Target Hospitality Secures $660 Million Credit Facility to Support Growth
Target Hospitality has secured a new $660 million asset-based revolving credit facility, replacing its previous $175 million senior secured credit line. The expanded borrowing capacity significantly enhances the company's liquidity and financial flexibility as it pursues an active commercial pipeline of over 20,000 beds across high-value markets. The five-year ABL Facility includes a potential accordion feature that could increase total committed borrowing to $850 million under certain conditions. Borrowings will carry interest at Term SOFR plus between 2.25% and 3%, representing up to a 250 basis point reduction in cost compared to the previous facility, which is expected to lower Target's overall capital costs. The new credit arrangement was arranged by JPMorgan Chase Bank with participation from several major financial institutions including PNC Bank, Wells Fargo, Morgan Stanley and Deutsche Bank. The CFO highlighted that this financing reflects strong lender confidence in the company’s growth strategy and contracted revenue base.
Topics: capital structure corporate finance liquidity management