Targa Sells $1.25B Senior Notes To Fund Lucid Acquisition

Targa Resources has priced its underwritten public offering of $750 million 2027 notes and $500 million 2052 notes at a price to the public of 99.849 percent and 99.773 percent of their face value, respectively.

Proceeds from the $750 aggregate principal amount of its 5.200 percent senior notes due 2027, and $500 million aggregate principal amount of its 6.250 percent senior notes due 2052, will be used to fund a portion of the previously announced acquisition of Lucid Energy. The Offering is expected to close on July 7, 2022, subject to customary closing conditions.

To remind, earlier in June 2022, Targa Resources agreed to acquire all the outstanding interest in Lucid Energy Delaware from Riverstone Holdings and Goldman Sachs Asset Management, for $3.55 billion in cash. The Company expects the Lucid Acquisition to close in the third quarter of 2022, subject to customary closing conditions, including regulatory approvals.

There can be no assurance that the Lucid Acquisition will be completed within the time frame anticipated or at all, nor is the closing of the Offering contingent on the consummation of the Lucid Acquisition. If the company does not complete the Lucid Acquisition, it expects to use the net proceeds from this offering for general corporate purposes, which may include, among other things, repayment of indebtedness, capital expenditures, additions to working capital, investments in its subsidiaries and other acquisitions.

This Offering is being made under an effective shelf registration statement and prospectus filed by the company, with the U.S. Securities and Exchange Commission and may be made only through a prospectus and prospectus supplement related to such Offering meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

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