Published on 11/13/2019 in the Prospect News High Yield Daily.
New Issue: Targa prices upsized $1 billion 10.25-year notes at par to yield 5½%
By Paul A. Harris
Portland, Ore., Nov. 13 – Targa Resources Partners LP and Targa Resources Partners Finance Corp. priced an upsized $1 billion issue of senior notes due March 1, 2030 (expected ratings Ba3/BB) at par to yield 5½% in a quick-to-market Wednesday trade, according to market sources.
The issue size increased from $750 million.
The yield printed at the tight end of the 5½% to 5¾% yield talk. Initial guidance was in the high 5% area.
Lead left bookrunner RBC Capital Markets LLC will bill and deliver. Joint bookrunners were Barclays, BofA Securities Inc., Citigroup Global Markets Inc., MUFG and Wells Fargo Securities LLC.
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.
| Issuers: | Targa Resources Partners LP and Targa Resources Partners Finance Corp.
|
| Amount: | $1 billion, increased from $750 million
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| Maturity: | March 1, 2030
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| Securities: | Senior notes
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| Lead left bookrunner: | RBC Capital Markets LLC (bill and deliver)
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| Joint bookrunners: | Barclays, BofA Securities Inc., Citigroup Global Markets Inc., MUFG and Wells Fargo Securities LLC
|
| Co-lead managers: | PNC Capital Markets LLC, BBVA Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc. and ING Financial Markets LLC
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| Co-managers: | BB&T Capital Markets, BMO Capital Markets Corp., CIBC World Markets, Credit Agricole CIB, Fifth Third Securities Inc., Regions Securities Inc., Citizens Capital Markets Inc. and Huntington
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| Coupon: | 5½%
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| Price: | Par
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| Yield: | 5½%
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| Spread: | 363 bps
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| First call date: | March 1, 2025
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| Trade date: | Nov. 13
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| Settlement date: | Nov. 27
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| Expected ratings: | Moody's: Ba3
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| S&P: BB
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| Distribution: | Rule 144A and Regulation S with U.S. registration rights (eligible for sale into Canada)
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| Price talk: | 5½% to 5¾%
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| Marketing: | Quick to market
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