Summary
Vistra Corp. (VST) filed an 8-K on November 15, 2018, primarily disclosing information regarding an annual tax payment under its Tax Receivable Agreement (TRA). The agreement, dated October 3, 2016, allows holders of certain rights (TRA Rights) to receive payments related to cumulative tax benefits realized by the company. This filing specifically addresses the payment for the 2017 taxable year. Investors should note that an aggregate payment of approximately $16.3 million is scheduled for December 3, 2018, to holders of record as of November 26, 2018. This amount includes $15.4 million as a return of basis and $0.94 million as interest income. The company also noted that paying agents may be required to withhold up to 30% of the interest income for holders who have not provided correct taxpayer identification numbers, highlighting a potential administrative detail for affected TRA Right holders.
Key Highlights
- 1Vistra Corp. is making an annual tax payment under its Tax Receivable Agreement (TRA) for the 2017 taxable year.
- 2The total aggregate payment to TRA Right holders will be approximately $16.3 million.
- 3The payment date is set for December 3, 2018, with a record date of November 26, 2018.
- 4The payment consists of approximately $15.4 million as a return of basis and $0.94 million as interest income.
- 5The company estimates the value of each TRA Right on the TCEH Effective Date (October 3, 2016) to be $2.99924.
- 6Vistra has previously made approximately $25.9 million in payments related to TRA Rights.
- 7A potential withholding tax of up to 30% on interest income may apply to holders who fail to provide correct taxpayer identification numbers.