Targa Resources Prices $2.0 Billion Senior Notes Offering

HOUSTON, TX – February 24, 2025 – Targa Resources Corp. announced the pricing of a public offering consisting of $1.0 billion aggregate principal amount of its 5.550% Senior Notes due 2035 and $1.0 billion aggregate principal amount of its 6.125% Senior Notes due 2055. The offering, which was underwritten by BofA Securities, Inc., MUFG Securities Americas Inc., RBC Capital Markets, LLC, and Wells Fargo Securities, LLC, was priced at 99.610% of face value for the 2035 Notes and 99.781% for the 2055 Notes.

According to the accompanying news release, the offering is set to close on February 27, 2025, subject to customary closing conditions. The funding generated from the offering is expected to be used in part to finance the repurchase of all outstanding preferred equity in Targa Badlands LLC—an entity holding the Company’s North Dakota assets—from its joint venture partner, for an estimated $1.8 billion in cash. The transaction, referred to as the Badlands Transaction, is anticipated to close in the first quarter of 2025 with an effective date of January 1, 2025. Should the Badlands Transaction not be completed, the net proceeds from the offering will be allocated for general corporate purposes including the repayment of borrowings under the Company’s unsecured commercial paper note program, as well as other financial initiatives such as repayment of indebtedness, capital expenditures, additions to working capital, and investments in its subsidiaries.

The notes are fully and unconditionally guaranteed on a senior unsecured basis by certain subsidiary guarantors, under terms detailed in the Underwriting Agreement. The 2035 Notes mature on August 15, 2035, and the 2055 Notes mature on May 15, 2055. Interest on the 2035 Notes will be paid semi-annually on February 15 and August 15 of each year beginning on August 15, 2025, while interest on the 2055 Notes will be payable semi-annually on May 15 and November 15, starting November 15, 2025. Interest on both series will begin accruing on February 27, 2025.

The underwriting agreement includes customary representations, warranties, and indemnification provisions between the Company and the underwriters, ensuring that each party is indemnified against specific liabilities arising from the transaction.

Targa Resources, a major midstream services provider and one of North America’s largest independent infrastructure companies, noted that the closing of the offering is independent of the completion of the Badlands Transaction. The Company reiterated its commitment to maintain its diversified portfolio of infrastructure assets crucial for transporting and processing natural gas, natural gas liquids, and crude oil across domestic and international markets.

Forward-looking statements regarding the timing of the closing, the use of proceeds, and the future benefits of the Badlands Transaction were included in the news release, with management advising that actual outcomes may differ materially due to risks and uncertainties beyond the Company’s control.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Targa Resources’s 8K filing here.

About Targa Resources

Targa Resources Corp., together with its subsidiary, Targa Resources Partners LP, owns, operates, acquires, and develops a portfolio of complementary domestic midstream infrastructure assets in North America. It operates in two segments, Gathering and Processing, and Logistics and Transportation. The company is involved in gathering, compressing, treating, processing, transporting, and selling natural gas; storing, fractionating, treating, transporting, and selling natural gas liquids (NGL) and NGL products, including services to liquefied petroleum gas exporters; and gathering, storing, terminaling, purchasing, and selling crude oil.