DXP Enterprises enters into up to $85 million ABL credit agreement

By Tali Rackner

Minneapolis, Aug. 30 – DXP Enterprises, Inc. entered into an up to $85 million ABL credit agreement on Tuesday with Bank of America, NA as agent, according to an 8-K filing with the Securities and Exchange Commission.

Of the total amount, up to $75 million is available to U.S. borrowers and up to $20 million is available to Canadian borrowers.

The facility may be increased by up to $50 million, in minimum increments of $10 million.

The facility matures on Aug. 29, 2022.

Borrowings bear interest at Libor plus 125 basis points to 175 bps, based upon the average daily excess availability for the most recently completed calendar quarter. The unused fee ranges from 25 bps to 37.5 bps.

The credit agreement includes a financial covenant requiring DXP to maintain a minimum fixed charge coverage ratio of 1 time during a compliance period.

DXP is a Houston-based provider of technical products and services for MRO, OEM and capital equipment customers.

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