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GREENWICH, Conn. - QXO, Inc. (NYSE: QXO), a company targeting leadership in the building products distribution industry, has announced that its subsidiary, Queen MergerCo, Inc., plans to offer $2 billion in Senior Secured Notes due 2032. According to InvestingPro data, QXO currently holds more cash than debt on its balance sheet and maintains a strong current ratio of 112.85, indicating robust liquidity. The company’s stock, currently trading at $13.15, appears slightly undervalued based on InvestingPro’s Fair Value analysis. This move is part of the financing strategy for QXO’s upcoming acquisition of Beacon Roofing Supply, Inc., with the transaction expected to close the week of April 28, 2025.
The proceeds from the notes, along with new senior secured credit facilities, prior equity offerings, and available cash, are designated to fund the acquisition and related costs. Post-acquisition, Beacon will become a wholly owned subsidiary of QXO, and the notes will be secured by liens on most of Beacon’s and its guarantors’ assets, subject to certain conditions.
The sale of these notes, which is subject to market and other conditions, will not be registered under the U.S. Securities Act of 1933 and is aimed at qualified institutional buyers and certain non-U.S. persons in offshore transactions. This strategy aligns with QXO’s ambitious revenue target of $50 billion over the next decade through strategic acquisitions and organic growth. The acquisition of Beacon positions QXO as the second-largest distributor of roofing products in the United States.
This press release, fulfilling Rule 135c under the Securities Act, does not constitute an offer to sell the securities described and will be restricted by registration and qualification laws in various jurisdictions.
The announcement contains forward-looking statements based on current plans and expectations, which are subject to risks and uncertainties that could cause actual outcomes to differ. These include potential delays or challenges in completing the acquisition, impacts on business operations during the acquisition process, and the risk of unforeseen expenses or liabilities.
Investors are cautioned not to place undue reliance on these forward-looking statements and are advised to consider the risks detailed in QXO’s and Beacon’s regulatory filings. This article is based on a press release statement from QXO, Inc.
In other recent news, QXO, Inc. announced a $500 million stock offering to support its acquisition of Beacon Roofing Supply, Inc., valued at approximately $11 billion. This acquisition aims to position QXO as the second-largest distributor of roofing products in the United States. The stock offering, facilitated by Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC, is not contingent on the acquisition’s completion. Additionally, QXO extended its tender offer for Beacon’s shares, with the acquisition expected to close by the end of April, having already received antitrust clearance in the U.S. and Canada. In another development, QXO appointed Val Liborski as its new Chief Technology Officer. Liborski brings extensive experience from his roles at Yahoo, HelloFresh, and Amazon. Furthermore, QXO selected Deloitte & Touche LLP as its new auditor for the fiscal year ending December 31, 2025, replacing Marcum LLP. These recent developments reflect QXO’s strategic moves to expand its market presence and strengthen its financial oversight.
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