Target Hospitality Stockholders Launch 13 Million Share Secondary Offering
Target Hospitality Corp. faces a major shift in its equity structure as Arrow Holdings and MFA Global, entities controlled by TDR Capital, move to divest 13 million shares of common stock. The company will not receive proceeds from the sale but plans to execute a concurrent $30 million stock buyback.
The offering, managed by Morgan Stanley, Deutsche Bank, and J.P. Morgan, includes an additional 1,950,000-share option for underwriters. Upon completion, Target Hospitality intends to purchase up to $30 million of the common stock directly from the underwriters at the same price set for the secondary offering. These acquired shares will be held as treasury stock.
Funding for the repurchase will utilize available cash and existing capacity under the company's ABL Credit Facility. The transition is governed by a shelf registration statement originally filed in 2019, with formal documentation to be processed through the SEC. The company maintains that the transaction is subject to prevailing market conditions and standard closing requirements.
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