8-KMaterial AgreementsFinancial EventsExhibits & Filings

Targa Resources Corp. 8-K Report, Material Agreement (Jul 7, 2022)

Filed July 7, 2022For Securities:TRGP

Summary

Targa Resources Corp. (TRGP) filed an 8-K on July 7, 2022, to report the successful completion of a public offering of $750 million in 5.200% Senior Notes due 2027 and $500 million in 6.250% Senior Notes due 2052, totaling $1.25 billion. These new notes are senior unsecured obligations, guaranteed by certain of the Company's subsidiaries under specified conditions. The primary intended use of the net proceeds from this offering is to partially fund Targa's acquisition of Lucid Energy Delaware, LLC for approximately $3.55 billion. If the Lucid acquisition does not close, the proceeds will be utilized for general corporate purposes, including debt repayment and capital expenditures.

Key Highlights

  • 1Targa Resources completed a $1.25 billion senior notes offering on July 7, 2022.
  • 2The offering comprised $750 million of 5.200% Senior Notes due 2027 and $500 million of 6.250% Senior Notes due 2052.
  • 3The notes are guaranteed by certain subsidiaries on a senior unsecured basis.
  • 4Proceeds are earmarked to partially finance the acquisition of Lucid Energy Delaware, LLC for $3.55 billion.
  • 5If the Lucid acquisition does not proceed, proceeds will be used for general corporate purposes, including debt reduction and capital investments.
  • 6The offering was registered under a Form S-3ASR shelf registration statement.

Frequently Asked Questions

Targa Resources raised a total of $1.25 billion from the offering, consisting of $750 million in 2027 notes and $500 million in 2052 notes.

The primary intended use of the net proceeds is to fund a portion of the Company's acquisition of Lucid Energy Delaware, LLC, which has an aggregate consideration of approximately $3.55 billion.

The offering included $750 million of 5.200% Senior Notes due 2027 and $500 million of 6.250% Senior Notes due 2052. These are senior unsecured notes guaranteed by certain subsidiaries.

If the Lucid Acquisition is not completed, Targa Resources expects to use the net proceeds for general corporate purposes. This may include repaying debt, funding capital expenditures, working capital, and other investments or acquisitions.