QXO secures $3 billion incremental term loan to fund TopBuild deal

QXO, Inc. (NASDAQ: QXO) disclosed that its subsidiary, QXO Building Products, Inc., entered into an incremental term loan facility of $3.0 billion on July 1, 2026, coinciding with the completion of its TopBuild acquisition.

The financing was arranged through an amendment to an existing term loan credit agreement originally dated April 29, 2025, with Goldman Sachs Bank USA serving as administrative agent. The full $3.0 billion was drawn immediately and used alongside proceeds from a previously announced notes offering, proceeds from the issuance of 100,000 shares of Series C Preferred Stock, and available cash to fund the acquisition and related fees.

The incremental term loan facility carries a maturity date of July 1, 2033, and requires quarterly amortization payments at an annual rate of 1.0% of the original principal, with the remaining balance due at maturity.

Interest on the facility is payable at the borrower's option at either a Term SOFR rate or a base rate tied to the highest of the federal funds rate plus 0.50%, Goldman Sachs Bank USA's prime rate, or one-month Term SOFR plus 1.00%, each plus an applicable margin.

Voluntary prepayments are permitted without penalty, except that any repricing event occurring within the first six months after closing will carry a 1.00% prepayment premium or fee. The terms and covenants of the new facility are otherwise consistent with those of the existing term loan facility.

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