Moody’s gives Ba3 to Targa notes

Moody's Investors Service said it assigned a Ba3 rating to Targa Resources Partners LP's (TRP) proposed $750 million notes due 2026.

TRP is wholly owned by Targa Resources Corp. Targa’s and TRP's other ratings and Targa's stable outlook are unchanged.

Note proceeds will be used to repay borrowings under the company’s revolver and accounts receivable securitization facility.

"Terming out the revolver and securitization facility borrowings provides Targa Resources enhanced flexibility to fund its 2018 growth capital program which is primarily focused on the Permian Basin," Moody's vice president Arvinder Saluja said in a news release.

"However, the resulting increase in debt will weaken the leverage metrics until earnings from the growth projects become meaningful by mid-2019."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.