Summary
Targa Resources Corp. (TRGP) announced on January 4, 2023, its entry into an underwriting agreement to issue and sell $1.75 billion in aggregate principal amount of senior notes. This offering consists of $900 million of 6.125% Senior Notes due 2033 and $850 million of 6.500% Senior Notes due 2053. These 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 the acquisition of Blackstone Energy Partners’ 25% interest in Targa's Grand Prix NGL Pipeline for approximately $1.05 billion. Any remaining proceeds will be allocated to general corporate purposes, including reducing borrowings under its revolving credit facility and unsecured commercial paper note program. The company also notes that the offering's closing is not contingent on the completion of the Grand Prix Transaction.
Key Highlights
- 1Targa Resources Corp. priced a $1.75 billion senior notes offering.
- 2The offering includes two tranches: $900 million in 6.125% Senior Notes due 2033 and $850 million in 6.500% Senior Notes due 2053.
- 3The new notes are guaranteed on a senior unsecured basis by certain subsidiary guarantors.
- 4A significant portion of the proceeds ($1.05 billion) will be used to acquire a 25% interest in the Grand Prix NGL Pipeline from Blackstone Energy Partners.
- 5Remaining proceeds will be used for general corporate purposes, including reducing outstanding debt under credit facilities and commercial paper programs.
- 6The closing of the notes offering is independent of the Grand Prix Transaction closing.
- 7The notes are registered under a shelf registration statement filed on Form S-3.