Summary
Targa Resources Corp. (TRGP) has announced the successful completion of a significant underwritten public offering, raising a total of $2.0 billion through the issuance of new senior notes. This includes $1.0 billion in 5.550% Senior Notes due 2035 and $1.0 billion in 6.125% Senior Notes due 2055. These notes are guaranteed by certain of the Company's subsidiaries, providing additional security to investors. The primary strategic use of the proceeds is to fund the repurchase of the outstanding preferred equity in Targa Badlands LLC, which holds the Company's North Dakota assets, for approximately $1.8 billion. This transaction is expected to close in the first quarter of 2025 and, if completed, will consolidate full ownership of these valuable assets under Targa Resources. Any remaining proceeds will be used for general corporate purposes, including repaying commercial paper borrowings and other indebtedness.
Key Highlights
- 1Completed a $2.0 billion public offering of senior notes, consisting of $1.0 billion of 5.550% Senior Notes due 2035 and $1.0 billion of 6.125% Senior Notes due 2055.
- 2Proceeds will be used to repurchase approximately $1.8 billion of preferred equity in Targa Badlands LLC, consolidating ownership of North Dakota assets.
- 3The Targa Badlands LLC acquisition is expected to close in Q1 2025.
- 4The new notes are fully and unconditionally guaranteed by certain of Targa Resources' subsidiary guarantors.
- 5Remaining net proceeds will be used for general corporate purposes, including repaying borrowings under its commercial paper program and other indebtedness.
- 6The offering was registered under a shelf registration statement on Form S-3ASR.
- 7The transaction indicates a strategic move to increase control over its North Dakota asset base.