On Oct. 16, Houston-based pumping solutions and MROP supplies distributor DXP Enterprises, Inc. announced it has closed on refinancing existing Senior Secured Term Loan B borrowings and raising an incremental $125 million in TLB borrowings.

DXP said it now will have $550.0 million in Senior Secured Term Loan B borrowings. The TLB borrowings mature on October 30, and are priced at Term SOFR plus an applicable margin of 4.75%.

The company said in a news release that it intends to use the proceeds to repay borrowings under DXP’s existing Senior Secured Term Loan B, and the remaining for general corporate purposes, potential acquisitions, and transaction fees and expenses.

“The transaction provides DXP with operational and financial flexibility to reinvest in the business and pursue its organic and targeted acquisition growth strategy,” DXP said.

The new loan under the credit agreement is secured by the company’s consolidated assets.

“We are pleased with the successful execution of our refinancing,” said David R. Little, Chairman and CEO. “We will take this positive momentum, close out the year strong and look to drive growth in 2024. This successful capital raising demonstrates the confidence lenders have in our current and long-term plans. This financing will support us in executing our strategy and funding both working capital, acquisition growth and reinvesting in the business. Our capital allocation strategy at this point in the cycle includes a mix of continuing to fund growth, applying excess cash flow to debt service, when appropriate, and supporting DXP in the market. We plan to maintain liquidity and flexibility while pursuing growth opportunities and reinvesting in the business.”

In May, DXP announced that is had completed the acquisitions of both Riordan Materials Corporation and Florida Valve & Equipment Corp. and Environmental MD.

On MDM’s 2023 Top Distributors Lists, DXP ranks No. 22 among industrial distributors, No. 10 for MRO, No. 9 for power transmission/bearings, No. 4 among fluid power, and are included on the unranked safety distributors list.