Team, a global provider of integrated, digitally-enabled asset performance assurance and optimization solutions, completed a series of related transactions in support of a comprehensive plan to refinance its capital structure.
Team replaced its current $150 million ABL facility with a $165 million ABL credit facility, consisting of a $130 million revolving credit facility and a $35 million delayed draw term loan. Team also received a $10 million equity investment and a commitment for an additional $10 million in unsecured funding.
“We are pleased to have refinanced our capital structure, achieving one of our near-term capital strengthening priorities,” Amerino Gatti, chairman and CEO at Team, said. “These important transactions provide additional financial support by giving us greater operating flexibility, an improved liquidity position and an increase to our available borrowing capacity. Collectively, these transactions address our current working capital needs and demonstrate clear progress of our financial and operational turnaround objectives, including strengthening the balance sheet and accelerating our review of strategic options and alternatives to maximize shareholder value, which we intend to complete later this year. I would like to thank our employees, clients, suppliers and lenders, particularly Atlantic Park and Corre Partners; each of whom have played important roles in stabilizing the Company and creating a stronger Team.”
Team’s current $150 million asset-based lending credit facility led by Citibank dated Dec. 18, 2020, has been refinanced with a $165 million ABL credit facility, which consists of a $130 million revolving credit facility provided by Eclipse Business Capital and a $35 million delayed draw term loan facility provided and managed by Corre Partners Management. This new ABL facility will mature on Feb. 10, 2025. A portion of the interest under the delayed draw term loan facility may be paid in kind at the company’s option and with Corre Partners’ consent.
Team also announced that it has amended its existing credit agreements with its lending partners, Corre Partners and Atlantic Park Strategic Capital Fund, to provide the company with additional liquidity outside of the new ABL facility. This incremental financing consists of an additional $10 million under TEAM’s delayed draw subordinated term loan facility with Corre Partners dated November 2021. The additional liquidity under the subordinated term loan is available to be drawn by the company until July 1, 2022, to support seasonal working capital needs.
