Target Hospitality Launches Secondary Offering

By Chris Stiles • Friday, May 29 09:47 • Permanent Link

Target Hospitality has launched an underwritten secondary offering of 7,000,000 shares of common stock. The shares are being sold by Arrow Holdings S.à r.l. and MFA Global S.à r.l., entities controlled by TDR Capital LLP.

The company itself is not selling any shares and will receive no proceeds from the offering. Underwriters also have a 30-day option to buy up to 1,050,000 additional shares, which would bring the total potential sale to 8,050,000 shares if exercised in full.

Morgan Stanley and Deutsche Bank Securities are serving as book-running managers. Northland Securities, Oppenheimer & Co., Stifel, and Texas Capital Securities are acting as co-managers.

The offering is being made from an existing shelf registration statement originally filed in April 2019 and declared effective in May 2019. The market has reacted to these announcements by moving the company's shares -6.25% to a price of $17.185. Check out the company's full 8-K submission here.

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