- XPO Logistics Inc's XPO wholly owned subsidiary, RXO Inc, has priced an offering of $355 million of notes due 2027.
- The notes will be issued by XPO's wholly owned subsidiary, XPO Escrow Sub, LLC, which will merge with and into RXO, as a result of which the notes will become the direct obligations of RXO.
- The closing of the offering of the notes is expected to occur on or about October 25, 2022.
- The notes will bear interest at a rate of 7.500% per annum, payable semiannually in cash in arrears on May 15 and November 15 of each year, beginning May 15, 2023, and will mature on November 15, 2027.
- RXO intends to use the net proceeds to fund a cash distribution to XPO, costs related to the spin-off, and working capital.
- Price Action: XPO shares are trading higher by 2.95% at 50.60 in premarket on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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