Business
DXP Enterprises, Inc. Announces Closing of New Term Loan B
$330 million Term Loan B at L+475 New loan maturity in 2027 $210 million in cash on the balance sheet at close Enhances liquidity, strengthens balance sheet
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":"\n\n$330 million Term Loan B at L+475\n\n\nNew loan maturity in 2027\n\n\n$210 million in cash on the balance sheet at close\n\n\nEnhances liquidity, strengthens balance sheet\n\n\nPositions for acquisition growth - - supporting plans to diversify end markets\n\n\n HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced that it has closed on a new $330 million Senior Secured Term Loan B (“TLB”). The TLB matures on December 23, 2027.\n\nDXP intends to use the proceeds to repay the existing Term Loan B, which will be terminated on that payment; and the remaining for general corporate purposes, potential acquisitions and transaction fees and expenses. The transaction provides DXP with operational and financial flexibility to reinvest in the business and pursue its strategy around organic and targeted acquisition growth.\n\nThe Term Loan B is priced at 4.75% over LIBOR and includes a secured leverage covenant ranging from 5.75:1 to 4.75:1. The new loan under the credit agreement is secured by the company’s consolidated assets.\n\nDavid R. Little, Chairman and CEO remarked, “We are pleased with the successful execution of this refinancing and our efforts to maintain our existing debt pricing while improving the terms from our existing facility. We will take this positive momentum and close out the year strong and look to drive growth in 2021. The successful closing of this new term loan following the disruptions caused by COVID-19 demonstrates the confidence lenders have in our current and long-term plans.”\n\nKent Yee, CFO added, “We are pleased to announce the completion of this refinancing, which accomplished several important objectives, including extending our debt maturities and further enhancing our strong liquidity position with a more flexible balance sheet and improving key terms. DXP is well-positioned to support its disciplined growth strategy well into the future. We experienced strong market interest and demand for this transaction, demonstrating the confidence that existing and new lenders, investors and other financial participants have in DXP. We appreciate the support from our advisors and lender group. Based on the transaction closing at the end of the third quarter, DXP’s net debt to EBITDA was 2.6:1”\n\nAdditional detail regarding the TLB will be available in DXP’s Current Report on Form ...