Vistra Corp. (NYSE:VST) has had a busy stretch this month that included a major debt offering and a new long-term power supply agreement with a data center developer.
- Vistra shares are advancing steadily. What’s pushing VST stock higher?
The $1.5 Billion Notes Offering
On September. 10, Vistra priced an underwritten public offering of $1.5 billion in junior subordinated notes, split between $850 million of Series A notes due 2057 at a 7.00% initial interest rate and $650 million of Series B notes due 2057 at 7.25%.
The notes are unsecured obligations of Vistra Operations Company LLC, guaranteed by Vistra. Net proceeds are intended for general corporate purposes, including funding the redemption of Vistra’s outstanding Series A and Series B preferred stock upon their respective reset dates in October and December.
The offering is expected to close September 24.
A 20-Year Power Deal With New Era
On September 21, New Era Energy & Digital announced that its subsidiary, TCDC PowerCo LLC, entered into a 20-year power purchase agreement with Luminant, a Vistra affiliate, under which Luminant will supply between 200 MW and 207 MW of power for Phase 1 of New Era’s Texas Critical Data Center project.
Power will come from Vistra’s 1,180 MW natural gas-fired facility in Odessa, Texas, adjacent to the data center site, with delivery expected in the third quarter of 2027. Alongside the PPA, the two companies also signed a development framework agreement giving Vistra a 5% non-voting interest in the portion of the project it powers, along with rights of first refusal on future development at the site and other New Era projects.
“Demand for reliable power to support digital infrastructure continues to grow across the United States,” said Claudia Morrow, Senior Vice President of Corporate Development and Strategy at Vistra.
Vistra Shares Edge Higher
VST Price Action: At the time of publication, Vistra shares are trading 1.24% higher at $139.65, according to data from Benzinga Pro.
Image via Shutterstock
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