Finance & Investing | Fundraising | Capital Markets | Private Equity Activity
Targa Prices Public Offering of Common Stock
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Targa Resources Corp. has priced an underwritten public offering of 3,250,000 shares of its common stock at $91.00 per share. The Company granted the underwriter a 30-day option to purchase up to an additional 487,500 shares of common stock. The offering is expected to close on or about March 17, 2015, subject to customary closing conditions.
The Company expects to receive net proceeds of approximately $292.3 million (or approximately $336.2 million if the underwriter exercises in full its option to purchase additional shares of common stock), after deducting the underwriter's discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds from this offering, including any net proceeds from the underwriter's exercise of its option to purchase additional shares of common stock, to repay a portion of the outstanding borrowings under the Company's credit facility, to make a capital contribution of approximately $53.0 million to Targa Resources Partners LP ("Targa Resources Partners" or the "Partnership") to maintain the Company's 2% general partnership interest in the Partnership and for general corporate purposes.
Barclays Capital Inc. is acting as sole underwriter in the offering.