DXP Enterprises entered into an amended and restated loan and security agreement by and among the company and certain of the company’s U.S. and Canadian subsidiaries, as borrowers, with Bank of America as agent.

The ABL credit agreement provides for asset-based revolving loans in an aggregate principal amount of up to $135 million, with up to $125 million to be made available to the U.S. borrowers and up to $10 million to be made available to the Canadian borrowers. The ABL credit agreement amends and restates the loan and security agreement dated as of Aug. 29, 2017. Subject to the conditions set forth in the ABL credit agreement, the ABL facility may be increased by up to an aggregate of $50 million, in minimum increments of $10 million. The ABL facility matures on July 19, 2027.

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

“We have an extremely supportive set of ABL lenders, and appreciate their willingness to partner with DXP in creating stakeholder value,” Kent Yee, CFO at DXP, said. “Our capital allocation strategy at this point in the cycle includes a mix of funding growth and applying any excess cash flow to debt service, when appropriate. While today’s environment continues to evolve and remain dynamic, we are comfortable with the sustainability of our financial performance and our supporting capital structure while pursuing organic and inorganic growth plans.”