XPO Plans $985 Million Debt Package to Buy Yellow Terminals (1)

XPO Inc. is selling a high-yield bond and loan to help fund its acquisition of trucking terminals from bankrupt cargo hauler Yellow Corp.

The financing package includes a $585 million eight-year senior unsecured bond and a $400 million term loan, according to people with knowledge of the matter who asked not to be identified discussing private transactions. A lender call was held at noon New York time on Tuesday, the people added.

Initial pricing discussions on the loan are for 200 basis points over the Secured Overnight Financing Rate and a discounted price of 99.5 to 99.75 cents ...