8-KRegulation FDOther EventsExhibits & Filings

Targa Resources Corp. 8-K Report, Regulation FD Disclosure (Jun 23, 2022)

Filed June 23, 2022For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) announced on June 23, 2022, that it has priced a public offering of $1.25 billion in senior notes. This offering consists of $750 million of 5.200% Senior Notes due 2027 and $500 million of 6.250% Senior Notes due 2052. The notes are fully and unconditionally guaranteed by certain of the Company's subsidiary guarantors. The primary use of the net proceeds from this offering is to fund a portion of Targa Resources' acquisition of Lucid Energy Delaware, LLC for $3.55 billion. If the Lucid acquisition does not close, the proceeds will be used for general corporate purposes, including debt repayment and capital expenditures. The offering is being conducted under a shelf registration statement and is not contingent on the closing of the Lucid Acquisition.

Key Highlights

  • 1Targa Resources priced a $1.25 billion senior notes offering.
  • 2The offering comprises $750 million of 5.200% Senior Notes due 2027 and $500 million of 6.250% Senior Notes due 2052.
  • 3Net proceeds are primarily intended to fund the acquisition of Lucid Energy Delaware, LLC.
  • 4The notes are senior unsecured obligations guaranteed by certain subsidiary guarantors.
  • 5The closing of the notes offering is independent of the Lucid Acquisition closing.
  • 6If the acquisition doesn't close, proceeds will be used for general corporate purposes, including debt reduction and capital expenditures.
  • 7Interest on the notes accrues from July 7, 2022, and is payable semi-annually.

Frequently Asked Questions

The primary intention is to finance a portion of Targa Resources' acquisition of Lucid Energy Delaware, LLC. If the acquisition does not proceed, the funds will be used for general corporate purposes, such as repaying debt, funding capital expenditures, and other investments.

The offering includes $750 million of 5.200% Senior Notes maturing in 2027 and $500 million of 6.250% Senior Notes maturing in 2052. These notes are senior unsecured obligations and are guaranteed by certain subsidiary guarantors of Targa Resources. Interest is payable semi-annually starting January 1, 2023, and accrues from July 7, 2022.

No, the closing of the senior notes offering is not contingent upon the completion of the Lucid Energy Delaware, LLC acquisition. Targa Resources will still issue the notes even if the acquisition does not close.

'Senior unsecured' means these notes rank equally with other senior unsecured debt of Targa Resources and have a higher priority than subordinated debt. 'Fully and unconditionally guaranteed' by subsidiary guarantors means that these subsidiaries are legally obligated to make payments on the notes if Targa Resources itself cannot, providing an additional layer of credit support for the noteholders.