Business
DXP Enterprises, Inc. Refinances Existing Debt and Raises an Incremental $125M to Drive Acquisition Growth
$107 million in cash on the balance sheet at close Reduces applicable margin for borrowings by fifty basis points Aligns ongoing capital structure actions to
About this update from Dxp Enterprises, Inc.
[{"type":"text","content":"\n\n$107 million in cash on the balance sheet at close\n\n\n\nReduces applicable margin for borrowings by fifty basis points\n\n\n\nAligns ongoing capital structure actions to support acquisition strategy\n\n\n\n HOUSTON--(BUSINESS WIRE)--\nDXP Enterprises, Inc. (NASDAQ: DXPE) today announced that it has closed on refinancing existing Senior Secured Term Loan B (“TLB”) borrowings and raising an incremental $125 million in TLB borrowings. Including the new borrowings, DXP will have $550.0 million in Senior Secured Term Loan B borrowings. The TLB borrowings mature on October 30, 2030, and are priced at Term SOFR plus an applicable margin of 4.75 percent.\n\n\nDXP intends to use the proceeds to repay borrowings under DXP’s existing Senior Secured Term Loan B, 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 organic and targeted acquisition growth strategy.\n\n\nThe Term Loan B borrowings are priced at 4.75 percent over Term SOFR and continue to include 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\n\nDavid R. Little, Chairman and Chief Executive Officer remarked, “We are pleased with the successful execution of our refinancing. We will take this positive momentum, close out the year strong and look to drive growth in 2024. This successful capital raising demonstrates the confidence lenders have in our current and long-term plans. This financing will support us in executing our strategy and funding both working capital, acquisition growth and reinvesting in the business. Our capital allocation strategy at this point in the cycle includes a mix of continuing to fund growth, applying excess cash flow to debt service, when appropriate, and supporting DXP in the market. We plan to maintain liquidity and flexibility while pursuing growth opportunities and reinvesting in the business.”\n\n\nKent Yee, Chief Financial Officer added, “We are pleased to announce the successful completion of our $550 million refinancing, consisting of our existing $425 million in TLB borrowings plus raising an incremental $125 million. This accomplished several important objectives, inc...