Summary
Vistra Corp. (VST) filed an 8-K on November 16, 2020, to disclose information regarding its Tax Receivable Agreement (TRA). The company provided notice to holders of TRA Rights of an upcoming annual tax payment for the 2019 taxable year. This payment, totaling $264,459, comprises $258,081 as a return of basis and $6,378 as interest income, scheduled to be paid on November 30, 2020, to eligible record holders. This filing is important for investors to understand Vistra's obligations under its TRA. The TRA allows holders of certain rights to receive payments based on the cumulative tax benefits realized by Vistra. The company has previously made approximately $44.2 million in payments related to these TRA Rights, with each right initially estimated at $2.99924 on the TCEH Effective Date of October 3, 2016. Investors should also be aware of potential tax withholding requirements on interest income if holders fail to provide correct taxpayer identification numbers.
Key Highlights
- 1Vistra Corp. provided notice of an annual tax payment under its Tax Receivable Agreement (TRA).
- 2The payment is for the 2019 taxable year and totals $264,459.
- 3The payment includes $258,081 as a return of basis and $6,378 as interest income.
- 4The payment is scheduled for November 30, 2020, to holders of record as of November 23, 2020.
- 5The estimated value of each TRA Right on the TCEH Effective Date (October 3, 2016) was $2.99924.
- 6Vistra has made approximately $44.2 million in prior payments related to the TRA Rights.
- 7Potential federal income tax withholding of up to 30% on interest income may apply to holders who fail to furnish a correct taxpayer identification number.