8-KRegulation FDOther EventsExhibits & Filings

Targa Resources Corp. 8-K Report, Regulation FD Disclosure (Mar 25, 2022)

Filed March 25, 2022For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) announced on March 25, 2022, through an 8-K filing, the pricing of a significant debt offering. The company successfully issued and sold $1.5 billion in aggregate principal amount of senior notes, comprising $750.0 million of 4.200% Senior Notes due 2033 and $750.0 million of 4.950% Senior Notes due 2052. These notes are fully guaranteed by certain of Targa's subsidiary guarantors on a senior unsecured basis. The primary purpose of this offering is to fund the repurchase, via tender offer, of all outstanding 5 7/8% Senior Notes due 2026 issued by Targa Resources Partners LP. Any notes not purchased in the tender offer will be redeemed. The remaining proceeds will be used to pay down amounts outstanding under the company's revolving credit facility. This strategic move aims to optimize the company's debt structure and capital management.

Key Highlights

  • 1Targa Resources Corp. priced a $1.5 billion senior notes offering on March 23, 2022.
  • 2The offering consists of two tranches: $750 million of 4.200% Senior Notes due 2033 and $750 million of 4.950% Senior Notes due 2052.
  • 3The new notes are fully and unconditionally guaranteed by certain subsidiary guarantors.
  • 4Proceeds will be used to fund the tender offer for and/or redemption of outstanding 5 7/8% Senior Notes due 2026.
  • 5Remaining proceeds will be used to repay outstanding amounts under the company's revolving credit facility.
  • 6The company is actively managing its debt maturity profile and capital structure.
  • 7Underwriters and their affiliates may receive a portion of the proceeds as they are lenders and/or noteholders.

Frequently Asked Questions

The primary purpose is to refinance existing debt. The company intends to use the proceeds to fund the purchase of its outstanding 5 7/8% Senior Notes due 2026 through a tender offer, or redeem any notes not purchased in the tender offer. Any remaining funds will be used to reduce outstanding amounts on its revolving credit facility.

Targa Resources is issuing two series of senior notes: $750 million of 4.200% Senior Notes due 2033 and $750 million of 4.950% Senior Notes due 2052. Both series of notes are guaranteed by certain of Targa's subsidiary guarantors on a senior unsecured basis.

This offering allows Targa Resources to address its near-term debt maturities by refinancing its 2026 notes with longer-dated debt (2033 and 2052 notes). It also provides an opportunity to deleverage its revolving credit facility, thereby optimizing its overall capital structure and potentially lowering its overall borrowing costs.

Yes, the filing notes that certain underwriters or their affiliates are lenders under Targa's revolving credit facility and may hold positions in the 2026 Notes that are being repurchased. Consequently, these underwriters and/or their affiliates will receive a portion of the net proceeds from the offering. Additionally, these parties have provided and may continue to provide various financial services to Targa.