QXO priced $3.0 billion of senior notes as it lines up financing for its pending TopBuild acquisition, splitting the deal into two tranches: $1.5 billion of 6.500% notes due 2031 and $1.5 billion of 6.875% notes due 2034.
Both offerings were priced at par. If the notes close before the TopBuild deal is completed, the proceeds will go into a segregated escrow account and be secured by that cash until the acquisition closes.
The financing package is designed to help fund the TopBuild transaction and related costs, including repayment or repurchase of TopBuild debt and fees and expenses tied to the merger. QXO said the notes, together with new term loan borrowings, Series C convertible perpetual preferred stock and cash from QXO and TopBuild, will be used for the acquisition.
The company said the notes are expected to close on June 17, 2026. Upon completion of the TopBuild acquisition, the notes will be guaranteed by QXO’s wholly owned domestic restricted subsidiaries that already guarantee its senior secured first lien term loan facility and senior secured notes. Today the company's shares have moved -0.09% to a price of $16.425. For more information, read the company's full 8-K submission here.
