Document
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2017
OR
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 814-00646
APOLLO INVESTMENT CORPORATION
(Exact name of Registrant as specified in its charter)
Maryland
52-2439556
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
9 West 57th Street
37th Floor
New York, New York
10019
(Address of principal executive offices)
(Zip Code)
(212) 515-3450
(Registrant’s telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x  No ¨
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ¨  No ¨
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
¨
(Do not check if a smaller reporting company)
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨  No x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class of Common Stock
 
Outstanding at August 3, 2017
$0.001 par value
 
219,694,654
 




APOLLO INVESTMENT CORPORATION
Table of Contents
 
 
Page
 
PART I. FINANCIAL INFORMATION
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
PART II. OTHER INFORMATION
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Item 5.
 
 
 
Item 6.
 
 
 
 




PART I. FINANCIAL INFORMATION
In this report, the terms the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” and “our” refer to Apollo Investment Corporation unless the context specifically states otherwise.
Item 1. Financial Statements
APOLLO INVESTMENT CORPORATION
STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except share and per share data)


June 30, 2017
 
March 31, 2017

(Unaudited)
 

Assets

 

Investments at fair value:


 


Non-controlled/non-affiliated investments (cost — $1,493,015 and $1,510,980, respectively)
$
1,475,682

 
$
1,402,409

Non-controlled/affiliated investments (cost — $242,840 and $417,471, respectively)
220,149

 
239,050

Controlled investments (cost — $729,539 and $676,972, respectively)
720,748

 
675,249

Total investments at fair value (cost — $2,465,394 and $2,605,423, respectively)
2,416,579

 
2,316,708

Cash and cash equivalents
29,853

 
9,783

Foreign currencies (cost — $2,801 and $1,494, respectively)
2,837

 
1,497

Receivable for investments sold
4,812

 
40,226

Interest receivable
18,709

 
17,072

Dividends receivable
3,163

 
6,489

Deferred financing costs
16,633

 
17,632

Prepaid expenses and other assets
857

 
713

Total Assets
$
2,493,443

 
$
2,410,120



 

Liabilities

 

Debt
$
920,674

 
$
848,449

Payable for investments purchased
26,109

 
13,970

Distributions payable
32,954

 
32,954

Management and performance-based incentive fees payable
17,345

 
16,306

Interest payable
11,612

 
7,319

Accrued administrative services expense
1,166

 
2,250

Other liabilities and accrued expenses
5,959

 
7,075

Total Liabilities
$
1,015,819

 
$
928,323

Commitments and contingencies (Note 8)


 


Net Assets
$
1,477,624

 
$
1,481,797



 

Net Assets

 

Common stock, $0.001 par value (400,000,000 shares authorized; 219,694,654 and 219,694,654 shares issued and outstanding, respectively)
$
220

 
$
220

Paid-in capital in excess of par
2,924,775

 
2,924,775

Accumulated underdistributed net investment income
88,500

 
88,134

Accumulated net realized loss
(1,511,380
)
 
(1,277,625
)
Net unrealized loss
(24,491
)
 
(253,707
)
Net Assets
$
1,477,624

 
$
1,481,797




 


Net Asset Value Per Share
$
6.73

 
$
6.74


See notes to financial statements.
1

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)

Three Months Ended June 30,

2017
 
2016
Investment Income

 

Non-controlled/non-affiliated investments:

 

Interest income
$
41,008

 
$
48,343

Dividend income

 
1,104

Other income
1,129

 
1,699

Non-controlled/affiliated investments:

 

Interest income
2,551

 
262

Dividend income
1,087

 
3,046

Other income
(306
)
 
70

Controlled investments:

 

Interest income
16,392

 
17,245

Dividend income
4,850

 
4,700

Other income

 

Total Investment Income
$
66,711

 
$
76,469

Expenses
 
 
 
Management fees
$
12,125

 
$
14,398

Performance-based incentive fees
7,912

 
8,451

Interest and other debt expenses
14,215

 
16,793

Administrative services expense
1,675

 
1,526

Other general and administrative expenses
2,557

 
5,038

Total expenses
38,484

 
46,206

Management and performance-based incentive fees waived
(5,009
)
 
