Alorica Announces $750 Million Refinancing by Apollo Hybrid Value

Investment to Improve Capital Structure and Strategic Flexibility

Additional Liquidity to Address High Demand for Alorica’s CX Solutions with Market, Product and Talent Investments

IRVINE, Calif. & NEW YORK--()--Alorica Inc., a global leader in customer experience solutions, today announced a refinancing led by funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”), one of the world’s leading alternative investment managers. Through the transaction, Apollo funds have invested $750 million of preferred equity and debt to enable a comprehensive refinancing that optimizes Alorica’s financial position and growth trajectory by adding incremental liquidity, reducing overall debt and extending debt maturities.

This investment is structured to support the increasing demand for Alorica’s customer experience solutions, providing strategic flexibility for the company to accelerate its growth initiatives. Following the transaction, the company will have more than $200 million in liquidity and net leverage of under 3.0x LTM Adjusted EBITDA. Alorica plans to grow its world-class talent and continue its global expansion through Asia, Europe and Latin America. The company will also continue to invest in next-generation products including its work-at-home solution, Alorica Anywhere, to ensure high performance, security and compliance.

The transaction was led by Apollo’s Hybrid Value platform, which provides flexible capital to both private and public companies seeking tailored solutions and strategic advice through non-control investments. Apollo Partner Robert Kalsow-Ramos will join Alorica’s board of directors.

Alorica CEO Andy Lee said, “The investment by Apollo funds is another major milestone in the evolution of Alorica. The refinancing gives us one of the healthiest balance sheets in the industry, advances our reputation as the undeniable global leader in CX, digital services and content moderation, and positions us strongly for growth. This will enable us to accelerate what we set out to do since day one—invest in our best-in-class talent and technology to deliver our clients industry-leading solutions.”

Lee added, “With a proven track record of supporting global growth for leading companies, Apollo will help us capitalize on the tremendous opportunities we see today, driven by digital transformation and new workforce management models.”

“We believe Alorica has the right combination of expertise, scale and transformational strategy for long-term market leadership,” said Robert Kalsow-Ramos, Apollo Private Equity Partner. “We look forward to supporting Alorica’s continued growth and investments in the business so they can deliver great experiences for their clients.”

Apollo Hybrid Value Co-heads and Senior Partners Matt Michelini and Rob Ruberton said, “We are pleased to invest in Alorica through a structure that is responsive to their financial and corporate goals. Alorica will continue to be a founder-led company while benefitting from our expertise and ability to deploy flexible, scaled solutions with speed. This transaction is indicative of the benefits we can bring to bear through the Hybrid Value platform.”

For more than 20 years, Alorica, a founder and minority-led organization, has led the customer experience market in providing operational excellence that delivers optimized services and efficiencies for its clients. With the refinancing complete, the company will focus on executing its transformational strategy designed to capture significant growth in 2021 and beyond, while continuing to prioritize the customer experience and its commitment to Making Lives Better, One Interaction at a Time.

About Alorica

Alorica is a global leader in customer experience solutions. We are made up of 100,000 passionate problem solvers who make lives better through positive customer interactions—at every touchpoint—across voice, chat and social. Leveraging innovative technologies—including intelligent automation and a comprehensive analytics suite—we support the world’s most respected brands with the best talent and resources necessary to create insanely great experiences. Alorica provides a host of world-class services—from customer care to financial solutions and digital services—to clients across industries of all kinds, many of whom are on the Fortune 500. Alorica contact centers and operation hubs span the globe with locations in 14 countries. To learn more, visit www.alorica.com.

About Apollo

Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo. Apollo had assets under management of approximately $433 billion as of September 30, 2020 in credit, private equity and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.apollo.com.

Contacts

Alorica Contact Information
For media inquiries please contact:

Colson Hillier
Chief Marketing Officer
(703) 795-1673
colson.hillier@alorica.com

Sunny Yu
Sr. Director of Global Communications
(714) 469-8385
sunny.yu@alorica.com

Apollo Contact Information
For investors please contact:

Peter Mintzberg
Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0528
pmintzberg@apollo.com

Ann Dai
Investor Relations Manager
Apollo Global Management, Inc.
(212) 822-0678
adai@apollo.com

For media inquiries please contact:

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
communications@apollo.com

Release Summary

Alorica announces $750 million refinancing by Apollo Hybrid Value. Investment to increase liquidity and reduce debt for founder-led CX provider.

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Contacts

Alorica Contact Information
For media inquiries please contact:

Colson Hillier
Chief Marketing Officer
(703) 795-1673
colson.hillier@alorica.com

Sunny Yu
Sr. Director of Global Communications
(714) 469-8385
sunny.yu@alorica.com

Apollo Contact Information
For investors please contact:

Peter Mintzberg
Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0528
pmintzberg@apollo.com

Ann Dai
Investor Relations Manager
Apollo Global Management, Inc.
(212) 822-0678
adai@apollo.com

For media inquiries please contact:

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
communications@apollo.com