Summary
Targa Resources Corp. (TRGP) has announced the redemption of all its outstanding 9.5% Series A Preferred Stock, effective May 3, 2022. This action will result in the complete elimination of this class of preferred stock from the company's capital structure. The redemption price is set at $1,050 per share, plus any accrued and unpaid dividends up to the redemption date, totaling approximately $973.4 million for all outstanding shares. This redemption represents a significant financial event for Targa Resources, impacting its balance sheet and potentially its dividend policies. Investors holding the Series A Preferred Stock will receive their liquidation preference plus accrued dividends, effectively closing out their investment in this instrument. The company also clarified that the quarterly dividend for the period ending March 31, 2022, will be paid separately on May 2, 2022, before the full redemption takes effect.
Key Highlights
- 1Targa Resources Corp. (TRGP) will redeem all outstanding 9.5% Series A Preferred Stock on May 3, 2022.
- 2The redemption price is $1,050 per share (Liquidation Preference) plus accrued and unpaid dividends.
- 3The total aggregate redemption consideration is approximately $973.4 million.
- 4Following the redemption, no Series A Preferred Stock will remain outstanding.
- 5All rights associated with the Series A Preferred Stock will terminate upon redemption, except for the right to receive the Redemption Consideration.
- 6A separate dividend payment for the quarter ending March 31, 2022, will be made on May 2, 2022.
- 7The company issued a press release on April 18, 2022, announcing this redemption.