Published on 5/21/2020 in the Prospect News High Yield Daily.
New Issue: XPO Logistics prices $300 million tap of 6¼% notes due 2025 at 101.75 to yield 5.835%
By Paul A. Harris
Portland, Ore., May 21 – XPO Logistics, Inc. priced a $300 million add-on to its 6¼% senior notes due May 1, 2025 (Ba3/BB-) at 101.75 to yield 5.835% in a Thursday drive-by, according to a syndicate source.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC.
The issue price came at the rich end of price talk in the 101.5 area.
The Greenwich, Conn.-based transportation and logistics company plans to use the proceeds for general corporate purposes, which may include repayment of debt under its revolver, repayment and/or redemption of its 6½% senior notes due 2022, and/or the repayment of other debt.
| Issuer: | XPO Logistics, Inc.
|
| Amount: | $300 million
|
| Maturity: | May 1, 2025
|
| Security description: | Add-on to 6¼% senior notes due May 1, 2025
|
| Left bookrunner: | Goldman Sachs & Co. LLC
|
| Joint bookrunners: | Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole CIB, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | BofA Securities Inc., Wells Fargo Securities LLC, Capital One Securities Inc., HSBC Securities (USA) Inc., KeyBanc Capital Markets Inc., MUFG, Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 6¼%
|
| Price: | 101.75
|
| Yield to maturity: | 5.835%
|
| Spread: | 549 bps
|
| First call: | May 1, 2022 at 103.125
|
| Trade date: | May 21
|
| Settlement date: | May 27 with accrued interest
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 101.5 area
|
| Marketing: | Drive-by
|
| Original issue: | $850 million priced on April 23, 2020
|
| Total issue size: | $1.15 billion
|
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