New York, Jan 12, 2026, 11:21 ET — Regular session
- Vistra shares jumped roughly 5% following the announcement of a private offering of senior secured notes maturing in 2031 and 2036.
- Funds raised will go toward the Cogentrix acquisition and debt repayment, while Wall Street weighs the implications of the Meta nuclear PPAs.
- Traders are eyeing note pricing closely, with the next earnings update due Feb. 26.
Shares of Vistra Corp (VST) jumped Monday after the power producer announced a private offering of senior secured notes due in 2031 and 2036. The debt, backed by collateral, is intended to help finance its planned acquisition of Cogentrix Energy, along with other corporate needs like debt repayment. The company did not reveal the size of the offering. By 11:13 a.m. ET, the stock had gained 4.7% to $174.24, while the S&P 500 held steady. (PR Newswire)
Timing is key as Vistra remains in “show me” mode with investors: the company is acquiring capacity, securing long-term contracts, and now tapping secured debt to push its plan forward. A debt offering could either ease concerns about financing or underscore that the balance sheet still plays a crucial role in the story.
Traders are also adjusting valuations for U.S. power stocks linked to data-center demand and long-term deals. Power purchase agreements, or PPAs, lock in electricity supply over extended periods; investors see them as a means to reduce exposure to swings in wholesale power prices.
BMO Capital lifted its price target on Vistra to $244 from $230, maintaining an outperform rating and highlighting the company’s long-term nuclear PPAs with Meta Platforms. Meanwhile, Bank of America’s Ross Fowler downgraded his target to $218 from $231 but held on to a buy rating, noting he increased EBITDA forecasts while lowering the premium for gas assets amid rising forward prices.
On Jan. 9, Vistra revealed it had inked 20-year power purchase agreements to supply over 2,600 megawatts of “zero-carbon” power and capacity to Meta, sourced from its Beaver Valley, Davis-Besse, and Perry nuclear facilities within the PJM Interconnection grid. This market covers much of the Mid-Atlantic and parts of the Midwest. “This is a unique and exciting collaboration,” Vistra CEO Jim Burke said. Meta’s Urvi Parekh added the company is backing nuclear energy because it delivers “clean, reliable power” for its operations. (Vistra Corp. Investor Relations)
A recent filing revealed Vistra anticipates initial deliveries from operating capacity starting in late 2026, reaching full delivery by the end of 2027. The company projects incremental adjusted free cash flow growth of roughly 8% to 10% from the operating segment, plus an additional 5% to 7% from planned “uprates” — equipment upgrades that boost output — once fully realized through 2034. (SEC)
Vistra climbed even as some of its rivals lost ground. Constellation Energy dipped 1.5%, NRG Energy dropped 1.7%, and Talen Energy slipped 0.4%. Oklo took the biggest hit, falling 3.0%.
But the trade cut both ways. Vistra’s Cogentrix acquisition, slated for mid- to late-2026, depends heavily on regulatory sign-off. Meanwhile, new secured debt could limit room to cut leverage if power prices dip. Ratings agencies are recalibrating their outlook as Vistra pushes deeper into acquisitions and long-term contracts. (Reuters)
Next, investors will zero in on the size and pricing of the secured notes, along with any additional details on Cogentrix’s financing. Options markets have shown signs of caution, highlighted by heavy put buying in the shares. Traders are also gearing up for earnings set to drop on Feb. 26.
