Summary
Vistra Corp. (VST) announced an amendment to its existing credit facilities, specifically the Repricing Amendment to its Credit Agreement. Effective August 17, 2017, this amendment primarily focused on reducing the interest rate for the outstanding $995 million 2016 Incremental Term Loans. This repricing is expected to lower Vistra's annual interest expense by approximately $5 million on a pre-tax basis, excluding associated fees of around $2 million. Importantly, this amendment did not alter the terms or interest rates for the $2.836 billion Initial Term Loans, $650 million Initial Term C Loans, or the Revolving Credit Loans.
Key Highlights
- 1Vistra Operations Company LLC, a subsidiary of Vistra Corp., entered into a Repricing Amendment to its Credit Agreement.
- 2The amendment, effective August 17, 2017, reduces the interest rate on $995 million of 2016 Incremental Term Loans.
- 3The interest rate on the repriced loans will be LIBOR plus 2.75% (with a 0.75% floor) or a base rate plus 1.75%.
- 4Vistra anticipates an annual pre-tax interest expense savings of approximately $5 million due to this repricing.
- 5Associated fees and expenses for the amendment are estimated to be around $2 million.
- 6The interest rates and terms for the $2.836 billion Initial Term Loans, $650 million Initial Term C Loans, and Revolving Credit Loans remain unchanged.
- 7No new debt was incurred or proceeds received in connection with this amendment.