TEAM, a global provider of integrated, digitally-enabled asset performance assurance and optimization solutions, entered into a $50 million delayed draw subordinated term loan facility led by Corre Management Partners. TEAM also entered into an amendment to its senior secured term loan facility led by Atlantic Park Strategic Capital Fund to waive the financial covenants until Sept. 30, 2022, and a subordination agreement with, among others, Citibank, TEAM’s lender and agent under its current senior secured ABL credit agreement, dated Dec. 18, 2020 (as amended).
“These transactions improve our working capital position and provide TEAM with increased financial flexibility as we look to capitalize on the strengthening market conditions and maximize our growth opportunities to increase the company’s value,” Amerino Gatti, chairman and CEO of TEAM, said. “We are grateful to Atlantic Park and Corre Partners for their support and confidence in our business model and look forward to building a strong partnership.”
In connection with the new subordinated term loan, TEAM borrowed $50 million under the facility pursuant to a $22.5 million first draw on Nov. 8 and will borrow $27.5 million pursuant to a second draw on Dec. 8,. TEAM will also issue 5 million warrants at an exercise price of $1.50 per share to Corre Partners, issue approximately 1.4 million warrants at an exercise price of $1.50 per share to Atlantic Park, reset the strike price on Atlantic Park’s previously issued approximately 3.6 million warrants to $1.50 per share and undertake certain other actions with respect to the company’s existing debt instruments and corporate governance.
The subordinated term loan matures on the earlier of Dec. 31, 2026, and a date that is at least two weeks later than the maturity of or the full repayment of the company’s senior secured term loan agreement.
TEAM is represented by Kirkland & Ellis as counsel, Alvarez & Marsal as financial advisor and Evercore as investment banker. Corre Partners is represented by Willkie Farr & Gallagher as counsel and Jefferies as investment banker. Atlantic Park is represented by Davis Polk & Wardwell as counsel. Citibank is represented by Goldberg Kohn as counsel.