Target Hospitality Launches Secondary Offering with Concurrent Stock Repurchase
Target Hospitality Corp. has announced a secondary offering of up to 13 million shares, which may be increased by an additional 1.95 million under the underwriters' option. The shares are being sold by entities controlled by TDR Capital LLP and not directly by Target Hospitality itself, meaning the company will receive no proceeds from this transaction. In conjunction with the offering, the company plans to repurchase up to $30 million worth of its common stock at a price equal to what underwriters pay for shares in the secondary offering. The repurchased shares are expected to be held as treasury stock and funded through cash reserves and borrowings from an ABL credit facility. Morgan Stanley, Deutsche Bank Securities, and J.P. Morgan are serving as book-running managers for this transaction, which is being conducted under a previously filed registration statement with the SEC.
Topics: secondary offering stock offering treasury shares underwriting