SUGAR LAND, Texas – Team, Inc. (NYSE: TISI), a global leader in specialty industrial services, has successfully closed a refinancing transaction that lowers its cost of capital and extends debt maturities, positioning the company for long-term financial stability and operational growth.
Key Highlights of the Refinancing Transaction
The refinancing consists of a First Lien Term Loan Facility (“First Lien Facility”) provided by HPS Investment Partners, LLC (“HPS”), which matures in March 2030 and includes:
- $175.0 million funded Term Loan
- $50.0 million Delayed Draw Term Loan, available upon satisfying certain conditions
- SOFR + 6.0% to 7.0% interest rate spread, improving Team’s blended interest rate by over 100 basis points
Proceeds from the new facility were used to repay existing debt, including:
- $35 million delayed draw term loan and $22.3 million in equipment and real estate loans under its ABL credit agreement
- $46.3 million senior secured incremental term loan from Corre Partners Management, LLC (“Corre”)
- $54.1 million of existing senior secured term loan provided by Corre
Additionally, Team rolled over $97.4 million of its remaining senior secured term loan into a new Second Lien Term Loan with Corre, maturing in June 2030. The company’s existing ABL credit facility, provided by Eclipse Business Capital (“Eclipse”), was amended to accommodate the refinancing.
Strengthening Financial Position and Growth Outlook
Keith D. Tucker, CEO of Team, Inc., emphasized the impact of the transaction:
“The tangible improvements in TEAM’s operating performance and cash flow generation over the past two years were key to completing this refinancing. This transaction lowers our cost of capital and significantly improves our financial flexibility by extending our term loan maturities to 2030. We are now better positioned to execute on our initiatives to drive topline growth, lower our cost structure, and improve cash flow—creating long-term value for our shareholders.”
Tucker also expressed gratitude to Corre, Eclipse, and new lending partner HPS for their support and confidence in Team’s growth trajectory.
Advisors on the Transaction
Team was advised by Configure Partners and Kirkland & Ellis LLP in connection with the refinancing.
This transaction underscores Team, Inc.’s commitment to financial discipline and operational excellence, enabling the company to accelerate its long-term growth strategy while maintaining a strong capital structure.
