XPO to sell $585 million eight-year senior notes; early guidance for yield of 7¼%-7½%

By Abigail W. Adams

Portland, Me., Dec. 5 – XPO Inc. plans to price a $585 million offering of eight-year senior notes (Ba3/BB-/BB+) during the Dec. 4 week with early guidance for a yield of 7¼% to 7½%, according to a market source.

The notes are non-callable for three years.

Morgan Stanley & Co. LLC, Credit Agricole CIB and Goldman Sachs & Co. LLC are bookrunners for the Rule 144A for life and Regulation S offering.

Proceeds, together with a concurrent $400 million term loan B, will be used to repay outstanding amounts under XPO’s bridge facility and finance the potential acquisition of real property assets of Yellow Corp.

Proceeds will also be used to refinance the company’s 2025 senior notes and for general corporate purposes.

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

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