Published on 4/25/2024 in the Prospect News Investment Grade Daily.
New Issue: GXO Logistics sells $1.1 billion of notes in parts due 2029, 2034
By Wendy Van Sickle
Columbus, Ohio, April 25 – GXO Logistics, Inc. sold a $1.1 billion offering of notes (BBB-/BBB) in two parts on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $600 million of 6.25% notes due May 6, 2029 at 99.459 to yield 6.378%, or Treasuries plus 165 basis points.
The issuer also sold $500 million of 6.5% notes due May 6, 2034 at 98.86 to yield 6.658%, or Treasuries plus 195 bps.
BofA Securities, Inc, Goldman Sachs & Co. LLC, Barclays and Credit Agricole Securities (USA) Inc. were the bookrunners.
Proceeds, together with the borrowings under a new term loan credit agreement, will be used to fund the acquisition of Wincanton and its fees and expenses, to repay debt and for general corporate purposes.
GXO Logistics is a Greenwich, Conn.-based global contract logistics company that manages outsourced supply chains and warehousing. Based in Chippenham, U.K., Wincanton provides transport and logistics services including specialist automated high bay, high-capacity warehouses and supply chain management for businesses.
| Issuer: | GXO Logistics, Inc.
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| Amount: | $1.1 billion
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| Issue: | Notes
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| Bookrunners: | BofA Securities, Inc, Goldman Sachs & Co. LLC, Barclays and Credit Agricole Securities (USA) Inc.
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| Co-managers: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., RBC Capital Markets LLC, Truist Securities, Inc., Wells Fargo Securities, LLC and Samuel A. Ramirez & Co., Inc.
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| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Wachtell, Lipton, Rosen & Katz
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | April 25
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| Settlement date: | May 6
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| Ratings: | S&P: BBB-
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| Fitch: BBB
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|
|
| 2029 notes
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| Amount: | $600 million
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| Maturity: | May 6, 2029
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| Coupon: | 6.25%
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| Price: | 99.459
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| Yield: | 6.378%
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| Spread: | Treasuries plus 165 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until April 6, 2029, then a par call; additionally, callable at 101 upon a change of control or if pending Wincanton acquisition is not completed by 11:59 p.m. ET five days after the longstop time, 11:59 p.m. ET on Jan. 29, 2025
|
| Cusip: | 36262GAF8
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|
|
| 2034 notes
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| Amount: | $500 million
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| Maturity: | May 6, 2034
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| Coupon: | 6.5%
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| Price: | 98.86
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| Yield: | 6.658%
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| Spread: | Treasuries plus 195 bps
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| Call: | Make-whole call at Treasuries plus 30 bps until Feb. 6, 2034, then a par call; additionally, callable at 101 upon a change of control or if pending Wincanton acquisition is not completed by 11:59 p.m. ET five days after the longstop time, 11:59 p.m. ET on Jan. 29, 2025
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| Cusip: | 36262GAG6
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