According to a related 8-K filing, Deutsche Bank New York Branch acted as administrative and collateral agent on an amendment to Vistra Operations’ credit agreement from October 3, 2016.
As a result of the amendment, the interest rates on the outstanding $990 million incremental term loans and the revolving credit loans were reduced to bear interest at a rate equal to, at Vistra’s option, either LIBOR plus an applicable margin of 2.25% or a base rate plus an applicable margin of 1.25%.
The incremental term loans will also be subject to a 25 basis points step down if a corporate family rating of Ba1 or better is assessed by Moody’s. The 2016 incremental term loans are pre-payable at any time without premium or penalty; provided that there will be a 1.00% pre-payment premium in connection with any repricing of such term loans that reduces the interest rate prior to August 20, 2018.
The repricing amendment did not change the interest rate on the outstanding $2.821 billion initial term loans or outstanding $500 million initial term C loans. The initial term loans and initial term C loans will continue to bear interest at a rate equal to, at Vistra’s option, either LIBOR (in the case of the initial term loans and initial term C loans, subject to a LIBOR floor of 0.75%) plus an applicable margin of 2.50% or a base rate plus an applicable margin of 1.50%.
No additional debt was incurred, or any proceeds received, by Vistra Operations in connection with the repricing amendment.
Vistra Operations expects that its annual interest expense with respect to the credit facilities will decrease by approximately $5 million (on a pre-tax basis and excluding fees and expenses of approximately $2 million incurred in connection with the amendment).
