Vistra To Acquire 15% Equity Interest In Vistra Vision For $3.248 Bln In Cash

(RTTNews) - Vistra Corp. (VST) announced that it has agreed to acquire a 15% equity interest in Vistra Vision LLC, owned by Nuveen and Avenue, for an undiscounted purchase price of $3.248 billion in cash. The payment is expected in five installments: $1.18 billion on December 31, 2024; $114 million on June 30, 2025; $1.0 billion on December 31, 2025; $54 million on June 30, 2026; and $900 million on December 31, 2026. The net present value of the purchase price, discounted at a 6% interest rate as of December 31, 2024, is $3.085 billion.

Additionally, if Nuveen and Avenue receive less than $165 million in dividends from Vistra Vision for the remainder of 2024, then the amount of the installment payable on Dec. 31, 2024, will be adjusted upward by the difference, and if they receive dividends in excess of $165 million, then the amount will be adjusted downward by the difference.

Vistra also continues to expect to execute at least $2.25 billion of share repurchases in 2024 and 2025 and at least $1 billion in 2026, as well as pay $300 million in aggregate common dividends in each year 2024-2026.

The transaction, which is not subject to any regulatory approvals, is expected to close on December 31, 2024.