Key Developments For Targa Resources Partners LP
Targa Resources Partners LP (NGLS.O) (Nasdaq)
Targa Resources Partners LP Announces Third Quarter 2009 Distribution
Targa Resources Partners LP announced that the Board of Directors has declared a quarterly cash distribution of $0.5175 per common unit, or $2.07 per common unit on an annualized basis, for the third quarter of 2009. This cash distribution will be paid November 13, 2009 on all outstanding common units to holders of record as of the close of business on November 4, 2009.
Targa Resources Partners LP Completes Acquisition Of Assets From Targa Resources, Inc.
Targa Resources Partners LP announced that it has completed the previously announced acquisition of Targa Resources, Inc.'s (Targa) natural gas liquids businesses (the Downstream Business). Total value of the transaction is approximately $530 million, subject to certain post-closing adjustments. Consideration to Targa included 25% of the transaction value in newly issued common and general partner units of the Partnership, the maximum equity component permitted under Targa's financing agreements. The equity component consisted of 8,527,615 common units and 174,033 general partner units. Consideration for the remaining 75% of the transaction value, or approximately $397.5 million, was in cash, funded through borrowings under the Partnership's senior secured revolving credit facility. As part of the transaction, Targa agreed to provide distribution support to the Partnership in the form of a reduction in the reimbursement of allocated general and administrative expense if necessary for a 1.0 times distribution coverage ratio, calculated using the current distribution rate of $0.5175 per limited partner unit and subject to maximum support of $8 million in any quarter. Targa will use the entire cash proceeds to repay and retire $397.5 million of its senior secured term loan facility, leaving a remaining balance of approximately $68 million. Targa has also elected to permanently reduce the capacity of its $300 million synthetic LC facility to $50 million.
Targa Resources Partners LP Announces Pricing of Common Units
Targa Resources Partners LP announced that it has priced an underwritten public offering of 6,000,000 common units representing limited partner interests at $15.70 per common unit. The offering is expected to close on or about August 12, 2009. The Partnership has also granted the underwriters a 30 day option to purchase up to 900,000 additional common units. The Partnership intends to use the net proceeds from the offering, including the proceeds from any exercise of the over allotment option, for general partnership purposes, which may include reducing borrowings under its senior secured credit facility and redeeming or repurchasing some of its outstanding notes. UBS Investment Bank, Barclays Capital and Citi are joint book running managers for the offering.
Targa Resources Partners LP Announces Public Offering of Common Units
Targa Resources Partners LP announced the commencement of an underwritten public offering of 6,000,000 common units representing limited partner interests. The Partnership has also granted the underwriters a 30 day option to purchase up to 900,000 additional common units. The Partnership intends to use the net proceeds from the offering for general partnership purposes, which may include reducing borrowings under its senior secured credit facility and redeeming or repurchasing some of its outstanding notes. UBS Investment Bank, Barclays Capital and Citi will act as joint book running managers for the offering.
Targa Resources Partners LP Agrees To Acquire Downstream Business From Targa Resources, Inc.
Targa Resources Partners LP announced that it has agreed to acquire Targa Resources, Inc.'s (Targa) natural gas liquids business (the Downstream Business) for $530 million. The Downstream Business includes the; Logistics Assets; NGL Distribution and Marketing; and Wholesale Marketing segments.
