Team, Inc. Announces Refinancing Transaction
Team Inc (NYSE: TISI) has successfully completed a refinancing transaction that reduces its cost of capital and extends debt maturities. The transaction includes a First Lien Term Loan Facility from HPS Investment Partners, consisting of a $175 million Term Loan and a $50 million Delayed Draw Term Loan, maturing in March 2030.
The facility bears interest at SOFR plus 6.0-7.0%, providing over 100 basis points improvement in blended interest rate. The funds were used to repay multiple existing loans, including a $35 million delayed draw term loan, $22.3 million in equipment and real estate loans, a $46.3 million senior secured incremental term loan, and $54.1 million of existing senior secured term loan.
Additionally, the company rolled over remaining debt into a new $97.4 million Second Lien Term Loan provided by Corre, maturing in June 2030. The existing ABL credit facility from Eclipse Business Capital continues with amendments to accommodate the transaction.
Team Inc (NYSE: TISI) ha completato con successo una transazione di rifinanziamento che riduce il costo del capitale e prolunga le scadenze del debito. La transazione include un Prestito Term Loan di Primo Grado da HPS Investment Partners, composto da un Prestito Term Loan di 175 milioni di dollari e un Prestito Term Loan a Trascinamento Ritardato di 50 milioni di dollari, con scadenza a marzo 2030.
Il prestito prevede un tasso di interesse pari a SOFR più il 6,0-7,0%, offrendo un miglioramento di oltre 100 punti base nel tasso d'interesse medio. I fondi sono stati utilizzati per ripagare diversi prestiti esistenti, tra cui un prestito term loan a trascinamento ritardato di 35 milioni di dollari, 22,3 milioni di dollari in prestiti per attrezzature e immobili, un prestito term loan incrementale senior garantito di 46,3 milioni di dollari e 54,1 milioni di dollari di prestito term loan senior garantito esistente.
Inoltre, l'azienda ha rinnovato il debito residuo in un nuovo Prestito Term Loan di Secondo Grado da 97,4 milioni di dollari fornito da Corre, con scadenza a giugno 2030. Il credito ABL esistente da Eclipse Business Capital continua con emendamenti per facilitare la transazione.
Team Inc (NYSE: TISI) ha completado con éxito una transacción de refinanciamiento que reduce su costo de capital y extiende los vencimientos de la deuda. La transacción incluye un Préstamo Term Loan de Primer Grado de HPS Investment Partners, compuesto por un Préstamo Term Loan de 175 millones de dólares y un Préstamo Term Loan de Tracción Diferida de 50 millones de dólares, con vencimiento en marzo de 2030.
El préstamo tiene un interés del SOFR más el 6,0-7,0%, proporcionando una mejora de más de 100 puntos básicos en la tasa de interés combinada. Los fondos se utilizaron para pagar múltiples préstamos existentes, incluyendo un préstamo term loan de tracción diferida de 35 millones de dólares, 22,3 millones de dólares en préstamos para equipos e inmuebles, un préstamo term loan incremental senior garantizado de 46,3 millones de dólares y 54,1 millones de dólares de un préstamo term loan senior garantizado existente.
Además, la empresa renovó la deuda restante en un nuevo Préstamo Term Loan de Segundo Grado de 97,4 millones de dólares proporcionado por Corre, con vencimiento en junio de 2030. La línea de crédito ABL existente de Eclipse Business Capital continúa con enmiendas para acomodar la transacción.
팀 Inc (NYSE: TISI)는 자본 비용을 줄이고 부채 만기를 연장하는 성공적인 재융자 거래를 완료했습니다. 이 거래에는 HPS Investment Partners의 1순위 대출 시설이 포함되어 있으며, 1억 7500만 달러의 대출과 5000만 달러의 지연 인출 대출로 구성되어 있으며, 2030년 3월에 만기가 됩니다.
이 시설은 SOFR에 6.0-7.0%의 이자를 부과하며, 혼합 이자율에서 100bp 이상의 개선을 제공합니다. 자금은 3500만 달러의 지연 인출 대출, 2230만 달러의 장비 및 부동산 대출, 4630만 달러의 선순위 담보 추가 대출, 5410만 달러의 기존 선순위 담보 대출을 포함한 여러 기존 대출을 상환하는 데 사용되었습니다.
또한, 회사는 잔여 부채를 Corre에서 제공하는 9740만 달러의 2순위 대출로 전환하였으며, 이는 2030년 6월에 만기가 됩니다. Eclipse Business Capital의 기존 ABL 신용 시설은 거래를 수용하기 위해 수정 사항과 함께 계속됩니다.
Team Inc (NYSE: TISI) a réussi à finaliser une opération de refinancement qui réduit son coût du capital et prolonge les échéances de sa dette. L'opération comprend un Prêt à Terme de Premier Rang de HPS Investment Partners, composé d'un Prêt à Terme de 175 millions de dollars et d'un Prêt à Terme à Tirage Différé de 50 millions de dollars, arrivant à échéance en mars 2030.
