Targa Resources extends credit facility to August 2025

Published 27/08/2024, 22:00
Targa Resources extends credit facility to August 2025

Targa Resources Corp. (NYSE:TRGP), a player in the natural gas transmission industry, announced Monday that its subsidiary, Targa Resources Partners LP, has amended its accounts receivable securitization facility, effectively extending the maturity date by one year to August 29, 2025.

The amendment, which involves Targa's indirect wholly-owned subsidiary Targa Receivables LLC and a number of financial institutions, was filed as part of a Form 8-K with the Securities and Exchange Commission.

The Fifteenth Amendment to the Receivables Purchase Agreement, originally dated January 10, 2013, ensures that the facility, which is used for trade receivable purchases, will continue to support Targa's working capital requirements. As of the amendment date, the facility had approximately $600 million of trade receivable purchases outstanding.

This move comes as part of Targa's ongoing financial strategy to secure and manage its liquidity. The extension of the facility's termination date provides the company with continued access to capital under its existing structure.

Financial institutions involved in this arrangement, including PNC Bank, National Association, act as administrators and issuers of letters of credit, with some also providing investment banking and financial advisory services to Targa.

The extension of the credit facility is an important aspect of Targa's financial planning, ensuring that the company maintains a robust mechanism for managing its receivables and liquidity over the next year.

This strategic financial maneuver is part of Targa Resources Corp.'s broader efforts to strengthen its balance sheet and support its operations within the natural gas transmission sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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