#USA #Irving #Energy Sector #secured notes #Vistra Corp

Vistra Corp. Announces Pricing of $2.25 Billion in Senior Secured Notes

In a significant financial maneuver, Vistra Corp. (NYSE: VST) has revealed the pricing for a private offering of $2.25 billion in senior secured notes. This move is designed to support the company's ongoing operational strategies and future growth initiatives, specifically targeting the acquisition of Cogentrix Energy, among other corporate purposes.

Details of the Offering

The offering comprises two distinct classes of senior secured notes:
1. 2031 Notes: $1.0 billion due in 2031, priced at 99.954% of their face value.
2. 2036 Notes: $1.25 billion due in 2036, priced at 99.745% of their face value.

The newly issued notes are aimed at qualifying institutional buyers, in accordance with Rule 144A of the Securities Act of 1933 and align with certain non-U.S. investors under Regulation S. This structuring ensures a wide reach to capital sources that can support Vistra's financial strategies.

The 2031 Secured Notes will bear interest at an annual rate of 4.700%, while the 2036 Secured Notes will attract a higher interest rate of 5.350% per year. Moreover, these notes will be fully guaranteed by several subsidiaries of Vistra, reinforcing their financial commitment.

Security and Use of Proceeds

Notably, these notes are secured by a first-priority security interest in collateral that also supports the lenders under Vistra's existing Credit Agreement, dated October 3, 2016. The collateral includes a majority of the assets and rights owned by Vistra Operations Company LLC, along with the equity interest of the Issuer. These robust security arrangements are poised to enhance investor confidence in the offering.

Vistra plans to utilize the proceeds primarily for:

• - Funding a portion of the acquisition of Cogentrix Energy.
• - General corporate purposes, including the repayment of existing debt.
• - Covering fees and expenses associated with the offering itself.

Forward-Looking Strategies

The transaction is set to close on January 22, 2026, pending standard closing conditions. The company has stated that the notes will not be registered under the Securities Act, meaning they cannot be sold in the U.S. unless they meet specific registration standards. This strategic move showcases Vistra’s commitment to maintaining a competitive edge within the energy sector while handling its liabilities prudently.

As a leading retail electricity and power generation company based in Irving, Texas, Vistra continues to focus on transforming the energy landscape. By investing in safer, cleaner, and more affordable energy solutions, they are aligning their operations with future sustainability goals.

Conclusion

In a climate where strategic acquisitions and firm capital planning are vital for survival and success, Vistra Corp.'s recent offering positions it favorably for future growth. With a solid foundation and innovative approach, the company looks ahead at opportunities that will bolster its operational capacity and improve its market presence. As developments unfold, stakeholders and investors will be looking closely at how Vistra executes its plans under this substantial funding initiative.