DXP Enterprises Boosts Credit Facility to $185 Million

By Philip Seaworth • Wednesday, July 09 15:28 • Permanent Link

DXP Enterprises, Inc. (NASDAQ: DXPE) recently announced an amendment to its asset-based revolving credit facility, increasing the total commitments from $135 million to $185 million. The increase agreement, which was entered into on July 1, 2025, provides the company with continued operational and financial flexibility to reinvest in the business and pursue its organic and acquisition growth strategy.

The amendment is aligned with the company's capital allocation strategy, which includes funding growth, debt service, reinvesting in the business, and supporting DXP in the market. According to Kent Yee, the Chief Financial Officer, the increase in borrowing capacity by $50 million aims to create liquidity and flexibility for accelerating growth via acquisitions and strategically reinvesting in the business.

Furthermore, DXP has demonstrated notable growth in its sales and covenant compliance adjusted EBITDA. Sales have increased from $1.0 billion in 2020 to $1.9 billion for the last twelve months ending March 31, 2025, while covenant compliance adjusted EBITDA has grown from $64.9 million in 2020 to over $212.8 million through the same period.

The amendment reflects the company's commitment to maintaining liquidity and flexibility while pursuing growth opportunities and reinvesting in the business, as emphasized by David R. Little, the Chairman and Chief Executive Officer. The increase in the asset-based revolving credit facility is expected to support DXP's disciplined growth strategy and its efforts to diversify and transform the business.

The details of the increase agreement will be available in DXP's current report on Form 8-K, to be filed with the Securities and Exchange Commission by July 8th. DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico, and Dubai. As a result of these announcements, the company's shares have moved 2.61% on the market, and are now trading at a price of $92.265. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.