RXO announces equity offering to finance Coyote Logistics buy from UPS; RXO shares dip

RXO

09/09/2024 15:23

** RXO Inc's  RXO.N  shares dip 0.8% to $26.50 early Mon as
co seeks equity to fund pending purchase of Coyote Logistics
from UPS  UPS.N 
    ** Charlotte, N.C.-based RXO announces $350 mln stock
offering
    ** Co says expects Coyote acquisition to be completed by
Sept 20. If acquisition not completed, it will use net offering
proceeds for general purposes
    ** UPS in late Jun disclosed sale of Coyote unit to RXO for
~$1 bln
    ** RXO shares closed at $24.85 on Jun 21, last trading day
before acquisition was revealed. Stock was trading around $17.50
a yr ago
    ** Co has ~138.59 mln shares outstanding as of Aug 31,
including ~20.95 mln shares issued in private placement to MFN
Partners and Orbis Investments
    ** Goldman Sachs, BofA, Citigroup and Morgan Stanley leading
equity offering
    ** UPS shares up 1% on Mon, trimming YTD loss to ~18%

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))