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Also, make sure you have a legendary heavy engram. It's required as well.
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Did you happen to dismantle your Dreadfang Swords prior to the April Update? If yes, then you are running into a current issue where Variks does not sell the Dreadfang Sword when you dismantled your Swords prior to the April Update. Bungie is aware and investigating this issue, as stated here: https://www.bungie.net/mobi/en/about/Article?id=44703 To let Variks sell the Dreadfang Sword again, you have to complete the "At the Gates" Questline once more on another character.