Business
DXP Enterprises Announces Amendment and Extension of ABL Revolver
Extends maturity of $135 million Asset Based Loan Facility to 2027 Aligns ongoing capital structure actions to support strategy Maintains liquidity and
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":"\n\nExtends maturity of $135 million Asset Based Loan Facility to 2027\n\n\nAligns ongoing capital structure actions to support strategy\n\n\nMaintains liquidity and continues to position DXP to take advantage of growth opportunities\n\n\n HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced that on July 19, 2022, DXP Enterprises, Inc. (the “Company”) entered into an Amended and Restated Loan and Security Agreement (the “ABL Credit Agreement”) by and among the Company, certain of the Company’s US subsidiaries, as borrowers, certain of the Company’s Canadian subsidiaries, as borrowers, with Bank of America, N.A., as agent.\n\nThe ABL Credit Agreement provides for asset-based revolving loans (the “ABL Loans”) in an aggregate principal amount of up to $135.0 million, with up to $125.0 million to be made available to the US Borrowers (the “US ABL Facility”) and up to $10.0 million to be made available to the Canadian Borrowers (the “Canadian ABL Facility” and together with the US ABL Facility, the “ABL Facility”). The ABL Credit Agreement amends and restates the Loan and Security Agreement dated as of August 29, 2017. Subject to the conditions set forth in the ABL Credit Agreement, the ABL Facility may be increased by up to an aggregate of $50.0 million, in minimum increments of $10.0 million. The ABL Facility matures on July 19, 2027.\n\nDavid R. Little, Chairman and CEO commented, “We have been pleased with our continued support from our lenders. As we navigate changing market conditions, this amendment maintains liquidity and flexibility in our capital structure as we continue to execute our strategy and fund both working capital and acquisition growth. We plan on maintaining liquidity and flexibility while pursuing our growth opportunities and reinvesting in the business.”\n\nKent Yee, CFO, added, “We have an extremely supportive set of ABL lenders, and appreciate their willingness to partner with DXP in creating stakeholder value. Our capital allocation strategy at this point in the cycle includes a mix of funding growth and applying any excess cash flow to debt service, when appropriate. While today’s environment continues to evolve and remain dynamic, we are comfortable with the sustainability of our financial performance and our supporting capital structure while pursuing organic and inorganic gro...