(5,717
)
Expense reimbursements
(84
)
 
(84
)
Net Expenses
$
33,391

 
$
40,405

Net Investment Income
$
33,320

 
$
36,064

Net Realized and Change in Unrealized Gains (Losses)

 

Net realized gains (losses):

 

Non-controlled/non-affiliated investments
$
(89,839
)
 
$
(57,475
)
Non-controlled/affiliated investments
(146,840
)
 
65,830

Controlled investments

 
(191
)
Foreign currency transactions
2,924

 
361

Net realized gains (losses)
(233,755
)
 
8,525

Net change in unrealized gains (losses):

 

Non-controlled/non-affiliated investments
91,238

 
18,721

Non-controlled/affiliated investments
155,730

 
(93,787
)
Controlled investments
(7,068
)
 
(24,299
)
Foreign currency translations
(10,684
)
 
12,690

Net change in unrealized gains (losses)
229,216

 
(86,675
)
Net Realized and Change in Unrealized Gains (Losses)
$
(4,539
)
 
$
(78,150
)
Net Increase (Decrease) in Net Assets Resulting from Operations
$
28,781

 
$
(42,086
)
Earnings (Loss) Per Share — Basic
$
0.13

 
$
(0.19
)
Earnings (Loss) Per Share — Diluted
N/A

 
N/A


See notes to financial statements.
2

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
(In thousands, except share data)

 
Three Months Ended June 30, 2017
 
Year Ended 
 March 31, 2017
 
(Unaudited)
 
 
Operations
 
 
 
Net investment income
$
33,320

 
$
149,243

Net realized gains (losses)
(233,755
)
 
(41,823
)
Net change in unrealized gains (losses)
229,216

 
(89,050
)
Net Increase (Decrease) in Net Assets Resulting from Operations
$
28,781

 
$
18,370

 
 
 
 
Distributions to Stockholders
 
 
 
Distribution of net investment income
$
(32,954
)
 
$
(76,950
)
Distribution of return of capital

 
(67,286
)
Net Increase (Decrease) in Net Assets Resulting from Distributions to Stockholders
$
(32,954
)
 
$
(144,236
)
 
 
 
 
Capital Share Transactions
 
 
 
Repurchase of common stock

 
(37,918
)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions
$

 
$
(37,918
)
 
 
 
 
Net Assets
 
 
 
Net decrease in net assets during the period
$
(4,173
)
 
$
(163,784
)
Net assets at beginning of period
1,481,797

 
1,645,581

Net Assets at End of Period
$
1,477,624

 
$
1,481,797

 
 
 
 
Capital Share Activity
 
 
 
Shares repurchased during the period

 
(6,461,842
)
Shares issued and outstanding at beginning of period
219,694,654

 
226,156,496

Shares Issued and Outstanding at End of Period
219,694,654

 
219,694,654


See notes to financial statements.
3

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

 
Three Months Ended June 30,
 
2017
 
2016
Operating Activities
 
 
 
Net increase (decrease) in net assets resulting from operations
$
28,781

 
$
(42,086
)
Net realized (gains) losses
233,755

 
(8,525
)
Net change in unrealized (gains) losses
(229,216
)
 
86,675

Net amortization of premiums and accretion of discounts on investments
(1,864
)
 
(1,489
)
Accretion of discount on notes
148

 
148

Amortization of deferred financing costs
1,211

 
1,899

Increase from foreign currency transactions
2,924

 
360

Payment-in-kind interest and dividends capitalized
(2,775
)
 
(3,553
)
Changes in operating assets and liabilities:
 
 
 
Purchases of investments
(329,897
)
 
(111,145
)
Proceeds from sales and repayments of investments
285,440

 
370,127

Decrease (increase) in interest receivable
(1,581
)
 
2,325

Decrease (increase) in dividends receivable
3,326

 
1,870

Decrease (increase) in prepaid expenses and other assets
(144
)
 
(5,663
)
Increase (decrease) in management and performance-based incentive fees payable
1,039

 
(2,169
)
Increase (decrease) in interest payable
4,293

 
5,025

Increase (decrease) in accrued administrative services expense
(1,084
)
 
