Business
Target Hospitality Extends Credit Facility Providing Financial Flexibility to Execute Growth Strategy
THE WOODLANDS, Texas, Feb. 15, 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, Feb. 15, 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 on February 2, 2023, that it has amended and extended the terms of its ABL Credit Agreement, dated March 15, 2019 (as amended, the \"Amended ABL Facility\"), further solidifying its strong financial position and the foundation to continue executing it growth strategy.\nTarget has remained focused on optimizing its financial position, centered on materially strengthening its balance sheet to maximize financial flexibility. From 2020 through 2022, Target has reduced total cumulative debt more than $225 million and increased total available liquidity to over $305 million. During that time, the focus on capital discipline allowed Target to quickly react to strategic growth opportunities that support an anticipated 120% increase in revenue(1) while making significant progress towards being net-debt free in 2023.\nTarget has identified several organic growth initiatives, including select opportunities to broaden its customer base across government agencies, as well as unique commercial diversification opportunities supporting domestic energy transition. The Company continues to evaluate its expanding pipeline of strategic growth opportunities and seeks to allocate over $500 million of net-growth capital through 2027. Target will continue to allocate capital to areas with the highest potential value creation and expects to maintain its industry leading cash-on-cash margins.\nTarget's focused capital discipline was a key element to finalizing the Amended ABL Facility that consists of multiple new facility lenders and resulted in oversubscribed lender commitments. The Amended ABL Facility consists of $125 million of commitments, expiring February 1, 2028.\n(1) Increase in revenue from the year ended December 31, 2020, to mid-point of updated full year 2022 financial outlook, as provided on November 9, 2022\nAbout Target HospitalityTarget 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 netw...