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, today announced the closing of a new $660 million asset-based revolving credit facility (the "ABL Facility"). The ABL Facility significantly strengthens the Company's liquidity position, extends its debt maturity profile and enhances financial flexibility as Target continues to pursue an active commercial pipeline representing more than 20,000 beds, driven by sustained development activity across high-value end markets.

The ABL Facility replaces Target's previous $175 million senior secured revolving credit facility (the "Previous Facility"), nearly quadrupling the Company's committed borrowing capacity to $660 million, subject to borrowing base availability, to support strategic growth initiatives and general corporate purposes. The ABL Facility has a five-year term maturing in July 2031 and includes an accordion feature providing for up to $190 million of incremental commitments, which could increase total committed borrowing capacity to $850 million, subject to lender commitments, customary conditions, and borrowing base availability.

Borrowings under the new ABL Facility are expected to bear interest at Term SOFR plus 2.25% to 3.00%, depending on the Company's Total Leverage Ratio. 

The new ABL Facility represents a reduction in borrowing costs of up to 250 basis points compared to the Previous Facility, meaningfully lowering Target's cost of capital, enhancing expected returns on incremental growth investments, and supporting a disciplined balance sheet.