Target Hospitality Corp. 8-K

What Happened

• On December 23, 2025, Arrow Bidco, LLC and certain other Target Hospitality subsidiaries entered into a Sixth Amendment to the ABL Credit Agreement (originally dated March 15, 2019) with Bank of America, N.A. as administrative agent.
• The amendment revises the Consolidated Fixed Charge Coverage Ratio covenant that applies during calendar year 2026 to provide additional flexibility around the timing of anticipated capital expenditures tied to planned growth projects. The company stated it was in compliance with the ABL financial covenants as of the amendment date.

Key Details

• Amendment: Sixth Amendment to the ABL Credit Agreement, effective December 23, 2025.
• Parties: Arrow Bidco, LLC and other loan parties; Bank of America, N.A. as administrative agent and the revolver lenders.
• Covenant changed: Consolidated Fixed Charge Coverage Ratio for calendar year 2026.
• Purpose: To provide flexibility for timing of anticipated capital expenditures associated with planned growth projects.
• Filing: The Sixth Amendment is filed as Exhibit 10.1 to the Form 8-K.

Why It Matters

• This change affects a key debt covenant that helps lenders assess Target Hospitality’s ability to cover fixed obligations; relaxing timing requirements can reduce the risk of a covenant breach while capital spending for growth is underway.
• For investors, the amendment signals the company is planning growth-related capital expenditures in 2026 and has secured lender approval to avoid short-term covenant pressure; the company remains in compliance with its ABL covenants as of the amendment date.
• No new financial results or changes to management were disclosed in this filing.