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Team’s amended facility priced at Libor plus 125 bps to 225 bps
By Wendy Van Sickle
Columbus, Ohio, July 9 – Team Inc.’s expanded credit facility is priced at Libor plus 125 basis points to Libor plus 225 bps, according to a filing with the Securities and Exchange Commission.
Initial interest is at Libor plus 200 bps. The facility also has a commitment fee of 20 bps to 40 bps, based on the company’s leverage ratio.
As previously reported, the facility was expanded to $500 million to partly fund the company’s $255 million acquisition of the Qualspec Group from Clearview Capital Fund II, LP.
The facility consists of a $300 million five-year revolving loan facility, including a $25 million sublimit for swingline loans, a $50 million sublimit for letters of credit and a $100 million discretionary sublimit for multicurrency borrowings, and a $200 million five-year term loan facility, which was used to partly fund the Qualspec acquisition.
Merrill Lynch, Pierce, Fenner & Smith Inc. and J.P. Morgan Securities LLC are the joint lead arrangers and joint bookrunners.
Bank of America NA is the administrative agent. JPMorgan Chase Bank NA is the syndication agent. Compass Bank is the documentation agent.
As a result of the transaction, Team said its pro-forma debt to EBITDA ratio is expected to be about 3 to 1.
Team said the acquisition adds about $180 million of annual revenue and nearly 1,000 new employees to its operations.
Qualspec, based in Deer Park, Texas, is a provider of nondestructive testing inspection services in the United States.
Houston-based Team is a provider of industrial services, including inspection, for maintaining and installing high-temperature, high-pressure piping systems and vessels for the refining, petrochemical, power, pipeline and other heavy industries.
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