QXO said it plans to raise $3 billion through a two-part senior notes offering, split evenly between $1.5 billion of notes due 2031 and $1.5 billion due 2034.
If the debt sale closes before QXO completes its previously announced TopBuild acquisition, the proceeds will be placed in escrow and secured by that account until the deal closes. After the acquisition is completed, the notes will be guaranteed by QXO’s domestic restricted subsidiaries that already back its senior secured first lien term loan facility and senior secured notes.
QXO said the notes offering, together with new term loan borrowings, proceeds from its Series C convertible perpetual preferred stock, and cash on hand at QXO and TopBuild, will be used to fund the TopBuild transaction. The company also said the money will go toward repaying or repurchasing TopBuild debt and covering related fees and expenses.
The financing announcement comes as QXO continues to build out a business that it says is the largest publicly traded distributor of roofing, waterproofing and related products in North America, and the second largest publicly traded distributor of lumber and building materials in North America. The company said it is targeting $50 billion in annual revenue within the next decade. As a result of these announcements, the company's shares have moved -3.1% on the market, and are now trading at a price of $16.715. Check out the company's full 8-K submission here.
