Contracts Represent Estimated Incremental
Revenue of over $45 Million
Renewals Encompass Integration of Signor
Lodging; Demonstrate Customer Value in Target Lodging’s Turnkey
Offering and Expansive Permian Network
Platinum Eagle Acquisition Corp. (Nasdaq: EAGL) (“Platinum
Eagle”), a publicly traded special purpose acquisition company and
Target Logistics Management, LLC (“Target Lodging”), the largest
provider of specialty rental accommodations and hospitality
services in the U.S., announced today renewed and expanded
contracts with four major oilfield service companies as part of
Target Lodging’s ongoing operations and integration of RL Signor
Holdings, LLC (“Signor Lodging”).
The contract renewals not only extend the duration of the
existing contracts but also expand the scope of services included
in each of these contracts. All four contracts include Target
Lodging’s full suite of specialty rental accommodations as well as
culinary and managed site services, including conversion of two
existing Signor Lodging contracts into Target Lodging’s turnkey
offering. These extended and expanded contracts require additional
room commitments across Target Lodging’s Permian Basin lodging
network, reflecting the compelling value of Target Lodging’s full
suite of turnkey services and the customers’ continued confidence
in this prolific U.S. Shale basin. Each contract adds a minimum of
two years to the original terms, which in combination with other
factors, provide for an estimated contract value of over $200
million, and represent an estimated incremental revenue of over $45
million. The contract renewals were signed in November and December
2018.
With these extended and expanded contracts, Target Lodging’s
customers receive high-quality accommodations, amenities, and
services for their employees at their choice of locations across
the company’s expansive Permian Basin lodging network. Target
Lodging provides its customers with vital services and support for
their employees during their non-work hours and the flexibility to
choose their lodge location based on their project needs. Moreover,
these new contracts highlight Target Lodging’s ability to integrate
complementary culinary and managed services across its network of
communities.
Brad Archer, President and Chief Executive Officer of Target
Lodging, stated, “As market demand remains strong, we continue to
execute our planned capital and operational enhancements throughout
the Permian Basin to better support our customers and their
employees. Our network solution gives our customers flexibility as
their priorities and workers move throughout the basin. These
contracts demonstrate the value we bring our customers and guests
in remote locations like the Permian, provide us with even greater
visibility into our future performance, and underpin the stability
and resiliency of business. With a healthy pipeline of new business
opportunities across our diverse end markets, we look forward to
securing additional long-term customer relationships.”
Troy Schrenk, Chief Commercial Officer of Target Lodging, added,
“Target Lodging is the top choice for employers because of our
customer-centric service and unparalleled suite of flexible
accommodation and culinary solutions. Our customers’ needs continue
to be paramount to our business and these contract extensions
reflect the strength of our customer relationships and
differentiated value proposition while advancing our strategic
growth priorities.”
Target Lodging communities are tailored to meet the needs of its
valued customers. All rooms are single occupancy with access to
amenities such as 24-hour culinary services, indoor and outdoor
recreational facilities, housekeeping and other site services, and
a code of conduct program which includes a “zero tolerance” drug
and alcohol policy.
To see a complete list of Target Lodging’s communities, visit
www.targetlodging.com.
About Platinum Eagle Acquisition Corp.
Platinum Eagle was formed for the purpose of effecting a merger,
share exchange, asset acquisition, share purchase, reorganization
or similar business combination with one or more businesses.
Platinum Eagle raised $325 million in its initial public offering
and began trading on Nasdaq in January 2018. Its Class A ordinary
shares, units and warrants trade under the ticker symbols EAGL,
EAGLU and EAGLW, respectively.
About Target Lodging
Founded in 1978, Target Lodging is the largest vertically
integrated specialty rental and hospitality services company in the
United States. The company is principally focused
on building, owning and operating housing
communities across several end markets, including oil, gas,
energy infrastructure and government. Target Lodging provides
cost-effective and customized specialty rental accommodations,
culinary services, and hospitality solutions, including site
design, construction, operations, security, housekeeping, catering,
concierge services, and health and recreation facilities as part of
its integrated housing and hospitality
communities. Target Lodging was named by Inc. magazine in 2012
and 2013 as one of “America’s Fastest Growing Private
Companies.” Target Lodging has been an Algeco company since
2013.
