By Abigail W. Adams
Portland, Me., Dec. 7 – XPO Inc. priced $585 million of eight-year senior notes (Ba3/BB-/BB+) on Thursday at par with a coupon of 7 1/8%, according to a market source.
Pricing came toward the tight end of talk for a yield in the 7¼% area.
Early guidance was for a yield of 7¼% to 7½%.
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.
| Issuer: | XPO Inc.
|
| Amount: | $585 million
|
| Issue: | Senior notes
|
| Maturity: | Feb. 1, 2032
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, Credit Agricole CIB and Goldman Sachs & Co. LLC
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Yield: | 7 1/8%
|
| Spread: | 299 bps
|
| First call: | Feb. 1, 2027 at 103.563
|
| Equity clawback: | Up to 40%
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 13
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB-
|
| Fitch: BB+
|
| Distribution: | Rule 144A for life and Regulation S offering
|
| Price talk: | 7¼% area
|
| Marketing: | Net roadshow
|
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