Targa Resources Corp. Announces Full Redemption of its 9.5% Series A Preferred Stock
April 18 2022 - 6:20AM
Targa Resources Corp. (NYSE: TRGP), a Delaware corporation (the
“Company”), today announced that it will deliver a notice of
redemption to the holders of 9.5% Series A Preferred Stock (the
“Series A Preferred Stock”) of the Company to call for redemption
on May 3, 2022 (the “Redemption Date”) all of the issued and
outstanding Series A Preferred Stock pursuant to and in accordance
with that certain Certificate of Designations of Series A Preferred
Stock of the Company, dated as of March 16, 2016. Following the
redemption, there will be no Series A Preferred Stock outstanding,
dividends on the Series A Preferred Stock will cease to accumulate
and all rights of the holders of shares of Series A Preferred Stock
will terminate, except the right of such holders to receive the
Redemption Consideration (as defined below).
The Series A Preferred Stock called for
redemption will be redeemed on the Redemption Date at a per share
price of $1,050 per share of Series A Preferred Stock (the
“Liquidation Preference”), plus $8.87 per share, which is the
amount of accrued and unpaid dividends from April 1, 2022 up to,
but not including, the Redemption Date (the “Preferred Dividend”
and, together with the Liquidation Preference, the “Redemption
Consideration”). The aggregate Redemption Consideration is
approximately $973.4 million. The Redemption Consideration does not
include dividends with respect to the quarterly period ending March
31, 2022, which will be paid prior to the Redemption Date on May 2,
2022.
The redemption of the Series A Preferred Stock
is consistent with the Company’s ongoing efforts to simplify its
capital structure and to identify opportunities to generate
additional free cash flow by enabling the Company to realize annual
cash savings associated with the redemption.
As specified in the notice of redemption,
payment of the Redemption Consideration will be made only upon the
deemed surrender of shares of Series A Preferred Stock to the
redemption agent, Computershare Trust Company, N.A. Questions
regarding the redemption of the Series A Preferred Stock, or the
procedures therefore, may be directed to Computershare Trust
Company, N.A. at:
Computershare Trust Company, N.A.Transfer Agent and Registrar150
Royall StreetCanton, MA 02021Tel: 1-800-546-5141
About Targa Resources Corp.
Targa Resources Corp. 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 (“NGLs”) 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 liquefied
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 Street, Suite 2100,
Houston, TX 77002 and their telephone number is 713-584-1000.
For more information, please visit our website
at www.targaresources.com.
Forward-Looking Statements
Certain statements in this release are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, 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. 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, natural gas
liquids and crude oil, the impact of pandemics such as COVID-19,
actions by the Organization of the Petroleum Exporting Countries
(“OPEC”) and non-OPEC oil producing countries, 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 Securities
and Exchange Commission, including its most recent Annual Report on
Form 10-K, and any subsequently filed 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 KnealeChief Financial Officer
Targa Resources (NYSE:TRGP)
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