Business
Target Hospitality Expands Credit Facility; Significantly Increasing Liquidity Profile
THE WOODLANDS, Texas, Oct. 12, 2023 /PRNewswire/ -- Target Hospitality Corp. ("Target Hospitality", "Target" or the "Company") (NASDAQ: TH), one of North
About this update from Target Hospitality Corp.
[{"type":"text","content":"THE WOODLANDS, Texas, Oct. 12, 2023 /PRNewswire/ -- Target Hospitality Corp. (\"Target Hospitality\", \"Target\" or the \"Company\") (NASDAQ: TH), one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services, announced today that it has increased the available borrowing capacity under its Credit Agreement, dated March 15, 2019 (as amended, the \"Amended Credit Facility\"), by $50 million, for total available capacity of $175 million, subject to compliance with borrowing base requirements (\"Expanded Credit Facility\"). The additional credit capacity secured by the Company will be used for general corporate purposes, as needed. There are no outstanding balances on the Company's $175 million Expanded Credit Facility, further solidifying its strong financial position and focused capital discipline.\n\nTarget has remained focused on optimizing its financial position, centered on materially strengthening its balance sheet to maximize financial flexibility. Since 2020, Target has reduced total net debt(1) by approximately 80%(2). During that time, the focus on capital discipline allowed Target to quickly react to strategic growth opportunities that support an anticipated 151% increase in revenue(3) while making significant progress towards being net-debt free in 2023. Including the Expanded Credit Facility, by year end 2023, the Company expects pro-forma total available liquidity to be in excess of $300 million.\n\"We are pleased with the completion of the credit facility increase as it provides us with increased financial flexibility,\" said Eric T. Kalamaras, Chief Financial Officer at Target Hospitality. \"Combined with substantial cash on hand, the facility increase coupled with our recently announced note exchange, continues our focus of creating a more efficient capital structure that complements our high cash generation capability while simultaneously providing flexible growth capital.\"\nAbout Target Hospitality\nTarget Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States. Target builds, owns and operates a customized and growing network of communities for a range of end users through a full suite of value-added solutions including premium food service man...