GREENWICH – Affiliates of Apollo Global Management have agreed to invest $1.2 billion in QXO, the tech-focused distributor of roofing, waterproofing, and other building products, according to a Jan. 5 Apollo announcement.
The investment will be made through a new series of convertible perpetual preferred stock. It further strengthens QXO’s financial flexibility in pursuing acquisition opportunities.
Under the investment agreement, the investors have committed to purchase the new convertible preferred stock to fund acquisitions through July 15, 2026. This commitment will be extended up to an additional 12 months if a definitive acquisition agreement is executed before the initial commitment period expires.
The new convertible preferred stock is perpetual, will pay a preferred dividend rate of 4.75% per annum, and can be converted into shares of the Company’s common stock at an initial conversion price of $23.25 per share.
The offer and sale of the foregoing securities are being made in a transaction not involving a public offering and the securities have not been registered under the Securities Act of 1933, as amended, and may not be reoffered or resold in the United States except through an effective registration statement or an applicable exemption from the registration requirements.
The Company has agreed to file a prospectus supplement with the Securities and Exchange Commission to register the resale of the new convertible preferred stock and underlying common stock issuable upon conversion following the issuance of the new convertible preferred stock.
