Summary
Vistra Corp. (VST) announced on February 4, 2022, that its indirect, wholly owned subsidiary, Vistra Operations Company LLC, entered into a $1.0 billion senior secured commodity-linked revolving credit facility. This facility is designed to provide liquidity for cash postings required under various commodity contracts, particularly as power prices increase, and for general working capital and corporate purposes. The borrowing base is calculated weekly based on a theoretical hedge portfolio, and availability cannot exceed the facility limit or go below zero. At the time of closing, no borrowings were outstanding under this new facility. This new credit facility matures on October 5, 2022, and offers flexible borrowing options including Term SOFR, Daily Simple SOFR, and ABR loans, with interest rates tied to SOFR plus an applicable margin or prime rate variations. The facility is secured by substantially the same collateral and guaranteed by the same entities as Vistra's existing senior secured revolving credit facility, indicating a consistent approach to its credit arrangements. The establishment of this facility provides Vistra with enhanced financial flexibility to manage potential margin calls associated with its energy trading activities.
Key Highlights
- 1Vistra Operations Company LLC secured a $1.0 billion senior secured commodity-linked revolving credit facility.
- 2The facility is intended to support cash postings for commodity contracts, especially during periods of rising power prices.
- 3Borrowing availability is dynamically determined by a weekly calculation of a theoretical hedge portfolio, capped at $1.0 billion.
- 4No borrowings were made under the facility at the time of its closing.
- 5The credit facility matures on October 5, 2022.
- 6Interest rates are variable, based on SOFR plus an adjustment and applicable margin, or alternative ABR rates.
- 7The new facility is secured by similar collateral and has the same guarantors as Vistra's existing senior secured revolving credit facility.