Core Insights - QXO, a logistics-focused company founded by former XPO CEO Brad Jacobs, aims to consolidate a fragmented building supply chain through acquisitions, having recently secured $1.2 billion in financing to support this strategy [1][2][4] Financing Details - The $1.2 billion financing was led by Apollo Global Management, with additional investments from Franklin Templeton and two pension funds, making Apollo the largest investor [2][3] - The financing was obtained through the sale of convertible preferred equity, enhancing QXO's financial flexibility for acquisitions [4] - The funds can be utilized for acquisitions exceeding $1.5 billion before July 15, with a potential one-year extension if not used [6] Shareholder Information - The preferred shares have a dividend rate of 4.75% and can be converted to common shares at a price of $23.25 per share, potentially adding about 47 million new shares to QXO's existing 1.129 billion fully diluted shares [7] - QXO does not currently pay dividends on its common stock [7] Market Reaction - Following the announcement of the financing deal, QXO's share price increased by 17.95%, reaching $23.26, with a notable 52-week low of $11.85 recorded earlier in the year [8]
Jacobs’ QXO gets big investment from group led by Apollo