Summary
Vistra Corp. (VST) filed an 8-K on November 15, 2021, disclosing information related to its Tax Receivable Agreement (TRA). The company provided notice of an upcoming annual tax payment to holders of TRA Rights, representing beneficial interests in certain tax benefits realized by Vistra. This payment pertains to the taxable year 2020 and is scheduled for November 29, 2021. For the 2020 taxable year, the aggregate value of the annual tax payment will be approximately $2.2 million, comprising $2.15 million as a return of basis and $47,413 as interest income. This payment is made in accordance with the terms of the TRA agreement entered into in October 2016. Investors should note that this is a routine disclosure concerning the TRA obligations and does not appear to represent a significant new development or financial event for the company.
Key Highlights
- 1Vistra Corp. announced an annual tax payment under its Tax Receivable Agreement (TRA) related to the 2020 taxable year.
- 2The total payment amount for the 2020 taxable year is $2,196,898.
- 3This payment includes $2,149,485 as a return of basis and $47,413 as interest income.
- 4The payment is scheduled to be made on November 29, 2021, to holders of record as of November 22, 2021.
- 5The company estimates the value of each TRA Right as of October 3, 2016, to be $2.99924.
- 6Vistra has made approximately $44.5 million in prior payments related to these TRA Rights.
- 7A potential withholding tax of up to 30% on interest income may apply to holders who have not provided a correct taxpayer identification number.