XPO Logistics Inc. is selling US$1 billion of bonds to fund share buybacks and refinance debt as it abandons acquisitions to boost its stock price.

The trucking company and warehouse operator will use the bonds to repay borrowings under its existing credit agreement, among other general corporate purposes like repurchasing shares, according to a statement Tuesday. The 5.5-year securities, which can't be bought back for 2.5 years, may yield between 6.5 percent and 6.625 percent, according to a person familiar with the matter who asked not to be identified as the details are private.

CEO Brad Jacobs said during Friday's fourth-quarter earnings call that XPO's new objective is buying back stock rather than pursuing mergers and acquisitions (M&A), sending shares lower. The company announced a $1 billion share buyback program in December, which was exhausted by Feb 4. It adopted a new $1.5 billion repurchase plan less than two weeks later.