Summary
Targa Resources Corp. (TRGP) announced on November 6, 2023, the pricing of a $2.0 billion senior notes offering. This offering consists of $1.0 billion in 6.150% Senior Notes due 2029 and $1.0 billion in 6.500% Senior Notes due 2034. These notes are guaranteed by certain of Targa's subsidiary guarantors on a senior unsecured basis. The company expects to utilize the net proceeds for general corporate purposes, notably to repay existing borrowings under its term loan facility and commercial paper program, with other potential uses including debt repayment, capital expenditures, working capital, and investments.
Key Highlights
- 1Targa Resources Corp. successfully priced a $2.0 billion senior notes offering.
- 2The offering is comprised of two tranches: $1.0 billion of 6.150% Senior Notes due 2029 and $1.0 billion of 6.500% Senior Notes due 2034.
- 3The new notes are fully and unconditionally guaranteed by certain subsidiary guarantors on a senior unsecured basis.
- 4Proceeds will primarily be used for general corporate purposes, including repaying existing term loan and commercial paper borrowings.
- 5Other potential uses for the proceeds include repaying other indebtedness, capital expenditures, working capital, and investments.
- 6The issuance was conducted under a shelf registration statement on Form S-3.
- 7The company may redeem all or a portion of the notes at applicable redemption prices.