DXP Enterprises, Inc. Broadcasts the Elevating of an Incremental $105 Million in B Time period Loans

  • $70 million in money on stability sheet at closing

  • Maintains liquidity, strengthens the stability sheet

  • Continues to align ongoing capital construction actions to help technique

  • Place DXP for future market circumstances

HOUSTON, November 22, 2022–(COMMERCIAL WIRE)–DXP Enterprises, Inc. (NASDAQ: DXPE) right now introduced that it has closed on incremental borrowing of $105 million of the Senior Secured Time period B Mortgage (“TLB”) to be added to the preliminary $330 million B Time period Mortgage raised in December 2020. Together with the brand new loans, DXP will maintain $417.2 million in senior secured time period B loans. The present and new TLB loans are due in 2027 and are priced at SOFR Time period plus an relevant margin of 5.25 %.

DXP intends to make use of the proceeds to repay loans below DXP’s Asset Based mostly Mortgage (“ABL”), with the rest for normal company functions, potential acquisitions, and transaction charges and bills. The transaction supplies DXP with operational and monetary flexibility to reinvest within the enterprise and pursue its technique round focused and natural development from acquisitions.

The B Time period Mortgage and incremental loans are 5.25 % over the SOFR Time period and proceed to incorporate a assured leverage association starting from 5.75:1 to 4.75:1. The brand new mortgage below the credit score settlement is assured by the consolidated property of the corporate.

David R. Little, President and CEO, commented, “We’re happy with the profitable execution of the elevating of this incremental funding. We’ll take this constructive momentum and shut out the yr sturdy and look to drive development in 2023. This profitable elevating of capital demonstrates the boldness lenders have in our present and long-term plans.As we navigate altering market circumstances, this financing will assist us execute on our technique and finance each working capital and acquisition development.Our Capital allocation technique at this level within the cycle features a mixture of continuous to finance development, making use of extra money stream to debt service, the place acceptable, and supporting DXP available in the market We plan to take care of liquidity and suppleness whereas we search for development alternatives and reinvest within the enterprise.

Kent Yee, Chief Monetary Officer, added: “We’re happy to announce the completion of the elevating of a further $105 million for our present B Time period Mortgage. This achieved a number of vital goals, together with the reimbursement of present loans below the ABL and the creation of liquidity and suppleness going ahead. They’re proactively positioning DXP to grab market alternatives on behalf of all of our stakeholders. DXP continues to be properly positioned to help their disciplined development technique going ahead. We expertise sturdy curiosity and market demand for this transaction, demonstrating the boldness present and new lenders, traders and different monetary contributors have in DXP We recognize the help of our advisors and lender group Based mostly on the transaction closing on the finish For the third quarter, DXP ​​internet debt to EBITDA was 2.86:1”

Extra particulars on the TLB incremental loans will likely be accessible within the Present DXP Report on Kind 8-Ok to be filed with the Securities and Change Fee by November 29.the.

About DXP Enterprises, Inc.

DXP Enterprises, Inc. is a number one distributor of value-added services and complete cost-saving options for industrial clients in the US, Canada, Mexico and Dubai. DXP supplies progressive pumping options, provide chain providers, and upkeep, restore, operation, and manufacturing (“MROP”) providers that emphasize and make the most of DXP’s huge product data and technical experience in rotating gear, bearings, energy transmission, vitality, metalworking, industrial provides and safety. services. DXP’s breadth of MROP merchandise and repair options permits DXP to be versatile and customer-focused, creating aggressive benefits for our clients. DXP’s enterprise segments embrace service facilities, progressive pumping options, and provide chain providers. For extra data, go to www.dxpe.com.

The Non-public Securities Litigation Reform Act of 1995 supplies a “secure harbor” for forward-looking statements. Sure data included on this press launch (in addition to data included in oral statements or different written statements made by or to be made by the Firm) comprises forward-looking statements. Such forward-looking data entails important dangers and uncertainties that might materially have an effect on anticipated future outcomes; and accordingly, such outcomes could differ from these expressed in any forward-looking assertion made by or on behalf of the Firm. These dangers and uncertainties embrace, amongst others; means to boost mandatory capital, reliance on present administration, leverage and debt service, nationwide or world financial circumstances, and modifications in buyer preferences and attitudes. In some circumstances, you could determine forward-looking statements by terminology reminiscent of, however not restricted to, “could”, “will”, “ought to”, “intend”, “anticipate”, “plan”, “anticipate”, “consider”, “estimate” , “predict”, “potential”, “goal” or “proceed” or the unfavorable of such phrases or different comparable terminology. For extra data, please evaluate the Firm’s filings with the Securities and Change Fee.

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Contacts

kent yee
Senior Vice President CFO
713-996-4700 – www.dxpe.com

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