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.
Target 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.
"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."
About Target Hospitality
Target 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 management, concierge, laundry,
logistics, security and recreational facilities services.
Cautionary Statement Regarding Forward Looking
Statements
Certain statements made in this press release (including the
financial outlook contained herein) are "forward looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "estimates,"
"projected," "expects," "anticipates," "forecasts," "plans,"
"intends," "believes," "seeks," "may," "will," "should," "future,"
"propose" and variations of these words or similar expressions (or
the negative versions of such words or expressions) are intended to
identify forward-looking statements. These forward-looking
statements are not guarantees of future performance, conditions or
results, and involve a number of known and unknown risks,
uncertainties, assumptions and other important factors, many of
which are outside our control, that could cause actual results or
outcomes to differ materially from those discussed in the
forward-looking statements. Important factors, among others, that
may affect actual results or outcomes include: the duration of the
COVID-19 pandemic or any future public health crisis, related
economic repercussions and the resulting negative impact to global
economic demand; operational challenges relating to the COVID-19
pandemic and efforts to mitigate the spread of the virus, including
logistical challenges, protecting the health and well-being of our
employees and customers, government imposed mandates, contract and
supply chain disruptions; operational, economic, including
inflation, political and regulatory risks; our ability to
effectively compete in the specialty rental accommodations and
hospitality services industry; effective management of our
communities; natural disasters and other business distributions
including outbreaks of epidemic or pandemic disease; the effect of
changes in state building codes on marketing our buildings; changes
in demand within a number of key industry end-markets and
geographic regions; our reliance on third party manufacturers and
suppliers; failure to retain key personnel; increases in raw
material and labor costs; the effect of impairment charges on our
operating results; our future operating results fluctuating,
failing to match performance or to meet expectations; our exposure
to various possible claims and the potential inadequacy of our
insurance; unanticipated changes in our tax obligations; our
obligations under various laws and regulations; the effect of
litigation, judgments, orders, regulatory or customer bankruptcy
proceedings on our business; our ability to successfully acquire
and integrate new operations; global or local economic and
political movements, including any changes in policy under the
Biden administration; federal government budgeting and
appropriations; our ability to effectively manage our credit risk
and collect on our accounts receivable; our ability to fulfill
Target Hospitality's public company obligations; any failure of our
management information systems; our ability to meet our debt
service requirements and obligations; and risks related to our
outstanding obligations in connection with the 9.50% senior notes
due 2024. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
(1) Net debt defined as total consolidated debt, including
Senior Secured Notes and outstanding balances on the Company's
Credit Facility, less cash and cash equivalents
(2) Reduction in net debt from the consolidated audited balance
sheet as of December 31, 2020
compared to the anticipated net debt as of December 31, 2023. Anticipated net debt as of
December 31, 2023 supported by the
Company's 2023 outlook as provided on August
9, 2023. The unaudited estimated financial results, as
provided on August 9, 2023, are
subject to revision. As a result, actual results as of December 31, 2023, may differ materially from the
estimated unaudited financial results as a result of the year end
audit, or upon occurrences of other developments that may arise
prior to the time audited financial results are finalized.
(3) Increase in revenue from the year ended December 31, 2020, to mid-point of full year 2023
financial outlook, as provided on August 9,
2023. The unaudited estimated financial results, as provided
on August 9, 2023, are subject to
revision. As a result, actual results for the year ended
December 31, 2023, may differ
materially from the estimated unaudited financial results as a
result of the year-end audit, or upon occurrences of other
developments that may arise prior to the time audited financial
results are finalized.
Investor Contact
Mark
Schuck
(832) 702 – 8009
ir@targethospitality.com
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SOURCE Target Hospitality