HOUSTON, Jan. 6, 2010 (GLOBE NEWSWIRE) -- Targa Resources, Inc. (the "Company") announced today that it has closed its previously announced new senior secured credit facility which includes a $100 million revolving credit facility due 2014 and a $500 million term loan due 2016. The Company has also announced the completion of its previously announced cash tender offer and related consent solicitation for any and all of the outstanding $250,000,000 aggregate principal amount of 8 1/2% Senior Notes due 2013, CUSIP No. 87611UAC5 (the "Notes"), which are co issued by the Company and Targa Resources Finance Corporation (collectively, the "Issuers"). The tender offer expired at Midnight, New York City time, on January 5, 2010.
A total of $250,000,000 of the Notes (representing 100% of the outstanding Notes) was tendered prior to the expiration of the tender offer. The Company has accepted for purchase all of the Notes tendered pursuant to the tender offer and related consent solicitation. The total consideration plus applicable accrued and unpaid interest was paid on January 5, 2010, the first settlement date, to holders who tendered their Notes prior to 5:00 p.m., New York City time, on December 18, 2009, the consent payment deadline. Holders who tendered their Notes after the consent payment deadline but prior to expiration of the tender offer will be paid on the final settlement date, which will take place promptly after expiration of the tender offer.
The tender offer and related consent solicitation was funded with a portion of the proceeds from the new $500 million senior secured term loan. The Company used the remaining proceeds from the new senior secured term loan to repay the outstanding balance on its existing senior secured term loan due 2012, to purchase a portion of the outstanding principal on Targa Resources Investments Inc.'s Holdco loan facility due 2015, to fund cash to the balance sheet and to pay related fees and expenses for these refinancing transactions. The new credit facility replaced the existing $250 million senior secured revolving credit facility and $50 million senior secured synthetic letter of credit facility.
The new term loan was issued at 99.0% of the principal amount, with an interest rate of LIBOR plus 4.00% and a LIBOR floor of 2.00%. The new revolving credit facility will bear interest at LIBOR plus 4.00%, without a LIBOR floor. Additionally, the interest spread on the term loan and revolving credit facility will be subject to step-downs based on the Company's leverage ratio as calculated in the new senior secured credit agreement.
This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of tenders or consents with respect to any Notes. The tender offer and consent solicitation was made solely pursuant to the Offer to Purchase and Consent Solicitation Statement dated December 7, 2009.
About Targa Resources, Inc.
Targa Resources, Inc. ("Targa") is a leading provider of midstream natural gas and natural gas liquid, or NGL, services in the United States, through an integrated platform of midstream assets. Targa's gathering and processing assets are located primarily in the Permian Basin in West Texas and Southeast New Mexico, the Louisiana Gulf Coast primarily accessing the offshore region of Louisiana, and, through Targa Resources Partners LP, Targa's publicly traded master limited partnership, the Fort Worth Basin in North Texas, the Permian Basin in West Texas and the onshore region of the Louisiana Gulf Coast. Additionally, Targa Resources Partners LP's natural gas liquids logistics and marketing assets are located primarily at Mont Belvieu and Galena Park near Houston, Texas and in Lake Charles, Louisiana with terminals and transportation assets across the United States.
Safe Harbor Statements
This news release contains forward looking statements, including statements regarding the completion of the tender offer, and the Total Consideration or Tender Consideration, as applicable, to be paid to holders of the Notes who tender their Notes prior to the Consent Payment Deadline or prior to the Expiration Time, as applicable. These statements are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to the risk that the conditions to the offer are not satisfied or waived by the Expiration Time, our ability to pay the Total Consideration or Tender Consideration, as applicable and other risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, subsequent Reports on Form 10-Q and Form 8-K and our other securities filings. The Company disclaims any intention or obligation to update- or revise any forward looking statements, whether as a result of new information, future events or otherwise.