XPO sets $700 million term loan B at SOFR plus 200 bps, tightens OID

By Sara Rosenberg

New York, May 17 – XPO Inc. firmed pricing on its $700 million amended and extended term loan B due May 2028 (Ba1/BBB-/BBB-) at SOFR plus 200 basis points, the low end of the SOFR plus 200 bps to 225 bps talk, according to a market source.

In addition, the original issue discount on the term loan was revised to 99.5 from 99, the source said.

The term loan still has a 0% floor and 101 soft call protection for six months.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., BofA Securities Inc., Morgan Stanley Senior Funding Inc. and Credit Agricole are the arrangers on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Wednesday, the source added.

Proceeds will be used with $830 million of senior secured notes and $450 million of senior notes to refinance an existing roughly $2 billion term loan F due 2025.

Amortization on the new term loan will be the same as the existing senior secured term loan B, which is none due to the application of prior voluntary prepayments.

XPO is a Greenwich, Conn.-based provider of freight transportation services.

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