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Arrow Bidco, LLC Announces Redemption of Senior Secured Notes Due 2025

1. Target Hospitality plans to redeem $181.4 million in 2025 senior notes. 2. Redemption price will be 101% of principal plus accrued interest. 3. Cash flow might improve with reduced debt obligations post-redemption. 4. Future performance expectations are uncertain, highlighting potential risks ahead. 5. Company operates modular accommodations and hospitality services across North America.

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FAQ

Why Bullish?

The preemptive redemption of high-interest debt can improve financial wellness, similar to past cases like HCA Healthcare's debt reductions boosting their stock value significantly.

How important is it?

The debt redemption can lead to healthier financials, potentially increasing share value in the near future.

Why Short Term?

Immediate debt reduction impacts financials, though longer-term sustainability must be ensured through operations.

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HCAXHBLVS
, /PRNewswire/ -- Arrow Bidco, LLC (the "Issuer"), a Delaware limited liability company and an indirect subsidiary of Target Hospitality Corp. ("Target Hospitality", "Target", or the "Company") (NASDAQ: TH), today announced that it issued a notice of redemption (the "Redemption") to redeem all $181.4 million in aggregate principal amount outstanding of its 10.75% senior secured notes due 2025 (the "2025 Notes") on March 25, 2025 (the "Redemption Date"). This announcement does not form part of or constitute a notice of redemption with respect to the 2025 Notes. The 2025 Notes to be redeemed pursuant to the Redemption will be redeemed for a redemption price equal to 101.000% of the principal amount of the 2025 Notes redeemed plus accrued and unpaid interest to but not including the Redemption Date (the "Redemption Payment"). Investors in the 2025 Notes should contact the bank or broker through which they hold a beneficial interest in the 2025 Notes for information about obtaining the Redemption Payment for the 2025 Notes redeemed in which they have a beneficial interest. Cautionary Statement Regarding Forward-Looking Statements Certain statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Issuer's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. More information about potential risks and uncertainties that could materially affect our business and results of operations is included in the "Risk Factors" and "Forward-Looking Statements" sections of Target Hospitality Corp.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with the Securities and Exchange Commission ("SEC") on November 12, 2024 and Target Hospitality Corp.'s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 13, 2024, as well as other risks and uncertainties specified in the "Risk Factors" section of the Offering Memorandum. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them publicly or to revise them in light of new information, future events or otherwise, except as required by law. About Target Hospitality Target Hospitality is one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services in the United States. Target builds, owns and operates a customized and growing network of communities for a range of end users through a full suite of value-added solutions including premium food service management, concierge, laundry, logistics, security and recreational facilities services. Investor Contact Mark Schuck (832) 702 – 8009 [email protected] SOURCE Target Hospitality WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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