Team Inc. secures $75 million investment to reduce debt

SUGAR LAND, Texas - Team Inc. (NYSE:TISI), an industrial services provider with annual revenues of $870.74 million, announced Thursday it has closed a $75 million private placement of preferred stock and warrants to affiliates of Stellex Capital Management LLC, immediately reducing the company’s debt and enhancing its financial flexibility. According to InvestingPro data, the company has been operating under a significant debt burden of $416.51 million.

The transaction allows Team to pay down approximately $67 million of existing debt while amending its credit facilities to secure more favorable terms. The company’s Asset-Based Lending Facility commitment was increased by $20 million to $150 million, with interest margins reduced by 25 to 37.5 basis points and maturity extended to October 2028. This restructuring comes at a crucial time, as InvestingPro analysis indicates the company maintains a current ratio of 1.97, suggesting sufficient liquid assets to meet short-term obligations.

Team’s First Lien Term Loan Facility also received a 25 basis point reduction in applicable margin along with improved financial terms. The deal includes a delayed draw option allowing Team to issue up to an additional $30 million in preferred stock and warrants over the next 24 months.

"Since 2022, our management team has been keenly focused on successfully executing our strategic roadmap designed to simplify the business, optimize the cost structure, strengthen the balance sheet and drive top-line growth," said Keith D. Tucker, Team’s Chief Executive Officer.

As part of the arrangement, Stellex will receive warrants and gain the right to nominate two members to Team’s Board of Directors. The 10.5% Series B Preferred Stock dividends are payable quarterly, either by increasing the stated value or in cash at Team’s option.

Olivia Zhao, Principal at Stellex, stated the firm sees "a compelling opportunity towards further unlocking [Team’s] meaningful growth potential through strengthening the Company’s capital structure."

Team Inc. provides specialty industrial services including mechanical, heat-treating, and inspection services across more than 13 countries. The company’s stock has shown strong momentum with a 44.08% price return over the past six months, though InvestingPro analysis suggests the stock is currently overvalued. Investors can access detailed financial analysis and 12 additional ProTips about TISI through InvestingPro’s comprehensive research reports. The information in this article is based on a company press release statement and InvestingPro data.

In other recent news, Team Inc. reported its second-quarter 2025 earnings, highlighting significant growth in key financial metrics. The company’s stock experienced a notable surge of 14.9% following the announcement, although specific earnings forecasts for the quarter were not provided. This increase in stock value signals a positive response from investors regarding Team Inc.’s strategic initiatives and financial performance. Despite the absence of detailed earnings projections, the market’s reaction suggests confidence in the company’s direction. No additional details on mergers, analyst upgrades or downgrades, or other company news were mentioned in the recent developments.

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