QXO, Inc. has just announced the pricing of its upsized concurrent offerings of common stock and depositary shares. The company will be offering 48,484,849 shares of its common stock at a public offering price of $16.50 per share and $500 million of depositary shares at a public offering price of $50.00 per depositary share. This will result in gross proceeds of $800 million from the common stock offering and $500 million from the depositary shares offering.
The net proceeds from the offerings will be used to repay indebtedness under the company’s senior secured term loan facility. This move is expected to strengthen the company’s position with respect to future acquisition opportunities.
The depositary shares will represent a 1/20th interest in a share of newly issued 5.50% Series B Mandatory Convertible Preferred Stock. Holders of the depositary shares will be entitled to a proportional fractional interest in the rights and preferences of the mandatory convertible preferred stock, including conversion, dividend, liquidation, and voting rights, subject to the provisions of a deposit agreement.
Goldman Sachs & Co. LLC and Morgan Stanley are acting as lead joint bookrunning managers for the offerings, with several other firms serving as joint bookrunning managers and co-managers.
QXO is the largest publicly traded distributor of roofing, waterproofing, and complementary building products in the United States. The company plans to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders, targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth. The market has reacted to these announcements by moving the company's shares 0.89% to a price of $16.97. Check out the company's full 8-K submission here.
