New Issue: Targa Resources prices $2 billion senior notes due 2029, 2034

By Marisa Wong

Los Angeles, Nov. 6 – Targa Resources Corp. priced $2 billion of senior notes (Baa3/BBB-/BBB-) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.

Targa priced $1 billion of 6.15% notes due March 1, 2029 at 99.779 to yield 6.202%, or with a spread of 160 basis points over Treasuries; and $1 billion of 6.5% notes due March 30, 2034 at 99.949 to yield 6.508%, or 185 bps over Treasuries.

Investors will have make-whole call protection on each of the notes. The 2029 notes will have a one-month par call option, and the 2034 notes will have a three-month par call option.

BofA Securities, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc. are joint bookrunners.

Proceeds will be used for general corporate purposes, including to repay borrowings under the company’s term loan facility and its commercial paper note program. Other general corporate purposes may include repaying debt, capital expenditures, additions to working capital and investments in subsidiaries.

A 424B5 filing noted that as of Sept. 30, Targa had $1.5 billion outstanding on its term loan facility due in July 2025 and $1.15 billion outstanding on its commercial paper program.

Targa Resources is a Houston-based midstream energy company.

Issuer:	Targa Resources Corp.
Amount:	$2 billion
Issue:	Senior notes
Bookrunners:	BofA Securities, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc.
Co-managers:	Capital One Securities, Inc., Fifth Third Securities, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc. and Zions Direct, Inc.
Trustee:	U.S. Bank Trust Co., NA
Counsel to the issuer:	Vinson & Elkins LLP
Counsel to underwriters:	Gibson, Dunn & Crutcher LLP
Trade date:	Nov. 6
Settlement date:	Nov. 9
Ratings:	Moody’s: Baa3
	S&P: BBB-
	Fitch: BBB-
Distribution:	SEC registered
2029 notes
Amount:	$1 billion
Maturity:	March 1, 2029
Coupon:	6.15%
Price:	99.779
Yield:	6.202%
Spread:	Treasuries plus 160 bps
Call:	Make-whole call at Treasuries plus 25 bps; par call on or after Feb. 1, 2029
Cusip:	87612GAE1
2034 notes
Amount:	$1 billion
Maturity:	March 30, 2034
Coupon:	6.5%
Price:	99.949
Yield:	6.508%
Spread:	Treasuries plus 185 bps
Call:	Make-whole call at Treasuries plus 30 bps; par call on or after Dec. 30, 2033
Cusip:	87612GAF8

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.