8-KMaterial AgreementsExhibits & Filings

Targa Resources Corp. 8-K Report, Material Agreement (May 10, 2017)

Filed May 10, 2017For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) has filed an 8-K to report the execution of an Equity Distribution Agreement on May 9, 2017. This agreement allows the company to sell up to $750 million worth of its common stock over time through various financial institutions acting as sales agents. The sales will be conducted through ordinary brokers' transactions on the New York Stock Exchange or other national exchanges, or potentially as block transactions or directly to the managers as principal at negotiated prices. This filing indicates TRGP is positioning itself to access capital through equity issuance. Investors should note that the company has an existing shelf registration statement (Form S-3) allowing for such sales. The specific use of proceeds is not detailed in this filing, but such an agreement typically provides flexibility for general corporate purposes, potential acquisitions, or debt reduction. The broad list of participating managers suggests TRGP is leveraging a strong syndicate for potential future equity offerings.

Key Highlights

  • 1Targa Resources Corp. entered into an Equity Distribution Agreement on May 9, 2017.
  • 2The company can sell up to $750 million of its common stock through the agreement.
  • 3Sales will be conducted via agents (Managers) through various market venues, including the NYSE.
  • 4The company may also sell shares directly to managers as principal.
  • 5The equity issuance is registered under an existing Form S-3 shelf registration statement.
  • 6The agreement provides flexibility for future capital raising efforts.

Frequently Asked Questions

The primary purpose is to provide Targa Resources Corp. with the flexibility to issue and sell up to $750 million of its common stock from time to time in the future. This allows the company to raise capital as needed through the public equity markets.

The agreement allows Targa Resources Corp. to sell shares 'from time to time' as market conditions and the company's capital needs dictate. The sales will be made through the named Managers, acting as sales agents or principals.

The shares will be sold through ordinary brokers' transactions on the New York Stock Exchange or other national exchanges, or through other market venues. They can also be sold in block transactions or directly to one of the Managers as principal at a negotiated price.

Not necessarily. This agreement establishes a framework that *allows* Targa Resources Corp. to issue and sell shares up to the $750 million limit. It does not obligate them to sell any specific amount or to sell them immediately. The company will decide when and if to utilize this facility based on its strategic and financial requirements.