Team (TISI) Announces $50M Financing Agreement

November 9, 2021 8:03 AM EST

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Team, Inc. (NYSE: TISI), a global leading provider of integrated, digitally-enabled asset performance assurance and optimization solutions, today announced that it has entered into a $50 million delayed draw subordinated term loan facility (the "subordinated term loan") led by Corre Management Partners, LLC ("Corre Partners"). TEAM also announced that it has entered into an amendment of its Senior Secured Term Loan facility led by Atlantic Park Strategic Capital Fund, L.P. ("Atlantic Park") to waive the financial covenants until September 30, 2022 and a subordination agreement with, among others, Citibank, N.A., a national banking association ("Citibank"), TEAM's lender and agent under its current senior secured ABL credit agreement, dated December 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," said Amerino Gatti, TEAM's Chairman and Chief Executive Officer. "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 will, among other things, (i) borrow $50 million under the facility pursuant to a $22.5 million first draw on November 8, 2021 and $27.5 million pursuant to a second draw on December 8, 2021, (ii) issue 5.0 million warrants at an exercise price of $1.50 per share to Corre Partners and issue approximately 1.4 million warrants at an exercise price of $1.50 per share to Atlantic Park as well as reset the strike price on Atlantic Park's previously issued approximately 3.6 million warrants to $1.50 per share, and (iii) 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 (i) December 31, 2026 and (ii) 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 LLP, as counsel, Alvarez & Marsal, LLC, as financial advisor, and Evercore, as investment banker. Corre Partners is represented by Willkie Farr & Gallagher LLP, as counsel and Jefferies LLC, as investment banker. Atlantic Park is represented by Davis Polk & Wardwell LLP, as counsel. Citibank is represented by Goldberg Kohn, as counsel.



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