Summary
Targa Resources Corp. (TRGP) filed an 8-K on April 6, 2022, to report the completion of a significant public offering of $1.5 billion in aggregate principal amount of senior notes. This offering consists of $750 million of 4.200% Senior Notes due 2033 and $750 million of 4.950% Senior Notes due 2052. These new notes are fully and unconditionally guaranteed on a senior unsecured basis by certain of the company's subsidiaries, subject to specific conditions. The company also announced the results of a tender offer for its 5 7/8% Senior Notes due 2026, where approximately 50.06% of the outstanding principal amount was tendered, with the company expecting to accept all validly tendered notes and redeem any remaining notes.
Key Highlights
- 1Completion of a $1.5 billion underwritten public offering of senior notes ($750M 4.200% due 2033 and $750M 4.950% due 2052).
- 2New notes are guaranteed by Targa Resources' subsidiaries.
- 3The offering was registered under a shelf registration statement.
- 4Tender Offer for 5 7/8% Senior Notes due 2026 saw $482.16 million (50.06%) of the principal amount tendered.
- 5Targa expects to accept all validly tendered 2026 Notes and redeem the remaining notes.
- 6The company utilized legal opinions from Vinson & Elkins L.L.P. and Hall, Estill, Hardwick, Gable, Golden & Nelson, P.C. for the securities.