Total value of the transaction is approximately $420m, subject to certain adjustments. Consideration paid by Targa Resources Partners to Targa Resources consisted entirely of cash funded through borrowings under the the company’s senior secured revolving credit facility.
In addition to the asset sale, Targa Resources has closed a secondary offering of 8.5 million of its NGLS common units. As a result of the asset sale to Targa Resources Partners and the secondary offering, Targa Resources has reduced the outstanding balance of its $500m term loan to $240.7m, the company said.
Targa Resources is a provider of midstream natural gas and natural gas liquid services in the US, through an integrated platform of midstream assets.
