Targa Resources Corp. Prices $1.25 Billion Offering of Senior Notes
June 22 2022 - 4:23PM
Targa Resources Corp. (“Targa” or the “Company”) (NYSE: TRGP),
announced today the pricing of an underwritten public offering (the
“Offering”) of $750 million aggregate principal amount of its
5.200% senior notes due 2027 (the “2027 notes”) and $500 million
aggregate principal amount of its 6.250% senior notes due 2052 (the
“2052 notes” and, together with the 2027 notes, the “notes”) at a
price to the public of 99.849% and 99.773% of their face value,
respectively. The Offering is expected to close on July 7, 2022,
subject to customary closing conditions.
The Company expects to use the net proceeds from
the Offering to fund a portion of its previously announced
acquisition of all of the outstanding interests in Lucid Energy
Delaware, LLC for aggregate cash consideration of approximately
$3.55 billion (the “Lucid Acquisition”). The Company expects the
Lucid Acquisition to close in the third quarter of 2022, subject to
customary closing conditions, including regulatory approvals. There
can be no assurance that the Lucid Acquisition will be completed
within the time frame anticipated or at all. The closing of the
Offering is not contingent on the consummation of the Lucid
Acquisition. If the Company does not complete the Lucid
Acquisition, it expects to use the net proceeds from this Offering
for general corporate purposes, which may include, among other
things, repayment of indebtedness, capital expenditures, additions
to working capital, investments in its subsidiaries and other
acquisitions.
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 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. 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 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 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,
commodity price volatility due to ongoing conflict in Ukraine,
actions by the Organization of the Petroleum Exporting Countries
(“OPEC”) and non-OPEC oil producing countries, the timing and
success of business development efforts, the completion of the
Lucid Acquisition, which may not be completed on a timely basis or
at all, expected benefits relating to the Lucid Acquisition and
their impact on the Company’s results of operations 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 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 LadVice President, Finance & Investor Relations
Jennifer KnealeChief Financial Officer
Targa Resources (NYSE:TRGP)
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