XPO cuts debt burden with refinance deal
XPO Logistics has refinanced some $1.6 billion of debt in the latest in a series of measures to cut the debt burden on the business.
Bradley Jacobs, chairman and chief executive officer, said: “In the past week, we’ve opportunistically completed $2.6 billion of debt refinancings, achieving all three of our objectives. We reduced our expected cash interest expense by approximately $40 million a year, extended the maturity dates of our debt, and increased our flexibility to pay down debt sooner.
“XPO recently reached a key inflection point for EBITDA and cash flow acceleration, resulting in a stronger credit profile, and this has allowed us to significantly lower our cost of capital.”
The group is carrying some $5.3 billion of long term debt following a series of acquisitions that included Norbert Dentressangle and Con-Way. Interest payments in the six months to 30th June 2016 amounted to $187.8m. Nevertheless, the group made a net profit for the period of $24.1m.
