Amendment Provides Additional Liquidity and Improved Pricing
SUGAR LAND, Texas, Sept. 30, 2024 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE:TISI) ("TEAM" or the "Company"), a global, leading provider of specialty industrial services offering clients access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services, announced today that it has executed an amendment to its existing ABL credit facility, which consists of a $130 million revolving credit facility (the "Revolver") and a $27.4 million term loan secured by certain real estate and machinery and equipment of the Company (together with the Revolver, the "Eclipse Loans") provided by Eclipse Business Capital LLC ( "Eclipse"), and a $35 million delayed draw term loan (the "DDTL") provided by funds managed by J.F. Lehman & Company ("JFL") and Corre Partners Management, LLC ("Corre").
Among other things, the amendment extends the maturity date of the Eclipse Loans and the DDTL from August 11, 2025, to September 30, 2027, and lowers the interest rate spread adjustment. Additionally, the terms of the Revolver were amended to provide expanded availability based upon the Company's improving financial and operating performance by, among other things, increasing the borrowing base advance rate and providing for a $7.5 million minimum availability covenant under the Revolver being tested only if the fixed charge coverage ratio is not satisfied.
"We are pleased to have successfully amended our ABL credit facility on improved terms and extended its maturity," said Keith D. Tucker, TEAM's Chief Executive Officer. "This transaction strengthens our balance sheet and available borrowing capacity and would not have ...
