• ITVI.USA
    15,845.180
    -15.980
    -0.1%
  • OTLT.USA
    2.806
    0.013
    0.5%
  • OTRI.USA
    21.590
    0.130
    0.6%
  • OTVI.USA
    15,846.760
    -20.840
    -0.1%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
    -0.240
    -14.9%
  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
    2.320
    0.220
    10.5%
  • TSTOPVRPM.LAXSEA
    4.110
    0.250
    6.5%
  • WAIT.USA
    126.000
    0.000
    0%
  • ITVI.USA
    15,845.180
    -15.980
    -0.1%
  • OTLT.USA
    2.806
    0.013
    0.5%
  • OTRI.USA
    21.590
    0.130
    0.6%
  • OTVI.USA
    15,846.760
    -20.840
    -0.1%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
    -0.240
    -14.9%
  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
    2.320
    0.220
    10.5%
  • TSTOPVRPM.LAXSEA
    4.110
    0.250
    6.5%
  • WAIT.USA
    126.000
    0.000
    0%
American ShipperShipping

XPO raises $3.26 billion to cover acquisitions

The logistics roll-up company will raise the funds in both equity and the sale of senior notes to finance current and future acquisitions.

   Staying true to his promise to further build XPO Logistics into a roll-up powerhouse, Chief Executive Officer Brad Jacobs announced Monday that the company will raise $3.26 billion in both equity and the sale of senior notes to finance current and future third party logistics services provider acquisitions.
   XPO has entered into definitive agreements with the Ontario Teachers’ Pension Plan, GIC – Singapore’s sovereign wealth fund – and Public Sector Pension Investment Board to raise $1.26 billion in equity. The company will receive all of the net proceeds and use them to fund its ongoing expansion strategy.
   These investors have already supplied $700 million to XPO as of last September. “These three global investors each increased their holdings in XPO with the new private placement and were joined by 12 institutional investors, including sovereign and university endowment funds,” XPO said.
   “We’re delighted to deepen our relationships with several of our largest shareholders and also welcome new blue chip investors to XPO,” said the company’s Chairman and Chief Executive Officer Brad Jacobs in a statement. “We appreciate this endorsement of our growth strategy, which is still in its early innings.”
   XPO also said it will issue $2 billion in senior notes. Also referred to as bonds, these notes are considered highly secure since they must be repaid to investors even in the event of a bankruptcy. Senior notes also take priority during liquidation proceedings.
   The company intends to use the net proceeds, together with cash on hand and the debt financing, to fund its pending purchases of Norbert Dentressangle, Bridge Terminal Transport Services and future “unspecified” acquisitions. “There are no selling shareholders,” said XPO.
   According to XPO, the transaction, which is complete and scheduled to settle this week, provides for the sale of newly issued common stock and preferred stock to the investors at a price of $45 per share of common stock on an as-converted basis. Once approved by the company’s shareholders, the preferred stock will be converted into common stock. The stock issuance represents 28 million shares, or about 21 percent of XPO’s common stock, assuming conversion of the preferred stock.
   Brad Jacobs and Jacobs Private Equity intend to vote in favor of the stock issuance. Jacobs Private Equity will remain the company’s largest shareholder.
   With the addition of the Norbert Dentressangle and Bridge Terminal Transport acquisitions announced in April, XPO has made 16 acquisitions in the logistics industry within the past 3.5 years. For more details, read “Let’s make a deal” in the June American Shipper, pages 14-17.

Chris Gillis

Located in the Washington, D.C. area, Chris Gillis primarily reports on regulatory and legislative topics that impact cross-border trade. He joined American Shipper in 1994, shortly after graduating from Mount St. Mary’s College in Emmitsburg, Md., with a degree in international business and economics.

We are glad you’re enjoying the content

Sign up for a free FreightWaves account today for unlimited access to all of our latest content

By signing in for the first time, I give consent for FreightWaves to send me event updates and news. I can unsubscribe from these emails at any time. For more information please see our Privacy Policy.