IRVING, Texas - Vistra Corp. (NYSE: VST), an integrated retail electricity and power generation company, announced Monday the initiation of private offerings of senior secured and unsecured notes.
The company is targeting qualified institutional buyers for its senior secured notes due 2034 and senior unsecured notes due 2032. These offerings are being conducted by Rule 144A and Regulation S under the Securities Act of 1933.
The secured notes will be backed by a first-priority security interest in substantial assets and property owned by Vistra Operations Company LLC, a subsidiary of Vistra Corp., excluding Vistra Vision LLC and its subsidiaries. The unsecured notes, conversely, will not be backed by collateral.
Both notes will be guaranteed by certain subsidiaries that also back the company's current credit agreement. The collateral for the secured notes will be released if the issuer's senior unsecured long-term debt obtains an investment-grade rating from at least two of three rating agencies, with a reversion clause if the rating is later downgraded or withdrawn.
Vistra intends to use the proceeds for general corporate purposes, including refinancing of its upcoming 2024 debt maturities and covering the costs related to these offerings. The offerings are not mutually contingent.
This announcement is based on a press release statement from Vistra Corp. and does not constitute an offer to sell the securities described.
InvestingPro Insights
As Vistra Corp. (NYSE: VST) navigates the financial markets with its latest offerings of senior secured and unsecured notes, insights from InvestingPro provide a deeper understanding of the company's financial health and market performance. With a Market Cap of $25.96 billion and a P/E Ratio of 20.63, Vistra's valuation is grounded in its substantial size and earnings. The company's Price / Book ratio stands at 9.17, indicating a premium valuation compared to its book value, which can reflect investor confidence in its assets and growth potential.
InvestingPro Tips highlight several positive aspects of Vistra's financial strategy and market performance. The company's management has shown confidence through aggressive share buybacks, and Vistra has demonstrated a commitment to shareholder returns by raising its dividend for 5 consecutive years. These actions, coupled with a strong free cash flow yield, suggest a robust financial foundation and a proactive approach to capital management.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips on Vistra Corp., which can be accessed through the dedicated page for Vistra at https://www.investing.com/pro/VST. Here, investors can discover a total of 14 InvestingPro Tips that delve into various facets of the company's performance and outlook. To further enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to exclusive insights and data that can guide investment decisions.
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