QXO dips after upsized $1.3 bln stock, convertible deals priced

Shares of building-products distributor QXO QXO.N down 0.9% premarket at $16.90 after additional capital raise

Greenwich, Connecticut-based QXO announced ~48.5 mln shares at $16.50 for $800 mln gross proceeds and concurrent offering of $500 mln 3-yr mandatory convertible preferred stock

QXO shares on Weds closed down 7% at $17.06, snapping 7-day winning streak, after co late Tues launched concurrent offerings to raise $1 bln

Preferred stock has annualized yield of 5.5% and will automatically convert on May 15, 2028 into between 49.4740-60.6060 QXO shares, which represents up to 22.5% premium

Co said intends to use net proceeds from offerings to repay debt under term loan facility, which will strengthen its position for future acquisition opportunities

With ~522.5 mln shares outstanding as of May 15, per the SEC prospectus filing, co has about $8.9 bln market cap

Goldman Sachs and Morgan Stanley are jt lead jt bookrunners for the offerings

Last month, billionaire Brad Jacobs' firm sold ~37.7 mln shares at $13.25 for $500 mln raise to finance buy of Beacon Roofing Supply

Through Weds, QXO shares up ~7% YTD