Targa to price $800 million three-year bullet in Thursday drive-by

By Paul A. Harris

Portland, Ore., Jan. 15 – Targa Resources Partners LP and its subsidiary Targa Resources Partners Finance Corp. plan to price an $800 million offering of non-callable three-year senior notes on Thursday, according to market sources.

Early guidance has the deal coming together with a yield in the low 5% context.

BofA Merrill Lynch, Barclays, RBS Securities Inc., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunners for the Rule 144A and Regulation S deal.

Proceeds will be used to fund the tender offers for Atlas Pipeline Finance Corp.’s $500 million of 6 5/8% senior notes due 2020, $400 million of 4¾% senior notes due 2021 and $650 million of 5 7/8% senior notes due 2023.

Targa is making the tender offers in connection with, and conditioned upon, the consummation of the proposed merger with Atlas Pipeline. The merger, however, is not conditioned on the consummation of the tender offers.

Targa Resources Partners is a publicly traded Delaware limited partnership formed by its parent, Targa Resources Corp., to own, operate, acquire and develop a diversified portfolio of complementary midstream energy assets.

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