RXO Announces Common Stock Offering Associated with Financing Acquisition of Coyote Logistics from UPS
RXO, a leading asset-light transportation solutions provider, has announced plans to offer $350 million of its common stock, with an option for underwriters to purchase an additional $52.5 million. The proceeds will primarily finance the pending acquisition of Coyote Logistics, UPS's technology-driven freight brokerage business. The acquisition is expected to be completed by September 20, 2024. If not consummated, the funds will be used for general corporate purposes. Goldman Sachs, BofA Securities, Citigroup, and Morgan Stanley are acting as joint lead book-running managers for the offering, which will be made through a prospectus supplement under RXO's effective registration statement on Form S-3.
RXO, un importante fornitore di soluzioni di trasporto con struttura leggera, ha annunciato piani per offrire 350 milioni di dollari delle sue azioni ordinarie, con un'opzione per i sottoscrittori di acquistare ulteriori 52,5 milioni di dollari. I proventi finanzieranno principalmente l'acquisizione in attesa di Coyote Logistics, l'azienda di brokeraggio merci di UPS basata sulla tecnologia. Si prevede che l'acquisizione sarà completata entro il 20 settembre 2024. Se non dovesse realizzarsi, i fondi saranno utilizzati per scopi aziendali generali. Goldman Sachs, BofA Securities, Citigroup e Morgan Stanley agiscono come manager congiunti per l'offerta, che sarà effettuata tramite un supplemento di prospetto sotto la dichiarazione di registrazione efficace di RXO nel Form S-3.
RXO, un proveedor líder de soluciones de transporte ligeras, ha anunciado planes para ofrecer 350 millones de dólares de sus acciones comunes, con una opción para que los suscriptores compren 52,5 millones de dólares adicionales. Los ingresos se utilizarán principalmente para financiar la adquisición pendiente de Coyote Logistics, el negocio de corretaje de carga impulsado por la tecnología de UPS. Se espera que la adquisición se complete para el 20 de septiembre de 2024. Si no se lleva a cabo, los fondos se usarán para fines corporativos generales. Goldman Sachs, BofA Securities, Citigroup y Morgan Stanley están actuando como gerentes conjuntos de la oferta, que se realizará a través de un suplemento de prospecto bajo la declaración de registro efectiva de RXO en el Formulario S-3.
RXO는 경량 자산 운송 솔루션의 선도적인 제공업체로, 3억 5천만 달러의 보통주를 제공할 계획을 발표했으며, 인수자가 추가로 5천 2백 5십만 달러를 구매할 수 있는 옵션이 있습니다. 이 자금은 주로 Coyote Logistics의 인수 금액을 지원하는 데 사용될 예정이며, 이는 UPS의 기술 기반 화물 중개 비즈니스입니다. 인수는 2024년 9월 20일까지 완료될 것으로 예상됩니다. 만약 완료되지 않을 경우, 자금은 일반 회사 운영비로 사용됩니다. Goldman Sachs, BofA Securities, Citigroup 및 Morgan Stanley는 RXO의 효과적인 등록 성명서에 따른 소책자 보충을 통해 이루어지는 이 제안의 공동 주요 관리자 역할을 하고 있습니다.
RXO, un fournisseur de solutions de transport léger de premier plan, a annoncé des projets d'offre de 350 millions de dollars de ses actions ordinaires, avec une option pour les souscripteurs d'acheter un montant supplémentaire de 52,5 millions de dollars. Les fonds récoltés serviront principalement à financer l'acquisition en attente de Coyote Logistics, le service de courtage de fret basé sur la technologie d'UPS. L'acquisition devrait être finalisée d'ici le 20 septembre 2024. Si elle n'est pas réalisée, les fonds seront utilisés à des fins corporatives générales. Goldman Sachs, BofA Securities, Citigroup et Morgan Stanley agissent en tant que co-managers principaux pour l'offre, qui sera faite par le biais d'un supplément de prospectus selon la déclaration d'enregistrement effective de RXO sur le Formulaire S-3.
RXO, ein führender Anbieter von transportlösungsorientierten Dienstleistungen, hat Pläne angekündigt, 350 Millionen Dollar seiner Stammaktien anzubieten, wobei die Underwriter die Möglichkeit haben, weitere 52,5 Millionen Dollar zu erwerben. Der Erlös wird hauptsächlich zur Finanzierung der ausstehenden Übernahme von Coyote Logistics, dem technologiegestützten Frachtmaklergeschäft von UPS, verwendet. Die Übernahme soll bis zum 20. September 2024 abgeschlossen sein. Falls sie nicht erfolgt, werden die Mittel für allgemeine Unternehmenszwecke verwendet. Goldman Sachs, BofA Securities, Citigroup und Morgan Stanley fungieren als gemeinsame Hauptmanager für das Angebot, das über einen Prospektzusatz unter der wirksamen Registrierungserklärung von RXO auf dem Formular S-3 erfolgt.
- Acquisition of Coyote Logistics, a technology-driven freight brokerage business, potentially expanding RXO's market presence
- Successful raising of $350 million through common stock offering, with potential for additional $52.5 million
- Support from major financial institutions as joint lead book-running managers, indicating market confidence
- Potential dilution of existing shareholders' equity due to new stock issuance
- Increased financial leverage to fund the acquisition
- Risk of not completing the acquisition, which could impact the use of raised funds
Insights
RXO's
The planned acquisition, expected by September 2024, could be a game-changer for RXO, potentially boosting its technological capabilities and market share. However, investors should note the dilutive effect of new share issuance on existing stockholders. The involvement of major underwriters like Goldman Sachs and Morgan Stanley lends credibility to the offering, potentially attracting institutional investors.
