XPO launches $400 million term loan B at SOFR plus 200 bps

By Sara Rosenberg

New York, Dec. 5 – XPO Inc. held a lender call at noon ET on Tuesday to launch a $400 million senior secured first-lien term loan B (Ba1/BBB-/BBB-) due February 2031 that is talked at SOFR plus 200 basis points with a 0% floor and an original issue discount of 99.5 to 99.75, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc. and Credit Agricole are the arrangers on the deal. Citigroup Global Markets Inc. is a co-manager.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used with $585 million of senior notes to fund the potential acquisition of certain real property assets of Yellow Corp. and/or repay amounts outstanding under a bridge facility, to refinance 6¼% senior unsecured notes due 2025, for general corporate purposes, and to pay fees, costs and expenses.

At auctions held on Nov. 28, XPO was selected as the successful bidder for 28 service centers of Yellow Corp. for an aggregate purchase price of $870 million.

On Dec. 4, the company entered into a 364-day senior secured bridge term loan credit agreement under which it may borrow up to an aggregate amount of $870 million in connection with the Yellow Corp. transaction.

Credit Agricole CIB is the administrative agent on the bridge facility, which is currently unfunded and available to be borrowed on or prior to March 7.

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

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