Summary
Targa Resources Corp. (TRGP) announced on June 18, 2025, the successful completion of a $1.5 billion underwritten public offering of senior notes. This offering includes $750 million in 4.900% Senior Notes due 2030 and $750 million in 5.650% Senior Notes due 2036. The notes are guaranteed by certain subsidiaries on a senior unsecured basis. The net proceeds from this offering are intended for several strategic purposes. A significant portion will be used to redeem the Company's 6.500% Senior Notes due 2027. The remaining proceeds are earmarked for general corporate purposes, which include repaying borrowings under its commercial paper program, addressing other indebtedness, repurchasing or redeeming existing securities, and funding capital expenditures or investments.
Key Highlights
- 1Completed a $1.5 billion public offering of senior notes comprised of $750 million 4.900% Senior Notes due 2030 and $750 million 5.650% Senior Notes due 2036.
- 2Proceeds will be used to redeem the 6.500% Senior Notes due 2027, reducing outstanding debt with a higher coupon.
- 3Remaining proceeds to be used for general corporate purposes, including repaying commercial paper, other indebtedness, and funding capital expenditures.
- 4Notes are guaranteed by certain subsidiaries on a senior unsecured basis.
- 5The offering was registered under a Form S-3ASR shelf registration statement.
- 6The transaction is structured under an Indenture supplemented by an Eleventh Supplemental Indenture dated June 18, 2025.