DXP Enterprises gets amended, restated $600 million five-year facility

By Angela McDaniels

Tacoma, Wash., Jan. 2 - DXP Enterprises, Inc. entered into a $600 million amended and restated credit agreement on Thursday that provides for a $250 million term loan and a $350 million revolving line of credit, according to an 8-K filing with the Securities and Exchange Commission.

The facility matures on Jan. 2, 2019.

Before the amendment and restatement, the facility provided for a $137.5 million term loan and a $262.5 million revolver.

DXP Canada Enterprises Ltd. is a Canadian borrower.

Wells Fargo Bank, NA is the administrative agent, a swingline lender and an issuing lender. Bank of America, NA is the syndication agent. Compass Bank is the documentation agent. Wells Fargo Securities LLC is the arranger and bookrunner.

The interest rate is Libor plus 125 basis points to 250 bps. The commitment fee is 20 bps to 45 bps. The exact pricing depends on the company's leverage ratio.

The company said it incurred about $2 million of debt issuance costs related to the new facility.

The company used borrowings under the new credit facility, as well as $3 million of DXP common stock, to finance its acquisition of B27, LLC. The total value of the acquisition is about $285 million, including about $1.3 million of transaction costs.

DXP Enterprises provides maintenance, repair and operating products, equipment and services to industrial customers. B27 provides pump and integrated flow control solutions. Both are based in Houston.

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