Company: TISI
Filing Date: 2025-10-09
Form Type: S-3
Source: 0001193125-25-235868
Chunk: 11

Company: TEAM INC
Filing Date: 2025-10-09
Form: S-3
Chunk 11
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 smaller reporting company, we are permitted and intend to rely on exemptions from certain disclosure and other requirements that are applicable to other public companies that are not smaller reporting companies. Recent Private Placement On September 11, 2025, we entered into the Purchase Agreement between the Company and the Stellex Holder. Pursuant to the Purchase Agreement, the Company issued to the Stellex Holder (A) 75,000 shares of preferred stock, $100 par value per share, designated as Series B preferred stock (such shares, the “Initial Preferred Shares”) and (B) the Warrants, for total consideration of $75.0 million. The closing of the payment and the issuance of the Initial Preferred Shares and the Warrants (the “Equity Issuance”) occurred simultaneously with the signing of the Purchase Agreement. The proceeds of the Equity Issuance were used to (x) repay $25.0 million of the loans outstanding under the Credit Agreement, dated as of February 11, 2022, among us, as borrower agent, the other borrowers and guarantors party thereto from time to time, the lenders party thereto and Eclipse Business Capital LLC, as agent, (y) pay transaction expenses related to the transactions contemplated by the Purchase Agreement, and (z) the remainder to repay a portion of the loans (together with accrued interest) outstanding under the Second Amended and Restated Second Lien Term Loan Credit Agreement, dated as of March 12, 2025, among us, as borrower, the lenders from time to time party thereto and Cantor Fitzgerald Securities, as agent, representing approximately $42.9 million. Pursuant to the Purchase Agreement, from time to time prior to September 11, 2027, we have the option to draw upon (a “Delayed Draw”) up to $30.0 million as a delayed draw, with 30,000 shares of Series B preferred

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stock issuable to the Stellex Holder (such shares, the “Delayed Draw Preferred Shares”), in minimum draw amounts of $5.0 million, subject to satisfying certain conditions,
including pro forma compliance with a First Lien Net Leverage Ratio (as defined in the First Lien Term Loan Credit Agreement, dated as of March 12, 2025 among us, as borrower, the lenders party thereto and HPS Investment Partners, LLC, as agent
(as amended, the “First Lien Term Loan Credit Agreement”)) of 6.50 to