DXP Enterprises Announces Increase to Asset Based Loan Facility
March 19 2020 - 2:31PM
Business Wire
DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that
it entered into a $50 million Increase Agreement (the “Increase
Agreement”), by and among DXP Enterprises, Inc. (the “Company”),
certain of the Company’s US subsidiaries, as borrowers, certain of
the Company’s Canadian subsidiaries, as borrowers, the incremental
lenders party thereto and Bank of America, N.A., as agent.
After giving effect to the Increase Agreement, DXP will have
$135 million of undrawn capacity available. There were no other
amendments to the underlying ABL Credit Agreement.
David R. Little, Chairman and CEO, commented, “We are pleased
that we were able to increase the ABL commitments by $50 million.
The expanded credit facility gives us additional liquidity as we
navigate the current environment. As we discussed on our Q4
conference call, we expect cash flow generation with negligible
capital expenditures in fiscal 2020. With this up-sized ABL, we
have positioned ourselves to take advantage of the market when
appropriate.”
Kent Yee, CFO, commented, “We are pleased to have received this
amendment and we appreciate the support by our agent. This further
enhances our liquidity. As of December 31, 2019, we had $54.3
million in cash on the balance sheet and along with that we now
have $135 million in availability under our ABL that matures in
2022. Our senior leverage was 2.2:1 with an outside covenant at the
end of Q1 of 4.75:1. While today's environment will continue to
evolve, we are comfortable with our capital structure."
About DXP Enterprises, Inc.
DXP Enterprises, Inc. is a leading products and service
distributor that adds value and total cost savings solutions to
industrial customers throughout the United States, Canada and
Dubai. DXP provides innovative pumping solutions, supply chain
services and maintenance, repair, operating and production ("MROP")
services that emphasize and utilize DXP’s vast product knowledge
and technical expertise in rotating equipment, bearings, power
transmission, metal working, industrial supplies and safety
products and services. DXP's breadth of MROP products and service
solutions allows DXP to be flexible and customer-driven, creating
competitive advantages for our customers. DXP’s business segments
include Service Centers, Innovative Pumping Solutions and Supply
Chain Services. For more information, go to www.dxpe.com.
The Private Securities Litigation Reform Act of 1995 provides a
“safe-harbor” for forward-looking statements. Certain information
included in this press release (as well as information included in
oral statements or other written statements made by or to be made
by the Company) contains statements that are forward-looking. Such
forward-looking information involves important risks and
uncertainties that could significantly affect anticipated results
in the future; and accordingly, such results may differ from those
expressed in any forward-looking statement made by or on behalf of
the Company. These risks and uncertainties include, but are not
limited to; ability to obtain needed capital, dependence on
existing management, leverage and debt service, domestic or global
economic conditions, and changes in customer preferences and
attitudes. In some cases, you can identify forward-looking
statements by terminology such as, but not limited to, “may,”
“will,” “should,” “intend,” “expect,” “plan,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “goal,” or
“continue” or the negative of such terms or other comparable
terminology. For more information, review the Company’s filings
with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20200319005691/en/
Kent Yee, 713-996-4700 Senior Vice President, CFO
www.dxpe.com
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