Team, Inc. Announces Amendment and Maturity Extension of Its ABL Credit Facility
Team, Inc. (NYSE: TISI) has announced an amendment to its existing ABL credit facility, which includes a $130 million revolving credit facility and a $27.4 million term loan provided by Eclipse Business Capital , as well as a $35 million delayed draw term loan from J.F. Lehman & Company and Corre Partners Management, The amendment extends the maturity date of these loans from August 11, 2025, to September 30, 2027, and lowers the interest rate spread adjustment.
The amendment also expands availability based on the Company's improving financial performance by increasing the borrowing base advance rate and implementing a $7.5 million minimum availability covenant under the Revolver, tested only if the fixed charge coverage ratio is not satisfied. CEO Keith D. Tucker stated that this transaction strengthens TEAM's balance sheet and available borrowing capacity, attributing it to employee efforts and progress in improving operating and financial performance over the past two years.
Team, Inc. (NYSE: TISI) ha annunciato una modifica al suo esistente impianto di credito ABL, che include una linea di credito revolving di 130 milioni di dollari e un prestito a termine di 27,4 milioni di dollari fornito da Eclipse Business Capital, oltre a un prestito a termine a scadenza ritardata di 35 milioni di dollari da J.F. Lehman & Company e Corre Partners Management. La modifica estende la data di scadenza di questi prestiti dall'11 agosto 2025 al 30 settembre 2027 e riduce l'aggiustamento del tasso d'interesse.
La modifica amplia anche la disponibilità basata sul miglioramento delle performance finanziarie dell'azienda, aumentando il tasso di anticipo sulla base di prestito e implementando un covenant di disponibilità minima di 7,5 milioni di dollari sotto la linea di credito, testato solo se il rapporto di copertura dei costi fissi non è soddisfatto. Il CEO Keith D. Tucker ha affermato che questa transazione rafforza il bilancio di TEAM e la capacità di prestito disponibile, attribuendo ciò agli sforzi dei dipendenti e ai progressi nel miglioramento delle performance operative e finanziarie negli ultimi due anni.
Team, Inc. (NYSE: TISI) ha anunciado una enmienda a su instalación de crédito ABL existente, que incluye una línea de crédito revolvente de 130 millones de dólares y un préstamo a término de 27,4 millones de dólares proporcionado por Eclipse Business Capital, así como un préstamo a término de 35 millones de dólares con cierre diferido de J.F. Lehman & Company y Corre Partners Management. La enmienda extiende la fecha de vencimiento de estos préstamos desde el 11 de agosto de 2025 hasta el 30 de septiembre de 2027, y reduce el ajuste del diferencial de intereses.
La enmienda también expande la disponibilidad basada en la mejora del rendimiento financiero de la empresa al aumentar la tasa de anticipo en la base de préstamo e implementar un convenio de disponibilidad mínima de 7,5 millones de dólares bajo la línea revolvente, probado solo si la relación de cobertura de gastos fijos no se cumple. El CEO Keith D. Tucker declaró que esta transacción fortalece el balance general de TEAM y la capacidad de endeudamiento disponible, atribuyéndolo a los esfuerzos de los empleados y los avances en la mejora del rendimiento operativo y financiero durante los últimos dos años.
팀, Inc. (NYSE: TISI)가 기존 ABL 신용 시설에 대한 수정 사항을 발표했습니다. 여기에는 1억 3천만 달러의 회전 신용 시설과 Eclipse Business Capital에서 제공한 2천740만 달러의 만기 대출이 포함되며, J.F. Lehman & Company와 Corre Partners Management에서 제공하는 3천500만 달러의 지연 인출 만기 대출도 포함됩니다. 이 수정안은 이러한 대출의 만기일을 2025년 8월 11일부터 2027년 9월 30일로 연장하고, 이자율 스프레드 조정을 낮춥니다.
이 수정안은 또한 회사의 재무 성과 개선에 따라 가용성을 확대하여 대출 기반 선급 비율을 증가시키고 회전 신용 하에서 750만 달러의 최소 가용성 약정을 구현합니다. 이는 고정비 부담 비율이 충족되지 않을 경우에만 테스트됩니다. CEO 키스 D. 터커는 이 거래가 TEAM의 재무 상태와 이용 가능한 대출 용량을 강화한다고 밝혔으며, 이는 직원들의 노력과 지난 2년 동안 운영 및 재무 성과 개선을 위한 진전을 인정한 것입니다.
