XPO Logistics' Proposed Spin-Off RXO Raises $355M Via Debt Offering - XPO (NYSE:XPO)

XPO Logistics Inc's XPO wholly owned subsidiary, RXO Inc, has priced an offering of $355 million of notes due 2027.
The notes will be issued by XPO's wholly owned subsidiary, XPO Escrow Sub, LLC, which will merge with and into RXO, as a result of which the notes will become the direct obligations of RXO.
The closing of the offering of the notes is expected to occur on or about October 25, 2022.
The notes will bear interest at a rate of 7.500% per annum, payable semiannually in cash in arrears on May 15 and November 15 of each year, beginning May 15, 2023, and will mature on November 15, 2027.
RXO intends to use the net proceeds to fund a cash distribution to XPO, costs related to the spin-off, and working capital.
Price Action: XPO shares are trading higher by 2.95% at 50.60 in premarket on the last check Wednesday.