Supply Chain News / Finance & Credit

XPO's Convertible Senior Notes

September 22, 2012
/ Print / Reprints /
ShareMore
/ Text Size+

XPO Logistics Inc. announced that it has priced its offering of $125 million aggregate principal amount of Convertible Senior Notes due 2017.

The Notes will bear interest at a rate of 4.50 percent per year, payable semiannually in arrears on April 1 and Oct. 1 of each year, beginning on April 1, 2013. XPO also granted the underwriters in the offering a 30-day option to purchase up to an additional $18.75 million aggregate principal amount of the Notes.

Morgan Stanley & Co. LLC, Deutsche Bank Securities and Jefferies & Company Inc. are the joint book-running managers for the offering. The co-managers for the offering are Avondale Partners, LLC, BB&T Capital Markets, a division of Scott & Stringfellow, LLC, FBR Capital Markets & Co., Oppenheimer & Co. Inc., Raymond James & Associates, Inc. and Stifel, Nicolaus & Company, Incorporated. XPO intends to use the net proceeds of the offering for general corporate purposes, which may include potential acquisitions.

The Notes will be convertible, under certain circumstances, into cash, shares of XPO’s common stock or a combination of cash and shares of XPO’s common stock, at XPO’s election, at an initial conversion rate of 60.8467 shares of XPO’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $16.43 per share of XPO’s common stock.

XPO may redeem the Notes for cash, at XPO’s option, in whole but not in part, on any business day on or after Oct. 1, 2015, if the last reported sale price of XPO’s common stock has been at least 130 percent of the conversion price then in effect for at least 20 trading days, including the trading day immediately preceding the date on which XPO provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which XPO provides notice of redemption at a redemption price equal to 100 percent of the principal amount of Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date, plus a make-whole premium.

XPO expects that the offering will be completed, subject to customary closing conditions, on September 26, 2012.

The Notes are being offered pursuant to an effective shelf registration statement that has been filed with the Securities and Exchange Commission. A prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov.

Copies of the prospectus supplement and accompanying prospectus related to the offering, when available, may be obtained by contacting the following companies:

Morgan Stanley
Attn: Prospectus Department
180 Varick Street, 2nd Floor
New York, NY 10014-4606
(866) 718-1649
Prospectus@MorganStanley.com
Deutsche Bank Securities Inc.
Attn: Prospectus Group
60 Wall Street
New York, NY 10005-2836
(800) 503-4611
Prospectus.CPDG@DB.com
Jefferies & Company Inc.
Attn: Equity Syndicate Prospectus Dept.
520 Madison Avenue, 12th Floor
New York, NY, 10022
(877) 547-6340
Prospectus_Department@Jefferies.com
You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

KC SmartPort Momentum

Kansas City SmartPort Momentum 2013 focused on 3PLs, the issues facing the industry, and the role or logistics in economic development

Podcasts

 

Calculating a true landed cost for global sourcing directly correlates with the profitability of purchased goods. However, few companies can command real-time visibility in to all the costs involved for cross border movements. In this podcast, World Trade 100 and Amber Road highlight how a comprehensive global trade platform that converges both logistics and compliance costs can deliver true landed cost visibility.

 

Speaker: Hung Lee, Senior Product Manager, Amber Road

More Podcasts

World Trade 100 Magazine

world trade july 2014

2014 July

Check out the July 2014 edition of World Trade WT100, featuring Air Cargo, Near Shoring, plus much more!
Table Of Contents Subscribe

Supply Chain Webinars

What types of supply chain webinars do you get the most use out of?
View Results Poll Archive

WT100 STORE

world-class-warehousing.gif
World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Use our interactive maps to locate service providers across North America.Interactive Map

Logistics Development Partners 

IWLA Members

STAY CONNECTED