Vistra Operations Co. LLC amended its credit agreement to reduce the interest rate on the outstanding $990 million of incremental term loans and revolving credit loans, a move that will lower the company's annual interest expense on the agreement by about $5 million.

Following the amendment, the loans will bear interest at a rate equal to either London Interbank Offered Rate plus an applicable margin of 2.25% or a base rate plus an applicable margin of 1.25%, effective Feb. 22.

The incremental term loans also will be subject to a 25 basis points step down if Moody's assigns a corporate family rating of Ba1 or better, according to a Feb. 22 company filing.

The amendment did not change the interest rate on the outstanding $2.82 billion initial term loans and outstanding $500 million initial term C loans. Those loans will continue to bear interest at a rate equal to either LIBOR plus an applicable margin of 2.50% or a base rate plus an applicable margin of 1.50%, the company said.

Deutsche Bank AG New York Branch acted as the administrative and collateral agent.

Vistra Operations is a Vistra Energy Corp. subsidiary.