Targa Resources starts $800 million tender for three series of notes

New York, Sept. 22 – Targa Resources Partners LP announced a tender offer for its $733,622,000 of 5% senior notes due 2018, its $309,877,000 of 6 5/8% senior notes due 2020 and its $478,576,000 of 6 7/8% senior notes due 2021.

The total payment to noteholders will be capped at $800 million, and the company will buy no more than $225 million principal amount of the 6 5/8% notes and no more than $325 million of the 6 7/8% notes.

Targa Resources is offering $1,035.00 per $1,000 principal amount for the 5% notes, $1,037.10 per $1,000 principal amount for the 6 5/8% notes and $1,038.50 for the 6 7/8% notes.

All the prices include an early tender payment of $30.00 per $1,000 principal amount that will only be paid to holders who tender by the early deadline of 5 p.m. ET on Oct. 5.

The tender ends at 12 a.m. ET on Oct. 21.

Targa Resources will also pay accrued interest up to but excluding the settlement date. Accrued interest is not included in the $800 million payment cap.

The 5% notes have first priority for purchase, the 6 5/8% notes second priority and the 6 7/8% notes third priority. Notes tendered before the early tender date will be accepted before notes tendered after that deadline, regardless of their priority level.

Early settlement is scheduled for Oct. 6. Final settlement is planned for the first business day following the expiration of the offer.

Completion of the tender is subject to conditions including the sale of new notes.

Proceeds from the new notes will be used to fund the tender offer plus cash on hand and revolver borrowings if necessary.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) is dealer manager. D.F. King & Co., Inc. (866 342-4882, 212 269-5550 or targa@dfking.com) is tender agent and information agent.

The notes were issued jointly by Targa Resources Partners LP and Targa Resources Partners Finance Corp. Targa Resources Partners owns and operates midstream energy assets. It is a subsidiary of Houston-based Targa Resources Corp., a provider of midstream services.

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