Company: TISI
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000318833-25-000057
Chunk: 91

Company: TEAM INC
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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 September 30, 2025, the interest rate margin may vary from 7.00% to 6.00% depending on the First Lien Net Leverage Ratio. The proceeds of the Initial First Lien Term Loan were used to redeem and repay the Corre Delayed Draw Term Loan and the ME/RE Loans under the 2022 ABL Credit Agreement and a portion of the outstanding balance of the Existing A&R Term 

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Loan Agreement (as defined below). To the extent borrowed, the proceeds of the First Lien Delayed 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