Home Supporting structure DXP Enterprises Announces Amen – GuruFocus.com

DXP Enterprises Announces Amen – GuruFocus.com

0

DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that on July 19, 2022, DXP ​​Enterprises, Inc. (the “Company”) entered into an Amended and Restated Loan and Security Agreement (the “ABL Credit Agreement”) by and between the Company, certain of the Company’s US subsidiaries, as borrowers, certain of the Company’s Canadian subsidiaries, as borrowers, with Bank of America, NA, as agent.

The ABL Credit Agreement provides for asset-based revolving loans (the “ABL Loans”) in an aggregate principal amount of up to $135.0 million, with a maximum of $125.0 million to be made available. available to U.S. borrowers (the “U.S. ABL Facility”) and up to $10.0 million to be made available to Canadian borrowers (the “Canadian ABL Facility” and, together with the U.S. ABL Facility, the ABL”). The ABL Credit Agreement amends and restates the Loan and Guarantee Agreement dated August 29, 2017. Subject to the terms set forth in the ABL Credit Agreement, the ABL Facility may be increased to a total of 50, $0 million, in minimum increments. of $10.0 million. The ABL facility matures on July 19, 2027.

David R. Little, President and CEO, said, “We are pleased with the continued support of our lenders. As we navigate changing market conditions, this amendment maintains the liquidity and flexibility of our capital structure as we continue to execute our strategy and fund both working capital and acquisition growth. We plan to maintain liquidity and flexibility while pursuing our growth opportunities and reinvesting in the business.

Kent Yee, Chief Financial Officer, added, “We have an extremely supportive set of ABL lenders and appreciate their willingness to partner with DXP to create stakeholder value. Our capital allocation strategy at this stage of the cycle includes a combination of financing growth and applying any excess cash flow to debt service, if applicable. As today’s environment continues to evolve and remain dynamic, we are comfortable with the sustainability of our financial performance and supporting capital structure while pursuing our organic and inorganic growth plans. .

About DXP Enterprises, Inc.

DXP Enterprises, Inc. is a leading distributor of products and services that adds value and total savings solutions to industrial customers in the United States, Canada and Dubai. DXP provides innovative pumping solutions, supply chain services, and maintenance, repair, operations, and production (“MROP”) services that emphasize and utilize the extensive product knowledge and DXP’s technical expertise in rotating equipment, bearings, power transmission, metalworking, industrial supplies and safety. products and services. The breadth of DXP’s MROP products and service solutions allows DXP to be flexible and customer-focused, creating competitive advantages for our customers. DXP’s business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, visit www.dxpe.com.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information contained in this press release (as well as information contained in oral or other written statements made or to be made by the Company) contains forward-looking statements. These forward-looking statements include, but are not limited to, those regarding the Company’s expectations regarding the impact of low oil and gas commodity prices; the Company’s expectations regarding the filing of Form 10-Q; description of expected changes in the Company’s consolidated balance sheet and results of operations and the Company’s assessment of the impact of such expected changes; the business of the Company, the future profitability of the Company, its cash flows, its liquidity and its growth. This forward-looking information involves significant risks and uncertainties that could materially affect expected results in the future; and accordingly, these results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to; lower oil and natural gas prices; declines in oil and natural gas industry expense levels, which may result from lower oil and natural gas prices or other factors; the failure of the Company or its independent auditors to complete the work necessary to file the Form 10-Q, within the required timeframes; unanticipated changes in the Company’s results of operations in Form 10-Q as filed or in connection with prior periods, including with respect to the anticipated changes noted herein; the unforeseen impact of such changes and its materiality; ability to obtain necessary capital, dependence on existing management, leverage and debt servicing, domestic or global economic conditions, economic risks related to the impact of COVID-19, ability to manage changes and the continued health or availability of management personnel; 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 these terms or any other comparable terminology. For more information, see the company’s filings with the Securities and Exchange Commission. Further information about these risks and other potential factors that could affect the Company’s business and financial results are included in the Company’s filings with the SEC, including in the sections “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of the most recent periodic reports filed by the Company on Forms 10-K and 10-Q and subsequent filings. The Company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220725005811/en/