Targa Resources Partners offers new notes and cash for 11¼% notes

New York, Jan. 19 - Targa Resources Partners LP and subsidiary Targa Resources Partners Finance Corp. announced it is offering new 6 7/8% senior notes due 2021 and cash for its existing $231.28 million of 11¼% senior notes due 2017 in a private exchange.

The new notes will be fungible with the $325 million of 6 7/8% notes recently priced by the company.

Targa Resources is also soliciting consents to eliminate substantially all the restrictive covenants and certain events of default.

For each $1,000 principal amount of the existing notes, the company is offering $1,000 principal amount of new notes plus $175 in cash. The cash figure includes a consent payment of $30 that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on Feb. 1.

The tender ends at midnight ET on Feb. 15.

Targa Resources will also pay accrued interest.

The offer is subject to the company receiving consents to amend the existing notes from holders of a majority of the debt.

The offer is being conducted under Rule 144A and Regulation S.

D.F. King & Co., Inc. is the information agent and exchange agent (800 859-8508, banks and brokers call 212 269-5550).

Targa Resources is a Houston-based provider of midstream natural gas and natural gas liquids services.

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