QXO Launches $3B Loan for $17B TopBuild Acquisition

Key Details QXO Building Products is moving forward with a $3 billion leveraged loan sale to help finance its $17 billion acquisition of TopBuild Corp. Wells Fargo is leading a banking group that includes Morgan Stanley and Barclays on the debt package. Early pricing discussions show the loan priced at 2.25 percentage points above the benchmark rate with a discounted price of 99 to 99.5 cents on the dollar. Deal Timeline Banks will hold a lender call on June 1, with final commitments due June 4 at 5 p.m. The financing package also includes a $3 billion bridge loan that may be replaced by junk-bond offerings, potentially split into two $1.5 billion bonds. The remaining acquisition funding will come from cash, preferred equity, and common stock. Why It Matters Once complete, QXO will become the second-largest publicly traded building products distributor in North America. This mega-deal signals continued consolidation in the building products sector. QXO currently ranks No. 70 on the Transport Topics Top 100 list of largest carriers in North America.