DXP Enterprises, Inc. announced the successful refinancing of existing Senior Secured Term Loan B borrowings and raising an additional $205 million in TLB borrowings.
The company will have a total of $848 million in Senior Secured Term Loan B borrowings after the transaction, with a maturity date of October 13, 2030.
Proceeds from the new borrowings will be used to repay existing borrowings, for general corporate purposes, potential acquisitions, and transaction fees and expenses.
Financial Flexibility
The refinancing provides DXP with continued operational and financial flexibility to support its growth strategy.
Interest Savings
The repricing of existing debt is expected to result in estimated annual interest savings of $3.2 million.
Transformation and Growth
DXP's transformation over the past five years has led to significant sales growth and covenant compliance adjusted EBITDA increase, positioning the company for continued growth and acquisitions.
- The refinancing aligns with DXP's aim to close the year with strength and accelerate growth in 2026.
- The transaction enhances liquidity, creates flexibility for acquisitions and strategic reinvestment, and reinforces DXP's strong financial foundation.
DXP Enterprises, Inc.'s successful refinancing and incremental borrowing demonstrate the company's commitment to financial stability and growth. With a focus on disciplined capital allocation and strategic investments, DXP is well-positioned to continue its upward trajectory in the coming years.