Targa To Buy Atlas Energy And Atlas Pipeline For About $7.7 Bln - Quick Facts

(RTTNews) - Atlas Energy L.P. (ATLS) announced along with its midstream subsidiary, Atlas Pipeline Partners L.P. (APL), that both companies reached definitive agreements to be acquired by Targa Resources Corp. (TRGP) and Targa Resources Partners LP (NGLS), respectively, in a transaction valued at about $7.7 billion.

Targa Resources Corp. will acquire Atlas Energy, L.P. immediately after it completes a distribution of its non-midstream assets. Following the distribution of these assets, ATLS assets will consist of its interests in the general partner and incentive distribution rights in APL, as well as 5.8 million APL common units, which will be acquired by TRGP in a merger transaction with ATLS for about $1.9 billion.

As a result of the transactions, each ATLS common unit will receive: $9.12 in cash, 0.1809 of a share of TRGP common stock, and a pro rata share in 100% of ATLS' distributed non-midstream assets.

Meanwhile, Targa Resources Partners LP will acquire Atlas Pipeline Partners, L.P. for total consideration of about $5.8 billion, which includes APL's existing debt of $1.8 billion. APL unitholders will receive: 0.5846 units of NGLS and $1.26 in cash for each APL unit. Based on the closing price of NGLS on October 10, 2014, the total APL per unit consideration has a value of $38.66, which represents a 15% premium to the closing price of APL common units on October 10, 2014.

The boards of directors of ATLS, APL, TRGP and NGLS have each approved the respective merger agreements. Subject to customary approvals and conditions, the transactions are expected to close in the first quarter of 2015.