Vistra Corp. said it redeemed one million Series A preferred shares for $1 billion on Oct. 15, when the shares reached the first date their five-year fixed rate could reset.
Each share had a redemption price of $1,000, putting the aggregate liquidation preference at $1 billion. The date also closed the five-year period during which the shares paid a fixed 8.0% annual rate. Vistra said the shares stopped being outstanding after Oct. 15. The 2021 certificate of designation set the redemption price at $1,000 per share, plus any dividend amounts accumulated and unpaid under its terms.
Had the shares remained outstanding, their rate would have been recalculated using the five-year U.S. Treasury rate, subject to a 1.07% floor, with 6.93 percentage points added. The SEC-filed certificate set out that formula. In July, Vistra’s board declared a $40 distribution per share for the half-year, payable Oct. 15, equivalent to $80 per share annually. The company reported no outstanding dividend balance as of the redemption date. The certificate left holders entitled to collect the redemption amount and any dividends due under its terms; other rights tied to the shares ended.
A Vistra subsidiary completed a $1.5 billion junior subordinated notes offering on Sept. 24. The sale included $850 million in 7% Series A notes and $650 million in 7.25% Series B notes, both due in 2057 and guaranteed by Vistra. In its September offering announcement, Vistra listed redemptions of some or all Series A and Series B preferred shares as possible uses for the proceeds. The Oct. 15 announcement did not say whether those proceeds funded the Series A redemption.
Vistra’s Series B preferred stock is scheduled to reach its reset and earliest redemption date on Dec. 15, according to the company’s 2025 quarterly filing.
