Houston-based pump solutions and MRO supplies distributor DXP Enterprises has closed on refinancing existing Senior Secured Term Loan B (TLB) borrowings and raising an incremental $205 million in TLB borrowings.

Including the new borrowings, DXP will have $848 million in Senior Secured Term Loan B borrowings. The TLB borrowings mature on Oct. 13, 2030 and are priced at Term SOFR plus an applicable margin of 3.25%.

DXP said it intends to use the proceeds to repay borrowings under DXP’s existing Senior Secured Term Loan B, and the remaining for general corporate purposes, potential acquisitions and transaction fees and expenses. In a Dec. 22 news release, the company said the transaction provides DXP with continued operational and financial flexibility to reinvest in the business and pursue its organic and acquisition growth strategy.

The Term Loan B borrowings continue to include a secured leverage covenant ranging from 5.75:1 to 4.75:1. The new loan under the credit agreement is secured by substantially all the company’s consolidated assets.

“We aim to close the year with strength and accelerate growth in 2026. Our capital allocation strategy remains disciplined — prioritizing investments that drive growth, applying excess cash flow to debt reduction when appropriate and reinvesting in facilities, equipment,and technology to enhance our competitive position,” DXP Chairman and CEO David Little said. “Maintaining liquidity and flexibility will continue to be central as we pursue strategic opportunities and reinvest in the business.”

CFO Kent Yee added that refinancing enables the company to generate an estimated $3.2 million in annual interest savings, enhancing liquidity and creating flexibility to accelerate growth through acquisitions and strategic investment. Following the close of the transaction at the end of Q3, DXP’s debt to EBITA stands at 2.8:1.

“DXP’s transformation over the past five years underscores our disciplined approach — sales have grown from $1.0 billion in 2020 to $1.96 billion for the 12 months ended Sept. 30, 2025, while covenant compliance adjusted EBITDA has increased from $64.9 million to over $225 million during the same period,” Yee detailed. “We look forward to starting off 2026 with more acquisitions as we continue to scale DXP.”

DXP announced the acquisition of Pump Solutions, Inc a—  distributor of pumps, controls and related service and repair focused on the water and wastewater industry — in early December. It was the company’s fifth bolt-on of 2025.