Company: TISI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0000318833-25-000037
Chunk: 79

Company: TEAM INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 of discrete items, was a provision of 0.8% for the three months ended March 31, 2025, compared to a provision of 0.4% for the three months ended March 31, 2024. The increase in effective tax rate for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 is due to the mix of pretax income in non-valuation allowance jurisdictions and pretax losses in valuation allowance jurisdictions, along with changes in permanent differences. The impact is a larger increase in income tax expense as compared to pretax income resulting in an increase in effective tax rate. 

10. DEBT

Recent Refinancing Transactions. On March 12, 2025, we entered into the Refinancing Transactions (described in further detail below) that included the entry into a new First Lien Term Loan Credit Agreement (described below) with the initial proceeds therefrom utilized to repay loans (together with any accrued interest and prepayment premium) outstanding under our 2022 ABL Credit Agreement (defined below) and the Existing A&R Term Loan Agreement (defined below). The completion of the Refinancing Transactions lowered our blended cost of capital, extended our term loan maturities out to 2030 and improved lending covenants.As of March 31, 2025 and December 31, 2024, our total long-term debt and finance lease obligations are summarized as follows (in thousands):March 31, 2025December 31, 2024(unaudited)2022 ABL Credit Agreement$85,886 $112,671 First Lien Term Loan1167,451 — 2025 Second Lien Term Loan193,868 — ME/RE Loans1— 22,119 Corre Uptiered Loan1— 143,955 Corre Incremental Term Loan1— 39,824 Equipment Finance Loan898 1,399 Total 348,103 319,968 Finance lease obligations5,521 5,143 Total long-term debt and finance lease obligations353,624 325,111 Current portion of long-term debt and finance lease obligations(3,811)(6,485)Total long-term debt and finance lease obligations, less current portion$349,813 $318,626 1    Comprised of principal amount outstanding, less unamortized debt issuance costs.