On March 17, 2020, DXP Enterprises, Inc. (the “Company”) entered into an Increase Agreement (the “Increase Agreement”), by and among the Company, certain of the Company’s US subsidiaries, as borrowers (the “US Borrowers”), certain of the Company’s Canadian subsidiaries, as borrowers (the “Canadian Borrowers”), the incremental lenders party thereto and Bank of America, N.A., as agent (the “Agent”).

The Increase Agreement amends and supplements that certain Loan and Security Agreement, dated as of August 29, 2017 (as amended by the Increase Agreement, and as amended, supplemented or otherwise modified from time to time, the “ABL Credit Agreement”), by and among the Company, the US Borrowers, the Canadian Borrowers, the lenders party thereto and the Agent (all as defined therein). The Increase Agreement provides for, among other things, a $50 million increase in the aggregate U.S. Revolver Commitments (as such term is defined in the ABL Credit Agreement) under the ABL Credit Agreement, such that after giving effect to the Increase Agreement (i) the aggregate U.S. Revolver Commitments under the ABL Credit Agreement are $125 million and (ii) the aggregate Commitments (as such term is defined in the ABL Credit Agreement) under the ABL Credit Agreement are $135 million (such amount includes $10 million of Canadian Revolver Commitments (as such term is defined in the ABL Credit Agreement)). There were no other amendments to the underlying ABL Credit Agreement.

The foregoing description of the Increase Agreement does not purport to be a complete description of such agreement and is qualified in its entirety by reference to the complete text of such agreement, a copy of which is filed as exhibit 10.1 hereto and is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant

The disclosure required by this item is included in Item 1.01 above and is incorporated herein by reference. For the other material terms of the ABL Credit Agreement, dated as of August 29, 2017, and as subsequently amended, please refer to our prior 8-K filed on August 30, 2017.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

10.1 Increase Agreement, dated as of March 17, 2020, by and among the Company, certain of the Company’s US subsidiaries, as borrowers, certain of the Company’s Canadian subsidiaries, as borrowers, the incremental lenders party thereto and Bank of America, N.A., as agent.

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DXP ENTERPRISES INC Exhibit
EX-10.1 2 dxp-increaseablagreement.htm EXHIBIT 10.1 Exhibit [Execution Version]INCREASE AGREEMENTTHIS INCREASE AGREEMENT,…
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About DXP Enterprises, Inc. (NASDAQ:DXPE)

DXP Enterprises, Inc. (DXP) is engaged in the business of distributing maintenance, repair and operating (MRO) products, equipment and service to industrial customers. The Company operates through three segments: Service Centers, Supply Chain Services and Innovative Pumping Solutions. The Service Centers segment provides MRO products, equipment and services, including technical expertise and logistics capabilities to industrial customers. The Supply Chain Services segment manages all or part of a customer’s supply chain, including procurement and inventory management. The Innovative Pumping Solutions segment provides source for engineering, systems design and fabrication. It operates from approximately 190 locations in over 40 states in the United States, approximately 10 provinces in Canada, Dubai and one state in Mexico. The Company’s product categories include rotating equipment, bearings & power transmission, industrial supplies, metal working and safety products & services.