Bulletin: XPO Logistics Inc.'s Credit Quality Trends Higher On Pending Tender Offer

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Nov. 3, 2022—S&P Global Ratings expects XPO Logistics Inc. will continue to improve leverage and awaits clarity in the capital structure following the completion of the RXO Inc. spin-off on Nov. 1, 2022. In connection with the spin-off, we expect the asset-based lending facility commitments will be reduced to $600 million effective Nov. 4, per its September 10-Q filing. Our ?BB? issuer credit rating on XPO is unchanged and remains on CreditWatch with positive implications. XPO filed a tender offer to purchase the $520 million outstanding on the 6.25% senior unsecured notes due in 2025, which is expected to be settled Nov. 18. XPO intends to use

...NEW YORK (S&P Global Ratings) Nov. 3, 2022--S&P Global Ratings expects XPO Logistics Inc. will continue to improve leverage and awaits clarity in the capital structure following the completion of the RXO Inc. spin-off on Nov. 1, 2022. In connection with the spin-off, we expect the asset- based lending facility commitments will be reduced to $600 million effective Nov. 4, per its September 10-Q filing. Our `##' issuer credit rating on XPO is unchanged and remains on CreditWatch with positive implications. XPO filed a tender offer to purchase the $520 million outstanding on the 6.25% senior unsecured notes due in 2025, which is expected to be settled Nov. 18. XPO intends to use the $488 million cash distribution received from RXO to repay existing indebtedness and fund any related fees and expenses. Following the sale of the intermodal business this year, the company redeemed $630 million of its 2025 notes. The `2' recovery rating on the senior secured term loan could remain following these...

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