Form 4: Apollo Global Management Sells 9.75 Million ADT Shares Following Underwriters' Option Exercise

Apollo Global Management sold 9.75 million shares of ADT Inc. common stock after underwriters exercised their option related to a previous public offering.

Summary

• On March 19, 2024, underwriters exercised their option to purchase an additional 9,750,000 shares of ADT Inc. common stock.
• The shares were sold at a price of $6.22375 per share, resulting in a net price of $6.16875 per share after deducting a $0.055 dividend.
• The total shares sold consist of 9,110,888 shares held by Prime Security Services TopCo (ML), L.P. and 639,112 shares held by Prime Security Services TopCo (ML II), L.P.
• Apollo Management Holdings GP, LLC is the designated filer for this Form 4.
• Following the transaction, Apollo Stockholders still beneficially own 423,550,366 shares.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing related to a share sale. It doesn't contain overtly positive or negative information, but the continued reduction of Apollo's stake could be interpreted as slightly negative, hence a neutral score.

Industry Context

This transaction reflects a continued monetization of Apollo's investment in ADT, following a previous public offering. It's a common practice for private equity firms to gradually reduce their stake in portfolio companies through secondary offerings.

Comparison to Industry Standards

• It is common for large shareholders like Apollo to reduce their positions over time through secondary offerings.
• The sale price of $6.16875 is within the range of recent trading prices for ADT stock.
• Apollo's remaining stake of 423,550,366 shares indicates a continued significant interest in ADT's performance.

Stakeholder Impact

• The sale of shares could have a minor impact on ADT's stock price in the short term.
• The continued presence of Apollo as a major shareholder suggests ongoing support for the company's strategy.

Key Dates