QXO announced that funds managed by affiliates of Apollo Global Management and other investors have agreed to invest $1.2 billion in the company through a new series of convertible perpetual preferred stock, a financing structure intended to bolster QXO’s flexibility as it pursues acquisition opportunities.
Under the agreement, the investor group has committed capital to fund one or more qualifying acquisitions through July 15, 2026. If QXO signs a definitive acquisition agreement before that initial deadline, the commitment period can be extended by up to an additional 12 months. Any issuance of the new preferred stock would occur at or around the closing of the qualifying acquisition or acquisitions, tying the funding directly to transaction execution.
The convertible preferred is perpetual and carries a 4.75% annual dividend. It is convertible into QXO common shares at an initial conversion price of $23.25 per share. The company said the securities are being offered in a transaction not involving a public offering and have not been registered under the Securities Act, with resale restrictions in place absent registration or an applicable exemption. QXO also said it plans to use commercially reasonable efforts to file a prospectus supplement with the SEC to register the resale of the preferred stock and the underlying common shares issuable upon conversion after the preferred is issued.
QXO is the largest publicly traded distributor of roofing, waterproofing, and complementary building products in North America. The company has positioned the Apollo-led commitment as part of its strategy to become a tech-enabled leader in building product distribution and to scale toward a long-term revenue target of $50 billion within the next decade through accretive acquisitions and organic growth.
