SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

During July 2022, our Board approved management’s recommendation to place Quest Integrity up for sale. Accordingly Quest Integrity will be treated as held for sale in reporting periods subsequent to June 30, 2022.

On August 15 2022, Team announced it executed a definitive purchase and sale agreement with Baker Hughes to sell Quest Integrity for $280.0 million, before customary post-closing adjustments. The sale is subject to ordinary closing conditions, regulatory approvals, and other adjustments, and is expected to close in the fourth quarter of 2022.

The Company expects the net proceeds from the Quest Integrity Sale to be used to pay down debt and for general corporate purposes, thereby reducing the Company’s future debt service obligations and leverage and improving its liquidity and capital resources. The consummation of the Quest Integrity Sale will allow the Company to focus on improving its core IHT and MS businesses.

Quest Integrity represented approximately 15% of the Company’s consolidated total assets as of June 30, 2022 and approximately 13% of the Company’s consolidated revenue for the six months ended June 30, 2022.

During July 2022, the Company drew down $10.0 million in cash proceeds from the Corre Delayed Draw Term Loan for general corporate purposes.