556

Increase (decrease) in other liabilities and accrued expenses
(1,116
)
 
642

Net Cash Provided by/(Used in) Operating Activities
$
(6,760
)
 
$
294,997

Financing Activities
 
 
 
Issuances of debt
$
418,517

 
$
215,189

Payments of debt
(357,416
)
 
(416,880
)
Financing costs paid and deferred
(10
)
 
(485
)
Repurchase of common stock

 
(6,073
)
Distributions paid
(32,954
)
 
(45,231
)
Net Cash Provided by/(Used in) Financing Activities
$
28,137

 
$
(253,480
)
 
 
 
 
Cash, Cash Equivalents and Foreign Currencies
 
 
 
Net increase (decrease) in cash, cash equivalents and foreign currencies
 during the period
$
21,377

 
$
41,517

Effect of foreign exchange rate changes
33

 
(102
)
Cash, cash equivalents and foreign currencies at beginning of period
11,280

 
18,905

Cash, Cash Equivalent and Foreign Currencies at the End of Period
$
32,690

 
$
60,320

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Cash interest paid
$
8,542

 
$
9,157

 
 
 
 
Non-Cash Activity
 
 
 
Payment-in-kind income
$
5,810

 
$
6,364


See notes to financial statements.
4

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
Par (12)
 
Cost
 
Fair
Value (1)
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
Corporate Debt
 
 
 
 
 
 
 
 
 
 
Secured Debt
 
 
 
 
 
 
 
 
 
 
First Lien Secured Debt
 
 
 
 
 
 
 
 
 
 
First Lien Secured Debt (excluding Revolvers and Letters of Credit)
 
 
 
 
 
 
 
 
Altasciences / 9360-1367 Quebec Inc. (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
7.55% (1M L+625, 1.00% Floor)
 
6/9/23
 
$
2,921

 
$
2,856

 
$
2,855

Altasciences / 9360-1367 Quebec Inc. (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
7.55% (3M L+625, 1.00% Floor)
 
6/9/23
 
C$
2,436

 
1,774

 
1,834

Altasciences US Acquistion, Inc. (9)(16)
 
Healthcare & Pharmaceuticals
 
7.55% (1M L+625, 1.00% Floor)
 
6/9/23
 
5,275

 
5,157

 
5,156

Altasciences US Acquistion, Inc., Unfunded Delayed Draw (8)(9)(16)(21)(23)(28)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
6/9/23
 
2,851

 
(35
)
 
(64
)
American Media, Inc. (16)
 
Advertising, Printing & Publishing
 
8.80% (3M L+750, 1.00% Floor)
 
8/24/20
 
390

 
380

 
390

American Media, Inc. (16)
 
Advertising, Printing & Publishing
 
8.80% (3M L+750, 1.00% Floor)
 
8/24/20
 
9,482

 
9,240

 
9,482

American Media, Inc. (16)
 
Advertising, Printing & Publishing
 
8.80% (3M L+750, 1.00% Floor)
 
8/24/20
 
5,195

 
5,064

 
5,195

Aptevo Therapeutics Inc. (9)(16)(23)
 
Healthcare & Pharmaceuticals
 
8.65% (1M L+760)
 
2/1/21
 
8,571

 
8,634

 
8,493

Aptevo Therapeutics Inc., Unfunded Delayed Draw (8)(9)(16)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.00% Unfunded
 
2/1/21
 
6,429

 
(27
)
 
(59
)
ChyronHego Corporation (18)
 
High Tech Industries
 
7.43% (3M L+643, 1.00% Floor)
 
3/9/20
 
35,975

 
35,539

 
35,256

Dodge Data & Analytics LLC
 
Business Services
 
10.06% (3M L+875, 1.00% Floor)
 
10/31/19
 
50,478

 
50,004

 
49,090

GFRC Holdings LLC
 
Hotel, Gaming, Leisure, Restaurants
 
10.50% (1M L+900 Cash (L+900 PIK Toggle), 1.50% Floor)
 
2/1/22
 
2,500

 
2,500

 
2,375

Invuity, Inc. (9)(16)
 
Healthcare & Pharmaceuticals
 
8.00% (1M L+650, 1.50% Floor)
 
