8-KMaterial AgreementsRegulation FDExhibits & Filings

Targa Resources Corp. 8-K Report, Material Agreement (Jan 24, 2017)

Filed January 24, 2017For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) filed an 8-K on January 24, 2017, to report on a material definitive agreement related to an underwritten public offering of its common stock. The company entered into an underwriting agreement on January 23, 2017, for the sale of 8,000,000 shares of common stock at a price of $57.65 per share. This offering is expected to raise significant capital for the company and is anticipated to close on January 26, 2017. This equity offering provides Targa Resources with an opportunity to strengthen its balance sheet or fund strategic initiatives. The underwriters have a 30-day option to purchase an additional 15% of the shares offered. Investors should note that affiliates of the underwriters have existing relationships with Targa Resources, including being lenders under credit facilities, and one affiliate is acting as a financial advisor for a recent acquisition. This filing serves to inform the market about this material capital-raising event and associated agreements.

Key Highlights

  • 1Targa Resources Corp. announced an underwritten public offering of 8,000,000 shares of common stock.
  • 2The offering price was set at $57.65 per share.
  • 3The company entered into an Underwriting Agreement on January 23, 2017.
  • 4The equity offering is expected to close on January 26, 2017.
  • 5Underwriters have an option to purchase up to an additional 1,200,000 shares (15% over-allotment option).
  • 6Affiliates of the underwriters have existing business relationships with Targa Resources, including lending and financial advisory roles.
  • 7The proceeds from the offering may be used to repay borrowings under the company's and its subsidiary's credit facilities.

Frequently Asked Questions

This 8-K filing is primarily to report the entry into a material definitive agreement, specifically the Underwriting Agreement for a public offering of Targa Resources Corp.'s common stock. It also includes a press release announcing the pricing of this offering.

The company is offering 8,000,000 shares at $57.65 per share, which would result in gross proceeds of approximately $461.2 million, before any exercise of the over-allotment option.

The filing notes that affiliates of the underwriters have engaged in and may continue to engage in customary investment banking and commercial dealings with Targa Resources. Specifically, affiliates are lenders under the company's credit facilities and one affiliate is acting as a financial advisor for a recent acquisition. This means these entities have existing financial relationships with Targa Resources.

The filing does not explicitly state the use of proceeds, but it mentions that affiliates of the underwriters may receive a portion of the net proceeds if they are used for the repayment of borrowings under the company's and its subsidiary's credit facilities.