Target Hospitality secures $660 Million Credit Facility
Target Hospitality Corp. has closed a new $660 million asset-based credit facility, nearly quadrupling its borrowing capacity and extending its debt maturity.
The Woodlands, Texas – Target Hospitality Corp. announced the closing of a new $660 million asset-based revolving credit facility, significantly increasing its liquidity and financial flexibility. This new facility replaces a previous $175 million credit line, nearly quadrupling the company's committed borrowing capacity.
The five-year facility matures in July 2031 and includes an accordion feature that allows for up to an additional $190 million in commitments, potentially bringing the total borrowing capacity to $850 million. Borrowings under the new facility are expected to carry interest rates between Term SOFR plus 2.25% to 3.00%. This represents a reduction in borrowing costs of up to 250 basis points compared to the previous facility.
Target Hospitality, a major provider of modular accommodations and hospitality services, stated that the new credit facility reflects the durability of its contracted revenue base and confidence in its growth strategy. The company plans to use the expanded capacity to support its commercial pipeline of over 20,000 beds, driven by demand in high-value end markets.
JPMorgan Chase Bank, N.A. acted as the administrative agent for the facility. 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 acted as documentation agents.