Company: DXPE
Filing Date: 2025-04-30
Form Type: ARS
Source: 0001020710-25-000081
Chunk: 87

Company: DXP ENTERPRISES INC
Filing Date: 2025-04-30
Form: ARS
Chunk 87
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, inventory, and related assets of the U.S. borrower subsidiaries ranks prior to the security interest in this collateral which secures the Term Loan B. The obligations under the Canadian Borrowing Base are primarily secured, subject to certain exceptions, by a first-priority secure interest in the accounts receivable, inventory and related assets of our wholly owned, material Canadian subsidiaries and our wholly owned material U.S. subsidiaries. Interest rate The interest rate for the ABL Revolver was 7.75% and 8.75% as of December 31, 2024 and December 31, 2023, respectively. Facility Size Increases The ABL Credit Agreement allows for incremental increases in facility size up to an aggregate of $50 million. Excess Availability As of December 31, 2024, the borrowing availability under our credit facility was $125.6 million compared to $132.1 million at December 31, 2023, primarily as a result of outstanding letters of credit. Financial Covenant The Company's principal financial covenant under the ABL Credit Agreement include a Fixed Charge Coverage Ratio. The Fixed Charge Coverage Ratio under the ABL Credit Agreement is defined as the ratio for the most recently completed four- fiscal quarter period, of (a) EBITDA minus capital expenditures (excluding those financed or funded with debt (other than the ABL Loans), (ii) the portion thereof funded with the net proceeds from asset dispositions of equipment or real property which the Company is permitted to reinvest pursuant to the Term Loan and the portion thereof funded with the net proceeds of casualty insurance or condemnation awards in respect of any equipment and real estate which DXP is not required to use to prepay the ABL Loans pursuant to the Term Loan B Agreement or with the proceeds of casualty insurance or condemnation awards in respect of any other property) minus cash taxes paid (net of cash tax refunds received during such period), to (b) fixed charges. The Company is restricted from allowing its fixed charge coverage ratio be less than 1.00 to 1.00 during a compliance period, which is triggered when the availability under the ABL Revolver falls below a threshold set forth in the ABL Credit Agreement. As of December 31, 2024, the Company's Fixed Charge Coverage Ratio was 1.70 to 1.00. Table of Contents 65

Maturities of Debt: As of December 31, 2024, the maturities of long-term debt for the next five years and thereafter were as