Company: TISI
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0000318833-25-000070
Chunk: 109

Company: TEAM INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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 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.

17 

      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 paymentsquarterly 1Effective interest rate9/30/202516.06%Actual interest rate9/30/202513.50%Interest paymentsquarterlyCash paid for interest9/30/2025$1,129PIK interest added to principal balance9/30/2025$5,990Balances at 9/30/2025Principal balance$61,600Unamortized balance of debt issuance cost$(1,796)Net carrying balance$59,8041    Principal payments represent a percentage (ranges between 0% and 0.25% based on the First Lien Net Leverage Ratio) of the outstanding principal balance. As of  September 30, 2025 we are not making quarterly principal payments.As of December 31, 2024, the Corre Incremental Term Loan had a net carrying balance of $39.8 million, which consisted of the principal balance of $46.6 million less the unamortized balance of debt issuance cost of $6.8 million. The stated and effective interest rates at September 30, 2024 were 12.0% and 22.96%, respectively. Cash paid for interest during the nine months ended September 30, 2025 and 2024 was $2.5 million and $4.3 million, respectively.As of December 31, 2024, the Corre Uptiered Loan had a net carrying balance of $144.