Targa Resources Raises $1.5 Billion

The company plans to redeem high-interest debt and bolster liquidity with the proceeds from the dual-tranche offering.

June 20, 2025

Capital Move Signals Debt Optimization Strategy

Targa Resources is taking clear steps to optimize its balance sheet. On June 18, 2025, the company closed a $1.5 billion public offering—issuing two tranches of senior unsecured notes. The offering includes $750 million in 4.900% notes due 2030 and another $750 million in 5.650% notes due 2036.

These notes are backed by certain Targa subsidiaries, guaranteed on a senior unsecured basis as long as specific conditions are met. The offering was carried out under a shelf registration statement filed earlier this month and supplemented by detailed terms through a prospectus. The new issuance fits within the structure of Targa’s existing indenture, originally set up in 2022 and updated via a supplemental agreement finalized on the same day as the new offering.

How the Proceeds Will Be Used

The company plans to put this capital to work quickly. A portion of the proceeds will be used to redeem outstanding 6.500% notes maturing in 2027 —replacing higher-cost debt with a lower-rate alternative. The rest will support broader financial needs, including:

• Repaying borrowings under its commercial paper program


• Reducing other forms of indebtedness


• Repurchasing or redeeming existing securities


• Funding capital expenditures


• Investing in working capital or subsidiaries

Financial Structure and Advisory Partners

Targa is aligning this offering with its broader capital strategy. The structure provides flexibility while managing interest expense and liquidity. The notes were issued under the existing indenture agreement with U.S. Bank Trust Company, National Association acting as trustee. This agreement was originally established in 2022 and is now supplemented to cover the new issuance.

One of the lead underwriters, U.S. Bancorp Investments, Inc., is an affiliate of the trustee. This relationship reflects continued financial advisory and investment banking support for Targa. These services have been provided in the past and may continue moving forward, with compensation in line with standard industry practices.

This move sharpens the company’s ability to manage its capital efficiently—giving it the tools to adjust quickly and maintain optionality in a shifting credit environment.