Team to sell $175 million of six-year convertible notes; price talk 4.75%-5.25%, up 37.5%-42.5%

By Stephanie N. Rotondo

Seattle, July 24 – Team Inc. is planning a $175 million Rule 144A offering of convertible senior notes due Aug. 1, 2023, according to a press release issued Monday.

Price talk is for a 4.75% to 5.25% yield and an initial conversion premium of 37.5% to 42.5%, a market source reported.

J.P. Morgan Securities LLC and BofA Merrill Lynch are the joint bookrunners. BB&T and BBVA are the co-managers.

There is a $26.25 million over-allotment option.

Conversions will be settled in cash, common stock or a combination of the two, at the company’s option.

The convertibles become redeemable on Aug. 5, 2021, under certain circumstances.

Proceeds will be used to repay all outstanding borrowings under the term loan portion of a banking credit facility and for general corporate purposes.

Team is a Sugar Land, Texas-based provider of specialty industrial services, including inspection and assessment, required in maintaining and installing high-temperature and high-pressure piping systems and vessels that are used in the refining, petrochemical, power, pipeline and other heavy industries.

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