This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.Here is a sample of this item:Targa Resources Partners LP Completes Acquisition of Assets From Targa Resources, Inc. 2009-09-24 16:20 ET - News Release HOUSTON, Sept. 24, 2009 (GLOBE NEWSWIRE) -- Targa Resources Partners LP (the "Partnership") (Nasdaq:NGLS) announced today that it has completed the previously announced acquisition of Targa Resources, Inc.'s ("Targa") natural gas liquids businesses (the "Downstream Business"). Total value of the transaction is approximately $530 million, subject to certain post-closing adjustments.
Consideration to Targa included 25% of the transaction value in newly issued common and general partner units of the Partnership, the maximum equity component permitted under Targa's financing agreements. The equity component consisted of 8,527,615 common units and 174,033 general partner units. Consideration for the remaining 75% of the transaction value, or approximately $397.5 million, was in cash, funded through borrowings under the Partnership's senior secured revolving credit facility.
As part of the transaction, Targa agreed to provide distribution support to the Partnership in the form of a reduction in the reimbursement of allocated general and administrative expense if necessary for a 1.0 times distribution coverage ratio, calculated using the current distribution rate of $0.5175 per limited partner unit and subject to maximum support of $8 million in any quarter. The distribution support will be in effect for the nine quarter period beginning with the declaration for the fourth quarter of 2009 and continuing through the fourth quarter of 2011.
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