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SUGAR LAND, Texas - Team, Inc. (NYSE: TISI), a global provider of specialized industrial services with a market capitalization of approximately $59 million, has completed a refinancing transaction aimed at reducing its cost of capital and extending the maturity of its debts to 2030. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value estimates. The transaction includes a $175 million Term Loan and a $50 million Delayed Draw Term Loan provided by HPS Investment Partners, LLC, with interest rates improved by over 100 basis points.
This strategic financial move allowed Team, Inc. to repay various existing debts, including a $35 million delayed draw term loan, $22.3 million in equipment and real estate loans, a $46.3 million senior secured incremental term loan from Corre Partners Management, LLC, and $54.1 million of another senior secured term loan. Additionally, the company rolled over its remaining debt into a new $97.4 million Second Lien Term Loan with a June 2030 maturity.
Keith D. Tucker, CEO of Team, Inc., stated that the refinancing was made possible by the company’s improved operating performance and cash flow over the past two years. The company’s financial metrics support this claim, with InvestingPro data showing a remarkable 144.8% stock return over the past year, despite current revenues of $853 million and an EBITDA of $37 million. He emphasized that the new financial structure enhances the company’s ability to pursue growth, reduce costs, and improve cash flow, ultimately benefiting shareholders. Get access to 8 more exclusive ProTips and comprehensive financial analysis with InvestingPro.
The company’s existing ABL credit facility with Eclipse Business Capital was also amended to allow for the completion of the refinancing. Team, Inc. expressed gratitude to both Corre and Eclipse for their ongoing support and is looking forward to collaborating with HPS.
The transaction was advised by Configure Partners and Kirkland & Ellis LLP. Team, Inc., headquartered in Sugar Land, Texas, provides a range of conventional, specialized, and proprietary mechanical, heat-treating, and inspection services through locations in over 20 countries.
The information in this article is based on a press release statement from Team, Inc.
In other recent news, Team Inc. has announced the resignation of André C. Bouchard, its Executive Vice President, Administration, Chief Legal Officer, and Secretary. The departure will be effective January 18, 2025, as stated in a recent filing with the Securities and Exchange Commission. Mr. Bouchard is leaving the Sugar Land, Texas-based company to pursue another opportunity, and his resignation is not due to any disagreements with Team Inc. regarding its operations, policies, or practices. The company has yet to announce a successor or any interim plans for managing his responsibilities. This corporate update adheres to regulatory requirements for reporting significant changes in the executive team. The information is based on the latest 8-K filing by Team Inc. with the SEC. The filing also included the company’s financial statements and other standard exhibits.
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