Published on 12/4/2012 in the Prospect News High Yield Daily.
New Issue: Targa prices $200 million tap of 5¼% notes due 2023 at 101
By Paul A. Harris
Portland, Ore., Dec. 4 - Targa Resources Partners LP and Targa Resources Partners Finance Corp. priced a $200 million add-on to their 5¼% senior notes due May 1, 2023 (Ba3/BB/) at 101 on Tuesday, according to a syndicate source.
The reoffer price, which came on top of price talk, rendered a 5.093% yield to worst.
Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market deal.
The Houston-based midstream natural gas company plans to use the proceeds for general partnership purposes, which may include working capital and acquisitions, including the recently announced Saddle Butte acquisition.
| Issuer: | Targa Resources Partners LP and Targa Resources Partners Finance Corp.
|
| Amount: | $200 million
|
| Maturity: | May 1, 2023
|
| Security description: | Add-on to 5¼% senior notes due May 1, 2023
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Wells Fargo Securities LLC
|
| Coupon: | 5¼%
|
| Price: | 101
|
| Yield to worst: | 5.093%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2017, then callable at 102.625, 101.75, 100.875, par on and after Nov. 1, 2020
|
| Equity clawback: | 35% at 105.25 until Nov. 1, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 4
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 101 area
|
| Marketing: | Quick to market
|
| Original issue: | $400 million issue priced at 99.5 to yield 5.313% on Oct. 22, 2012
|
| Total issue size: | $600 million
|
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