Team amends secured credit facility with BofA to modify covenants

By Sarah Lizee

Olympia, Wash., March 9 – Team, Inc. amended its secured credit facility due 2020 with Bank of America, NA as administrative agent on Thursday to adjust some of the financial covenants, according to an 8-K filing with the Securities and Exchange Commission.

The amendment eliminates the maximum total leverage ratio covenant through the remainder of the term of the facility.

The senior secured leverage ratio covenant was amended to provide for a maximum senior secured leverage ratio of 4.25 to 1, stepping down to 3.5 to 1 on Sept. 30 and to 2.75 to 1 on Sept. 30, 2019.

The amendment also provides for a minimum interest coverage ratio of 3 to 1, stepping down to 2.25 to 1 on March 31 and stepping up to 2.5 to 1 on March 31, 2019.

The definition of consolidated EBITDA was amended to permit the add-back of some costs anticipated to be incurred in 2018 and 2019, up to a maximum amount of $30 million and $7 million, respectively.

Houston-based Team is a provider of industrial services, including inspection, for maintaining and installing high-temperature, high-pressure piping systems and vessels for refining, petrochemical, power, pipeline and other heavy industries.

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