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Targa Resources gets tenders for all $250 million 8½% notes in offer
By Susanna Moon
Chicago, Jan. 6 - Targa Resources, Inc. said investors tendered all of the outstanding $250 million principal amount of 8½% senior notes due 2013 co-issued by the company and Targa Resources Finance Corp.
The tender offer expired at midnight ET on Jan. 5. The settlement date also was on Tuesday.
The offer was funded with a portion of the proceeds from the company's new $500 million senior secured term loan, which replaced the company's $250 million senior secured revolving credit facility and $50 million senior secured synthetic letter-of-credit facility.
The offer was subject to a financing condition that the company receives borrowings from the refinancing of its existing senior secured credit facility.
The company previously said it planned to fund the purchase of the notes with a portion of the borrowings from the proposed refinancing and cash on hand.
Targa said on Dec. 21 that holders had delivered $249,995,000, or 99.998%, of its 8½% notes as of 5 p.m. ET on Dec. 18, the consent deadline.
As a result, the issuers and Wells Fargo Bank, NA, as trustee, executed a supplemental indenture that eliminates substantially all restrictive covenants and event-of-default provisions. The supplemental indenture was to become operative on the purchase date.
The tender offer and consent solicitation for the 8½% notes began on Dec. 7.
The purchase price is $1,043.75 per $1,000 principal amount of notes plus accrued interest up to but excluding the settlement date. This amount includes a consent payment of $30.00 for each note tendered by the consent payment deadline.
Citadel Securities LLC (877 660-1735 or 212 651-7700) was the dealer manager and solicitation agent, and MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500) was the information agent and depositary.
Targa provides midstream natural gas and natural gas liquid services and is based in Houston.
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