Targa Resources Corp. (NYSE:TRGP), a natural gas transmission company, announced Monday that its subsidiary, Targa Resources Partners LP, has amended its trade receivables securitization credit facility, effectively extending the maturity date by one year to August 29, 2025.
The amendment, which involves Targa’s indirect subsidiary, Targa Receivables LLC, and several financial institutions, was filed as part of a Form 8-K with the Securities and Exchange Commission.
The Fifteenth Amendment to the Accounts Receivable Purchase Agreement, originally dated January 10, 2013, ensures that the credit facility, used to purchase accounts receivable, will continue to support Targa’s working capital needs. As of the date of the amendment, the credit facility had approximately $600 million of account receivable purchases outstanding.
This move is part of Targa’s ongoing financial strategy to secure and manage its liquidity. The extension of the credit facility maturity date provides the company with continued access to capital within its existing structure.
The 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 line is an important aspect of Targa’s financial planning, ensuring that the company maintains a robust mechanism to manage its receivables and liquidity over the coming year.
This strategic financial move is part of Targa Resources Corp.’s broader efforts to strengthen its balance sheet and support its natural gas transmission operations.
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