Team amended its credit facility, extending the maturity date to July 7, 2021 and reducing the borrowing capacity from $300 million to $275 million.
The amended facility provides an accordion feature, which if certain conditions are met, allows for an increase in total commitments under the facility up to an additional $100 million.
“We value the partnership and continued support of our existing lenders, as well as the addition of a new bank to the group,” said Amerino Gatti, TEAM’s Chief Executive Officer. “This extension is an important part of our ongoing plan to de-leverage the company.”
The amendment modifies certain financial covenants over the remaining term of the credit agreement and reduces the aggregate revolving commitment amount to $225 million and adds a term loan of $50 million, which was used in its entirety to prepay the outstanding principal amount borrowed under the credit agreement immediately prior to the effectiveness of the amendment.
Bank of America Merrill Lynch served as administrative agent, swingline lender and l/c issuer. Citibank served as the syndication agent. Both banks served as joint lead arrangers and joint bookrunners.
Headquartered near Houston, Team is a global provider of specialized industrial services, including inspection, engineering assessment and mechanical repair and remediation required in maintaining and installing high-temperature and high-pressure piping systems and vessels.