Published on 9/9/2015 in the Prospect News High Yield Daily.
New Issue: Targa Resources upsizes to $600 million, prices 8.5-year notes at par to yield 6¾%
By Paul A. Harris
Portland, Ore., Sept. 9 – Targa Resources Partners LP and subsidiary Targa Resources Partners Finance Corp. priced an upsized $600 million issue of 8.5-year senior notes (Ba2/BB+) at par to yield 6¾% on Wednesday, according to a syndicate source.
The deal size was increased from $400 million.
The yield printed on top of yield talk and at the tight end of initial guidance in the high 6% to low 7% yield context, according to a trader.
BofA Merrill Lynch was the left bookrunner for the quick-to-market deal. Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The Houston-based midstream energy company plans to use the proceeds to reduce borrowings under its senior secured credit facility, with any remaining proceeds to be used for general partnership purposes, which may include repaying other debt, redeeming or repurchasing outstanding notes, as well as funding working capital, capital expenditures and acquisitions.
| Issuer: | Targa Resources Partners Finance Corp.
|
| Amount: | $600 million, increased from $400 million
|
| Maturity: | March 15, 2024
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| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Wells Fargo Securities LLC
|
| Co-lead managers: | RBC Capital Markets, BBVA, Goldman Sachs & Co., ING, Morgan Stanley & Co. LLC
|
| Co-managers: | Mizuho Securities, PNC Capital Markets, ABN Amro, BB&T, Comerica, HSBC Bank, Santander, U.S. Bancorp Investments Inc.
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| Coupon: | 6¾%
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| Price: | Par
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| Yield: | 6¾%
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| Spread: | 464 bps
|
| Call protection: | Non-callable until Sept. 15, 2019
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| Trade date: | Sept. 9
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| Settlement date: | Sept. 14
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| Ratings: | Moody's: Ba2
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| Standard & Poor's: BB+
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| Distribution: | Rule 144A with contingent registration rights and Regulation S
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| Price talk: | 6¾% area
|
| Marketing: | Quick to market
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