IRVING, Texas, December 7, 2021 / PRNewswire / – Vistra Corp. (NYSE: VST) today announced the launch of a private offering under its new Vistra Green funding framework $ 750 million new Series B Cumulative Perpetual Redeemable Preferential Shares in Fixed Rate to qualified institutional buyers in accordance with Rule 144A of the Securities Act of 1933, as amended, and to certain non-U.S. persons in accordance with Regulation S under the Securities Act.
Vistra capital allocation plan
The placement represents another step in Vistra’s broader capital allocation plan, which was announced in October and November 2021. In addition to $ 7.5 billion capital repayment and reduction up to $ 3 billion debt (excluding project financing) expected by the end of 2026, Vistra has also affirmed its desire to accelerate the development of its zero carbon growth pipeline with profitable capital.
Vistra expects its zero-carbon generation portfolio, Vistra Zero, to have 7,300 megawatts of zero-carbon generation online by the end of 2026, of which approximately 2,900 MW of this generation is currently online. 1 The planned investment from 2022 to 2026 is approximately $ 5 billion. Vistra intends to finance this development mainly through project financing, supplemented by cash flows from the Vistra Zero project,2 and a portion of the net proceeds of the offering. Vistra has chosen to raise capital through its Green Funding Framework as the most cost effective and administratively efficient method of accessing third party capital today. Vistra expects its Vistra Zero portfolio to reach at least one $ 450-500 million adjusted EBITDA,2 activity very contracted by the end of 2026.
(1) Includes the Comanche Peak nuclear power plant
(2) Excludes the Comanche Peak nuclear power plant
Green funding framework and use of funds
The company intends to use an amount equal to the net proceeds of the offering to pay or reimburse payment, in whole or in part, of existing and new qualifying green projects in the United States in accordance with the criteria set out in the framework green financing. , which is available on the company’s website. Vistra intends to create a dedicated sustainability finance committee made up of senior company executives to oversee the green finance framework. The company intends to fully allocate the proceeds of the offering within 18 to 24 months from the date of issuance of the preferred shares.
On an annual basis, Vistra will issue a public report containing information on the allocation of proceeds to qualifying green projects until an amount equal to the net proceeds from the sale of preferred shares has been allocated.
Preferred shares will not be registered under the Securities Act or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from these registration requirements.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any preferred stock, and there will be no sale of any preferred stock in any state or jurisdiction where such an offer, solicitation or sale would be illegal prior to registration or qualification under the securities laws of that state or jurisdiction.
Vistra (NYSE: VST) is a leading integrated power generation and power generation company, Fortune 275, based in Irving, Texas, providing essential resources for customers, commerce and communities. Vistra combines an innovative, customer-centric approach to retailing with safe, reliable, diverse and efficient power generation. The company markets its products and services in 20 states and the District of Colombia, including six of the seven competitive wholesale markets in the United States and Canada and Japan, also. Serving nearly 4.3 million residential, commercial and industrial retail electricity and natural gas customers, Vistra is one of the nation’s largest competitive residential electricity providers with more than 50 renewable energy plans. The company is also the largest competitive power producer in the United States, with approximately 39,000 megawatts of capacity fueled by a diverse portfolio, including natural gas, nuclear, solar and battery energy storage facilities. In addition, Vistra is a large purchaser of wind power. The company owns and operates a 400 MW / 1,600 MWh battery energy storage system at Moss Landing, California, the largest of its kind in the world. Vistra is guided by four fundamental principles: we conduct our business the right way, we work as a team, we compete to win and we care about our stakeholders, including our customers, our communities where we work and live, our employees. and our investors.
Caution regarding forward-looking statements
The information presented here includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections regarding the industry and the markets in which Vistra Corp. (“Vistra”) operates and the beliefs and assumptions made by the management of Vistra, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performance, which could significantly affect the financial results of Vistra. All statements, other than statements of historical fact, which are presented here, or in response to questions or otherwise, that deal with activities, events or developments that may occur in the future, including questions such as activities related to our financial or operational projections, the potential impacts of the COVID-19 pandemic on our operating results, our financial position and our cash flows, the projected synergy, the value lever and the objectives of net debt, capital allocation, capital expenditure, liquidity, conversion rate of adjusted EBITDA to free cash flow, political dividend, business strategy, competitive forces, goals, future acquisitions or disposals, development or operation of power generation assets, market and industry developments and growth in our business and operations (often, but not always bear, by the use of words or phrases, or negative variations of such words or other comparable words of a future or prospective nature, including, but not limited to: “intend”, “plan” , “,” “Should”, “should”, “could”, “could”, “could”, “foresee”, “plan”, “foresee”, “target”, “potential”, “goal”, “objective “,” Guidance “and” outlook “), are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra believes that in making such forward-looking statement Vistra’s expectations are based on reasonable assumptions, such forward-looking statement involves uncertainties and risks that could cause results to differ materially from those projected or suggested by. such forward-looking statement. statement, including, but not limited to: (i) adverse changes in general economic or market conditions (including changes in interest rates) or changes in political conditions or laws and federal or state regulations; (ii) Vistra’s ability to implement its planned initiatives in terms of strategy, capital allocation, performance and cost reduction and to successfully integrate the acquired businesses; (iii) actions of credit rating agencies; (iv) the severity, extent and duration of pandemics, including the COVID-19 pandemic, and the resulting effects on our results of operations, financial condition and cash flows; (v) the severity, magnitude and duration of extreme weather events (including winter storm Uri), contingencies and uncertainties relating thereto, most of which are difficult to predict and many of which are beyond our control , and the resulting effects on our results of operations, financial condition and cash flows; and (vi) additional risks and factors discussed in reports filed with the Securities and Exchange Commission by Vistra from time to time, including the uncertainties and risks discussed in the sections headed “Risk Factors” and “Forward-Looking Statements” in Vistra’s annual report report on Form 10-K for the year ended December 31, 2020 and any quarterly report subsequently filed on Form 10-Q.
Any forward-looking statement is only valid as of the date it is made, and except as required by law, Vistra undertakes no obligation to update any forward-looking statement to reflect subsequent events or circumstances. on the date it is made or to reflect the occurrence of unforeseen events. New factors appear from time to time, and it is not possible to predict all of them; Vistra also cannot assess the impact of each of these factors or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in a forward-looking statement.
SOURCE Vistra Corp.