3/1/22
 
6,667

 
6,578

 
6,539

Invuity, Inc., Unfunded Delayed Draw (8)(9)(16)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.00% Unfunded
 
3/1/22
 
3,333

 
(16
)
 
(17
)
KLO / 9357-5991 Quebec Inc
 
Consumer Goods – Durable
 
9.00% (1M L+775, 0.75% Floor)
 
4/7/22
 
9,500

 
9,387

 
9,386

KLO Acquisition LLC
 
Consumer Goods – Durable
 
9.00% (1M L+775, 0.75% Floor)
 
4/7/22
 
5,500

 
5,435

 
5,434

LabVantage Solutions Inc.
 
High Tech Industries
 
9.30% (3M L+800, 1.00% Floor)
 
12/29/20
 
14,250

 
13,924

 
14,108

LabVantage Solutions Limited (16)(17)
 
High Tech Industries
 
9.00% (3M E+800, 1.00% Floor)
 
12/29/20
 
13,054

 
13,714

 
14,740

Magnetation, LLC (14)
 
Metals & Mining
 
9.15% (3M L+800 Cash (PIK Toggle))
 
12/31/19
 
2,081

 
2,050

 
717

Maxus Capital Carbon SPE I, LLC
 
Chemicals, Plastics & Rubber
 
5.22% PIK
 
12/31/18
 
59,305

 
59,305

 
50,053

My Alarm Center, LLC, Term Loan A (16)(23)
 
Business Services
 
9.05% (1M L+800, 1.00% Floor)
 
1/9/19
 
28,035

 
28,035

 
28,035

My Alarm Center, LLC, Term Loan B (16)(23)
 
Business Services
 
9.23% (1M L+800, 1.00% Floor)
 
1/9/19
 
8,320

 
8,320

 
8,320

My Alarm Center, LLC, Unfunded Term Loan B (16)(21)(23)
 
Business Services
 
0.35% Unfunded
 
1/9/19
 
441

 

 

My Alarm Center, LLC, Term Loan C (16)(23)
 
Business Services
 
9.23% (1M L+800, 1.00% Floor)
 
1/9/19
 
3,554

 
3,554

 
3,554


See notes to financial statements.
5

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
Par (12)
 
Cost
 
Fair
Value (1)
My Alarm Center, LLC, Unfunded Term Loan C (16)(21)(23)
 
Business Services
 
0.35% Unfunded
 
1/9/19
 
558

 

 

Nextech Systems, LLC (18)
 
High Tech Industries
 
8.40% (3M L+725, 1.00% Floor)
 
6/22/21
 
21,575

 
21,145

 
21,144

Novadaq Technologies Inc. (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
8.25% (1M L+720, 0.50% Floor)
 
1/1/22
 
3,333

 
3,332

 
3,510

Novadaq Technologies Inc., Unfunded Delayed Draw (9)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.00% Unfunded
 
1/1/22
 
6,667

 
(30
)
 

Oxford Immunotec, Inc. (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
8.65% (1M L+760)
 
10/1/21
 
9,750

 
9,793

 
9,824

PSI Services, LLC (9)(16)
 
Business Services
 
6.22% (1M L+500, 1.00% Floor)
 
1/20/23
 
4,142

 
4,046

 
4,067

PSI Services, LLC (9)(16)
 
Business Services
 
8.25% (P+425)
 
1/20/23
 
10

 
10

 
10

PTC Therapeutics, Inc (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
7.20% (1M L+615, 1.00% Floor)
 
5/1/21
 
12,667

 
12,606

 
12,603

PTC Therapeutics, Inc, Unfunded Delayed Draw (8)(9)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.00% Unfunded
 
5/1/21
 
6,333

 

 
(32
)
SCM Insurance Services, Inc. (17)
 
Business Services
 
9.25%
 
8/22/19
 
C$
39,480

 
33,483

 
27,254

SunEdison, Inc.
 
