DXP Enterprises closed a refinancing of its existing Senior Secured Term Loan B and raised an additional $205 million, bringing the total balance to $848 million. The new debt matures on October 13 2030 and is priced at Term SOFR plus a 3.25 percent margin, a 50‑basis‑point reduction from the previous 3.75 percent margin on the $643 million of existing borrowings.
The refinancing delivers an estimated $3.2 million in annual interest savings, lowering the company’s effective borrowing cost and improving its pro‑forma net debt‑to‑EBITDA ratio to 2.8:1. The lower cost also frees cash that DXP can deploy to pay down other debt, fund capital expenditures, and pursue acquisitions within its water and wastewater platform.
DXP’s financial performance over the past year has accelerated: sales rose from $1.0 billion in 2020 to $1.96 billion for the twelve months ended September 30 2025, while adjusted EBITDA grew from $64.9 million to over $225 million. The refinancing aligns with the company’s strategy to scale its water and wastewater business, which has recently added Pump Solutions (closed December 1 2025) and Triangle Pump & Equipment (announced November 4 2025).
Chairman and CEO David R. Little said the transaction “reinforces DXP’s strong financial foundation and positions the company to accelerate growth in 2026.” CFO Kent Yee added that the interest savings “provide additional flexibility for future capital allocation and support our ongoing investment in high‑return opportunities.”
With the new debt structure, DXP maintains a long‑term horizon and a lower leverage profile, giving management confidence to continue expanding its portfolio while keeping interest expense under control. The refinancing is a key component of DXP’s broader capital allocation strategy, which prioritizes debt reduction, strategic acquisitions, and reinvestment in core operations.
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