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GREENWICH, Conn. - GXO Logistics, Inc. (NYSE:GXO) announced Monday the completion of its first European bond offering, with its subsidiary GXO Logistics Capital B.V. issuing €500 million in senior unsecured notes. The logistics giant, with a market capitalization of approximately $5.5 billion, has shown strong revenue growth of nearly 17% over the last twelve months.
The notes will carry a 3.750% annual interest rate, with payments beginning November 24, 2026, and will mature on November 24, 2030. The company plans to use the proceeds to refinance upcoming debt maturities, a strategic move considering InvestingPro data shows GXO’s short-term obligations currently exceed its liquid assets, with a current ratio of 0.71.
"By securing €500m on competitive terms and using the proceeds to refinance upcoming maturities, we are strengthening our balance sheet and positioning GXO for long-term growth," said Baris Oran, Chief Financial Officer at GXO. This aligns with analyst expectations that net income will grow this year, according to InvestingPro data.
Barclays, Deutsche Bank and Goldman Sachs & Co. LLC served as active bookrunners for the transaction.
GXO Logistics describes itself as the world’s largest pure-play contract logistics provider, operating more than 1,000 facilities across over 200 million square feet with approximately 150,000 employees. The company is headquartered in Greenwich, Connecticut.
The bond issuance represents GXO’s inaugural offering in the European market as an investment-grade issuer, according to the company’s statement based on a press release.
In other recent news, GXO Logistics reported a record revenue of $3.4 billion for the third quarter of 2025, marking an 8% increase compared to the previous year. The company also met analyst expectations with an adjusted earnings per share (EPS) of $0.79. Jefferies responded to this performance by raising its price target for GXO Logistics to $68, maintaining a Buy rating due to a strong medium-term outlook. Meanwhile, Deutsche Bank upgraded GXO Logistics from Hold to Buy, citing the company’s significant European market exposure, which accounts for about two-thirds of its business. Deutsche Bank also increased its price target to $64 from $52. These developments highlight the market’s growing interest in companies with substantial European operations. Despite the positive earnings report, GXO’s stock saw a slight decline in pre-market trading.
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