XPO Logistics Announces Pricing of $1.6 Billion Term Loan Credit Facility
(Thomson Reuters ONE) -
GREENWICH, Conn. - August 17, 2016 - XPO Logistics, Inc. (NYSE: XPO) ("XPO")
today announced the pricing of a $1.642 billion refinancing of its existing term
loan agreement. The closing under the term loan is expected to occur on August
25, 2016, subject to customary closing conditions.
The term loan will be issued at par and will bear interest at a rate of LIBOR
plus 3.25%, with a 1.0% LIBOR floor, maturing on October 30, 2021. The proceeds
will be used primarily to replace the company's existing $1.6 billion term loan,
which bears interest at LIBOR plus 4.5%, with a 1.0% LIBOR floor. The terms of
the new loan facility will otherwise be substantially consistent with the term
loan being replaced.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, "In
the past week, we've opportunistically completed $2.6 billion of debt
refinancings, achieving all three of our objectives. We reduced our expected
cash interest expense by approximately $40 million a year, extended the maturity
dates of our debt, and increased our flexibility to pay down debt sooner. XPO
recently reached a key inflection point for EBITDA and cash flow acceleration,
resulting in a stronger credit profile, and this has allowed us to significantly
lower our cost of capital."
Morgan Stanley served as sole arranger and bookrunner for XPO Logistics, and
Wachtell, Lipton, Rosen & Katz acted as legal advisor.
About XPO Logistics
XPO Logistics, Inc. (NYSE: XPO) is a top ten global logistics provider of
cutting-edge supply chain solutions to the most successful companies in the
world. The company operates as a highly integrated network of people, technology
and physical assets in 34 countries, with over 88,000 employees and 1,440
locations. XPO uses its network to help more than 50,000 customers manage their
goods more efficiently throughout their supply chains. The company has two
reporting segments: transportation and logistics, and within these segments, its
business is well diversified by geographies, verticals and types of service.
XPO's corporate headquarters is in Greenwich, Conn., USA, and its European
headquarters is in Lyon, France. www.xpo.com.
Forward-looking Statements
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including our expected completion
of recently announced debt financings, our expected annual interest expense
decrease and the expected increase in debt maturities. All statements other than
statements of historical fact are, or may be deemed to be, forward-looking
statements. In some cases, forward-looking statements can be identified by the
use of forward-looking terms such as "anticipate," "estimate," "believe,"
"continue," "could," "intend," "may," "plan," "potential," "predict," "should,"
"will," "expect," "objective," "projection," "forecast," "goal," "guidance,"
"outlook," "effort," "target" or the negative of these terms or other comparable
terms. However, the absence of these words does not mean that the statements are
not forward-looking. These forward-looking statements are based on certain
assumptions and analyses made by us in light of our experience and our
perception of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate in the
circumstances.
These forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions that may cause actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by such
forward-looking statements. Factors that might cause or contribute to a material
difference include those discussed in XPO's filings with the SEC and the
following: economic conditions generally; competition and pricing pressures; our
ability to align our investments in capital assets, including equipment, service
centers and warehouses, to our customers' demands; our ability to successfully
manage our growth, including by maintaining effective internal controls; our
ability to successfully integrate and realize anticipated synergies, cost
savings and profit improvement opportunities with respect to acquired companies;
our ability to retain our and our acquired businesses' largest customers; our
ability to develop and implement suitable information technology systems; our
substantial indebtedness; our ability to raise debt and equity capital; our
ability to attract and retain key employees to execute our strategy, including
retention of acquired companies' key employees; our ability to maintain positive
relationships with our network of third-party transportation providers; our
ability to attract and retain qualified drivers; litigation, including
litigation related to alleged misclassification of independent contractors;
labor matters; risks associated with our self-insured claims; risks associated
with defined benefit plans for our current and former employees; fluctuations in
currency exchange rates; fluctuations in fixed and floating interest rates; our
ability to execute our growth strategy through acquisitions; fuel price and fuel
surcharge changes; weather and other service disruptions; governmental
regulation; and governmental or political actions, including the United
Kingdom's likely exit from the European Union. All forward-looking statements
set forth in this press release are qualified by these cautionary statements and
there can be no assurance that the actual results or developments anticipated
will be realized or, even if substantially realized, that they will have the
expected consequences to, or effects on, XPO or its businesses or operations.
Forward-looking statements set forth in this press release speak only as of the
date hereof, and XPO undertakes no obligation to update forward-looking
statements to reflect subsequent events or circumstances, changes in
expectations or the occurrence of unanticipated events except to the extent
required by law.
Investor Contact:
XPO Logistics, Inc.
Tavio Headley, +1-203-930-1602
tavio.headley(at)xpo.com
Media Contact:
Brunswick Group
Darren McDermott, +1-212-333-3810
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: XPO Logistics, Inc. via GlobeNewswire
[HUG#2035822]
Unternehmensinformation / Kurzprofil:
Datum: 17.08.2016 - 22:15 Uhr
Sprache: Deutsch
News-ID 489812
Anzahl Zeichen: 7611
contact information:
Town:
Greenwich
Kategorie:
Business News
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