Vistra Corp. said the proceeds from the private offer will be used toward an early payout for the installment purchase of Avenue Capital Management II’s interest in Vistra Vision. (Source: Shutterstock)
Vistra Corp. launched a private offer of senior secured notes due 2026 and 2034 to refinance outstanding indebtedness, according to a Nov. 19 press release.
The power generation company said the proceeds from the offer will be used toward general corporate purposes, including an early payout for the installment purchase of Avenue Capital Management II’s interest in Vistra Vision.
On Sept. 18, Vistra announced it was purchasing a 15% equity interest in Vistra Vision, which was jointly owned by Avenue and Nuveen Asset Management, for a discounted rate of $3.05 billion.
The deal was previously set to be paid in five installments between Dec. 31 and year-end 2026.
However, the company said the installment payments to Avenue, which total approximately $550 million, will be completely settled in exchange for a one-time payment of approximately $506 million to Avenue on Dec. 31.
The notes offering, coupled with the early installment payout, “represents an opportunistic leverage-neutral and NPV-positive transaction,” Vistra said in the release.
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