Vistra Corp. (VST) stock soared 6.22% in the after-hours trading session at the price of $18.95 following the announcement of the share repurchase program. VST is a leading retail electricity and power generation company that provides essential resources for customers, businesses, and communities.
VST $2 Billion Share Repurchase Program
On 12th October 2021, VST published a $2 billion share repurchase program for qualified institutional buyers. The program offers 1,000,000 common shares of 8% Series A Fixed-Rate Reset Cumulative Redeemable Perpetual Preferred Stock. Under the Securities Act of 1933, the pricing has offered at a price of $1,000 per share. VST will receive gross proceeds of approximately $1 billion from the sale of the Preferred Stock. It excludes the initial purchaser discount and other anticipated offering costs.
VST plans to use the net proceeds from the offering to repurchase common stock from November 2021. This share repurchases program will get executed from November 2021 to the end of December 2022. Vistra will announce the timing and amount of share repurchases every quarter in arrears as per its traditional practice. The offering will close on 15th October 2021 and is subject to customary closing conditions.
Chief executive officer of VST, Curt Morgan, remarked that they had taken an essential step in achieving the output of its strategic review. The unprecedented and unsustainable differences in the cost of capital have provided them more benefits in its equity value comparatively other forms of cost capital. This announcement emphasizes their confidence in the business and dedication to improving stockholder value while preserving their strong balance sheet.
These strategic imperatives resulted from a months-long strategic review by the company. They are investing in retail and zero-carbon businesses and yielding a significant amount of free cash flow to shareholders annually. VST believes in the value of this company and will keep on taking suitable actions to rectify the undervaluation of their stock.
Free Electricity with Energy Cash Rewards
Previously, on 5th October 2021, VST published that it had launched a new plan, TXU Energy Freedom RewardsSM. It makes the energy-saving process easy and more effective. This program enables clients to earn 30% in free electricity for every dollar they spend on energy charges. The customers can redeem Energy Cash online through the TXU Energy app or with the phone. There are no expiration dates or blackouts for using rewards if the consumers are on the plan.