Targa Resources Corp. (TRGP, Financial), along with certain subsidiaries, has successfully completed its previously announced underwritten public offering, raising a total of $1.5 billion through the issuance of senior notes. The offering includes $750 million of 4.900% Senior Notes due 2030 and $750 million of 5.650% Senior Notes due 2036. These notes are fully and unconditionally guaranteed on a senior unsecured basis by the subsidiary guarantors, provided they meet specific conditions.
The proceeds from this offering are earmarked for strategic financial maneuvers. Targa Resources Corp. plans to use a portion of the funds to redeem its 6.500% Senior Notes due 2027, issued by Targa Resources Partners LP. The remaining proceeds will be allocated for general corporate purposes, which may include repaying borrowings under the company's unsecured commercial paper note program, settling other debts, repurchasing or redeeming securities, or funding capital expenditures and investments in its subsidiaries.
This offering was registered under the Securities Act of 1933, as amended, through a shelf registration statement on Form S-3ASR. The legal framework for the securities issuance is detailed in the Base Indenture and the Eleventh Supplemental Indenture, with U.S. Bank Trust Company, National Association, serving as the trustee.
The strategic issuance of these senior notes reflects Targa Resources Corp.'s commitment to optimizing its financial structure and supporting its growth initiatives. Investors and stakeholders will be keenly observing how these financial strategies unfold in the coming quarters.
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