<SEC-DOCUMENT>0001157523-18-001342.txt : 20180626
<SEC-HEADER>0001157523-18-001342.hdr.sgml : 20180626
<ACCEPTANCE-DATETIME>20180626140703
ACCESSION NUMBER:		0001157523-18-001342
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20180625
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20180626
DATE AS OF CHANGE:		20180626

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DXP ENTERPRISES INC
		CENTRAL INDEX KEY:			0001020710
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-INDUSTRIAL MACHINERY & EQUIPMENT [5084]
		IRS NUMBER:				760509661
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			0727

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21513
		FILM NUMBER:		18919000

	BUSINESS ADDRESS:	
		STREET 1:		7272 PINEMONT DRIVE
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77040
		BUSINESS PHONE:		7139964700

	MAIL ADDRESS:	
		STREET 1:		7272 PINEMONT DRIVE
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77040

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INDEX INC
		DATE OF NAME CHANGE:	19960808
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a51828468.htm
<DESCRIPTION>DXP ENTERPRISES, INC. 8-K
<TEXT>
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    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt">UNITED STATES SECURITIES AND EXCHANGE
      COMMISSION</font><font style="font-size: 12pt"><br style="font-size: 12pt"></font><font style="font-size: 12pt">Washington,
      D.C. 20549</font><font style="font-size: 14pt"><br style="font-size: 14pt"></font><br><font style="font-size: 14pt"><b>Form
      8-K</b></font><br><br><b>CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
      OF THE SECURITIES EXCHANGE ACT </b><br><b>OF 1934</b><br><b>Date of
      Report (date of earliest event reported):&#160;&#160;<font style="font-family: Times New Roman; font-size: 10pt">June
      25, 2018</font></b><br><br><b>Commission file number 0-21513</b><br><br><font style="font-size: 18pt"><b>DXP
      Enterprises, Inc.</b></font><br><i>(Exact name of registrant as
      specified in its charter)</i>
    </p>
    <p style="text-align: center">

    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; margin-bottom: 10.0px; font-size: 10pt; width: 100%" cellspacing="0">
      <tr>
        <td style="border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid; text-align: center; border-bottom-color: black; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>Texas</b>
          </p>
        </td>
        <td style="border-bottom-width: 1.0pt; padding-left: 0.0px; white-space: nowrap; border-bottom-style: solid; text-align: center; padding-right: 0.0px; border-bottom-color: black; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>76-0509661</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            (State or other jurisdiction of incorporation or
          </p>
          <p style="margin-bottom: 0px; margin-top: 0px">
            organization)
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="top">
          (I.R.S. Employer Identification Number)
        </td>
      </tr>
      <tr>
        <td style="width: 50%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 50%" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid; text-align: center; border-bottom-color: black; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>7272 Pinemont, Houston, Texas 77040</b>
          </p>
        </td>
        <td style="border-bottom-width: 1.0pt; padding-left: 0.0px; white-space: nowrap; border-bottom-style: solid; text-align: center; padding-right: 0.0px; border-bottom-color: black; width: 50%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <b>(713) 996-4700</b>
          </p>
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="top">
          (Address of principal executive offices)
        </td>
        <td style="padding-left: 0.0px; text-align: center; width: 50%" valign="top">
          Registrant&#8217;s telephone number, including area code.
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      <br>

    </p>
    <p>
      <br>
      Check the appropriate box below if the Form 8-K filing is intended to
      simultaneously satisfy the filing obligation of the registrant under any
      of the following provisions:
    </p>
    <p style="white-space: nowrap">
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)<br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)<br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))<br><font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font><font style="font-size: 12pt">&#160;&#160;</font>Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
    </p>
    <p>
      Indicate by check mark whether the registrant is an emerging growth
      company as defined in Rule 405 of the Securities Act of 1933 (&#167;230.405
      of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
      (&#167;240.12b-2 of this chapter).
    </p>
    <p>
      Emerging growth company&#160;&#160;&#160;&#160;<font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <p>
      If an emerging growth company, indicate by check mark if the registrant
      has elected not to use the extended transition period for complying with
      any new or revised financial accounting standards provided pursuant to
      Section 13(a) of the Exchange Act.&#160;&#160;&#160;&#160;<font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <b>ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT</b>
    </p>
    <p>
      On June 26, 2018, DXP Enterprises, Inc. (the &#8220;Company&#8221;) announced that
      on June 25, 2018 the Company successfully repriced its $248.8 million
      Term Loan B.
    </p>
    <p style="text-align: justify">
      Under the amended term loan, the interest rate has been reduced by 75
      basis points to LIBOR + 4.75 percent (the LIBOR floor of 1.00 percent is
      unchanged), from LIBOR + 5.50 percent, which is expected to generate
      annualized interest expense savings of approximately $1.9 million based
      on the current principal balance outstanding.&#160;&#160;
    </p>
    <p>
      The Company expects full year 2018 interest expense to be favorably
      impacted by approximately $0.93 million, reflecting the benefit of a
      lower interest rate.&#160;&#160;This will be offset by one-time transaction fees
      and incremental and accelerated amortization of debt issuance costs.
    </p>
    <p>

