Targa Resources closes restated four-year $1.6 billion revolver

By Wendy Van Sickle

Columbus, Ohio, Oct. 11 – Targa Resources Partners LP amended and restated its credit agreement with Bank of America, NA as agent on Friday to provide for a four-year $1.6 billion revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement was led by Bank of America Merrill Lynch, Barclays Bank plc, Citigroup Global Markets Inc., Deutsche Bank AG-New York Branch, RBC Capital Markets and Wells Fargo Securities, LLC as joint lead arrangers, co-book managers and syndication agents.

BBVA Compass, Capital One, NA, JPMorgan Chase Bank, NA and TD Bank, NA were the co-documentation agents.

The revolver has leveraged-based interest ranging from Libor plus 175 basis points to 275 bps with the commitment fee ranging from 30 bps to 50 bps.

The credit agreement also contains a ratings-based pricing grid that will be effective only if Targa achieves investment-grade ratings. Interest under that grid ranges from Libor plus 112.5 bps to 200 bps, and its commitment fee ranges from 17.5 bps to 37.5 bps.

The credit agreement has a $500 million accordion feature and a $100 million sublimit for swingline loans. The full amount of the revolver is available for issuance of letters of credit.

The credit facility matures on Oct. 7, 2020.

Proceeds may be used for general corporate purposes.

Houston-based Targa Resources Partners provides midstream natural gas and natural gas liquids services.

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