Utilities – Electric
 
8.72% (1M L+750, 1.00% Floor)
 
5/2/18
 
14,339

 
14,263

 
14,375

Telestream Holdings Corporation (18)
 
High Tech Industries
 
7.61% (3M L +6.45%, 1.00% Floor)
 
3/24/22
 
37,026

 
36,670

 
36,285

UniTek Global Services Inc. (16)
 
Telecommunications
 
9.80% (3M L+750 Cash plus 1.00% PIK, 1.00% Floor)
 
1/13/19
 
1,936

 
1,936

 
1,936

UniTek Global Services Inc. (16)
 
Telecommunications
 
9.80% (3M L+850, 1.00% Floor)
 
1/13/19
 
32,367

 
32,367

 
33,014

Westinghouse Electric Co LLC (9)(16)
 
Energy – Electricity
 
7.50% (1M L+625, 1.00% Floor)
 
3/31/18
 
40,000

 
39,175

 
40,000

Total First Lien Secured Debt (excluding Revolvers and Letters of Credit)—31.5% (10)
 
$
480,168

 
$
464,862

Revolvers and Letters of Credit
 
 
 
 
 
 
 
 
 
 
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
4/23/18
 
$
37

 
$

 
$
(2
)
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
5/4/17
 
8

 

 

Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
7/29/17
 
80

 

 
(4
)
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
10/3/17
 
8

 

 

Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
11/30/17
 
37

 

 
(2
)
Alliant Holdings Intermediate, LLC, Revolver (16)(23)
 
Insurance
 
4.52% (1M L+350)
 
8/14/20
 
1,125

 
1,125

 
1,076

Alliant Holdings Intermediate, LLC, Unfunded Revolver (8)(16)(21)(23)
 
Insurance
 
0.50% Unfunded
 
8/14/20
 
13,705

 
(1,068
)
 
(603
)
Altasciences / 9360-1367 Quebec Inc., Revolver (9)(16)(17)(23)
 
Healthcare & Pharmaceuticals
 
7.55% (1M L+625, 1.00% Floor)
 
6/9/23
 
143

 
143

 
139

Altasciences US Acquistion, Inc., Revolver (9)(16)(23)
 
Healthcare & Pharmaceuticals
 
7.55% (1M L+625, 1.00% Floor)
 
6/9/23
 
143

 
143

 
139

Altasciences US Acquistion, Inc., Unfunded Revolver (8)(9)(16)(21)(23)(28)
 
Healthcare & Pharmaceuticals
 
0.25% Unfunded
 
6/9/23
 
1,141

 
(32
)
 
(26
)
American Media, Inc., Letter of Credit (16)(23)
 
Advertising, Printing & Publishing
 
7.50%
 
8/24/20
 
153

 

 

American Media, Inc., Revolver (16)(23)
 
Advertising, Printing & Publishing
 
8.80% (3M L+750, 1.00% Floor)
 
8/24/20
 
652

 
652

 
652


See notes to financial statements.
6

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
Par (12)
 
Cost
 
Fair
Value (1)
American Media, Inc., Revolver (16)(23)
 
Advertising, Printing & Publishing
 
10.75% (L+750)
 
8/24/20
 
593

 
592

 
593

American Media, Inc., Unfunded Revolver (16)(21)(23)
 
Advertising, Printing & Publishing
 
0.50% Unfunded
 
8/24/20
 
380

 
(42
)
 

Avantor Performance Materials Holdings, LLC, Letter of Credit (8)(16)(23)
 
Chemicals, Plastics & Rubber
 
4.00%
 
3/10/18
 
72

 

 

Avantor Performance Materials Holdings, LLC, Unfunded Revolver (8)(16)(21)(23)
 
Chemicals, Plastics & Rubber
 
0.50% Unfunded
 
3/10/22
 
4,928

 
(586
)
 
(27
)
Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
4/1/18
 
277

 

 
(4
)
Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
10/31/17
 
73

 

 
(1
)
Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
11/28/17
 
670

 

 
(10
)
Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
7/11/17
 
7

 

 

Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
10/17/17
 
178

 

 
(3
)
Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
9/28/17
 
14

 

 

Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
6/25/18
 
3

 

 

Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
11/7/17
 
20

 

 

Erickson Inc., Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
12/31/17
 
180

 

 
(3
)
Erickson Inc., Revolver (9)(16)(23)
 
Aerospace & Defense
 
8.67% (3M L+750)
 
