The debut high-yield notes are part of the financing for QXO’s acquisition of Beacon Roofing Supply

Davis Polk advised the representative of the several initial purchasers in connection with the offering by Queen MergerCo., Inc., an indirect subsidiary of QXO, of $2.25 billion aggregate principal amount of its 6.75% senior secured notes due 2032. The proceeds of the notes are being used to pay a portion of the consideration for QXO, Inc.’s acquisition of Beacon Roofing Supply, Inc., to refinance certain of Beacon’s existing debt in connection with the transactions and to pay related fees, costs, premiums and expenses.

QXO plans to become the leader in the $800 billion building products distribution industry. The company is targeting annual revenue of $50 billion in the coming decade through accretive acquisitions and organic growth. QXO acquired Beacon this week for approximately $11 billion, making QXO the largest publicly traded distributor of roofing, waterproofing and complementary building products in the United States.

Founded in 1928, Beacon (now known as QXO) specializes in the distribution of roofing and complementary building products, including siding and waterproofing. The company operates over 580 branches throughout all 50 states in the U.S. and seven provinces in Canada.

The Davis Polk capital markets team included partner Michael Kaplan and associates David (Wei Fu) Li and Ryan Mainous. Partner Scott M. Herrig, counsel Ruben N. Henriquez and associates Hye-Jin Kim and Blair Shi provided finance advice. Partner Lucy W. Farr and associates Caleb E. Smith and Fred Fu provided tax advice. All members of the Davis Polk team are based in the New York office.

Copy link to share post