We are advising the term loan agent and sole lender in connection with the transaction

Davis Polk is advising the agent and sole lender under TEAM Inc.’s (“TEAM’s”) existing $250 million senior secured term loan facility, in connection with a comprehensive amendment that closed on November 9, 2021 and certain related transactions.

Among other things, the term loan amendment provided for (a) TEAM to obtain new junior financing in the form of a $50 million delayed draw subordinated unsecured term loan, (b) a portion of the proceeds of this new subordinated financing to be used for payment of deferred and other accrued interest outstanding under the term loan, (c) modifications to certain covenants and other terms of the term loan, (d) the term loan lenders to receive new warrants exercisable for up to 1,417,051 shares of TEAM’s common stock and (e) amendments to the terms of a warrant previously issued to the term loan lenders.

Contemporaneously with entry into the amendment, TEAM also closed the new subordinated term loan, borrowed the initial tranche of $27.5 million thereunder and entered into a commitment agreement that, among other things, sets out terms for issuance of the new warrants.

TEAM, Inc. (NYSE:TISI) is a leading provider of fully-integrated, customized solutions of specialty industrial services, including inspection and assessment, required in maintaining and installing high-temperature and high-pressure piping systems and vessels that are utilized extensively in the refining, petrochemical, power, pipeline and other heavy industries.

The Davis Polk restructuring team includes partners Damian S. Schaible and Eli Vonnegut and associates David Schiff, Alexander K. B. Shimamura and Eric Hwang. The finance team includes counsel Christian Fischer and associate Ahmad Raja. The derivatives and structured products team includes partner Mark J. DiFiore. Counsel Susan D. Kennedy provided real estate advice. All members of the Davis Polk team are based in the New York office.