Summary
Targa Resources Corp. (TRGP) has announced a material amendment to its receivables purchase agreement through its subsidiary, Targa Resources Partners LP. Specifically, the Eighth Amendment to the Receivables Purchase Agreement extends the termination date of its $400 million accounts receivable securitization facility to December 4, 2020. This extension provides continued access to a key source of liquidity for the company.
Key Highlights
- 1Extension of $400 million accounts receivable securitization facility termination date to December 4, 2020.
- 2The amendment was entered into on December 6, 2019.
- 3As of the amendment date, $328.8 million of trade receivables were outstanding under the facility.
- 4This action provides continued financial flexibility and liquidity for Targa Resources.
- 5The amendment involves Targa Resources Partners LP, its subsidiary Targa Receivables LLC (the SPV), and PNC Bank as administrator.
Frequently Asked Questions
The main purpose of the amendment is to extend the termination date of Targa Resources' $400 million accounts receivable securitization facility by one year, from its previous expiration to December 4, 2020. This ensures continued access to this important funding source.
The accounts receivable securitization facility has a capacity of $400 million. As of December 6, 2019, $328.8 million of trade receivables were outstanding under this facility.
No, this filing does not indicate financial distress. Extending a revolving credit facility like this securitization agreement is a routine financial management practice aimed at ensuring ongoing liquidity and financial flexibility. It demonstrates proactive management of the company's funding sources.