Targa holders exchange 96.3% of 6 5/8% Atlas Pipeline notes so far

By Susanna Moon

Chicago, April 27 – Targa Resources Partners LP and subsidiary Targa Resources Partners Finance Corp. said investors had tendered $341.9 million principal amount, or 96.3%, of the 6 5/8% senior notes due 2020 as of 5 p.m. ET on April 24, the early tender date.

As a result, the minimum tender condition to the exchange offer has been satisfied, and the issuers have executed a supplemental indenture amending the notes, according to a company press release.

Targa is offering to exchange any and all of the $355.1 million outstanding 6 5/8% Atlas Pipeline notes for an equal amount of new 6 5/8% senior notes due 2020 issued by Targa.

As previously noted, the exchange is being conducted on a par-for-par basis for notes tendered by the early deadline.

Those who tender after the early deadline will receive $970 principal amount of Targa notes for each $1,000 principal amount of Atlas Pipeline notes tendered.

The notes were issued by Targa Pipeline Partners LP, formerly known as Atlas Pipeline Partners, LP, and Targa Pipeline Finance Corp., formerly known as Atlas Pipeline Finance Corp.

The exchange offer will continue until 11:59 p.m. ET on May 8. The offer began April 13.

Targa also is soliciting consents to amend the Atlas Pipeline notes and the notes indenture to delete substantially all the restrictive covenants and eliminate some events of default.

More details

The amendments require the consent of a majority of outstanding Atlas Pipeline notes.

As noted before, the new Targa notes will have substantially the same terms as the outstanding Atlas Pipeline notes, including interest rate, interest payment dates, optional redemption terms and maturity.

The new notes will rank pari-passu with Targa’s six outstanding series of senior notes.

The Rule 144A and Regulation S exchange offer is conditioned on a majority of the outstanding Atlas Pipeline notes being tendered by the end of the offer.

D.F. King & Co., Inc. (877 361-7970 or 212 269-5550, atlas@dfking.com) is the information agent for the exchange offer.

Targa Resources is a Houston-based midstream energy company.

© 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.