8-KMaterial AgreementsOther EventsExhibits & Filings

Targa Resources Corp. 8-K Report, Material Agreement (Nov 19, 2019)

Filed November 19, 2019For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) announced through its subsidiary, Targa Resources Partners LP, the successful completion of a $1 billion offering of 5.500% senior unsecured notes due 2030. The offering, which was priced at par, is expected to generate net proceeds of approximately $992.3 million. This debt issuance is a significant event for investors as it highlights the company's strategy to manage its capital structure and fund its operations. The net proceeds are earmarked for repaying existing borrowings under the company's credit facilities and for general partnership purposes. These purposes may include repurchasing outstanding senior notes, paying down other indebtedness, supporting working capital needs, and funding capital expenditures and potential acquisitions. The fact that the notes were issued at par suggests strong investor demand and confidence in Targa Resources' creditworthiness.

Key Highlights

  • 1Targa Resources Partners LP completed a $1 billion offering of 5.500% senior unsecured notes due 2030.
  • 2The notes were priced at par, indicating favorable market reception.
  • 3Net proceeds from the offering are expected to be approximately $992.3 million.
  • 4Funds will be used to repay borrowings under credit facilities and for general partnership purposes.
  • 5General purposes include potential note repurchases, debt repayment, working capital, and capital expenditures/acquisitions.
  • 6The offering involved initial purchasers who may have prior relationships with Targa Resources, including lending and investment banking services.
  • 7Press releases announcing the launch and pricing of the offering were issued on November 13, 2019.

Frequently Asked Questions

The primary purpose of this debt offering was to raise capital to repay borrowings under Targa Resources' credit facilities and to fund general partnership purposes. These purposes may include repurchasing outstanding senior notes, repaying other indebtedness, managing working capital, and funding capital expenditures and acquisitions.

Targa Resources Partners LP raised $1 billion in aggregate principal amount of 5.500% senior unsecured notes due 2030. The net proceeds are expected to be approximately $992.3 million after deducting offering expenses.

The new notes carry a fixed interest rate of 5.500% and mature in 2030.

Yes, potential conflicts of interest exist as some of the initial purchasers or their affiliates have provided investment banking, financial advisory, and commercial banking services to Targa Resources. Additionally, some may be lenders under Targa's credit facilities or holders of its senior notes, meaning they may receive a portion of the proceeds from this offering.