Team, Inc. Announces Private Placement of Preferred Stock

Core Viewpoint - Team, Inc. has successfully closed a $75 million private placement of preferred stock and warrants with Stellex Capital Management, which will reduce debt and enhance financial flexibility while establishing a strategic partnership aligned with the company's management priorities [2][3]. Financial Transaction Highlights - The transaction involves the sale of $75 million of 10.5% Series B Preferred Stock, with dividends payable quarterly either in kind or cash [4]. - The proceeds will be used to repay $25 million of loans under the ABL Credit Facility and approximately $42 million under the Second Lien Term Loan Credit Agreement [4]. - Stellex will receive 982,371 Tranche A Warrants and 470,889 Tranche B Warrants, with exercise prices of $23.00 and $50.00 per share, respectively [4]. Debt Reduction and Financial Flexibility - The transaction allows for the repayment of approximately $67 million of debt and includes amendments to existing credit facilities to increase commitment amounts and reduce applicable margins [6][7]. - The ABL Credit Facility commitment amount is increased from $130 million to $150 million, with a maturity extension to October 2028 [7]. - The First Lien Term Loan Facility has also been amended to reduce the applicable margin by 25 basis points, enhancing financial flexibility [8]. Strategic Partnership and Future Growth - Stellex will have the right to nominate two members to Team's Board of Directors, indicating a deeper strategic partnership [5]. - The investment is seen as a commitment to operational excellence, technology advancement, and long-term value creation for customers and shareholders [3].