XPO Logistics announced the refinancing of $2.0 billion of existing term loan facilities to, among other things, reduce the applicable interest rate.

The existing $1.5 billion term B facility, which bore interest at a rate of LIBOR plus 2.00%, and the existing $500 million term B-1 facility, which bore interest at a rate of LIBOR plus 2.50%, were refinanced with proceeds from a new $2.0 billion term loan facility that bears interest at a rate of LIBOR plus 1.75% (the LIBOR floor remains unchanged at 0.00%). The maturity date of the new loan facility remains at February 23, 2025, and the terms of the new loan facility are substantially consistent with the refinanced facilities.

Morgan Stanley, Goldman Sachs, Barclays, Citigroup, Credit Agricole, Credit Suisse, Deutsche Bank and Wells Fargo served as joint bookrunners, and Wachtell, Lipton, Rosen & Katz acted as legal advisor on the transaction.

Brad Jacobs, chairman and chief executive officer of XPO Logistics, said, “We’re continuing to take opportunistic actions that enhance our balance sheet. We estimate that this $2 billion refinancing, together with the $1.2 billion of debt we paid down in January, will reduce our annual interest expense by $86 million.”