Company: QXO-PB
Filing Date: 2025-04-18
Form Type: 424B5
Source: 0001140361-25-014598
Chunk: 30

Company: QXO, Inc.
Filing Date: 2025-04-18
Form: 424B5
Chunk 30
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17

TABLE OF CONTENTS

In addition, if the Acquisition is not completed, we may experience negative reactions from the financial markets and from our customers and employees. We also may be subject to litigation related to any failure to complete the Acquisition or to enforcement proceedings commenced against us to perform our obligations under the Merger Agreement. If the Acquisition is not completed, these risks may materialize and may adversely affect our business, financial results and financial condition, as well as the price of our Common Stock. While the Acquisition is pending, we and Beacon will be subject to business uncertainties that could adversely affect our respective businesses. Our success following the Acquisition will depend in part upon the ability of us and Beacon to maintain our respective business relationships. Uncertainty about the effect of the Acquisition on customers, suppliers, employees and other constituencies may have a material adverse effect on us and Beacon. Customers, suppliers and others who deal with us or Beacon may delay or defer business decisions, decide to terminate, modify or renegotiate their relationships or take other actions as a result of the Acquisition that could negatively affect the revenues, earnings and cash flows of our company or Beacon. If we are unable to maintain these business and operational relationships, our financial position, results of operations or cash flows could be materially affected. Risks Related to Our Indebtedness We expect to incur substantial additional indebtedness in connection with the Acquisition. After giving effect to the Transactions, we will be a highly leveraged company. We expect to incur substantial indebtedness in connection with the Acquisition. Upon completion of the Transactions, we expect to have approximately $4.8 billion of senior secured indebtedness, consisting of the Term Facility, the Notes and borrowings under our ABL Facility, and to have approximately $1.35 billion available for additional borrowing under our ABL Facility (excluding approximately $17.0 million in letters of credit expected to be outstanding thereunder). Our high level of debt could have important consequences, including:

| • | making it more difficult for us to satisfy our obligations with respect to our debt and any failure to comply with the obligations of any of our debt instruments, including restrictive covenants and borrowing conditions, could result in an event of default under the agreements governing other indebtedness; |

| • | requiring us to dedicate a substantial portion of our cash flow from operations to the payment of interest and the repayment of our indebtedness, thereby reducing funds available to us for other purposes; |

| • | limiting our ability to obtain additional financing to fund future working capital, capital