The Charlotte-based logistics firm announced that the 6.375% senior notes will be initially guaranteed on a senior unsecured basis by its domestic subsidiaries. These subsidiaries currently serve as guarantors under RXO’s existing asset-based revolving credit facility.

Strategic Debt Refinancing

According to the company statement, the primary objective of the capital raise is to repurchase or redeem all outstanding 7.500% notes due 2027. By extending the maturity to 2031 and securing a lower coupon rate, the company aims to optimize its balance sheet and reduce long-term interest expenses.

Beyond the debt redemption, RXO plans to allocate the remaining proceeds toward general corporate purposes. The report states that these funds may cover transaction-related fees and the potential repayment of additional indebtedness as the company continues to scale its transportation technology platform.