Vistra Corp. Prices $2.25 Billion Senior Secured Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Offering Size: Vistra Corp. announced a private offering of $2.25 billion in senior secured notes, including $1 billion in 2031 notes and $1.25 billion in 2036 notes, indicating strong demand in the capital markets.
- Interest Rate Advantage: The 2031 notes carry an interest rate of 4.700% per annum, while the 2036 notes are at 5.350%, providing the company with relatively low financing costs that help optimize its capital structure.
- Clear Use of Proceeds: The funds will be used for a portion of the acquisition of Cogentrix Energy, to repay existing debt, and to cover related expenses, reflecting the company's proactive strategy in business expansion and financial risk reduction.
- Guarantee Mechanism: The notes will be fully guaranteed by Vistra's subsidiaries and secured by their assets, ensuring investor security while enhancing the company's credit rating for future financing.
Analyst Views on VST
Wall Street analysts forecast VST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VST is 239.71 USD with a low forecast of 217.00 USD and a high forecast of 256.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
13 Buy
1 Hold
0 Sell
Strong Buy
Current: 166.370
Low
217.00
Averages
239.71
High
256.00
Current: 166.370
Low
217.00
Averages
239.71
High
256.00
About VST
Vistra Corp. is an integrated retail electricity and power generation company that provides essential resources to customers, businesses, and communities from California to Maine. It operates a reliable power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities while taking an innovative, customer-centric approach to its retail business. Its segments include Retail, Texas, East, West, and Asset Closure. The Retail segment is engaged in retail sales of electricity and natural gas to residential, commercial and industrial customers. The Texas and East segments are engaged in electricity generation, wholesale energy sales and purchases, commodity risk management activities, fuel procurement, and logistics management. The West segment represents results from the CAISO market, including its battery ESS projects at its Moss Landing power plant site. The Asset Closure segment is engaged in the decommissioning and reclamation of retired plants and mines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
