Sunday 25th Sep 2016 - Logistics Manager

XPO raises $1.26bn to fund growth

XPO Logistics, the US group that is buying Norbert Dentressangle, has raised $1.26 billion (£823m) in equity from institutional investors and plans to raise $2bn of debt financing to fund its growth strategy.

It said intends to use the money to fund its $3.5bn purchase of Norbert Dentressangle and for other unspecified acquisitions. The Dentressangle deal is expected to be completed in the second quarter of 2015.

Bradley Jacobs, XPO chairman and chief executive officer, said: “We’re delighted to deepen our relationships with several of our largest shareholders and also welcome new blue chip investors to XPO. We appreciate this endorsement of our growth strategy, which is still in its early innings.”

XPO has also completed its previously announced acquisition of Bridge Terminal Transport, one of the largest asset-light drayage providers in the United States. The acquisition adds approximately 1,300 independent owner-operators to the XPO network.

It is planning to to issue $2bn US dollar equivalent of senior notes in up to four tranches that may include US dollar-denominated senior notes due in 2022, euro-denominated fixed rate senior notes due 2021, euro-denominated floating rate senior notes due in 2020, and pounds sterling-denominated senior notes due in 2020.