XPO Logistics’ RXO gets $500 million revolver, $100 million term loan

By Wendy Van Sickle

Columbus, Ohio, Oct. 18 – XPO Logistics Inc. wholly owned subsidiary RXO Logistics, Inc. entered into a credit agreement on Wednesday providing for a five-year $500 million multicurrency revolver and a five-year $100 million unsecured term loan, according to an 8-K filing with the Securities and Exchange Commission.

Citibank, NA is the administrative agent.

The revolver has a $50 million sublimit for letters of credit. Initial availability is subject to some conditions including the spin-off of RXO, which is expected to become a separate publicly traded company. The term loan is available in a single draw starting one day prior to consummation of the spin-off.

Revolver and term loan borrowings bear interest at term SOFR plus a margin that ranges from 100 basis points to 162.5 bps, depending on the company’s debt rating. The term loan and revolver have a ticking fee, and the revolver has a commitment fee that, in each case, ranges from 10 bps to 30 bps, depending on the company’s debt rating.

The term loan amortizes quarterly, starting March 31, 2025, at a rate equal to 5% a year for the first eight quarters and 10% thereafter.

Proceeds of the term loan may be used to fund a distribution to the company and for general corporate purposes. The revolver may be used for general corporate purposes.

Citibank and BofA Securities, Inc. are the joint lead arrangers and bookrunners. Bank of America, NA is the syndication agent.

XPO Logistics is a Greenwich, Conn.-based provider of supply chain solutions. RXO is its tech-enabled brokered transportation platform.

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