Targa Resources Corp. Prices $2.0 Billion Offering of Senior Notes

Rhea-AI Summary

Targa Resources Corp. has announced the pricing of an underwritten public offering of $1.0 billion aggregate principal amount of its 6.150% Senior Notes due 2029 and $1.0 billion aggregate principal amount of its 6.500% Senior Notes due 2034. The Offering is expected to close on November 9, 2023. The net proceeds will be used for general corporate purposes, including repayment of borrowings and investments in subsidiaries.

HOUSTON, Nov. 06, 2023 (GLOBE NEWSWIRE) -- Targa Resources Corp. (“Targa” or the “Company”) (NYSE: TRGP), announced today the pricing of an underwritten public offering (the “Offering”) of $1.0 billion aggregate principal amount of its 6.150% Senior Notes due 2029 and $1.0 billion aggregate principal amount of its 6.500% Senior Notes due 2034 at a price to the public of 99.779% and 99.949% of their face value, respectively. The Offering is expected to close on November 9, 2023, subject to the satisfaction of customary closing conditions.

The Company expects to use the net proceeds from the Offering for general corporate purposes, including to repay borrowings under its term loan facility and its commercial paper note program. Other general corporate purposes may include repayment of other indebtedness, capital expenditures, additions to working capital and investments in its subsidiaries.

This Offering is being made pursuant to an effective shelf registration statement and prospectus filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”) and may be made only by means of a prospectus and prospectus supplement related to such Offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”). This announcement shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities, except as required by law.

About Targa Resources Corp.

Targa Resources Corp. (NYSE: TRGP) is a leading provider of midstream services and is one of the largest independent midstream infrastructure companies in North America. The Company owns, operates, acquires, and develops a diversified portfolio of complementary domestic midstream infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and natural gas liquids (“NGL(s)”) to domestic and international markets with growing demand for cleaner fuels and feedstocks. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas; transporting, storing, fractionating, treating, and purchasing and selling NGLs and NGL products, including services to liquified petroleum gas exporters; and gathering, storing, terminaling, and purchasing and selling crude oil.

The principal executive offices of Targa Resources Corp. are located at 811 Louisiana, Suite 2100, Houston, TX 77002 and their telephone number is 713-584-1000.

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding our projected financial performance, capital spending and payment of future dividends. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, NGLs and crude oil, the impact of pandemics or any other public health crises, commodity price volatility due to ongoing or new global conflicts, actions by the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC oil producing countries, the impact of disruptions in the bank and capital markets, including those resulting from the lack of access to liquidity for banking and financial services firms, the timing and success of business development efforts and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the SEC, including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact the Company’s investor relations department by email at InvestorRelations@targaresources.com or by phone at (713) 584-1133.

Sanjay Lad
Vice President, Finance & Investor Relations

Jennifer Kneale
Chief Financial Officer

FAQ

What is the news about Targa Resources Corp.?

Targa Resources Corp. has announced the pricing of an underwritten public offering of senior notes.

What is the total amount of the offering?

The offering consists of $1.0 billion aggregate principal amount of 6.150% Senior Notes due 2029 and $1.0 billion aggregate principal amount of 6.500% Senior Notes due 2034.

When is the expected closing date for the offering?

The offering is expected to close on November 9, 2023.

How will the net proceeds be used?

The net proceeds will be used for general corporate purposes, including repayment of borrowings under its term loan facility and its commercial paper note program, as well as investments in its subsidiaries.

Is there any regulatory requirement for the offering?

Yes, the offering is being made pursuant to an effective shelf registration statement and prospectus filed by the Company with the U.S. Securities and Exchange Commission (SEC) and may be made only by means of a prospectus and prospectus supplement meeting the requirements of the Securities Act of 1933.