RXO Prices $400 Million Senior Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy RXO?
Source: seekingalpha
- Note Offering Size: RXO announced the pricing of $400 million in senior notes at a 6.375% interest rate, maturing in 2031, aimed at optimizing its capital structure and reducing financing costs.
- Guarantee Structure: The notes will be secured on a senior unsecured basis by the company’s domestic subsidiaries, ensuring the safety of its asset-based revolving credit facility, thereby enhancing investor confidence.
- Use of Proceeds: RXO intends to use the net proceeds to repurchase or redeem all outstanding 7.500% notes due in 2027, along with paying related fees and expenses, demonstrating the company's focus on debt management.
- Market Reaction: Following the announcement, RXO's stock fell 1.95% in after-hours trading to $16.01, reflecting market concerns over the company's current valuation, despite an optimistic EBITDA outlook for the future.
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Analyst Views on RXO
Wall Street analysts forecast RXO stock price to rise
16 Analyst Rating
3 Buy
11 Hold
2 Sell
Hold
Current: 12.990
Low
11.00
Averages
15.42
High
20.00
Current: 12.990
Low
11.00
Averages
15.42
High
20.00
About RXO
RXO, Inc. is a provider of asset-light transportation solutions. The Company offers tech-enabled truck brokerage services together with complementary solutions, including managed transportation and last-mile delivery. It combines massive capacity and cutting-edge technology to move freight through supply chains across North America. Its self-learning RXO Connect digital brokerage platform encompasses Freight Optimizer, as well as its mobile app, application programming interface (API) integrations, self-service dashboards and real-time functionality for transacting and tracking freight shipments. Its managed transportation service provides asset-light solutions for shippers who outsource their freight transportation. Its control tower solution leverages the expertise of a dedicated team focused on continuous improvement, and digital, door-to-door visibility into order status and freight in transit. Its last mile offering is an asset-light service that facilitates consumer deliveries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Surge in Deferred Revenue: The company reported deferred revenue of $5.37 billion, indicating a growing backlog, and investors will closely monitor the conversion of multistage projects to ensure cash flow supports higher innovation spending.
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