Targa gets consents for $155.78 million 11¼% notes, extends deadline

By Jennifer Chiou

New York, Feb. 2 - Targa Resources Partners LP and subsidiary Targa Resources Partners Finance Corp. announced the extension of its offer to issue new 6 7/8% senior notes due 2021 and cash for its existing $231.28 million of 11¼% senior notes due 2017 in a private exchange.

As of the prior consent deadline of 5 p.m. ET on Feb. 1, holders of $155,776,000 of notes had delivered valid consents. The new consent deadline is 5 p.m. ET on Feb. 3.

Targa Resources is soliciting consents to eliminate substantially all the restrictive covenants and certain events of default.

As already reported, the new notes will be fungible with the $325 million of 6 7/8% notes recently priced by the company when the exchange was announced on Jan. 19.

For each $1,000 principal amount of the existing notes, the company is offering $1,000 principal amount of new notes plus $175 in cash. The cash figure includes a consent payment of $30.00 that will only be paid to holders who tender by the new consent deadline.

Targa Resources will also pay accrued interest.

The offer ends at midnight ET on Feb. 15. It is subject to the company receiving consents to amend the existing notes from holders of a majority of the debt.

The offer is being conducted under Rule 144A and Regulation S.

D.F. King & Co., Inc. is the information agent and exchange agent (800 859-8508, banks and brokers call 212 269-5550).

Targa Resources is a Houston-based provider of midstream natural gas and natural gas liquids services.

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