Team, Inc. Announces Commitment for Refinancing of Capital Structure

Upon Completion, Transactions Will Provide Financial Flexibility and Extend Maturities

SUGAR LAND, Texas, May 25, 2023 (GLOBE NEWSWIRE) -- Team, Inc. (NYSE: TISI) (“TEAM” or the “Company”), a global, leading provider of specialty industrial services offering clients access to a full suite of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services, today announced that it has secured committed financing from two of its largest current stakeholders for a series of transactions that, once completed, are expected to significantly improve its capital structure and extend maturities.

TEAM entered into a commitment letter (the “Corre Commitment Letter”) with Corre Management Partners, LLC (“Corre”) for a new $57.5 million, 12% senior secured first lien term loan maturing in December 2026 and comprised of a $37.5 million term loan tranche and a $20 million delayed draw term loan tranche (the “Corre Secured Term Loan”), subject to certain closing conditions. The Corre Commitment Letter also provides that Corre’s existing subordinated term loan will become secured on a pari passu basis to the Corre Secured Term Loan. TEAM expects to use the proceeds from the Corre Secured Term Loan to repay in full TEAM’s remaining $41 million of Convertible Notes due August 2023 and for general corporate purposes.

TEAM also entered into a commitment letter with Eclipse Business Capital LLC (the “Eclipse Commitment Letter”) for a new $27.4 million term loan secured by certain real estate and machinery and equipment of the Company (the “Eclipse Term Loan”), subject to certain closing conditions, and with a maturity date coterminous with the Company’s existing revolving credit facility. The Eclipse Commitment Letter also provides for an amendment to the existing revolving credit facility to extend the maturity date of the revolving credit facility (and therefore the proposed Eclipse Term Loan) to August 2025, and to increase availability under the revolving credit facility by an additional $2.5 million. TEAM expects to use the proceeds from the Eclipse Term Loan, together with advances under the Company’s revolving credit facility to repay in full the Company’s existing senior secured term loan with Atlantic Park Strategic Capital Fund, L.P.