Teamshares enters $130M Sound Point term loan; repays $150M i80 legacy credit facility
Teamshares Inc announced that its indirect subsidiary Teamshares Continuity Holdings LLC entered into a new $130.0 million senior secured term loan on October 16, 2026, with Sound Point Agency LLC as administrative and collateral agent. Proceeds, together with cash on hand and released restricted cash, were used to repay in full approximately $152.8 million of outstanding obligations under the legacy i80 Group / Westmount Group delayed-draw credit facility, terminating that facility and releasing all related gua...
Key takeaways
Refinancing replaces a near-term-maturity legacy delayed-draw facility ($152.8 million payoff) with a $130.0 million long-dated Term Loan maturing October 16, 2030, reducing principal by approximately $22.8 million.
Spread reduction: new Term Loan priced at SOFR + 9.50% vs legacy SOFR + 11.00% (cash interest cap on legacy was 16.00%, with excess paid in kind).
Interest savings: ~$5 million per year expected from the new facility at current SOFR levels, before amortization or further refinancing; an additional ~$3 million per year expected from the initiated $17 million mezzanine debt prepayment.
Amortization is back-loaded in quarterly payments of $6.25 million (Q4 2026 – Q3 2027), $7.50 million (Q4 2027 – Q3 2028), $8.75 million (Q4 2028 – Q3 2029) and $10.0 million (Q4 2029 – Q3 2030), with dollar-for-dollar credit for prepayments.
Credit Agreement includes customary financial covenants — maximum net leverage, minimum EBITDA yield, minimum free cash flow yield, and minimum liquidity — and restricts parent-level dividends and equity repurchases.
Closing condition included a Net Debt to EBITDA Ratio not greater than 2.75:1.00 for the four fiscal quarters ended June 30, 2026; the Term Loan is secured by a first-priority lien on substantially all assets of the Borrower and Subsidiary Guarantors.
Advisors: Goldman Sachs & Co. LLC as exclusive capital markets advisor to Teamshares; Mayer Brown LLP as Teamshares' legal counsel; Holland & Knight LLP as legal counsel to Sound Point Capital.
Key metrics
Disclosure changes
- Material definitive agreement – new senior secured term loan
On October 16, 2026, Teamshares Continuity Holdings LLC (Borrower), Teamshares Inc and Teamshares LLC (Guarantors), and the Subsidiary Guarantors entered into a Credit Agreement with Sound Point Agency LLC (Administrative Agent and Collateral Agent) and the lenders party thereto, establishing a $130.0 million senior secured Term Loan funded in full on the Closing Date and maturing October 16, 2030, secured by a first-priority lien on substantially all assets of the Borrower and Subsidiary Guarantors.
Establishes the Company's primary external debt capital structure following the refinancing of the legacy i80 facility; introduces new financial covenants (maximum net leverage, minimum EBITDA yield, free cash flow yield, minimum liquidity) and restrictions on parent dividends/equity repurchases. - Material definitive agreement – termination of i80 / Westmount Credit Agreement
The May 4, 2021 Credit Agreement with Westmount Group LLC (affiliate of i80 Group LLC) as agent was repaid in full and terminated on October 16, 2026; all commitments, guarantees (including the Company's guaranty and related conditional guaranty), and liens were released.
Eliminates a near-term-maturity legacy facility (originally scheduled to mature December 5, 2026); releases parent guarantees and all collateral liens securing the prior facility. - Material modification to rights of security holders
Under the new Credit Agreement, the Company may not, without the prior written consent of the Agent, pay dividends or other distributions on its equity, or repurchase its equity or rights to acquire its equity, subject to certain exceptions. The Borrower and Subsidiary Guarantors may not make distributions to the Company other than as described in Item 1.01.
Limits the Company's ability to pay dividends on, or repurchase, its common stock and warrants while the Credit Agreement is outstanding.
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