8-KMaterial AgreementsOther EventsExhibits & Filings

Targa Resources Corp. 8-K Report, Material Agreement (Apr 6, 2018)

Filed April 6, 2018For Securities:TRGP

Summary

Targa Resources Corp. (TRGP), through its subsidiary Targa Resources Partners LP, announced on April 5, 2018, the pricing of $1,000,000,000 in aggregate principal amount of 5.875% senior unsecured notes due 2026. The offering was priced at par, with expected net proceeds of approximately $992,250,000. The primary use of these proceeds is to repay borrowings under the company's existing credit facilities and for general partnership purposes. These purposes may include potential redemptions or repurchases of outstanding senior notes, other debt repayment, working capital, and funding for capital expenditures and acquisitions. The transaction involved Merrill Lynch, Pierce, Fenner & Smith Incorporated as the representative of the initial purchasers. Notably, some of these initial purchasers or their affiliates may benefit from the proceeds as lenders under Targa's credit facilities.

Key Highlights

  • 1Targa Resources Partners LP priced a $1 billion offering of 5.875% senior unsecured notes due 2026.
  • 2The notes were issued at par, generating net proceeds of approximately $992.25 million.
  • 3Proceeds will be used primarily to repay borrowings under credit facilities and for general partnership purposes.
  • 4Potential uses for general partnership purposes include note repurchases, other debt repayment, working capital, and capital expenditures/acquisitions.
  • 5The offering was managed by Merrill Lynch, Pierce, Fenner & Smith Incorporated as the representative of initial purchasers.
  • 6Some initial purchasers or their affiliates are lenders under Targa's credit facilities and may receive proceeds indirectly.

Frequently Asked Questions

The primary purpose of this $1 billion note issuance is to repay existing borrowings under Targa Resources Partners LP's credit facilities and to fund general partnership purposes. These general purposes can include repurchasing outstanding senior notes, paying down other debt, supporting working capital needs, and financing capital expenditures and potential acquisitions.

The new notes are 5.875% senior unsecured notes due in 2026. They were priced at par, meaning they were sold at 100% of their face value.

Yes, there's a potential for indirect benefit to the initial purchasers. Some of these financial institutions or their affiliates are lenders under Targa's credit facilities. Therefore, as Targa uses the proceeds to repay these credit facilities, those lenders may receive a portion of the funds.

The expected net proceeds are approximately $992,250,000. These funds are earmarked for repaying borrowings under the company's credit facilities and for general corporate purposes which may include debt reduction, working capital, and investments in growth opportunities like capital expenditures and acquisitions.