Company: TISI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000318833-25-000037
Chunk: 85

Company: TEAM INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 due and payable on June 10, 2030. To the extent borrowed, the proceeds of the Second Lien Delayed Draw Term Loans are permitted to be used by the Company for general working capital and liquidity purposes. As of March 31, 2025, we have not drawn on the Second Lien Delayed Draw Term Loans.   The Second Lien Term Loans bear interest at an annual rate of 13.5% through the earlier of (i) September 30, 2026, and thereafter, if the outstanding principal balance of the Second Lien Term Loans exceeds 50% of the principal balance at March 12, 2025, the interest rate will increase by 0.25% quarterly, subject to a maximum rate of 14.5% per annum, and (ii) the date on which the Second Lien Delayed Draw Term Loan is borrowed in full, in which case the interest rate will increase to the maximum rate of 14.5% per annum. Interest is payable quarterly and if the First Lien Net Leverage Ratio (as defined in the Second A&R Second Lien Term Loan Agreement) is greater than or equal to 3.50 to 1.00, then all interest shall be paid in kind; if the First Lien Net Leverage Ratio is less than 3.50 to 1.00 and greater than or equal to 3.00 to 1.00, 50% of the interest shall be payable in cash, with the other 50% to be paid in kind; and if the First Lien Net Leverage Ratio is less than 3.00 to 1.00, all interest will be payable in cash.      The terms of the 2025 Second Lien Term Loans are described in the table below (dollar amounts are presented in thousands):Maturity date6/10/2030Principal payments$244 quarterlyEffective interest rate3/31/202516.01%Actual interest rate3/31/202513.50%Interest paymentsquarterlyCash paid for interest3/31/2025$—PIK interest added to principal balance3/31/2025$—Balances at 3/31/2025Principal balance$97,413Unamortized balance of debt issuance cost$(3,545)Net carrying balance$93,868As of December 31, 2024, the Corre Incremental Term Loan had a net carrying balance of $39.