Team, Inc. Announces Amendment and Maturity Extension of Its ABL Credit Facility
September 30 2024 - 4:30PM
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 been possible without the hard work of
our employees and the tangible progress made over the last two
years in our ongoing program to improve operating and financial
performance. As we continue to drive topline and EBITDA
improvement, we are also focused on identifying opportunities to
further improve our capital structure and view this ABL renewal as
a successful first step. I would like to thank Eclipse, JFL and
Corre for their continued support and confidence in the
Company.”
About Team, Inc.
Headquartered in Sugar Land, Texas, Team, Inc.
(NYSE: TISI) is 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. We deploy conventional to highly specialized
inspection, condition assessment, maintenance, and repair services
that result in greater safety, reliability, and operational
efficiency for our client’s most critical assets. Through locations
in more than 15 countries, we unite the delivery of technological
innovation with over a century of progressive, yet proven integrity
and reliability management expertise to fuel a better tomorrow. For
more information, please visit www.teaminc.com.
Forward Looking Statements
Certain forward-looking information contained
herein is being provided in accordance with the provisions of the
Private Securities Litigation Reform Act of 1995. We have made
reasonable efforts to ensure that the information, assumptions, and
beliefs upon which this forward-looking information is based are
current, reasonable, and complete. However, such forward-looking
statements involve estimates, assumptions, judgments, and
uncertainties. They include but are not limited to statements
regarding the Company’s financial prospects and the implementation
of cost saving measures. There are known and unknown factors that
could cause actual results or outcomes to differ materially from
those addressed in the forward-looking information. Although it is
not possible to identify all of these factors, they include, among
others; the Company’s ability to generate sufficient cash flow from
operations, access its credit facility, or maintain its compliance
with covenants under its credit facility and debt agreement; the
duration and magnitude of accidents, extreme weather, natural
disasters, and pandemics and related global economic effects and
inflationary pressures; the Company’s liquidity and ability to
obtain additional financing; the Company’s ability to continue as a
going concern; the Company’s ability to execute on its cost
management actions; the impact of new or changes to existing
governmental laws and regulations and their application, including
tariffs; the outcome of tax examinations, changes in tax laws, and
other tax matters; foreign currency exchange rate and interest rate
fluctuations; the Company’s ability to successfully divest assets
on terms that are favorable to the Company; the Company’s ability
to repay, refinance or restructure its debt and the debt of certain
of our subsidiaries; anticipated or expected purchases or sales of
assets; the Company’s continued listing on the New York Stock
Exchange; and such known factors as are detailed in the Company’s
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, each as filed with the Securities and
Exchange Commission, and in other reports filed by the Company with
the Securities and Exchange Commission from time to time.
Accordingly, there can be no assurance that the forward-looking
information contained herein, including statements regarding the
Company’s financial prospects and the implementation of cost-saving
measures, will occur or that objectives will be achieved. We assume
no obligation to publicly update or revise any forward-looking
statements made today or any other forward-looking statements made
by the Company, whether as a result of new information, future
events or otherwise, except as may be required by law.
Contact:Nelson M.
HaightExecutive Vice President, Chief Financial Officer(281)
388-5521
Team (NYSE:TISI)
Historical Stock Chart
From Nov 2024 to Dec 2024
Team (NYSE:TISI)
Historical Stock Chart
From Dec 2023 to Dec 2024