Target Hospitality closes $660M credit facility, replacing $175M prior line

Target Hospitality Corp. (NASDAQ: TH) has closed a new $660 million asset-based revolving credit facility, replacing its previous $175 million senior secured revolving credit facility, according to a press release from the company.

The new facility nearly quadruples the company's committed borrowing capacity and carries a five-year term maturing in July 2031. It includes an accordion feature that could increase total committed borrowing capacity to $850 million, subject to lender commitments and customary conditions.

Borrowings under the facility are expected to bear interest at Term SOFR plus 2.25% to 3.00%, depending on the company's Total Leverage Ratio. The company said the new facility represents a reduction in borrowing costs of up to 250 basis points compared to the previous arrangement.

Jason Vlacich, Chief Financial Officer of Target Hospitality, said the facility "significantly increases our committed capacity, extends our debt maturity profile and meaningfully lowers our cost of capital."

JPMorgan Chase Bank, N.A. acted as Administrative Agent. JPMorgan Chase Bank, N.A., PNC Bank, National Association, and Wells Fargo Bank, National Association served as Joint Lead Arrangers and Joint Bookrunners. Morgan Stanley and Huntington Bank served as Documentation Agents. Deutsche Bank AG and First National Bank of Omaha also participated as lenders.

Target Hospitality is based in The Woodlands, Texas, and describes itself as a provider of modular accommodations and hospitality services in North America. Additional details are expected to be filed in a Current Report on Form 8-K with the Securities and Exchange Commission.

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