XPO Logistics Inc. (XPO) announced the pricing of its previously announced private placement of notes, launched June 1, 2015. The company upsized the offering to an aggregate amount of approximately $2.16 billion U.S.-dollar equivalent, including $1.6 billion U.S. dollar-denominated senior notes due in 2022 and €500 million euro-denominated fixed rate senior notes due 2021.
The closing of the private placement offering is expected to occur on June 9, 2015, subject to customary closing conditions, including the consummation of the purchase from Mr. Norbert Dentressangle and his family of all of their shares in Norbert Dentressangle SA, representing 67% of Norbert Dentressangle SA's outstanding shares.
The U.S. dollar-denominated Notes will bear interest at a rate of 6.5% payable semiannually, in cash in arrears, on June 15 and December 15 of each year, commencing December 15, 2015 and maturing on June 15, 2022. The euro-denominated Notes will bear interest at a rate of 5.75% payable semiannually, in cash in arrears, on June 15 and December 15 of each year, commencing December 15, 2015 and maturing on June 15, 2021.
XPO said it intends to use the net proceeds from the offering, together with cash on hand and the proceeds from its separately announced private placement of $1.26 billion of equity securities, to finance the purchase of Norbert Dentressangle SA, to repay certain existing indebtedness of Norbert Dentressangle SA and its subsidiaries, for other unspecified acquisitions, to pay related fees and expenses, and/or for working capital and other general corporate purposes.
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