QXO Launches $2B Notes Offering Paving Way for Beacon Acquisition
Deal News | Apr 21, 2025 | EIN
QXO announced its plans to raise $2 billion through Senior Secured Notes due in 2032, seeking to fund its planned acquisition of Beacon Roofing Supply. This maneuver is facilitated by Queen MergerCo, a wholly-owned subsidiary formed specifically for this acquisition. As part of the deal, Merger Sub will merge into Beacon upon closing, rendering Beacon a wholly-owned subsidiary of QXO. The issued Senior Notes will be secured by first-priority liens on Beacon's key assets, supported by Beacon's domestic restricted subsidiaries to back its new term loan. Additionally, QXO extended its all-cash tender offer for Beacon’s outstanding shares, achieving a tendered share count of approximately 38.32% of Beacon's outstanding shares by April 19.
Sectors
- Finance
- Construction
Geography
- United States – Both QXO and Beacon Roofing Supply operate within the United States, making this a significant market for any acquisition.
Industry
- Finance – The article discusses the issuance of secured notes, a financial instrument, and other financial arrangements to facilitate a corporate acquisition.
- Construction – Beacon Roofing Supply is part of the construction industry, providing materials and services for roofing and building projects.
Financials
- $2 billion – The amount raised through Senior Secured Notes to help fund the acquisition of Beacon Roofing Supply.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| QXO | Bidding Company | Company | QXO is planning to acquire Beacon Roofing Supply using proceeds from new secured notes and other financial strategies. |
| Beacon Roofing Supply | Target Company | Company | Beacon Roofing Supply is the target of QXO's acquisition efforts, with plans for it to become a wholly-owned subsidiary. |
| Queen MergerCo | Special Purpose Vehicle | Company | A wholly-owned subsidiary of QXO, formed to facilitate the acquisition of Beacon Roofing Supply. |