Target Hospitality Upsizes Secondary Offering, Adds Stock Repurchase
TH has more than doubled off its 52-week low of $5.97.
Summary
TDR Capital affiliates are selling more shares than originally planned in the secondary offering, and the company is concurrently repurchasing stock. The upsized offering increases the float, but the repurchase signals management's confidence and offsets some dilution. The offering is priced at $18.50 per share, with 14 million shares being sold, and total gross proceeds to selling stockholders expected to be $259 million. The offering is expected to occur on September 10. This follows the initial announcement yesterday; the new terms are material for traders assessing supply and demand.
At the time of this announcement, TH was trading at $18.85 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2B. The 52-week trading range was $5.97 to $20.85. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.