DXP Enterprises, Inc. Announces Raising an Incremental $105 million in Term Loan B Borrowings
November 22, 2022 at 09:30 am EST
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DXP Enterprises, Inc. announced that it has closed on raising incremental $105 million Senior Secured Term Loan B borrowings that will be added to the initial $330 million Term Loan B raised in December of 2020. Including the new borrowings, DXP will have $417.2 million in Senior Secured Term Loan B borrowings. The existing and new TLB borrowings mature in 2027 and are priced at Term SOFR plus an applicable margin of 5.25 percent.
DXP intends to use the proceeds to repay borrowings under DXP's Asset Based Loan, 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. The Term Loan B and incremental borrowings are 5.25% over Term SOFR and continues 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.
DXP Enterprises, Inc. is a products and service distributor that offers solutions to industrial customers. It provides pumping solutions, supply chain services and maintenance, repair, operating and production (MROP) services. It has three segments: Service Centers (SC), Innovative Pumping Solutions (IPS) and Supply Chain Services (SCS). SC segment is engaged in providing MRO products, equipment and services, including technical expertise and logistics capabilities, to a variety of customers serving varied end markets with the ability to provide same day delivery. IPS segment provides integrated, custom pump skid packages, pump remanufacturing and manufactures branded private label pumps. SCS segment provides fully outsourced MRO solutions for sourcing MRO products, including inventory optimization and management, storeroom management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement services, and customized reporting.
DXP ENTERPRISES, INC. 
