Company: TISI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000318833-25-000057
Chunk: 36

Company: TEAM INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 Draw Term Loan will be used solely to repay the obligations under the Second A&R Second Lien Term Loan Agreement (as defined below). As of June 30, 2025, we have not drawn on the First Lien Delayed Draw Term Loan.The terms of the Initial First Lien Term Loan are described in the table below (dollar amounts are presented in thousands):  Maturity date3/12/2030Stated interest rateSOFR+applicable margin (base+applicable margin)Principal payments$438 quarterlyEffective interest rate6/30/202512.70%Actual interest rate6/30/202510.74%Interest paymentsquarterlyCash paid for interestYTD 6/30/2025$1,735Balances at 6/30/2025Principal balance $174,563Unamortized balance of debt discount and issuance cost1$(8,089)Net carrying balance$166,4741    Consists of debt discount of $3,791 and debt issuance cost of $4,298. The First Lien Term Loan Agreement contains certain conditions to borrowings, events of default and affirmative and negative covenants and a financial covenant prohibiting the Company from exceeding a maximum First Lien Net Leverage Ratio (as defined in the First Lien Term Loan Agreement), tested as of the end of each fiscal quarter, of 5.50 to 1.00. Further, the First Lien Term Loan Agreement includes certain events of default, the occurrence of which may require that we pay an additional 2.0% interest on the outstanding loans and other obligations under the First Lien Term Loan Agreement. As of June 30, 2025, we are in compliance with the covenants.A&R Term Loan Credit Agreement / Second A&R Second Lien Term Loan Credit Agreement        On March 12, 2025, we entered into a Second Amended and Restated Second Lien Term Loan Credit Agreement with the lenders party thereto and Cantor Fitzgerald Securities, as Agent (the “Second A&R Second Lien Term Loan Agreement”), which amended and restated the existing Amended and Restated Term Loan Credit Agreement, dated June 16, 2023 (the “Existing A&R Term Loan Agreement”). The Existing A&R Term Loan Agreement included a term loan credit agreement entered into on November 9, 2021, as amended through March 29, 2023 (the “Corre Uptiered Loan”), and an additional