A company that buys small businesses from retiring owners has taken a major step to tidy up its balance sheet. Teamshares Inc. (NASDAQ: TMS) said it has fully repaid a $150 million legacy credit facility, replacing it with a new $130 million term loan arranged by affiliates of Sound Point Capital. The new loan matures in the fourth quarter of 2030, giving the company four years before its next major debt repayment deadline.
The move matters because debt maturities can become a distraction for a growing acquisition company. When a loan is due soon, management must devote attention to refinancing rather than finding and integrating new businesses. By extending the maturity and reducing the principal owed, Teamshares has bought itself time to continue its core work of acquiring profitable small and mid sized companies.
Teamshares describes itself as part holding company and part financial technology business. It buys companies that generate between $0.5 million and $5 million of EBITDA, a measure of operating profit, from owners approaching retirement. After an acquisition, the company connects the business to its internal platform and gives employees a chance to earn shares in the operating company. The idea is to keep the businesses operating for the long term rather than flipping them quickly.
The company’s subsidiaries generated consolidated revenue of more than $500 million over the trailing twelve months ended June 30th, across more than 40 industries and 30 U.S. states. That scale helps explain why lenders were willing to provide a new financing package, even though Teamshares is still building its public market track record.
The financial details of the refinancing are straightforward. The new $130 million term loan carries a floating interest rate of 9.5% above SOFR, the benchmark rate used in many U.S. loans. Teamshares said that represents a 1.5 percentage point absolute improvement, or a 14% relative improvement, compared with its previous facility. At current SOFR levels, the company expects annual interest expense to fall by about $5 million before considering amortization or any further refinancing.
Teamshares has also started early repayment of $17 million in existing mezzanine debt. Mezzanine debt sits between traditional bank loans and equity in a company’s capital structure, and it often carries a higher interest rate because lenders take on more risk. The company expects that repayment to reduce annual interest expense by another $3 million. Together, the two actions should lower the cost of carrying debt and leave more cash available for operations and acquisitions.
Chief Executive Officer Michael Brown framed the refinancing as part of a broader stretch of progress. “Going public has been a major catalyst for Teamshares,” he said. “In the past 16 weeks, Teamshares has listed on the Nasdaq, signed LOIs towards our $40 million EBITDA acquisition plan for 2026, arranged funded acquisition financing with a recent preferred instrument, and removed a material short-term maturity.”
Brown added that the company now has “the foundation” to pursue a $100 million Pro Forma Adjusted EBITDA forecast for 2027. That forecast is important because it links the refinancing to the company’s larger plan: use debt and equity capital to acquire more businesses, improve their cash flow, and eventually build a larger, more valuable collection of operating companies.
Chief Financial Officer Brian Gaebe emphasized the practical reason for moving quickly. “We prioritized speed and certainty of execution to address a near-term maturity while maintaining our ability to fund acquisitions with debt financing that is expected to result in an attractive blended cost of capital,” he said.
Gaebe also described the new private credit loan as a bridge. He said Teamshares expects to obtain lower borrowing spreads as it increases its scale, cash flow, creditworthiness, and eventually gains access to public debt markets. In other words, the company sees this loan as a useful interim financing tool, not necessarily its permanent long term funding structure.
The refinancing does not eliminate risk. Teamshares still carries substantial debt, and its strategy depends on continuing to find suitable acquisition targets, finance them on acceptable terms, and integrate them successfully. A floating rate loan also means interest costs can change if SOFR moves. Still, the company has replaced a nearer term obligation with a longer dated loan, reduced the amount it owes, and lowered its expected annual interest expense.
For a business built around buying established companies from retiring owners, that additional flexibility may be just as valuable as the immediate interest savings. It gives Teamshares more time to prove that its acquisition model can grow into a durable, cash generating platform.
