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Demica powers XPO Logistics €400m securitisation split

03 Sep 21

XPO Logistics, Inc., a leading global provider of freight transportation services, has partnered with Demica, a Fintech specialising in working capital solutions, for a complex €400m split of its European trade receivables securitisation.
XPO split its existing trade receivables securitisation into two separate programmes to support the spin-off of its contract logistics division into a separate listed company, GXO Logistics, Inc.

The powerful Demica Platform enabled XPO and GXO to seamlessly initiate reporting on the new transaction as well as adjust the reporting of the existing transaction for the departing sellers.

Demica supported XPO in advising and managing the execution of the trade receivables securitisation split, a rare occurrence in trade receivables securitisation programmes that requires in-depth knowledge of securitisation structures and funding mechanisms.

This transaction was completed in advance of the spin-off, delivering higher total funding than the previous consolidated program at a competitive cost and with a commitment extension until July 2024.

Both XPO and GXO have been able to continue financing their European working capital concurrently with the spin-off, without any impact to their financial operations or liquidity requirements. The spin-off has delivered significant value to XPO shareholders who have received shares of GXO Logistics as part of the deal.

About XPO Logistics, Inc.

XPO Logistics, Inc. (NYSE: XPO) is a leading provider of freight transportation services, primarily truck brokerage and less-than-truckload (LTL). XPO uses its proprietary technology, including the cutting-edge XPO Connect™ automated freight marketplace, to move goods efficiently through supply chains. The company’s global network serves 50,000 shippers with 744 locations and approximately 40,000 employees, and is headquartered in Greenwich, Conn., USA.

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