Cette facilité porte un intérêt de SOFR plus 6,0-7,0%, offrant une amélioration de plus de 100 points de base dans le taux d'intérêt global. Les fonds ont été utilisés pour rembourser plusieurs prêts existants, y compris un prêt à terme à tirage différé de 35 millions de dollars, 22,3 millions de dollars en prêts pour équipements et biens immobiliers, un prêt à terme senior garanti supplémentaire de 46,3 millions de dollars et 54,1 millions de dollars d'un prêt à terme senior garanti existant.
De plus, l'entreprise a transféré la dette restante dans un nouveau Prêt à Terme de Second Rang de 97,4 millions de dollars fourni par Corre, arrivant à échéance en juin 2030. La facilité de crédit ABL existante d'Eclipse Business Capital se poursuit avec des amendements pour faciliter l'opération.
Team Inc (NYSE: TISI) hat erfolgreich eine Refinanzierungstransaktion abgeschlossen, die die Kapitalkosten senkt und die Fälligkeiten der Schulden verlängert. Die Transaktion umfasst eine First Lien Term Loan Facility von HPS Investment Partners, die aus einem Term Loan von 175 Millionen Dollar und einem 50 Millionen Dollar verzögerten Abrufdarlehen besteht, das im März 2030 fällig wird.
Die Anlage hat einen Zinssatz von SOFR plus 6,0-7,0%, was eine Verbesserung um über 100 Basispunkte im gemischten Zinssatz bietet. Die Mittel wurden verwendet, um mehrere bestehende Darlehen zurückzuzahlen, darunter ein verzögertes Abrufdarlehen von 35 Millionen Dollar, 22,3 Millionen Dollar an Ausrüstungs- und Immobilienkrediten, ein zusätzliches gesichertes Senior-Darlehen von 46,3 Millionen Dollar und 54,1 Millionen Dollar eines bestehenden gesicherten Senior-Darlehens.
Darüber hinaus hat das Unternehmen verbleibende Schulden in ein neues 97,4 Millionen Dollar Second Lien Term Loan von Corre umgewandelt, das im Juni 2030 fällig wird. Die bestehende ABL-Kreditfazilität von Eclipse Business Capital wird mit Änderungen fortgeführt, um die Transaktion zu ermöglichen.
- Reduced cost of capital with over 100 basis points improvement in blended interest rate
- Extended debt maturities to 2030, improving financial flexibility
- Secured $50M additional funding potential through Delayed Draw Term Loan
- Management reports improved operating performance and cash flow generation
- Maintains significant debt load with $175M First Lien and $97.4M Second Lien Term Loans
- Still carries multiple layers of debt including ABL facility
Insights
Team Inc.'s refinancing transaction represents a significant improvement in its capital structure with tangible benefits to its financial health. The new package includes a
The most impactful element of this transaction is the
This refinancing consolidates and simplifies Team's previously fragmented debt structure by replacing multiple loans including a
The extension of maturities to 2030 provides critical breathing room for the management team to focus on operational improvements without near-term refinancing pressure. Management's ability to secure these improved terms signals lender confidence in Team's operational trajectory, with CEO Keith Tucker specifically attributing the refinancing success to improved operating performance and cash flow generation over the past two years.
The transaction strategically positions Team with enhanced financial flexibility to execute its growth and cost-reduction initiatives while maintaining its existing ABL credit facility with Eclipse Business Capital.
Lowers Cost of Capital and Terms Out Maturities
SUGAR LAND, Texas, March 13, 2025 (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, today announced that it has successfully closed on a refinancing transaction (the “Transaction”) that lowers the Company’s cost of capital and terms out its capital structure.
The Transaction consists of a First Lien Term Loan Facility (the “First Lien Facility”) provided by HPS Investment Partners, LLC (“HPS”) that matures in March 2030 and is comprised of a funded
- the Company’s
$35 million delayed draw term loan and$22.3 million equipment and real estate loans under its ABL credit agreement - the Company’s
$46.3 million senior secured incremental term loan provided by Corre Partners Management, LLC (“Corre”) $54.1 million of the Company’s existing senior secured term loan provided by Corre
In conjunction with the Transaction, the Company also rolled over all remaining outstanding debt under the existing senior secured term loan into a new
“The tangible improvements in TEAM’s operating performance and cash flow generation over the past two years were key to completing this refinancing, which lowers our cost of capital and significantly improves our financial flexibility by extending our term loan maturities to 2030,” said Keith D. Tucker, TEAM’s Chief Executive Officer. “We are now better positioned to execute on our ongoing initiatives to drive topline growth, lower our cost structure and improve our cash flow, creating long-term value for our shareholders. We want to thank both Corre and Eclipse for their continued support and confidence in TEAM and we look forward to working with our new lending partners at HPS.”
Configure Partners and Kirkland & Ellis LLP advised TEAM in connection with the Transaction.
About Team, Inc.
Headquartered in Sugar Land, Texas, Team, Inc. (NYSE: TISI) is a global, leading provider of specialty industrial services offering customers 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 customers most critical assets. Through locations in more than 20 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, the implementation of cost saving measures and the Company’s ability to realize the anticipated benefits of the Transaction. 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 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 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 its 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
What are the key terms of Team Inc's (TISI) new First Lien Term Loan Facility?
How much will TISI save on interest rates through this refinancing?
What existing debt did Team Inc (TISI) repay with the new financing?
What is the size and maturity of TISI's new Second Lien Term Loan?