This move by RXO reflects the ongoing consolidation trend in the logistics industry, as companies seek to enhance their technological capabilities and expand their service offerings. The acquisition of Coyote Logistics, a technology-driven brokerage business, aligns with the industry's shift towards digital solutions and data-driven operations.
The transaction could potentially reshape the competitive landscape in the asset-light transportation sector. Investors should monitor how this acquisition impacts RXO's market position relative to competitors like C.H. Robinson and Echo Global Logistics. The success of this deal will likely hinge on RXO's ability to effectively integrate Coyote's technology and leverage its customer base.
The stock offering's structure, including the option for underwriters to purchase additional shares, is a standard practice that provides flexibility in meeting investor demand. The non-contingent nature of the offering on the acquisition's completion is noteworthy, as it potentially exposes RXO to financial risk if the deal falls through.
Investors should pay close attention to the prospectus supplement and accompanying prospectus for detailed risk factors and terms. The involvement of multiple underwriters suggests a well-structured offering, potentially reducing execution risk. However, the statement about using proceeds for 'general corporate purposes' if the acquisition fails leaves room for interpretation and warrants scrutiny in the full prospectus.
RXO intends to grant the underwriters of the offering an option to purchase up to an additional
RXO intends to use the net proceeds from the offering to finance a portion of the pending acquisition of Coyote Logistics, UPS’s technology-driven, asset-light freight brokerage business. The offering is not contingent on the consummation of the acquisition. RXO expects that the acquisition will be consummated by September 20, 2024. If the acquisition is not consummated, RXO intends to use the net proceeds from the offering for general corporate purposes.
Goldman Sachs & Co. LLC, BofA Securities, Citigroup and Morgan Stanley are the joint lead book-running managers for the offering. Barclays, Wells Fargo Securities and Scotiabank are also joint book-running managers for the offering.
The offering of common stock will be made by means of a prospectus supplement under RXO’s effective registration statement on Form S-3, as filed with the Securities and Exchange Commission (“SEC”).
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor does it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful. The offering may be made only by means of a prospectus supplement relating to such offering and the accompanying prospectus. Copies of the preliminary prospectus supplement for the offering and the accompanying prospectus can be obtained from:
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Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street,
New York, NY 10282, by telephone at 1-866-471-2526, or by e-mail at prospectus-ny@ny.email.gs.com;
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BofA Securities, Inc., NC1-004-03-43, 200 North College Street, 3rd floor,
Charlotte, NC 28255-0001, Attn: Prospectus Department, Email: dg.prospectus_requests@bofa.com;
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Citigroup, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717 (Tel: 800-831-9146); or
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Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor,
New York, NY 10014.
About RXO
RXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across
Forward-looking Statements
This press release includes forward-looking statements, including statements relating to the potential transaction, including the expected time period to consummate the potential transaction, and the use of proceeds of the offering. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “predict,” “should,” “will,” “expect,” “project,” “forecast,” “goal,” “outlook,” “target,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC and the following: potential delays in consummating the potential transaction; RXO’s ability to integrate the operations of Coyote Logistics in a successful manner and in the expected time period; the possibility that any of the anticipated benefits and projected synergies of the potential transaction will not be realized or will not be realized on the anticipated terms and within the expected time period; the occurrence of any event, change or other circumstance that could give rise to the termination of the purchase agreement; risks that the anticipated tax treatment of the potential transaction is not obtained; unforeseen or unknown liabilities; customer, regulatory and other stakeholder approvals and support; unexpected future capital expenditures; potential litigation relating to the potential transaction that could be instituted against RXO or its directors; the possibility that the potential transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the effect of the announcement, pendency or completion of the potential transaction on the parties’ business relationships and business generally; risks that the potential transaction disrupts current plans and operations of RXO and potential difficulties in employee retention and hiring as a result of the potential transaction, as well as the risk of disruption of RXO’s or Coyote Logistics’ management, including the diversion of management’s time and attention to completion of the proposed transaction and integration matters, and business disruption during the pendency of, or following, the potential transaction; certain restrictions during the pendency of the proposed transaction that may impact RXO’s and Coyote Logistics’ ability to pursue certain business opportunities or strategic transactions; negative effects of this announcement, and the pendency or completion of the potential transaction on the market price of RXO’s common stock and/or operating results; rating agency actions and RXO’s ability to access short- and long-term debt and equity markets on a timely and affordable basis; the risk that actual results of the acquired business may differ materially from preliminary results; and the risks described in Part I, Item 1A “Risk Factors” of RXO’s Annual Report on Form 10-K for the year ended December 31, 2023 and in subsequent filings with the SEC. All forward-looking statements set forth in this press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this press release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240908993095/en/
Media
Erin Kelly
erin.kelly@rxo.com
Investor Contact
Kevin Sterling
kevin.sterling@rxo.com
Source: RXO
FAQ
How much is RXO planning to raise through its common stock offering?
What is the purpose of RXO's stock offering?
When is RXO expected to complete the acquisition of Coyote Logistics?
Who are the joint lead book-running managers for RXO's stock offering?
What will RXO do with the funds if the Coyote Logistics acquisition is not completed?
