By Matt Wirz

The market for leveraged buyouts showed signs of recovery this morning as Goldman Sachs launched a $4.5 billion debt deal backing QXO's $11 billion purchase of Beacon Roofing, people familiar with the deal said. The financing is the first with a below investment-grade credit rating to come to market since the Trump administration announced global tariffs on April 2.

The chilling affect on the LBO pipeline has hammered the stocks of private-equity giants like Apollo and Blackstone, which are already struggling to sell companies they own. QXO has a double-B-minus credit rating, higher than most private-equity portfolio companies but a strong investor response could open the door to lower-rated deals.

QXO provides technology to manufacturing and distribution companies, while Beacon distributes roofing and other-l construction products. The debt portion of the deal is split between a $2.5 billion leveraged loan and a $2 billion high-yield bond.

The deal follows last week's issue of the first below-investment-grade bond refinancing by Venture Global Plaquemines LNG.

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April 21, 2025 12:17 ET (16:17 GMT)

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