RXO secures relaxed leverage covenant on revolving credit facility through Q1 2025

RXO, Inc.

Consolidated leverage ratio allowed up to 4.25x for Q2 and Q3 2024; 4.00x for Q4 2024; 3.75x for Q1 2025; then returns to 3.50x.
During covenant relief period, dividends, share repurchases, and certain material acquisitions are restricted.
Company may elect to terminate relief period if leverage ratio is 3.50x or below at a fiscal quarter end.
The amendment modifies the Revolving Credit Agreement dated Oct 18, 2022, with lenders including Citibank, Bank of America, etc.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

RXO, Inc. amended Amendment No. 2 to the Revolving Credit Agreement with Citibank, N.A. valued at Increases consolidated leverage ratio financial covenant to 4.25:1.00 for Q2 and Q3 2024, 4.00:1.00 (effective 2024-04-11).

Action: amendment
Agreement: credit facility
Counterparty: Citibank, N.A.
Value: Increases consolidated leverage ratio financial covenant to 4.25:1.00 for Q2 and Q3 2024, 4.00:1.00
Effective: 2024-04-11

Exact text from the filing

On April 11, 2024, RXO, Inc. (the “Company”) entered into Amendment No. 2 to the Revolving Credit Agreement (the “Amendment”), with the lenders party thereto and Citibank, N.A., as administrative agent, which Amendment amends the Revolving Credit Agreement, dated as of October 18, 2022, among the Company, the guarantors from time to time party thereto, the lenders and other parties from time to time party thereto and Citibank, N.A., as administrative agent (the “Revolver”).

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Source: SEC EDGAR

accession 0001929561-24-000060

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