Teamshares Inc. (Nasdaq: TMS) announced the execution of a new credit agreement on October 16, 2026, to replace an existing facility. The new agreement, entered into by Teamshares Continuity Holdings LLC, establishes a senior secured term loan facility with an aggregate principal amount of $130.0 million. The loan was funded in full on the closing date and matures on the fourth anniversary of the closing date, with quarterly principal payments scheduled to begin December 31, 2026.
The new Term Loan bears interest at a rate equal to one-month Term SOFR (subject to a 3.00% floor) plus 9.50% per annum. The company stated that this represents a 1.5% absolute or 14% relative improvement compared to the legacy facility. The proceeds of the loan, combined with cash on hand, were used to repay approximately $152.8 million in obligations under the previous credit agreement, which matured in December 2026.
Under the terms of the new agreement, the borrower may voluntarily prepay the loan in whole or in part without premium or penalty. Additionally, the company has initiated the early repayment of $17 million in existing mezzanine debt. Teamshares indicated that these actions are expected to reduce annual interest expense by approximately $5 million at current SOFR levels, with an additional reduction of $3 million anticipated from the mezzanine debt repayment.
The transaction is supported by Goldman Sachs & Co. LLC as the exclusive capital markets advisor and Mayer Brown LLP as legal counsel. The company’s subsidiaries have guaranteed the obligations under the new Credit Agreement, which is secured by a first-priority lien on substantially all assets of the borrower and guarantors.
