Summary
Vistra Corp. (VST) announced on November 15, 2017, an upcoming annual tax payment related to its Tax Receivable Agreement (TRA) executed on October 3, 2016. This payment, totaling approximately $25.9 million, is for the 2016 taxable year and will be distributed on December 4, 2017, to holders of record as of November 27, 2017. This is the first payment made under the TRA since its inception, with each TRA Right initially valued at $2.99924 as of the TCEH Effective Date. Investors should note the potential for up to 30% tax withholding on gross payments for holders who have not provided a correct taxpayer identification number. The filing also directs holders with questions to the Transfer Agent.
Key Highlights
- 1Vistra Corp. is making its first annual tax payment under the Tax Receivable Agreement (TRA).
- 2The total aggregate payment is approximately $25.9 million for the 2016 taxable year.
- 3Payment will be made on December 4, 2017.
- 4Holders of record as of November 27, 2017, are eligible to receive the payment.
- 5The initial estimated value of each TRA Right on October 3, 2016, was $2.99924.
- 6Potential for up to 30% tax withholding for holders failing to provide a correct taxpayer identification number.
Frequently Asked Questions
The Tax Receivable Agreement (TRA) is an agreement entered into by Vistra Corp. and American Stock Transfer & Trust Company, LLC. It grants holders of certain rights beneficial interests in specific payments related to cumulative tax benefits realized by Vistra Corp.
The payment of approximately $25.9 million will be made on December 4, 2017, to holders of record of TRA Rights as of November 27, 2017. This payment covers the 2016 taxable year.
Yes, this is the first payment Vistra Corp. has made in respect of the TRA Rights since the agreement was established on October 3, 2016.
The estimated value of $2.99924 per TRA Right represents the value assigned to each right on October 3, 2016, which was the TCEH Effective Date. This value is a reference point for the rights being accounted for under the agreement.
If you have questions regarding potential tax withholdings, you should contact the Transfer Agent, American Stock Transfer & Trust Company, LLC, by phone at 1-800-937-5449 to inquire about the status of your account.