    </p>
    <p>

    </p>
    <p>

    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="white-space: nowrap">
      <b>ITEM 9.01 &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;FINANCIAL STATEMENTS AND EXHIBITS</b>
    </p>
    <p>
      The following exhibit is included herein:
    </p>
    <p>
      99.1 Press release dated June 26, 2018.
    </p>
    <p>

    </p>
    <p>

    </p>
    <p>

    </p>
    <p>

    </p>
    <p>

    </p>
    <p style="text-align: center">
      SIGNATURES
    </p>
    <p style="text-align: left">
      Pursuant to the requirements of the Securities Exchange Act of 1934, as
      amended, the Registrant has duly caused this report to be signed on its
      behalf by the undersigned hereunto duly authorized.
    </p>
    <p style="text-indent: 30.0px; text-align: left">

    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; margin-bottom: 10.0px; font-size: 10pt; width: 100%" cellspacing="0">
      <tr>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="text-align: justify">
            DXP ENTERPRISES, INC.
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="text-align: justify">
            (Registrant)
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="width: 77%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 20%" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px; width: 3%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            By:
          </p>
        </td>
        <td style="border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid; text-align: left; border-bottom-color: black; width: 77%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Kent Yee
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 77%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Kent Yee
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Senior Vice President and Chief Financial Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="width: 77%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 20%" valign="top">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; padding-bottom: 2.0px; width: 3%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            By:
          </p>
        </td>
        <td style="border-bottom-width: 1.0pt; padding-left: 0.0px; border-bottom-style: solid; text-align: left; border-bottom-color: black; width: 77%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            /s/ Gene Padgett
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 77%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Gene Padgett
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td colspan="2" style="padding-left: 0.0px; text-align: left" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Senior Vice President and Chief Accounting Officer
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 3%">

        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 77%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 3%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            Dated:
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 77%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            June 26, 2018
          </p>
        </td>
        <td style="width: 20%">

        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <div style="text-indent: 0pt; margin-left: 0pt; margin-bottom: 10pt; width: 100%; margin-right: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="color: black; height: 1.5pt">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">

    </p>
    <p style="text-align: center">
      <b>INDEX TO EXHIBITS</b>
    </p>
    <p style="text-align: left">

    </p>
<div style="text-align:left">
    <table style="font-family: Times New Roman; margin-bottom: 10.0px; font-size: 10pt; width: 100%" cellspacing="0">
      <tr>
        <td style="padding-left: 0.0px; text-align: left; width: 15%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><i><b>Exhibit No.</b></i></u>
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 85%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <u><i><b>Description</b></i></u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 15%">

