Team, Inc. Enhances Financial Flexibility with Credit Facility Revision
Team, Inc. Strengthens Its Financial Standing
Amendment Provides Additional Liquidity and Improved Pricing
Team, Inc. (NYSE: TISI), recognized as a global leader in specialty industrial services, has recently made significant strides in improving its financial structure. In a move aimed at enhancing liquidity and refining financial terms, the company executed an amendment to its Asset-Based Lending (ABL) credit facility, which encompasses a revolving credit facility valued at $130 million alongside a $27.4 million term loan. These facilities are supported by the company's vital real estate, machinery, and equipment.
Details on the Revised Credit Facility
The revision to the credit facility led to an extension of the maturity date for both the revolving credit facility and the term loans from the previous date in 2025 to a new date in 2027. This adjustment not only increases liquidity for Team, Inc. but also lowers the interest rate spread adjustments, allowing for reduced borrowing costs. Furthermore, the amended terms of the revolving facility provide enhanced availability, which is crucial for the company’s growth and operational flexibility.
Improved Terms Following Strong Performance
As part of the amended agreement, Team, Inc. benefits from an increased borrowing base advance rate. The availability covenant has also been set with a minimum threshold, ensuring that this condition is only assessed if the company fails to satisfy the fixed charge coverage ratio. This strategic move reflects the solid performance and the positive trajectory the company has demonstrated in its recent operations.
Leadership Insights on the Amendment
Keith D. Tucker, the Chief Executive Officer of Team, Inc., expressed his satisfaction regarding the successful amendment of the credit facility. He emphasized the importance of this achievement in strengthening the company’s balance sheet while enhancing available borrowing options. Tucker attributed this success to the collective efforts of the employees and highlighted the tangible progress made over the last couple of years in improving operational efficiency and financial performance.
About Team, Inc.
Headquartered in Sugar Land, Texas, Team, Inc. stands as a premier provider of specialty industrial services. The company offers clients access to a comprehensive suite of mechanical, heat-treating, and inspection services. By leveraging advanced inspection and maintenance techniques, Team, Inc. significantly enhances the safety and reliability of critical assets for its clients. With operations in more than 15 countries, the company integrates innovative technology with extensive experience in reliability management, aiming to create a sustainable future.
Looking Ahead: Opportunities for Growth
With the recent improvements in its credit facility, Team, Inc. is well-positioned to capitalize on growth opportunities within the industrial services sector. As the company focuses on boosting its top-line revenue and EBITDA, it remains committed to exploring further enhancements to its capital structure. The renewal of the ABL facility marks a pivotal step in enabling the company to thrive in a highly competitive environment.
Conclusion
Team, Inc.'s recent amendment of its ABL credit facility signals a new era of enhanced financial flexibility. The successful negotiation of these terms not only reflects the company’s resilience and dedication to improving its operational framework, but it also positions Team, Inc. to better serve its clients and stakeholders while navigating the changing economic landscape.
Frequently Asked Questions
What is the significance of Team, Inc.'s recent credit facility amendment?
The amendment improves financial flexibility, enhancing liquidity and lowering borrowing costs.
How long has Team, Inc. extended its credit facility maturity?
The maturity date has been extended to September 30, 2027.
Who provided the funding for Team, Inc.'s credit facilities?
The funding comes from Eclipse Business Capital LLC, J.F. Lehman & Company, and Corre Partners Management, LLC.
What does Team, Inc. specialize in?
Team, Inc. specializes in providing specialty industrial services, including mechanical, heat-treating, and inspection services.
How is Team, Inc. planning to use its improved liquidity?
The company plans to use its improved liquidity to explore growth opportunities and enhance its capital structure further.
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