Loan & DebtOct 28, 2026, 08:06 AM
C.H. Robinson Amends Credit Agreement for RXO Acquisition; Q3 Earnings Up
AI Summary
C.H. Robinson Worldwide, Inc. announced a Fifth Amendment to its Credit Agreement, primarily to facilitate its previously announced acquisition of RXO, Inc. The amendment designates the RXO Acquisition as a 'Permitted' and 'Material' acquisition, adjusts EBITDA calculations, and revises the net leverage covenant. The company also reported its third quarter 2026 financial results, showing a 23.1% increase in income from operations to $271.8 million and a 24.6% rise in diluted EPS to $1.67. Cash returned to shareholders increased significantly by 52.5% to $289.1 million.
Key Highlights
- C.H. Robinson amended its Credit Agreement to permit the previously announced acquisition of RXO, Inc.
- The amendment allows the RXO Acquisition to be a 'Permitted Acquisition' and 'Material Acquisition' under the Credit Agreement.
- The amendment revises the pro forma calculation of Consolidated EBITDA for Material Acquisitions, including RXO.
- The net leverage covenant remains a maximum Net Leverage Ratio of 3.75 to 1.00, with the cap on cash netting eliminated.
- A Leverage Holiday will be deemed elected upon completion of the RXO Acquisition.
- Third quarter 2026 income from operations increased 23.1% to $271.8 million.
- Third quarter 2026 diluted EPS increased 24.6% to $1.67.
- Cash returned to shareholders increased 52.5% to $289.1 million in Q3 2026.
Price Impact
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