RXO Secures $550 Million in New Private Placement for Pending Acquisition of Coyote Logistics

Paul, Weiss advised RXO, a leading provider of asset-light transportation solutions, in a $550 million private investment in public equity (PIPE) transaction with MFN Partners and certain accounts managed by Orbis Investments. Under the terms of the purchase agreements entered into, RXO sold approximately 21 million shares of its common stock at $20.21 per share and pre-funded warrants to purchase approximately six million shares of its common stock at $20.20 per warrant.

The proceeds from the transaction will be used to finance a portion of RXO’s pending $1 billion acquisition of freight brokerage business Coyote Logistics from UPS, a transaction that Paul, Weiss is also advising on. The acquisition is expected to close in the fourth quarter.

The Paul, Weiss team was led by corporate partner David Huntington and counsel David Sobel, and included partner Steven Williams; tax partner Scott Sontag and counsel Alyssa Wolpin; and litigation partner Geoffrey Chepiga.