Targa launches tender offer and consent solicitation for $250 million of 8½% notes

By Susanna Moon

Chicago, July 19 - Targa Resources Inc. and Targa Resources Finance Corp. said it began a tender offer and consent solicitation for the $250 million of 8½% senior notes due 2013.

The tender offer expires at midnight ET on Aug. 15. The consent deadline is 5 p.m. ET on Aug. 1.

For each $1,000 principal amount of notes, the payout will be determined using the bid-side yield of a 4 5/8% U.S. Treasury notes due Nov. 15, 2009 plus a fixed spread of 50 basis points. The payout includes accrued interest from the last payment date until the settlement date.

The company also will pay a $30 consent fee per $1,000 principal amount for notes tendered by the consent deadline, an amount included in the calculation of the payment but that which will only be paid to holders who tender by the consent deadline. The company is soliciting consents to amend the indenture and to waive the issuers' and their subsidiary guarantors' obligations under a related registration rights agreement.

The offer is conditioned on receiving consent from a majority of holders, executing a supplemental indenture and the completion of a new bank credit facility, the company said in a press release.

Targa Resources Inc. priced the $250 million of notes on Oct. 18, 2005.

D.F. King & Co., Inc. (800 735-3107 or 212 269-5550) is the depositary and information agent, and Credit Suisse Securities (USA) LLC (212 325-4951 or 212 325-7596) is the dealer manager.

Targa is an independent midstream energy company formed in 2003 by management and the global private equity firm Warburg Pincus.

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