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 Platinum Eagle's, Target Lodging’s or Signor
Lodging’s control, that could cause actual results or outcomes to
differ materially from those discussed in the forward-looking
statements. Important factors, among others, that may affect actual
results or outcomes include the inability to complete the business
combination (including due to the failure to receive required
shareholder approvals, or the failure of other closing conditions);
the inability to recognize the anticipated benefits of the proposed
business combination; the inability to meet Nasdaq listing
standards; costs related to the business combination; Target
Hospitality’s ability to manage growth; Target Hospitality’s
ability to execute its business plan and meet its projections;
Target Hospitality’s ability to identify, consummate and integrate
acquisitions; rising costs adversely affecting Target Hospitality’s
profitability; potential litigation involving Platinum Eagle,
Target Lodging, Signor Lodging, or after the closing, Target
Hospitality, and general economic and market conditions impacting
demand for Target Lodging’s products and services, and in
particular economic and market conditions in the oil industry in
the markets in which Target Hospitality operates. None of Platinum
Eagle, Target Lodging or Signor Lodging undertakes any obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Additional Background on Recently Announced Business
Combination with Platinum Eagle Acquisition Corp.
On November 13, 2018, Platinum Eagle, Target Lodging and RS
Signor Holdings, LLC (“Signor Lodging”) announced definitive merger
agreements for a business combination to create the largest
provider of specialty rental accommodations with premium catering
and value-add hospitality services in the U.S. Under the terms of
the business combination, Target Lodging and Signor Lodging will
become wholly-owned subsidiaries of Platinum Eagle, which will be
renamed Target Hospitality Corp. (“Target Hospitality”), and the
combined company’s common stock will be listed on the Nasdaq Stock
Market under the ticker symbol “TH” following the closing.
The business combination is expected to be completed in the
first quarter of 2019, pending Platinum Eagle shareholder approval
and the satisfaction of other customary closing conditions.
Additional information about the business combination, as well as
Target Lodging’s and Signor Lodging’s operations and historical
financial information is contained in Platinum Eagle’s registration
statement on Form S-4 (the “Registration Statement”) initially
filed with the U.S. Securities and Exchange Commission (“SEC”) on
November 13, 2018. The Registration Statement includes a proxy
statement/prospectus that will be both the proxy statement to be
distributed to Platinum Eagle's shareholders in connection with
Platinum Eagle's solicitation of proxies for shareholder approval
of the business combination and other matters as described in the
Registration Statement, as well as the prospectus relating to the
offer and sale of certain securities to be issued in the business
combination. After the Registration Statement is declared
effective, Platinum Eagle will mail a definitive proxy
statement/prospectus and other relevant documents to its
shareholders as of a record date to be established for voting on
the business combination. Platinum Eagle's shareholders and other
interested persons are advised to read the preliminary proxy
statement/prospectus included in the Registration Statement and the
amendments thereto and, when available, the definitive proxy
statement/prospectus, as these materials contain important
information about Target Lodging, Signor Lodging, Platinum Eagle
and the business combination. Shareholders and other interested
persons will also be able to obtain copies of the proxy
statement/prospectus and other documents filed with the SEC,
without charge, once available, at the SEC's web site at
www.sec.gov, or by directing a request to: Platinum Eagle
Acquisition Corp., 2121 Avenue of the Stars, Suite 2300, Los
Angeles, California, Attention: Eli Baker, President, Chief
Financial Officer and Secretary, (310) 209-7280.
The description of the business combination contained herein
is only a summary and is qualified in its entirety by reference to
the definitive agreements relating to the business combination,
copies of which were filed by Platinum Eagle with the SEC on Form
8-K on November 19, 2018.
Participants in the Solicitation
Platinum Eagle and its directors and executive officers may be
deemed participants in the solicitation of proxies from Platinum
Eagle's shareholders with respect to the business combination. A
list of the names of those directors and executive officers and a
description of their interests in Platinum Eagle is contained in
the proxy statement/prospectus for the business combination, which
was filed with the SEC and is available free of charge at the SEC's
web site at www.sec.gov, or by directing a request to Platinum
Eagle Acquisition Corp., 2121 Avenue of the Stars, Suite 2300, Los
Angeles, California, Attention: Eli Baker, President, Chief
Financial Officer and Secretary, (310) 209-7280. Additional
information regarding the interests of such participants are
contained in the proxy statement/prospectus for the business
combination.
Each of Target Lodging and Signor Lodging and its directors and
executive officers may also be deemed to be participants in the
solicitation of proxies from the shareholders of Platinum Eagle in
connection with the business combination. A list of the names of
such directors and executive officers and information regarding
their interests in the business combination are contained in the
proxy statement/prospectus for the business combination.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190131005515/en/
InvestorsRodny NacierorNarinder
Sahai832-702-8009IR@targetlodging.com
MediaJason Chudoba,
646-277-1249Jason.Chudoba@icrinc.comorElyse Gentile,
646-677-1823Elyse.Gentile@icrinc.com
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