New Issue: Targa sells upsized $800 million 4 1/8% five-year notes at par

By Paul A. Harris

Portland, Ore., Oct. 23 – Targa Resources Partners LP and Targa Resources Finance Corp. priced an upsized $800 million issue of five-year senior notes (expected Ba2/confirmed BB+) at par to yield 4 1/8% on Thursday, according to a syndicate source.

The deal was upsized from $550 million, and the yield printed at the tight end of yield talk in the 4¼% area, market sources said.

BofA Merrill Lynch, RBS Securities Inc., Wells Fargo Securities LLC, Goldman Sachs & Co. and UBS Investment Bank were the joint bookrunners.

The Houston-based provider of midstream natural gas and NGL services plans to use the proceeds to repay bank debt and for general partnership purposes, which may include debt repayment, redeeming or repurchasing some of its outstanding notes, working capital and funding capital expenditures and acquisitions.

Issuers:	Targa Resources Partners LP and Targa Resources Finance Corp.
Amount:	$800 million
Maturity:	Nov. 15, 2019
Securities:	Senior notes
Left bookrunner:	BofA Merrill Lynch
Joint bookrunners:	RBS Securities Inc., Wells Fargo Securities LLC, Goldman Sachs & Co., UBS Investment Bank
Senior co-managers:	BBVA, Capital One, ING, Morgan Stanley & Co. LLC, PNC Capital Markets
Co-managers:	ABN Amro, Comerica, HSBC, Natixis, SMBC Nikko, US Bank
Coupon:	4 1/8%
Price:	Par
Yield:	4 1/8%
Spread:	262 bps
First call:	Nov. 15, 2016 at 102.063
Trade date:	Oct. 23
Settlement date:	Oct. 28
Ratings:	Moody's: expected Ba2
	Standard & Poor's: BB+
Distribution:	Rule 144A with registration rights
Price talk:	4¼% area
Marketing:	Quick to market

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