FollowTarga Resources shares slipped Thursday after the limited partnership with a portfolio of midstream-energy assets priced an underwritten public offering of nearly 3.3 million shares of its common stock at $91.00 per share, a 3.6% discount to the stock’s Wednesday closing price, for expected net proceeds of about $292.3 million.
TRGP was down 2% at $92.50 recently, in a 52-week range of $82.09 to $160.97. The Company granted the underwriter a 30-day option to purchase up to an additional 487,500 shares of common stock. If the option is exercised in full, net proceeds would be about $336.2 million.
The offering is expected to close on or about March 17. The company intends to use the net proceeds to repay a portion of the outstanding borrowings under its credit facility, to make a capital contribution of approximately $53.0 million to Targa Resources Partners LP, to maintain its 2% general partnership interest in the partnership, and for general corporate purposes.
