Thrive Holdings Seeking Approx. $9.6B Debt Financing From Banks for $15.3B ADT Buyout While Securing Record-Breaking $9B-Plus Private Credit Package, Led by Apollo, as Backstop Option

Joshua Kushner’s Thrive Holdings is seeking to raise a roughly $9.6 billion debt financing package from banks to support its $15.3 billion take-private acquisition of home security company ADT, while also keeping a committed record-breaking private credit package of over $9 billion led by Apollo Global Management as a backup option, according to sources.

The broadly syndicated loan market is the sponsor’s preferred financing route, although securing the package remains contingent on receiving commitments from additional banks, the sources said. If the bank financing is successfully arranged, the Apollo-led private credit facility is not expected to be used but will be available if needed, the sources said.

The proposed bank financing package comprises a $4.35 billion term loan, a $2.7 billion delayed-draw term loan, an additional $1.9 billion loan tranche and a $700 million revolving credit facility, the sources said. Apollo has committed to provide 30% to participate in the broadly syndicated loan financing, while leading the private credit package, the sources added.

On the private credit side, the landmark $9.65 billion package comprises a $6.25 billion term loan, a $2.7 billion delayed-draw term loan and a $700 million revolving credit facility. The private loan would be syndicated to other direct lenders through Apollo Capital Solutions, or ACS, Apollo’s capital markets desk. Pricing on the potential facility has not yet been solidly defined, one source noted.

If funded, the proposed financing would mark the largest private loan on record, surpassing the approximately $5.3 billion financing that an Oak Hill Advisors-led direct lender group provided to fintech company Finastra in August 2023.

The Apollo-led private credit facility provides the committed financing needed to secure the acquisition, offering certainty of funding in case participation from banks is lukewarm, sources said. Although the private credit financing serves as a fully committed backstop, the parties do not expect to draw on it if sufficient bank commitments are secured, sources said.

The sources cautioned that discussions around the debt financing are ongoing, and terms are subject to change.

ADT announced today that it has agreed to be acquired by Thrive Holdings for an enterprise value of $15.3 billion, according to a press release. One source added that Apollo is also providing $1.65 billion in preferred equity to back the take private. Octus first reported that Thrive was in talks to acquire ADT on Oct. 27.

Citi and Goldman Sachs are advising ADT, with Cravath as legal counsel, while Evercore and Kirkland & Ellis are advising Thrive Holdings.

The transaction is expected to close in the first quarter of 2027, the same release said.

Boca Raton, Fla.-based ADT provides interactive and smart home security solutions to residential and small business customers across the United States. The company, which was founded in 1974 as the American District Telegraph Co., also offers professional monitoring services, security systems and connected home technologies.

ADT’s existing SOFR+175 bps term loan due 2032 was quoted at 99.5/99.75 at the time of writing, up from 97.75/99.62 on Oct. 28, before the acquisition was announced, according to Solve. A list of the company’s CLO debtholders can be found HERE.

ADT’s shares jumped approximately 34% following the acquisition announcement, with the company’s stock trading at $9.92 as of 11:10 a.m. ET today.

ADT’s third-quarter 2026 earnings call is scheduled for Tuesday, Nov. 3, at 10 a.m. ET, according to the press release. ADT will not take questions about the Thrive acquisition during the call.

Apollo Global Management declined to comment. ADT and Thrive Holdings did not respond to requests for comment.