Houston-based pumping solutions and industrial supplies distributor DXP Enterprises refinanced its existing debt with a Senior Secured Term Loan B (TLB) and secured an additional $105 million in TLB borrowings.
The TLB borrowings, which are set to mature on October 13, 2030, are priced at Term SOFR. The company’s total Senior Secured Term Loan B borrowings will amount to $649.5 million.
“We are pleased with another successful refinancing, DXP Chairman and CEO David Little Said in an Oct. 8 news release. “Like last year at this time, we will take this positive momentum, close out the year strong and look to drive growth in 2025. Our capital allocation strategy includes a mix of continuing to fund growth; applying excess cash flow to debt service, when appropriate; reinvesting in the business through our facilities, equipment and software; and supporting DXP in the market.”
DXP said it intends to use the funds to repay borrowings under its existing Senior Secured Term Loan B, with the remainder allocated for general corporate purposes, potential acquisitions and related transaction fees and expenses.
“This accomplished several objectives, including repricing our existing TLB borrowings, saving an estimated six million in annual interest expense and creating liquidity and flexibility going forward as we look to accelerate growth via acquisitions and strategically reinvest in the business,” DXP CFO Kent Yee said.
With $1.68 billion in 2023 revenue, DXP was No. 22 on MDM’s Top Industrial Distributors List, and No. 10 for MRO distributors.
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