Summary
Vistra Corp. (VST) filed an 8-K on November 14, 2019, to disclose an upcoming annual tax payment related to its Tax Receivable Agreement (TRA). This payment, totaling $1,921,484 for the 2018 tax year, is scheduled for December 2, 2019, to holders of TRA Rights as of November 25, 2019. The aggregate payment consists of $1,815,549 attributed to a return of basis and $105,935 in interest income. This event provides clarity on the cash outflows associated with the TRA, which is important for understanding Vistra's financial obligations and cash management. Investors should note that withholding taxes of up to 30% may apply to the interest income portion for certain holders who have not provided proper tax identification information.
Key Highlights
- 1Vistra Corp. announced an upcoming annual tax payment of $1,921,484 under its Tax Receivable Agreement (TRA).
- 2The payment pertains to the 2018 taxable year and is scheduled for December 2, 2019.
- 3The aggregate payment is comprised of $1,815,549 (return of basis) and $105,935 (interest income).
- 4Holders of record as of November 25, 2019, will receive the payment.
- 5The estimated value of each TRA Right as of the TCEH Effective Date (October 3, 2016) was $2.99924.
- 6Vistra has made approximately $42.3 million in prior TRA payments.
- 7Potential withholding tax of up to 30% on interest income for holders failing to provide valid tax identification numbers.