Joshua Kushner’s Thrive Holdings is seeking a roughly $9.6 billion debt financing package from banks to back its $15.3 billion take-private acquisition of home security provider ADT, while maintaining a committed record-breaking private credit backup led by Apollo Global Management, Octus reported.
The Bottom Line
- Thrive Holdings is pursuing a roughly $9.6 billion syndicated bank loan to fund its $15.3 billion acquisition of Boca Raton-based ADT.
- A committed private credit package of $9.65 billion led by Apollo Global Management stands ready as a fully structured backup option if bank commitments fall short.
- The transaction is projected to close in the first quarter of 2027, according to the official press release.
Syndicated Bank Loans Versus Private Credit Backstops
As reported by Octus citing inside sources, the contemplated bank funding arrangement consists of a $4.35 billion term loan, a $2.7 billion delayed-draw term loan, a separate $1.9 billion loan segment, and a $700 million revolving credit facility. Apollo has committed to provide 30% to participate in this broadly syndicated loan financing while simultaneously leading the private credit package.
Should the bank financing succeed, the Apollo-led private credit facility will remain untapped. To back the take-private transaction, that private credit arrangement features a $6.25 billion term loan, a $2.7 billion delayed-draw term loan, a $700 million revolving credit facility, and $1.65 billion in preferred equity supplied by Apollo.
Record-Setting Scale in Leveraged Finance Markets
If fully funded through private credit, the financing would surpass the approximately $5.3 billion package provided by an Oak Hill Advisors-led direct lender group to fintech company Finastra in August 2023, making it the largest private loan on record. Pricing on the potential facility remains undefined as discussions between the sponsors and lenders continue.
| Financing Structure | Total Size | Lead Institution |
|---|---|---|
| Syndicated Bank Package | ~$9.6 Billion | Multiple Banks (Apollo participating at 30%) |
| Private Credit Backstop | $9.65 Billion | Apollo Global Management (via ACS) |
| Preferred Equity | $1.65 Billion | Apollo Global Management |
Market Reactions and Advisory Roles
Following the acquisition announcement, ADT shares jumped approximately 34%, trading at $9.92. Meanwhile, the company’s existing SOFR+175 bps term loan due 2032 traded at 99.5/99.75, up from 97.75/99.62 recorded on October 28 before the deal became public, according to Solve data.
Advisory mandates for the transaction feature Citi and Goldman Sachs advising ADT alongside legal counsel Cravath. Thrive Holdings is advised by Evercore and Kirkland & Ellis. ADT announced that its third-quarter 2026 earnings call will take place on Tuesday, Nov. 3, at 10 a.m. ET, though management will not take questions regarding the Thrive acquisition during the session.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