Team, Inc. (NYSE: TISI) a annoncé une modification de son installation de crédit ABL existante, qui comprend une ligne de crédit renouvelable de 130 millions de dollars et un prêt à terme de 27,4 millions de dollars fourni par Eclipse Business Capital, ainsi qu'un prêt à terme à tirage différé de 35 millions de dollars de J.F. Lehman & Company et Corre Partners Management. La modification prolonge la date d'échéance de ces prêts du 11 août 2025 au 30 septembre 2027 et réduit l'ajustement de l'écart de taux d'intérêt.
La modification élargit également la disponibilité en fonction de l'amélioration des performances financières de l'entreprise en augmentant le taux d'avance sur la base d'emprunt et en mettant en œuvre un covenant de disponibilité minimum de 7,5 millions de dollars sous la ligne de crédit renouvelable, testé uniquement si le ratio de couverture des frais fixes n'est pas satisfait. Le PDG Keith D. Tucker a déclaré que cette transaction renforce le bilan de TEAM et la capacité d'emprunt disponible, attribuant cela aux efforts des employés et aux progrès réalisés dans l'amélioration des performances opérationnelles et financières au cours des deux dernières années.
Team, Inc. (NYSE: TISI) hat eine Änderung seiner bestehenden ABL-Kreditvereinbarung angekündigt, die eine revolvierende Kreditlinie in Höhe von 130 Millionen US-Dollar und einen Terminkredit in Höhe von 27,4 Millionen US-Dollar umfasst, die von Eclipse Business Capital bereitgestellt werden, sowie einen Terminkredit mit verzögertem Abruf in Höhe von 35 Millionen US-Dollar von J.F. Lehman & Company und Corre Partners Management. Die Änderung verlängert das Fälligkeitsdatum dieser Darlehen vom 11. August 2025 bis zum 30. September 2027 und senkt die Zinsaufschlagsanpassung.
Die Änderung erweitert auch die Verfügbarkeit basierend auf der Verbesserung der finanziellen Leistung des Unternehmens, indem sie den Vorschusszinssatz der Kreditbasis erhöht und eine Mindestverfügbarkeitsklausel von 7,5 Millionen US-Dollar unter der Revolverlinie implementiert, die nur getestet wird, wenn das Verhältnis der Fixkostenabdeckung nicht erfüllt ist. CEO Keith D. Tucker erklärte, dass diese Transaktion die Bilanz von TEAM und die verfügbare Kreditaufnahme stärkt und dies den Bemühungen der Mitarbeiter und dem Fortschritt bei der Verbesserung der operativen und finanziellen Leistung in den letzten zwei Jahren zuschreibt.
- Extension of credit facility maturity date from 2025 to 2027
- Lower interest rate spread adjustment
- Expanded availability based on improving financial performance
- Increased borrowing base advance rate
- Strengthened balance sheet and available borrowing capacity
- None.
Insights
This amendment to TEAM's ABL credit facility is a significant positive development for the company. The extension of the maturity date from 2025 to 2027 provides important breathing room, reducing near-term refinancing pressure. The improved terms, including a lower interest rate spread and expanded availability, should result in
The increased borrowing base advance rate and the more flexible
For investors, this amendment signals potential for improved financial stability and operational flexibility. However, it's important to note that while this development is positive, TEAM still faces challenges in a competitive industrial services market. The company's ability to leverage this improved financial position to drive sustainable growth and profitability will be important for long-term value creation.
TEAM's successful amendment of its credit facility reflects positively on the company's improving financial and operational performance. The extension and improved terms suggest that lenders view TEAM's turnaround efforts favorably, which could boost investor confidence.
The industrial services sector has been facing headwinds, including cyclical demand and pricing pressures. In this context, TEAM's ability to secure better financing terms is noteworthy. It may indicate that the company is outperforming peers or at least showing promising signs of recovery.
Investors should watch for TEAM's ability to capitalize on this financial flexibility to gain market share or expand its service offerings. The company's focus on driving topline and EBITDA improvement, coupled with this enhanced financial position, could potentially lead to improved competitive positioning in the specialty industrial services market.
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
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
“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. Haight
Executive Vice President, Chief Financial Officer
(281) 388-5521
FAQ
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