Vistra Corp. Prices $1.5 Billion Junior Subordinated Notes Offering

Vistra Corp. announced on Thursday that it has successfully priced a $1.5 billion public offering of junior subordinated notes, with maturity set for 2057. This significant fundraising effort is earmarked for general corporate purposes. A key potential use for these proceeds is the redemption of outstanding preferred stock, with specific redemption dates for two series falling in October and December. The offering is structured into two tranches: $850 million of Series A junior subordinated notes and $650 million of Series B notes. Both series were priced at their face value. The Series A notes will carry an initial annual interest rate of 7%, while the Series B notes will bear an initial interest rate of 7.25%. These notes represent unsecured obligations of Vistra Operations Company LLC, an indirect subsidiary of Vistra, which will provide a full and unconditional guarantee. The offering is slated to close on September 24, contingent upon the fulfillment of customary closing conditions. Until the funds are deployed, Vistra plans to invest them in short-term interest-bearing instruments. The company's stock saw a slight increase in premarket trading following the announcement. Analysts maintain a generally positive outlook on Vistra stock, with several firms recently adjusting their price forecasts.