RXO Inc.'s stock experienced a sharp decline intraday, plummeting 5.24% as investors reacted to the company's latest capital market activity.

The movement follows the company's announcement that it priced a $400 million offering of 6.375% senior notes due 2031. The proceeds are intended to repurchase or redeem all of its higher-interest 7.5% notes due 2027 and for general corporate purposes.

While the refinancing could improve the company's interest expense profile in the long term, the market's negative reaction suggests concerns over the new debt issuance, potentially related to the overall cost of capital or the company's leverage.