Summary
Targa Resources Corp. (TRGP) announced on October 3, 2012, the entry into a new five-year Credit Agreement with Deutsche Bank Trust Company Americas as Administrative Agent. This agreement establishes a revolving credit facility with an initial aggregate principal amount of up to $150 million, which can be increased by an additional $100 million under certain conditions. A $30 million swing line sub-facility is also included. The new credit facility is secured by substantially all of the Company's assets and features flexible interest rate options tied to the Company's Consolidated Leverage Ratio. The agreement includes covenants that may restrict certain corporate actions, such as dividend payments, if the leverage ratio exceeds 4.00 to 1.00 or if a default occurs. This financing provides Targa Resources with enhanced financial flexibility and resources to support its operations and growth initiatives.
Key Highlights
- 1Targa Resources entered into a new five-year Credit Agreement dated October 3, 2012.
- 2The agreement provides a revolving credit facility of up to $150 million, with an option to increase by $100 million.
- 3A $30 million swing line sub-facility is also part of the agreement.
- 4The credit facility matures on October 3, 2017.
- 5Interest rates are variable, based on the Company's option of a base rate or LIBOR, plus an applicable margin dependent on the Consolidated Leverage Ratio.
- 6The credit facility is secured by substantially all of Targa Resources' assets.
- 7The agreement includes a covenant requiring a Consolidated Leverage Ratio of no more than 4.00 to 1.00.