Summary
Targa Resources Corp. (TRGP) announced on September 20, 2018, the entry into a new Equity Distribution Agreement with a syndicate of Managers, allowing them to sell up to $750 million of the Company's common stock. This new agreement effectively replaces a similar one from December 2016, which was terminated concurrently. The shares will be sold through the New York Stock Exchange or other eligible venues at prevailing market prices or in block transactions, providing Targa Resources with flexibility to raise capital as needed. The termination of the prior agreement and the establishment of the new one indicate Targa Resources' ongoing strategy to manage its equity financing. The involvement of numerous major financial institutions as managers suggests strong market interest and potential for efficient capital raising. Investors should note that proceeds from any stock sales could be used to repay outstanding debt under the company's credit facilities, potentially improving the balance sheet.
Key Highlights
- 1Targa Resources entered into a new Equity Distribution Agreement to potentially sell up to $750 million of its common stock.
- 2The new agreement was established on September 20, 2018, with a large group of financial institutions acting as managers/sales agents.
- 3The company concurrently terminated a similar Equity Distribution Agreement dated December 2, 2016.
- 4Sales will be conducted through the NYSE or other exchanges/trading facilities at market prices or in block transactions.
- 5The shares will be issued under the company's existing shelf registration statement.
- 6Proceeds from potential stock sales may be used to repay debt under the company's credit facilities.
- 7Several of the managers or their affiliates are lenders under Targa Resources' credit facilities.