Chicago, Jan. 3 – Targa Resources Corp. priced $1.75 billion of notes in two parts (Baa3/BBB-/BBB-) on Tuesday, according to a press release.
A $900 million 10-year tranche priced with a 6.125% coupon at 99.858. An $850 million 30-year tranche priced with a 6.5% coupon at 97.843.
Proceeds will be used to fund an acquisition. On Tuesday, Targa announced that it would be buying Blackstone Energy Partners’ 25% interest in Targa’s Grand Prix NGL pipeline for $1.05 billion. The acquisition is expected to close in the first quarter of 2023.
Remaining proceeds will be used for general corporate purposes, including to reduce borrowings under the company’s revolver and unsecured commercial paper program. General corporate purposes may also include repayment of debt, capital expenditures, additions to working capital, investments in subsidiaries and other acquisitions.
Targa Resources is a Houston-based midstream energy company.
| Issuer: | Targa Resources Corp.
|
| Amount: | $1.75 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Truist Securities, Inc., MUFG Securities Americas Inc., RBC Capital Markets, LLC and TD Securities (USA) LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | Vinson & Elkins LLP
|
| Counsel to underwriters: | Gibson, Dunn & Crutcher LLP
|
| Trade date: | Jan. 3
|
| Settlement date: | Jan. 9
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | 2033
|
| Coupon: | 6.125%
|
| Price: | 99.858
|
| Call features: | Make-whole call until three months before maturity date; thereafter at par
|
|
|
| 30-year notes
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| Amount: | $850 million
|
| Maturity: | 2053
|
| Coupon: | 6.5%
|
| Price: | 97.843
|
| Call features: | Make-whole call until six months before maturity date; thereafter at par
|
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