QXO announces $1.2B convertible equity investment led by Apollo Global

QXO (QXO) announced that funds managed by affiliates of Apollo Global (APO) Management (SPO) and certain other investors have agreed to invest $1.2B in QXO through a new series of convertible perpetual preferred stock. The investment 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 one or more qualifying 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. Any issuance of the new convertible preferred stock will close at or around the time of the closing of the qualifying acquisition. 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.