Target Hospitality to market $340 million five-year senior notes

By Abigail W. Adams

Portland, Me., March 6 – Target Hospitality (Arrow Bidco LLC) plans to start a roadshow for a $340 million offering of five-year senior notes, which will run through March 12 with pricing thereafter, according to a market source.

Credit Suisse Securities (USA) LLC is the lead left for the Rule 144A and Regulation S offering. Barclays, Deutsche Bank Securities LLC and BofA Merrill Lynch are joint bookrunners.

The notes are callable after two years at par plus 50% of the coupon.

There is an equity clawback of up to 40% until 2021. There is a poison put of 101%.

Proceeds will be used to fund the merger of Target Logistics Management LLC and RL Signor Holdings LLC to form Target Hospitality, a Woodlands, Texas-based specialty rental and hospitality service provider.

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