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Partnership Units and Related Matters
9 Months Ended
Sep. 30, 2020
Partners Capital [Abstract]  
Partnership Units and Related Matters

Note 9 — Partnership Units and Related Matters

 

Distributions

 

We are entitled to receive all Partnership distributions from available cash on the Partnership’s common units after payment of preferred unit distributions each quarter.

 

The following table details the distributions declared and paid by the Partnership for the nine months ended September 30, 2020:

 

Three Months Ended

 

Date Paid or To Be Paid

 

Total Distributions

 

 

Distributions to

Targa Resources Corp.

 

September 30, 2020

 

November 13, 2020

$

 

51.7

 

$

 

48.9

 

June 30, 2020

 

August 13, 2020

 

 

51.7

 

 

 

48.9

 

March 31, 2020

 

May 13, 2020

 

 

53.1

 

 

 

50.3

 

December 31, 2019

 

February 13, 2020

 

 

241.9

 

 

 

239.1

 

 

Contributions

 

All capital contributions to the Partnership continue to be allocated 98% to the limited partner and 2% to the general partner; however, no units will be issued for those contributions. For the nine months ended September 30, 2020, we made a total of $50.0 million in contributions to the Partnership.

 

Preferred Units

 

The Partnership’s issued and outstanding Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (the “Preferred Units”) rank senior to the Partnership’s common units with respect to the distribution rights. Distributions on the Partnership’s 5,000,000 Preferred Units are cumulative from the date of original issue in October 2015 and are payable monthly in arrears on the 15th day of each month of each year, when, as and if declared by the board of directors of the Partnership’s general partner. Distributions on the Preferred Units are payable out of amounts legally available at a rate equal to 9.0% per annum. On and after November 1, 2020, distributions on the Preferred Units will accumulate at an annual floating rate equal to the one-month LIBOR plus a spread of 7.71%.

 

The Partnership paid $2.8 million and $8.4 million of distributions to the holders of Preferred Units (“Preferred Unitholders”) for the three and nine months ended September 30, 2020. The Preferred Units are reported as noncontrolling interests in our financial statements.

 

Subsequent Event

 

In October 2020, the board of directors of the general partner of the Partnership declared a cash distribution of $0.1875 per Preferred Unit, resulting in approximately $0.9 million in distributions that will be paid on November 16, 2020.