RxO, Inc. (NYSE: RXO) has announced the pricing of its offering of $400 million aggregate principal amount of 6.375% senior notes due 2031. The 2031 notes will be guaranteed on a senior unsecured basis by the domestic subsidiaries of the company that are guarantors under the company's asset-based revolving credit facility. The company intends to use the net proceeds from the offering to repurchase or redeem all of the company's outstanding 7.500% notes due 2027, to pay related fees and expenses, and for general corporate purposes, which may include repayment of indebtedness.
In comparison to the previous period, the company's 2031 notes are priced at a lower interest rate of 6.375% compared to the 7.500% interest rate on the outstanding 2027 notes. This lower interest rate on the newly offered notes indicates a potential reduction in the company's future interest expenses.
This move reflects the company's strategic initiative to optimize its capital structure by refinancing higher-cost debt with the proceeds from the offering, ultimately aiming to reduce its interest burden and improve its overall financial position. As a result of these announcements, the company's shares have moved -3.79% on the market, and are now trading at a price of $14.99. Check out the company's full 8-K submission here.