4/28/22
 
23,973

 
23,636

 
23,614

Erickson Inc., Unfunded Revolver (8)(9)(16)(21)(23)
 
Aerospace & Defense
 
0.50% Unfunded
 
4/28/22
 
19,605

 
(213
)
 
(294
)
Invuity, Inc., Revolver (9)(16)(23)
 
Healthcare & Pharmaceuticals
 
4.75% (1M L+325, 1.00% Floor)
 
3/1/22
 
850

 
850

 
846

Invuity, Inc., Unfunded Revolver (8)(9)(16)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
3/1/22
 
1,150

 
(9
)
 
(6
)
LabVantage Solutions Limited, Unfunded Revolver (8)(16)(17)(21)(23)
 
High Tech Industries
 
0.50% Unfunded
 
12/29/20
 
3,435

 
(83
)
 
(39
)
My Alarm Center, LLC, Revolver (16)(23)
 
Business Services
 
11.25% (P+900)
 
1/9/19
 
5,083

 
5,083

 
5,083

My Alarm Center, LLC, Unfunded Revolver (16)(21)(23)
 
Business Services
 
0.35% Unfunded
 
1/9/19
 
1,167

 

 

Novadaq Technologies Inc., Unfunded Revolver (8)(9)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
1/1/22
 
3,000

 
(14
)
 
(2
)
Oxford Immunotec, Inc., Unfunded Revolver (9)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
10/1/21
 
1,000

 
(4
)
 

PSI Services, LLC, Revolver (9)(16)(23)
 
Business Services
 
6.22% (1M L+500, 1.00% Floor)
 
1/20/22
 
198

 
198

 
195

PSI Services, LLC, Unfunded Revolver (8)(9)(16)(21)(23)
 
Business Services
 
0.50% Unfunded
 
1/20/22
 
198

 
(9
)
 
(4
)
PSI Services, LLC, Unfunded Revolver (9)(16)(21)(23)
 
Business Services
 
0.50% Unfunded
 
1/20/22
 
£
47

 

 

SESAC Holdco II LLC, Unfunded Revolver (8)(16)(21)(23)
 
Media – Diversified & Production
 
0.50% Unfunded
 
2/23/22
 
587

 
(49
)
 
(44
)
Tibco Software Inc., Unfunded Revolver (8)(21)(23)
 
High Tech Industries
 
0.50% Unfunded
 
12/5/19
 
6,000

 
(29
)
 
(840
)
TricorBraun Holdings, Inc., Revolver (16)(23)
 
Containers, Packaging & Glass
 
6.25% (P+225)
 
11/30/21
 
1,410

 
1,410

 
1,412


See notes to financial statements.
7

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
Par (12)
 
Cost
 
Fair
Value (1)
TricorBraun Holdings, Inc., Unfunded Revolver (16)(21)(23)
 
Containers, Packaging & Glass
 
0.50% Unfunded
 
11/30/21
 
4,215

 
(447
)
 

UniTek Global Services Inc., Letter of Credit (16)(23)
 
Telecommunications
 
7.50%
 
1/13/19
 
7,762

 

 

UniTek Global Services Inc., Unfunded Revolver (16)(21)(23)
 
Telecommunications
 
0.50% Unfunded
 
1/13/19
 
5,000

 

 

Wright Medical Group, Inc., Revolver (9)(16)(17)(23)
 
Healthcare & Pharmaceuticals
 
5.48% (1M L+425, 0.75% Floor)
 
12/23/21
 
7,667

 
7,667

 
7,590

Wright Medical Group, Inc., Unfunded Revolver (8)(9)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
12/23/21
 
42,333

 
(448
)
 
(423
)
Total Revolvers and Letters of Credit—2.6% (10)
 
 
 
 
 
 
 
$
38,466

 
$
39,002

Total First Lien Secured Debt—34.1% (10)
 
 
 
 
 
 
 
$
518,634

 
$
503,864

Second Lien Secured Debt
 
 
 
 
 
 
 
 
 
 
Access CIG, LLC (16)
 
Business Services
 
9.92% (1M L+875, 1.00% Floor)
 
10/17/22
 
$
50,970

 
$
49,277

 
$
50,589

Active Network, LLC
 
Business Services
 
10.73% (1M L+950, 1.00% Floor)
 
11/15/21
 
17,875

 
17,720

 
17,853

A-L Parent LLC
 
Advertising, Printing & Publishing
 
8.48% (1M L+725, 1.00% Floor)
 
12/2/24
 
10,048

 
9,954

 
10,098

Almonde, Inc (17)
 
Business Services
 
8.25% (3M L+725, 1.00% Floor)
 
6/13/25
 
2,316

 
2,293

 
2,360

Appriss Holdings, Inc.
 
