8-KMaterial AgreementsRegulation FDExhibits & Filings

Targa Resources Corp. 8-K Report, Material Agreement (May 30, 2017)

Filed May 30, 2017For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) announced the pricing of a public offering of 17,000,000 shares of its common stock at $46.10 per share. This equity offering, detailed in an Underwriting Agreement dated May 25, 2017, is expected to close on June 1, 2017. The company has also granted the underwriter a 30-day option to purchase an additional 2,550,000 shares, representing a potential 15% increase in the shares offered. This capital raise will provide Targa Resources with additional liquidity. Investors should note the company's standard indemnification obligations to the underwriter. The filing also references existing commercial dealings and potential future relationships between the underwriter's affiliates and Targa Resources, including lending under the company's credit facilities. This transaction is a key event reflecting Targa's strategy for growth and financial management.

Key Highlights

  • 1Targa Resources Corp. (TRGP) is conducting a public offering of 17,000,000 shares of common stock.
  • 2The offering price is set at $46.10 per share.
  • 3An underwriter has been engaged through an Underwriting Agreement dated May 25, 2017.
  • 4The company has granted the underwriter an option to purchase up to an additional 2,550,000 shares.
  • 5The equity offering is expected to close on June 1, 2017.
  • 6The shares offered are registered under the Securities Act of 1933 via a Form S-3 registration statement.
  • 7The Underwriting Agreement includes standard indemnification clauses for the underwriter.

Frequently Asked Questions

This 8-K filing primarily serves to announce the entry into a material definitive agreement, specifically the Underwriting Agreement for a public offering of Targa Resources Corp.'s common stock, and to disclose the pricing of this offering.

The company is offering 17,000,000 shares at $46.10 per share, which would result in gross proceeds of approximately $783.7 million. Additionally, if the underwriter exercises its option to purchase an extra 2,550,000 shares, Targa could raise an additional approximately $117.6 million, bringing the total potential gross proceeds to around $901.3 million.

The 30-day option granted to the underwriter to purchase up to an additional 2,550,000 shares (15% of the initial offering) provides flexibility. It allows the underwriter to meet potential increased demand for the stock and also gives Targa Resources the potential to raise more capital if the market conditions are favorable.

The filing mentions that the underwriter and its affiliates have engaged in and may continue to engage in commercial dealings with Targa Resources. Specifically, an affiliate of the underwriter is a lender under Targa's credit facilities, meaning they could receive a portion of the offering proceeds if used for debt repayment. This is a standard disclosure for such transactions.