QXO, Inc. announced that its wholly owned subsidiary, Queen MergerCo, Inc., intends to offer $2 billion in Senior Secured Notes due 2032. The proceeds from this offering, along with new senior secured credit facilities, previously announced equity offerings, and available cash, are intended to fund the acquisition of Beacon Roofing Supply, Inc. This debt offering is a key component of the financing structure for the $11 billion Beacon acquisition.
Upon completion of the acquisition, Queen MergerCo will merge into Beacon, with Beacon surviving as a wholly owned subsidiary of QXO. The notes will be guaranteed on a senior secured basis by Beacon’s wholly owned domestic restricted subsidiaries. The notes and related guarantees will be secured by first-priority liens on most of Beacon’s material owned assets, excluding inventory and accounts receivable, and by second-priority liens on inventory and accounts receivable. This financing move demonstrates QXO's comprehensive approach to funding its transformative growth strategy.
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