The Target Hospitality secondary offering has been priced at $18.50 per share after being increased to 14 million shares.
Target Hospitality (NASDAQ: TH) said in its offering announcement that the shares are held by entities controlled by TDR Capital. Gross proceeds to the selling stockholders are expected to be approximately $259 million before underwriting costs.
Target Hospitality Secondary Offering Pairs With Repurchase
The company is not selling shares and will not receive proceeds from the offering. The selling stockholders granted the underwriters a 30-day option to purchase as many as 2.1 million additional shares.
Target Hospitality separately agreed to buy approximately $30 million of shares from the underwriters at the same per-share price paid to the selling stockholders. The repurchased shares will be held in treasury.
The company expects to finance the repurchase with cash on hand and borrowings under its asset-based lending facility. Closing is expected on September 10, subject to customary conditions, so the offering and repurchase should not be treated as completed until those conditions are met.
