Team, Inc. Announces Private Placement of Preferred Stock - Seite 2

“We are pleased to partner with TEAM at a pivotal moment in its evolution,” said Olivia Zhao, Principal at Stellex. “We believe TEAM is built on strong fundamentals, and we see a compelling opportunity towards further unlocking its meaningful growth potential through strengthening the Company's capital structure. This investment represents more than just capital – it is a shared commitment to accelerating operational distinction, advancing technology, and delivering long-term value to TEAM’s customers and shareholders. Just as importantly, we recognize that TEAM’s employees are integral to its success, and we are aligned with TEAM’s focus on employee development and making TEAM the employer of choice. We look forward to supporting the Company as it seeks to scale its capabilities and build for the future.”

Preferred Stock

The Transaction consists of the initial sale of $75 million of the Company’s 10.5% Series B Preferred Stock, par value $100 per share (“Preferred Stock”). Preferred Stock Dividends are payable quarterly in kind by increasing the stated value or, at TEAM’s option, in cash. As part of the Transaction, Stellex will also receive 982,371 Tranche A Warrants with an exercise price of $23.00 per share and 470,889 Tranche B Warrants with an exercise price of $50.00 per share, in each case subject to certain adjustments. The net proceeds from the initial sale will be used by the Company to (i) repay $25 million of loans under its ABL Credit Facility provided by Eclipse Business Capital (“Eclipse”) and (ii) repay approximately $42 million of loans under its Second Lien Term Loan Credit Agreement provided by Corre Partners Management, LLC (“Corre”). The Transaction also provides for a delayed draw feature that allows the Company at its sole option over the 24 months following closing to issue additional Preferred Stock along with a corresponding pro rata portion of warrants to Stellex for up to an additional $30 million of proceeds.

In connection with the Transaction, Stellex will have the right to nominate two members to the Company’s Board of Directors.

Asset-Based Lending Facility

The Company’s existing ABL Credit Facility provided by Eclipse was amended to (i) increase the Commitment Amount under the ABL Credit Facility from $130 million to $150 million (ii) reduce the Applicable Margin for loans by a range of 25 basis points to 37.5 basis points, and (iii) extend the maturity date to October 2028.