XPO Logistics entered into a refinancing amendment with Morgan Stanley Senior Funding as administrative agent.

The amendment modified a senior secured term loan credit agreement dated October 30, 2015 so that the previously outstanding $1.5 million in term loans was replaced with $1.494 billion in new term loans, which will mature on October 30, 2021.

Proceeds from the new term loans were used primarily to refinance the existing term loans and to pay interest, fees and expenses in connection therewith. Up to $1.5 million may be used for general corporate purposes.

According to a related 8-K, the interest rate margin applicable to the new term loans was reduced from 2.25% to 1.25%, in the case of base rate loans, and from 3.25% to 2.25%, in the case of LIBOR loans. The LIBOR floor was reduced from 1.0% to 0%, resulting in a reduction of XPO’s cash interest expense in respect of loans outstanding under the term loan credit agreement of approximately $15 million per year.