DXP Enterprises entered into a $50 million increase agreement to its asset-based loan facility with Bank of America as agent. DXP will have $135 million of undrawn capacity available. There were no other amendments to the underlying ABL credit agreement.

“We are pleased that we were able to increase the ABL commitments by $50 million. The expanded credit facility gives us additional liquidity as we navigate the current environment,” David R. Little, chairman and CEO of DXP Enterprises, said. “As we discussed on our Q4 conference call, we expect cash flow generation with negligible capital expenditures in fiscal 2020. With this up-sized ABL, we have positioned ourselves to take advantage of the market when appropriate.”

“We are pleased to have received this amendment and we appreciate the support by our agent. This further enhances our liquidity, “ Kent Yee, CFO of DXP Enterprises, said. “As of December 31, 2019, we had $54.3 million in cash on the balance sheet and along with that we now have $135 million in availability under our ABL that matures in 2022. Our senior leverage was 2.2:1 with an outside covenant at the end of Q1 of 4.75:1. While today’s environment will continue to evolve, we are comfortable with our capital structure.”

DXP Enterprises provides pumping solutions, supply chain services and maintenance, repair, operating and production services that utilize the company’s expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services.