Targa Resources driving by with $750 million 10.25-year notes; initial talk high 5% area

By Paul A. Harris

Portland, Ore., Nov. 13 – Targa Resources Partners LP and Targa Resources Partners Finance Corp. plan to price a $750 million offering of senior notes due March 1, 2030 (expected ratings Ba3/BB) in a quick-to-market Wednesday trade following a late-morning conference call with investors, according to market sources.

Initial talk has the notes, which have a tenor of 10.25 years, coming to yield in the high 5% area, a trader said.

Lead left bookrunner RBC Capital Markets LLC will bill and deliver. Barclays, BofA Securities Inc., Citigroup Global Markets Inc., MUFG and Wells Fargo Securities LLC are the joint bookrunners.

PNC Capital Markets, BBVA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc. and ING Financial Markets LLC are the co-lead managers.

BB&T, BMO Securities, CIBC World Markets, Credit Agricole CIB, Fifth Third Bank, Regions Securities Inc., Citizens Bank and Huntington are the co-managers.

The Rule 144A and Regulation S with U.S. registration rights notes are eligible for sale into Canada.

They become callable after 5.25 years.

The Houston-based midstream energy company plans to use the proceeds to repay its credit facilities and for general partnership purposes, which may include other debt repayment, working capital and funding growth investments and acquisitions.

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