QXO Kicks Off $3B Loan Sale in M&A Debt Deal for TopBuild

(QXO)

A group of banks led by Wells Fargo & Co. kicked off a $3 billion leveraged loan sale as part of a larger debt package to finance building products distributor QXO Building Products Inc.’s purchase of rival TopBuild Corp.

Early pricing discussions are around 2.25 percentage points above the benchmark rate with a discounted price of 99 to 99.5 cents on the dollar, according to a person with knowledge of the matter. That’s roughly in line with where the deal was pitched in pre-marketing.

A lender call is scheduled for June 1, while commitments are due June 4 at 5 p.m., said the person, asking not to be identified because they’re not authorized to speak publicly.

QXO agreed to buy insulation company TopBuild for about $17 billion, making QXO the second-largest publicly traded building products distributor in North America.

Wall Street banks, which also include Morgan Stanley and Barclays Plc, provided a debt commitment that included a $3 billion senior secured term loan facility and a $3 billion bridge loan to help fund the deal, according to an April filing.

A junk-bond offering may follow to replace the temporary bridge facility. That part of the financing may be split into two junk bonds, each sized at about $1.5 billion. The remainder of the acquisition will be funded with cash, preferred equity and common stock, the person said.

Exciting news! Read more: https://t.co/FxxRAeQVjw pic.twitter.com/moShl8bQxC — QXO (@QXOInc) April 19, 2026

QXO ranks No. 70 on the Transport Topics Top 100 list of the largest private carriers in North America.