Summary
Targa Resources Corp. (TRGP), through its subsidiary Targa Resources Partners LP, announced on January 10, 2019, the successful pricing of a significant debt offering. The company intends to issue $1.5 billion in aggregate principal amount of senior unsecured notes, split equally between 6.50% notes due 2027 and 6.875% notes due 2029. These notes were priced at par, indicating favorable market reception and efficient execution for Targa Resources. The net proceeds from this offering are estimated to be approximately $1.4885 billion, a substantial capital infusion for the company. A portion of these proceeds is expected to be allocated towards repaying existing borrowings under the company's credit facilities, thereby optimizing its capital structure and potentially reducing interest expenses. This move signals a proactive approach to debt management and capital allocation by Targa Resources.
Key Highlights
- 1Targa Resources Partners LP priced a $1.5 billion offering of senior unsecured notes.
- 2The offering consists of $750 million of 6.50% senior unsecured notes due 2027.
- 3The offering also includes $750 million of 6.875% senior unsecured notes due 2029.
- 4Both series of notes were issued at par.
- 5Expected net proceeds from the offering are approximately $1.4885 billion.
- 6A portion of the proceeds may be used to repay outstanding borrowings under credit facilities.
- 7The issuance signifies Targa Resources' ongoing capital markets activity and debt management strategy.