Published on 6/4/2015 in the Prospect News High Yield Daily.
New Issue: XPO Logistics prices $1.6 billion and €500 million fixed-rate notes
By Paul A. Harris
Portland, Ore., June 4 – XPO Logistics Inc. launched and priced a restructured two-part offering of senior fixed-rate notes (B1/B) in two tranches on Thursday.
The deal included $1.6 billion of seven-year notes, which priced at par to yield 6½%.
The announced tranche size was $500 million minimum. The yield printed at the tight end of the 6½% to 6¾% yield talk. For the dollar-denominated notes Morgan Stanley & Co. was the left bookrunner, and will bill and deliver.
In addition the Greenwich, Conn.-based provider of transportation logistics services priced €500 million of six-year notes at par to yield 5¾%.
The announced tranche size was $500 million equivalent minimum. The yield printed at the tight end of the 5¾% to 6% yield talk. For the euro-denominated notes JPMorgan was the left bookrunner and will bill and deliver.
A proposed £300 million tranche of fixed-rate notes and a euro-denominated tranche of floating-rate notes were withdrawn, with the proceeds shifted to the dollar- and euro-denominated fixed-rate tranches.
JPMorgan and Morgan Stanley were the global coordinators.
Citigroup, Credit Suisse and Deutsche Bank were the joint bookrunners.
Proceeds will be used to finance the acquisition of Lyon, France-based Norbert Dentressangle SA, global provider of contract logistics, freight brokerage, transportation and global forwarding services, in a transaction valued at €3.24 billion, including €1.08 billion of net debt.
| Issuer: | XPO Logistics, Inc.
|
| Securities: | Senior notes
|
| Global Coordinators: | JPMorgan, Morgan Stanley
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| Bookrunners: | Citigroup, Credit Suisse, Deutsche Bank
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| Trade date: | June 4
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| Settlement date: | June 9
|
| Ratings: | Moody's: B1
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| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Dollar-denominated notes
|
| Amount: | $1.6 billion
|
| Maturity: | June 15, 2022
|
| Bill and deliver: | Morgan Stanley
|
| Co-managers: | Avondale Partners LLC, Barclays, BB&T Capital Markets, Cowen and Co., LLC, FBR Capital Markets & Co., KeyBanc Capital Markets Inc., Macquarie Capital (USA) Inc., Oppenheimer & Co. Inc., Raymond James & Associates Inc., Stifel Nicolaus & Co., Inc., Wells Fargo Securities LLC, William Blair & Co. LLC, WR Securities LLC
|
| Coupon: | 6½%
|
| Price: | Par
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| Yield: | 6½%
|
| Spread: | 443 bps
|
| First call: | June 15, 2018 at 103.25
|
| Price talk: | 6½% to 6¾%
|
|
|
| Euro-denominated notes
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| Amount: | €500 million
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| Maturity: | June 15, 2021
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| Bill and deliver: | JPMorgan
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| Co-managers: | Barclays, Cowen, KeyBanc, Oppenheimer, Stifel, Wells Fargo, WR Securities LLC
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 551 bps
|
| First call: | Dec. 15, 2017 at 102.875
|
| Price talk: | 5¾% to 6%
|
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