Targa sees early tenders of $1.14 billion notes, lifts caps to match

By Wendy Van Sickle

Columbus, Ohio, Oct. 6 – Targa Resources Partners LP said it received early tenders of about $1.14 billion in its tender offer for its $733,622,000 of 5% senior notes due 2018, its $309,877,000 of 6 5/8% senior notes due 2020 and its $478,576,000 of 6 7/8% senior notes due 2021 and increased the tender size to accept all the notes.

The company lifted the total tender payment and the sub-caps for the 6 5/8% notes and the 6 7/8% notes to accept all the early tenders. Targa will accept no additional tenders in the fully subscribed offer, according to a press release.

The early deadline was 5 p.m. ET on Oct. 5.

The total payment to noteholders will now be capped at about $1.18 billion, increased from $1 billion. The cap had been previously increased after Targa priced an upsized offering of $1 billion of new notes from an original $800 million.

The company also increased the sub-caps for its 6 5/8% notes and its 6 7/8% notes. Those caps have been lifted to $281.71 million from $225 million for the 6 5/8% notes and $373,548,000 from $325 million for the 6 7/8% notes. In each case, the new cap reflects the amount of tenders received.

Targa received and accepted early tenders of $483,078,000 of the 5% notes.

Targa will pay $1,035.00 per $1,000 principal amount for the 5% notes, $1,037.10 per $1,000 principal amount for the 6 5/8% notes and $1,038.50 for the 6 7/8% notes.

All the prices include an early tender payment of $30.00 per $1,000 principal amount.

Targa Resources will also pay accrued interest up to but excluding the settlement date.

The tender had been set to end at 12 a.m. ET on Oct. 21.

Settlement was expected to occur Thursday.

Proceeds from the new notes will be used to fund the tender offer plus cash on hand and revolver borrowings if necessary.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) is dealer manager. D.F. King & Co., Inc. (866 342-4882, 212 269-5550 or targa@dfking.com) is tender agent and information agent.

The notes were issued jointly by Targa Resources Partners LP and Targa Resources Partners Finance Corp. Targa Resources Partners owns and operates midstream energy assets. It is a subsidiary of Houston-based Targa Resources Corp., a provider of midstream services.

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