April 12, 2024.
- The consummation of the secured offering is not influenced by the consummation of the unsecured offering, and vice versa.
