QXO said Monday it has expanded a previously announced financing to $3 billion, increasing its acquisition capacity as it pursues consolidation opportunities in the building-products distribution sector.
The company added $1.8 billion to an earlier $1.2 billion commitment, with the expanded investment led by funds managed by affiliates of Apollo Global Management and joined by Temasek and other investors. The capital will be invested through QXO’s previously disclosed Series C convertible perpetual preferred stock, the company said.
Under the agreement, investors have committed to purchase the preferred shares to fund one or more qualifying acquisitions through July 15. The commitment may be extended for up to 12 additional months if QXO enters into a definitive acquisition agreement before the initial commitment period expires. Any issuance of the Series C preferred stock would close at or around the completion of the related acquisition.
The securities are being sold in a private placement and have not been registered under the Securities Act of 1933. QXO said it has agreed to use commercially reasonable efforts to file a prospectus supplement with the Securities and Exchange Commission to register the resale of the preferred shares and any common stock that may be issued upon conversion.
QXO said the upsized financing enhances its financial flexibility as it pursues strategic acquisitions. The company describes itself as the largest publicly traded distributor of roofing, waterproofing and complementary building products in North America and has said it aims to build scale through acquisitions and organic growth over the next decade.
