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.