Targa Resources, Digital River revised; Riverbed, Lattice, Hanson, American Beacon on deck

By Sara Rosenberg

New York, Feb. 11 – Targa Resources Corp. firmed pricing on Wednesday on its term loan at the high end of talk and widened the original issue discount, and Digital River Inc. lifted the spread on its first-lien term loan while also sweetening amortization.

Additionally, Riverbed Technology Inc. released timing, structure and price talk on its upcoming buyout deal, and Lattice Semiconductor Corp., Hanson Building Products and American Beacon Advisors Inc. joined the near-term calendar.

Over in the primary, Targa Resources set pricing on its $430 million seven-year senior secured covenant-light term loan at Libor plus 475 basis points, the high end of the Libor plus 450 bps to 475 bps talk, and moved the original issue discount to 98¼ from 98½, a source said, adding that the 1% Libor floor and 101 soft call protection for one year were unchanged.

Allocations are expected on Thursday, the source remarked.

The company’s $1.1 billion credit facility (Ba3/B+) also includes a $670 million revolver.

Bank of America Merrill Lynch, RBS Securities Inc., Wells Fargo Securities LLC, ING and MUFG are leading the deal that will be used to help fund the acquisition of Atlas Energy LP following the spinoff of its non-midstream assets, to pay related fees and expenses and to refinance existing debt.

Targa is buying Atlas Energy for $1,869,000,000, including 10.35 million shares valued at $1,259,000,000 based on the closing price of the company’s common stock on Oct. 10, 2014 and $610 million in cash.

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