By Abigail W. Adams
Portland, Me., May 17 – XPO Inc. priced $830 million 6¼% senior secured notes due June 1, 2028 (Ba1/BBB-/BBB-) and $450 million of 7 1/8% senior notes due June 1, 2031 (Ba3/BB-/BB+) at par in a Wednesday drive-by, according to a market source.
Pricing for the secured tranche came at the rich end of talk for a yield in the 6 3/8% area. Initial guidance was for a yield of 6% to 6½%.
Pricing for the secured tranche came tight to talk for 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 was 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.
| Issuer: | XPO Inc.
|
| Amount: | $1.28 billion
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | 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
|
| Trade date: | May 17
|
| Settlement date: | May 24
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Secured notes
|
| Amount: | $830 million
|
| Issue: | Senior secured notes
|
| Maturity: | June 1, 2028
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6¼%
|
| Spread: | 262 bps
|
| First call: | Two years
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Price talk: | 6 3/8% area
|
|
|
| Unsecured notes
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| Amount: | $450 million
|
| Issue: | Senior notes
|
| Maturity: | June 1, 2031
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 359 bps
|
| First call: | Three years
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
| Fitch: BB+
|
| Price talk: | 7¼% area
|
|
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