Series A convertible preferred stock offered with 10,405,000 warrants
By Devika Patel
Knoxville, Tenn., Feb. 18 – Targa Resources Corp. said it has received commitments from Stonepeak Infrastructure Partners to raise about $500 million in a private placement of 9.5% series A convertible preferred stock.
The investor will buy 500,000 preferreds at a net price of $1,000 per preferred.
The preferreds are convertible into common shares in 2028. They may be redeemed after five years.
Stonepeak also will receive seven-year warrants for a total of about 10,405,000 shares, with about 7.02 million of the warrants each exercisable at $18.88 and 3,385,000 of the warrants each exercisable at $25.11. The strike prices are an 8.31% discount and 21.95% premium to the Feb. 17 closing price of $20.59.
Proceeds will be used to repay debt and for general corporate purposes.
Targa Resources is a Houston-based midstream energy company.
Issuer: | Targa Resources Corp.
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Issue: | Series A convertible preferred stock
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Amount: | $500 million (approximate)
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Preferreds: | 500,000
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Price: | $1,000 (net)
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Call: | After five years
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Dividends: | 9.5%
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Warrants: | For about 10,405,000 shares
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Warrant expiration: | Seven years
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Warrant strike price: | $18.88 (for about 7.02 million warrants), $25.11 (for 3,385,000 warrants)
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Investor: | Stonepeak Infrastructure Partners
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Settlement date: | Feb. 18
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Stock symbol: | NYSE: TRGP
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Stock price: | $20.59 at close Feb. 17
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Market capitalization: | $1.22 billion
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