Summary
Targa Resources Corp. (TRGP) has entered into a $1.5 billion unsecured term loan facility with Mizuho Bank, Ltd. This facility is specifically tied to the closing of the previously announced $3.55 billion acquisition of Lucid Energy Delaware, LLC ("Lucid"). The term loan is intended to be drawn in a single borrowing and, if the Lucid Acquisition does not close, the facility will not be drawn and the agreement will be terminated. The funding for the Lucid Acquisition will be a combination of this new term loan, proceeds from a recent $1.25 billion senior notes offering, and existing liquidity from their revolving credit facility.
Key Highlights
- 1Targa Resources secured a $1.5 billion unsecured term loan facility with Mizuho Bank.
- 2The term loan is contingent on the successful closing of the $3.55 billion acquisition of Lucid Energy Delaware, LLC.
- 3Funding for the Lucid acquisition will be a mix of the new term loan, $1.25 billion in senior notes, and available revolving credit.
- 4The term loan has an initial availability period ending September 14, 2022, extendable under specific conditions related to the Lucid acquisition closing.
- 5The facility bears interest based on either a Base Rate or Term SOFR, with applicable margins tied to Targa's debt rating.
- 6The agreement includes covenants requiring Targa to maintain a Consolidated Leverage Ratio of no more than 5.50 to 1.00.
- 7Dividend payments to stockholders may be restricted if an event of default exists or would result from such distribution.