DXP Enterprises announced that it has expanded its asset-based revolving credit facility from $185 million to $225 million, increasing its borrowing capacity by $40 million and providing additional financial flexibility to support its organic growth, acquisition strategy, and ongoing investments in the business.
The Houston-based industrial products and services distributor entered into a Second Amended and Restated Loan Agreement on July 2, 2026. The agreement was executed among DXP, certain subsidiaries serving as borrowers, additional subsidiaries acting as guarantors, and the company’s lending group.
Under the expanded facility, DXP can obtain asset-based revolving loans totaling up to $225 million. Of that amount, up to $210 million will be available to the company’s U.S. borrowers, while up to $15 million will be allocated to its Canadian borrowers.
The amended facility is scheduled to mature on July 2, 2031, providing DXP with a five-year source of revolving capital to manage working capital requirements, fund strategic investments, and pursue acquisitions.
Interest on outstanding borrowings will accrue at either Term SOFR or Term CORRA plus a margin ranging from 1.25% to 1.75% annually. Borrowers may alternatively select a base-rate option tied to the applicable U.S. or Canadian benchmark plus a margin ranging from 0.25% to 0.75%.
The applicable margin will be determined by DXP’s average daily excess availability under the facility during the most recently completed calendar quarter.
Subject to the conditions contained in the amended credit agreement, DXP may request further increases in the facility totaling up to $50 million. Any additional increases would be made in minimum increments of $10 million.
The expanded revolver is intended to preserve DXP’s liquidity while supporting a capital-allocation strategy that balances growth investments, acquisitions, debt repayment, and improvements to the company’s facilities, equipment, and software infrastructure.
DXP said the new agreement also positions the company to optimize its cost of capital as it continues generating free cash flow and evolving its broader capital structure.
The company has expanded significantly over the past several years through a combination of organic growth and acquisitions. DXP’s sales increased from approximately $1.1 billion in 2021 to $2.1 billion for the 12 months ended March 31, 2026.
Over the same period, net income grew from $16.4 million to $88.1 million. Covenant-compliance adjusted EBITDA increased from $74.9 million in 2021 to more than $243.9 million for the 12 months ended March 31, 2026.
DXP distributes industrial products and provides services to customers across the United States, Canada, Mexico, and Dubai. Its offerings include pumping solutions, supply-chain services, and maintenance, repair, operating, and production services.
The company operates through its Service Centers, Innovative Pumping Solutions, and Supply Chain Services business segments. DXP serves customers requiring rotating equipment, bearings, power transmission products, metalworking products, industrial supplies, and safety products and services.
Additional information about the amended credit agreement is expected to be included in DXP’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.
KEY QUOTES:
“We are pleased with our new ABL. We will take this positive momentum, push to close out the year strong during the second half of 2026 and look to drive further growth in 2027. Our capital allocation strategy includes a mix of continuing to fund growth; applying excess cash flow to debt service, when appropriate; reinvesting in the business through our facilities, equipment, and software; and supporting DXP in the market. We plan to maintain liquidity and flexibility while pursuing growth opportunities and reinvesting in the business and positioning ourselves to lower our cost of capital as we move forward.”
David R. Little, Chairman and Chief Executive Officer of DXP Enterprises
“We are pleased with our new ABL, increasing our borrowing capacity by $40 million. This accomplished several objectives, including maintaining liquidity and flexibility as we continue to grow both organically and through acquisitions while strategically reinvesting in the business. Additionally, this new facility will put us in a position in the future to lower our cost of capital as we continue to produce free cash flow while DXP continues its growth trajectory. DXP continues to diversify and transform the business, as evidenced by sales growing from $1.1 billion in 2021 to $2.1 billion for the last 12 months ending March 31, 2026, and net income growing from $16.4 million in 2021 to $88.1 million during the same period. Covenant-compliance adjusted EBITDA also grew from $74.9 million in 2021 to more than $243.9 million for the last 12 months ending March 31, 2026. We appreciate the support from our advisors and lender group.”
Kent Yee, Chief Financial Officer of DXP Enterprises
