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.