8-KMaterial AgreementsFinancial EventsExhibits & Filings

Targa Resources Corp. 8-K Report, Material Agreement (Oct 11, 2016)

Filed October 11, 2016For Securities:TRGP

Summary

Targa Resources Partners LP, a subsidiary of Targa Resources Corp., has entered into a Third Amended and Restated Credit Agreement on October 7, 2016. This agreement restates their existing credit facility, increasing the revolving credit facility to an initial aggregate principal amount of up to $1.6 billion, with an option to increase it by an additional $500 million. The facility matures on October 7, 2020, and includes a swing line sub-facility of up to $100 million, fully available for letters of credit. An important feature of the new agreement is the provision for the release of all collateral upon the occurrence of an "Investment Grade Event." Furthermore, Targa Pipeline Partners LP and certain of its subsidiaries are now designated as "Restricted Subsidiaries" under this agreement and will become guarantors of Targa Resources Partners LP's outstanding senior notes. This filing indicates Targa's efforts to enhance its financial flexibility and potentially strengthen its credit profile.

Key Highlights

  • 1Targa Resources Partners LP amended and restated its credit agreement on October 7, 2016.
  • 2The revolving credit facility was increased to an initial aggregate principal amount of $1.6 billion.
  • 3There is an option to increase the credit facility by an additional $500 million.
  • 4The credit facility maturity date is October 7, 2020.
  • 5A swing line sub-facility of up to $100 million is available for letters of credit.
  • 6The agreement includes provisions for collateral release upon an "Investment Grade Event."
  • 7Targa Pipeline Partners LP and certain subsidiaries are designated as Restricted Subsidiaries and will guarantee senior notes.

Frequently Asked Questions

This 8-K filing announces the entry into a Third Amended and Restated Credit Agreement by Targa Resources Partners LP. This agreement essentially updates and expands their existing credit facility.

The revolving credit facility has an initial principal amount of up to $1.6 billion, with a potential to increase by $500 million. The facility matures on October 7, 2020.

The filing does not explicitly define 'Investment Grade Event.' However, its significance lies in the provision that upon its occurrence, all security interests in the collateral can be released. This suggests a potential improvement in Targa's creditworthiness or financial standing that could lead to reduced collateral requirements.

Targa Pipeline Partners LP (formerly Atlas Pipeline Partners, L.P.) and certain of its subsidiaries have been designated as "Restricted Subsidiaries" under the new credit agreement. This means they will be required to guarantee Targa Resources Partners LP's outstanding senior notes.