New Issue: Targa prices $750 million 10-year senior notes at par to yield 5%

By Paul A. Harris

Portland, Ore., Oct. 10 – Targa Resources Partners LP and Targa Resources Partners Finance Corp. priced $750 million of 10-year senior notes (Ba3/BB-) at par to yield 5% in a quick-to-market Tuesday transaction, according to a syndicate source.

The yield printed on top of yield talk in the 5% area.

Citigroup Global Markets Inc. is the left bookrunner. BofA Merrill Lynch, Deutsche Bank Securities Inc., MUFG, RBC Capital Markets LLC and Wells Fargo Securities LLC were the joint bookrunners.

The Houston-based midstream energy company plans to use the proceeds to repay bank debt and to redeem its 5% senior notes due 2018.

Issuer:	Targa Resources Partners LP and Targa Resources Partners Finance Corp.
Amount:	$750 million
Maturity:	Jan. 15, 2028
Securities:	Senior notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	BofA Merrill Lynch, Deutsche Bank Securities Inc., MUFG, RBC Capital Markets LLC, Wells Fargo Securities LLC
Co-lead managers:	PNC Capital Markets, BBVA Securities Inc., Capital One, Credit Suisse Securities (USA) LLC, TD Securities
Co-managers:	ING, BB&T Capital Markets, CBA, Citizens, Scotia, U.S. Bancorp Investments Inc.
Coupon:	5%
Price:	Par
Yield:	5%
Spread:	266 bps
First call:	Make-whole call at Treasuries plus 50 bps until Jan. 15, 2023, then callable at 102.5
Equity clawback:	35% at 105 until Jan. 15, 2021
Trade date:	Oct. 10
Settlement date:	Oct. 17
Ratings:	Moody's: Ba3
	S&P: BB-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	5% area
Marketing:	Quick to market

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