Targa Resources Partners - Capitalization, Liquidity and Financing Update
Total funded debt at the Partnership as of December 31, 2010 was approximately $1,445.4 million including $765.3 million outstanding under the Partnership's $1.1 billion senior secured revolving credit facility, $209.1 million of 8¼% senior unsecured notes due 2016, $221.0 million of 11¼% senior unsecured notes due 2017 (the "11¼% Notes") and $250 million of 7⅞% senior unsecured notes due 2018.
On January 24, 2011, the Partnership completed a public offering of 8,000,000 common units representing limited partner interests in the Partnership, providing net proceeds of $259.3 million. Pursuant to the exercise of the underwriters' overallotment option on February 3, 2011, the Partnership sold an additional 1,200,000 common units, providing net proceeds of approximately $38.9 million. In addition, the general partner contributed $6.3 million for 187,755 general partner units to maintain its 2% interest. The net proceeds from the offering were used to reduce borrowings under the Partnership's senior secured credit facility.
On February 2, 2011, the Partnership closed on a private placement of $325 million in aggregate principal amount of 6⅞% Senior Notes due 2021 ("the 6⅞% Notes") resulting in net proceeds of $319.3 million.On February 4, 2011 the Partnership exchanged $158.6 million principal amount of 11¼% Notes for $158.6 million principal amount of 6⅞% Notes in a private exchange offer to certain eligible holders of the 11¼% Notes. In conjunction with the exchange the Partnership paid a premium in cash of $28.6 million. The debt covenants related to the remaining $72.7 million of face value 11¼% Notes due 2017 were removed as the Partnership received sufficient consents in connection with the exchange offer to amend the indenture. With the exchange offer, the total principal outstanding of the 6⅞% Senior Notes due 2021 is $483.6 million. Pro forma for the completion of the unit offering, note offering and exchange, the Partnership had available revolver capacity of $828.6 million, after giving effect to $101.3 million in outstanding letters of credit, and $76.3 million of cash resulting in total liquidity of $904.9 million at December 31, 2010.
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