Published on 6/30/2009 in the Prospect News High Yield Daily.
New Issue: Targa sells $250 million 11¼% eight-year notes at 94.973 to yield 12¼%
By Paul A. Harris
St. Louis, June 30 - Targa Resources Partners LP and Targa Resources Partners Finance Corp. priced a $250 million issue of 11¼% eight-year senior notes (B2/B) at 94.973 to yield 12¼% on Tuesday, according to an informed source.
The yield came at the tight end of the 12¼% to 1½% price talk.
Barclays Capital Inc., Banc of America Securities LLC, Deutsche Bank Securities Inc. and RBS Securities Inc. were joint bookrunners. UBS Investment Bank and RBC Capital Markets Corp. were senior co-managers.
Proceeds will be used to pay down the company's credit facility and for general corporate purposes.
Targa is a Houston-based provider of midstream natural gas and natural gas liquid services.
| Issuers: | Targa Resources Partners LP and Targa Resources Partners Finance Corp.
|
| Face amount: | $250 million
|
| Proceeds: | $237.4 million (approximate)
|
| Maturity: | July 15, 2017
|
| Security description: | Senior notes
|
| Bookrunners: | Barclays Capital Inc., Banc of America Securities LLC, Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Senior co-managers: | UBS Investment Bank, RBC Capital Markets Corp.
|
| Co-managers: | BBVA, BNP Paribas Securities Corp., Comerica Investments, Raymond James & Co., US Bancorp
|
| Coupon: | 11¼%
|
| Price: | 94.973
|
| Yield: | 12¼%
|
| Spread: | 908 bps
|
| Call features: | Make-whole call until July 15, 2013, then callable at 105.625, 102.813, declining to par on and after July 15, 2015
|
| Equity clawback: | 35% at 111.25 until July 15, 2012
|
| Change of control: | 101 put
|
| Trade date: | June 30
|
| Settlement date: | July 6
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S with registration rights
|
| Price talk: | 12¼% to 12½%
|
© 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.