        </td>
        <td style="width: 85%">
          &#160;
        </td>
      </tr>
      <tr>
        <td style="padding-left: 0.0px; white-space: nowrap; text-align: left; padding-right: 0.0px; width: 15%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <a href="a51828468ex99_1.htm">99.1</a>
          </p>
        </td>
        <td style="padding-left: 0.0px; text-align: left; width: 85%" valign="top">
          <p style="margin-bottom: 0px; margin-top: 0px">
            <a href="a51828468ex99_1.htm">Press release dated June 26, 2018</a>
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a51828468ex99_1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>DXP
      Enterprises Completes Debt Repricing Transaction; Reduces Annual Cash
      Interest Expense by Approximately $1.9 Million</b></font>
    </p>
    <p>
      HOUSTON--(BUSINESS WIRE)--June 26, 2018--<b>DXP Enterprises, Inc.
      (NASDAQ: DXPE)</b> today announced that effective June 25, 2018, it has
      successfully repriced its $248.8 million Term Loan B.
    </p>
    <p>
      Under the amended term loan, the interest rate has been reduced by 75
      basis points to LIBOR + 4.75 percent (the LIBOR floor of 1.00 percent is
      unchanged), from LIBOR + 5.50 percent, which is expected to generate
      annualized interest expense savings of approximately $1.9 million based
      on the current principal balance outstanding.
    </p>
    <p>
      &#8220;In-line with our commitment to further improving the financial strength
      of DXP, we are announcing the successful repricing of our term loan. We
      will continually explore opportunities to lower borrowing costs as we
      reduce the financial leverage within our capital structure. We
      appreciate our lenders&#8217; continued support of DXP,&#8221; said Kent Yee, CFO of
      DXP Enterprises, Inc.
    </p>
    <p>
      The Company expects full year 2018 interest expense to be favorably
      impacted by approximately $0.93 million, reflecting the benefit of a
      lower interest rate. This will be offset by one-time transaction fees
      and incremental and accelerated amortization of debt issuance costs.
    </p>
    <p>
      <b>Non-GAAP Financial Measures</b>
    </p>
    <p>
      DXP supplements reporting of net income with non-GAAP measurements,
      including EBITDA, Adjusted EBITDA and free cash flow. This supplemental
      information should not be considered in isolation or as a substitute for
      the unaudited GAAP measurements.&#160;Additional information regarding EBITDA
      and free cash flow referred to in this press release are included below
      under &quot;--Unaudited Reconciliation of Non-GAAP Financial Information.&quot;
    </p>
    <p>
      The Company believes EBITDA provides additional information about: (i)
      operating performance, because it assists in comparing the operating
      performance of the business, as it removes the impact of non-cash
      depreciation and amortization expense as well as items not directly
      resulting from core operations such as interest expense and income taxes
      and (ii) the performance and the effectiveness of operational
      strategies. Additionally, EBITDA performance is a component of a measure
      of the Company&#8217;s financial covenants under its credit facility.
      Furthermore, some investors use EBITDA as a supplemental measure to
      evaluate the overall operating performance of companies in the industry.
      Management believes that some investors&#8217; understanding of performance is
      enhanced by including this non-GAAP financial measure as a reasonable
      basis for comparing ongoing results of operations. By providing this
      non-GAAP financial measure, together with a reconciliation from net
      income, the Company believes it is enhancing investors&#8217; understanding of
      the business and results of operations, as well as assisting investors
      in evaluating how well the Company is executing strategic initiatives.
    </p>
    <p>
      <b>About DXP Enterprises, Inc.</b>
    </p>
    <p>
      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. DXP provides
      innovative pumping solutions, supply chain services and maintenance,
      repair, operating and production (&quot;MROP&quot;) services that emphasize and
      utilize DXP&#8217;s vast product knowledge and technical expertise in rotating
      equipment, bearings, power transmission, metal working, industrial
      supplies and safety products and services. DXP's breadth of MROP
      products and service solutions allows DXP to be flexible and
      customer-driven, creating competitive advantages for our customers.
      DXP&#8217;s business segments include Service Centers, Innovative Pumping
      Solutions and Supply Chain Services. For more information, go to <u>www.dxpe.com</u>.
    </p>
    <p>
      <i>The Private Securities Litigation Reform Act of 1995 provides a
      &#8220;safe-harbor&#8221; for forward-looking statements. Certain information
      included in this press release (as well as information included in oral
      statements or other written statements made by or to be made by the
      Company) contains statements that are forward-looking. Such
      forward-looking information involves important risks and uncertainties
      that could significantly affect anticipated results in the future; and
      accordingly, such results may differ from those expressed in any
      forward-looking statement made by or on behalf of the Company. These
      risks and uncertainties include, but are not limited to; ability to
      obtain needed capital, dependence on existing management, leverage and
      debt service, domestic or global economic conditions, and changes in
      customer preferences and attitudes. In some cases, you can identify
      forward-looking statements by terminology such as, but not limited to,
      &#8220;may,&#8221; &#8220;will,&#8221; &#8220;should,&#8221; &#8220;intend,&#8221; &#8220;expect,&#8221; &#8220;plan,&#8221; &#8220;anticipate,&#8221;
      &#8220;believe,&#8221; &#8220;estimate,&#8221; &#8220;predict,&#8221; &#8220;potential,&#8221; &#8220;goal,&#8221; or &#8220;continue&#8221; or
      the negative of such terms or other comparable terminology. For more
      information, review the Company&#8217;s filings with the Securities and
      Exchange Commission.</i>
    </p>
    <p>
      CONTACT:<br>DXP Enterprises, Inc.<br>Kent Yee, 713-996-4700<br>Senior
      Vice President, CFO<br><u>www.dxpe.com</u>
    </p>
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