XPO Logistics Pays Up to Borrow $1 Billion for Stock Buyback
- CEO has stressed share repurchases as main priority, not M&A
- Firm cut outlook after largest customer pulled back business
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XPO Logistics Inc. paid up to sell $1 billion of bonds to fund share buybacks and refinance debt, as it abandons acquisitions to boost its stock price.
The trucking company and warehouse operator will use the bonds to repay borrowings under its existing credit agreement, among other general corporate purposes like repurchasing shares, according to a statement Tuesday. The securities yield 6.75 percent, the company said. That’s above the initially discussed range between 6.5 percent and 6.625 percent for the 5.5-year securities, according to a person familiar with the matter, who asked not to be identified as the details are private.