DXP Enterprises closed a new $250 million senior secured term loan B and refinanced its existing credit facility with a new $85 million asset-based revolving credit facility.

The financings mature on August 29, 2023 and August 29, 2022, respectively.

According to a related 8-K filing, Goldman Sachs Bank USA served as administrative agent for the term loan B and as collateral agent for the secured parties. Bank of America served as administrative agent for the ABL facility.

DXP intends to use the proceeds of the term loan B to repay the existing revolver and term loan A credit facilities, which will be terminated on that payment.

Under the ABL revolver, the borrowing spread is based on total availability and ranges from 1.25% to 1.75% over LIBOR for U.S. borrowings and 1.25% to 1.75% over CDOR for Canadian borrowings. The ABL revolver provides for $75 million borrowings denominated in U.S. dollars and $10 million in Canadian dollars. The term loan B is priced at 5.50% over LIBOR and includes a secured leverage covenant ranging from 5.75:1 to 4.50:1.

The financing will be used to repay the indebtedness outstanding under the company’s prior credit agreement with Wells Fargo Bank as administrative agent.

David R. Little, chairman and CEO, remarked, “We are pleased with the support and commitments from our revolving credit facility and term loan lenders. The new facilities improve our financial flexibility and enhance our ability to pursue growth organically and through complementary acquisitions. The favorable terms of the new ABL revolver and term loan B reflect current market conditions and allows us to most efficiently participate in the market recovery.”

DXP Enterprises is a global products and service distributor.