XPO sets talk for $830 million five-year secured notes, $450 million eight-year notes

By Abigail W. Adams

Portland, Me., May 17 – XPO Inc. set talk in its two-tranche offering of $830 million five-year senior secured notes (Ba1/BBB-/BBB-) and $450 million eight-year notes (Ba3/BB-/BB+) with books scheduled to close at 2 p.m. ET Wednesday and pricing thereafter, according to a market source.

The secured tranche is talked with a yield in the 6 3/8% area. Initial guidance was for yield of 6% to 6.5%.

The unsecured tranche is talked with a yield in the 7¼% area. Initial guidance was for a yield in the low 7% area.

The five-year notes are non-callable for two years; the eight-year notes are non-callable for three years.

Goldman Sachs & Co. LLC is lead left bookrunner for the Rule 144A and Regulation S offering.

BofA Securities Inc., Citigroup Global Markets Inc., Credit Agricole CIB, Barclays, BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are joint bookrunners.

Proceeds, together with proceeds from a $700 million term loan B and cash on hand, will be used to refinance the company’s term loan F due 2025.

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

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