Press Releases
- Houston, Texas - November 16, 2006
- TARGA RESOURCES, INC. ANNOUNCES FILING OF REGISTRATION STATEMENT FOR INITIAL PUBLIC OFFERING BY TARGA RESOURCES PARTNERS LP
Houston, November 16, 2006 — Targa Resources, Inc. (“Targa”)
today announced the filing of a registration statement on Form S-1
with the Securities and Exchange Commission relating to a proposed
initial public offering of 16.8 million common units, representing
limited partner interests in Targa Resources Partners LP (“Targa
Resources Partners”), plus an option for the underwriters to
purchase up to an additional 2.52 million common units. All of the
units will be sold by Targa Resources Partners. Application will
be made to have the units quoted on the NASDAQ Global Market under
the symbol “NGLS.”
Targa Resources Partners will use the proceeds from this offering,
together with borrowings under a credit facility to be established
by Targa Resources Partners, to retire inter-company indebtedness
with Targa. In turn, Targa will use the funds it receives from the
retirement of this intercompany indebtedness to reduce amounts outstanding
under its senior secured credit facilities.
Targa Resources Partners will engage in the business of gathering,
compressing, treating, processing and selling natural gas and the
fractionating and selling of natural gas liquids and natural gas
liquids products with initial operations in the Fort Worth Basin
in north Texas. A subsidiary of Targa will be the general partner
of Targa Resources Partners. Targa Resources Partners will own approximately
3,950 miles of integrated gathering pipelines, two natural gas processing
plants and a fractionator.
As currently filed, the common units offered to the public will represent
approximately 58.1 percent of the outstanding equity of Targa Resources
Partners, or approximately 61.4 percent if the underwriters exercise
in full their over-allotment option. Targa will indirectly own the
remaining equity interests in Targa Resources Partners.
Citigroup, Goldman, Sachs & Co., UBS Investment Bank and Merrill
Lynch & Co. will act as joint book-running managers of the offering.
This offering of common units will be made only by means of a prospectus.
A written prospectus meeting the requirements of Section 10 of the
Securities Act of 1933, when available, may be obtained from the
offices of: (i) Citigroup Global Markets Inc., Brooklyn Army Terminal,
Attn: Prospectus Delivery Department, 140 58th Street, Brooklyn,
New York 11220, phone: 718-765- 6732; (ii) Goldman, Sachs & Co.,
85 Broad Street, New York, NY 10004, via fax at 212- 902-9316 or
via e-mail at prospectus-ny@ny.email.gs.com; (iii) UBS Securities
LLC, Prospectus Department, 299 Park Avenue, New York, N.Y., 10171,
212-821-3000; or (iv) Merrill Lynch & Co., 4 World Financial
Center, Attention: Prospectus Department, New York, NY 10080; phone:
212-449-1000.
A registration statement has been filed with the Securities and Exchange
Commission but has not yet become effective. These securities may
not be sold nor may offers to buy be accepted prior to the time the
registration statement becomes effective. This news release shall
not constitute an offer to sell or the solicitation of an offer to
buy nor shall there be any sale of these securities in any state
in which such offer, sale or solicitation would be unlawful prior
to registration or qualification under the securities law in any
such state. Targa Resources Partners’ principal executive offices
are located at 1000 Louisiana, Suite 4300, Houston, Texas 77002 and
its telephone number is (713) 584-1000.
Forward-Looking Statements
Statements about the proposed offering are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements rely on a number of assumptions
concerning future events and are subject to a number of uncertainties
and factors, many of which are outside Targa’s control, and
a variety of risks that could cause results to differ materially
from those expected by management of Targa or Targa Resources Partners.
About Targa Resources
Targa Resources, Inc. is an independent midstream energy company formed in 2003 by management and Warburg Pincus, the global private equity firm and a leading energy investor, to pursue gas gathering, processing and pipeline asset acquisition opportunities.
For more information, please visit www.targaresources.com.
Media Contacts
Joe Bob Perkins
Targa Resources
713-584-1000
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