Business Services
 
10.55% (3M L+925, 1.00% Floor)
 
5/21/21
 
23,309

 
23,090

 
23,309

Aptean, Inc.
 
Business Services
 
10.80% (1M L+950, 1.00% Floor)
 
12/20/23
 
9,548

 
9,414

 
9,577

Armor Holding II LLC
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
10.30% (3M L+900, 1.25% Floor)
 
12/26/20
 
8,000

 
7,925

 
8,080

Asurion Corporation
 
Insurance
 
8.73% (1M L+750, 1.00% Floor)
 
3/3/21
 
39,590

 
39,426

 
39,837

ATS Consolidated, Inc.
 
Manufacturing, Capital Equipment
 
9.50% (3M L+850, 1.00% Floor)
 
5/30/25
 
15,000

 
14,701

 
14,963

Avantor Performance Materials Holdings, LLC (16)
 
Chemicals, Plastics & Rubber
 
9.48% (3M L+825, 1.00% Floor)
 
3/10/25
 
1,629

 
1,613

 
1,641

BioClinica Holding I, LP
 
Healthcare & Pharmaceuticals
 
9.56% (3M L+825, 1.00% Floor)
 
10/21/24
 
24,612

 
24,159

 
24,120

Confie Seguros Holding II Co.
 
Insurance
 
11.05% (3M L+975, 1.25% Floor)
 
5/8/19
 
22,344

 
22,283

 
22,009

CT Technologies Intermediate Holdings, Inc. (9)
 
Business Services
 
10.22% (1M L+900, 1.00% Floor)
 
12/1/22
 
31,253

 
30,347

 
30,315

Electro Rent Corporation (9)
 
Business Services
 
10.23% (1M L+900, 1.00% Floor)
 
1/31/25
 
18,333

 
17,812

 
17,967

Elements Behavioral Health, Inc.
 
Healthcare & Pharmaceuticals
 
13.18% (3M L+1200 PIK, 1.00% Floor)
 
2/11/20
 
11,557

 
11,515

 
9,477

Erie Acquisition Holdings, Inc.
 
Business Services
 
10.20% (3M L+900, 1.00% Floor)
 
3/1/24
 
16,250

 
16,039

 
16,189

Grocery Outlet, Inc.
 
Food & Grocery
 
9.55% (3M L+825, 1.00% Floor)
 
10/21/22
 
25,000

 
24,749

 
25,250

Hare Bidco, Inc.
 
Chemicals, Plastics & Rubber
 
9.75% (3M L+875, 1.00% Floor)
 
8/1/24
 
13,574

 
14,391

 
15,171

Institutional Shareholder Services, Inc.
 
Business Services
 
9.72% (3M L+850, 1.00% Floor)
 
4/30/22
 
8,232

 
8,169

 
8,273

K&N Parent, Inc.
 
Automotive
 
9.98% (1M L+875, 1.00% Floor)
 
10/21/24
 
30,000

 
29,444

 
29,925

Lanai Holdings III, Inc.
 
Healthcare & Pharmaceuticals
 
9.73% (1M L+850, 1.00% Floor)
 
8/28/23
 
17,391

 
16,936

 
17,043


See notes to financial statements.
8

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
Par (12)
 
Cost
 
Fair
Value (1)
MedPlast Holdings Inc.
 
Manufacturing, Capital Equipment
 
9.88% (3M L+875, 1.00% Floor)
 
6/6/23
 
8,000

 
7,808

 
7,800

Ministry Brands, LLC (16)
 
Business Services
 
10.48% (1M L+925, 1.00% Floor)
 
6/2/23
 
10,000

 
9,863

 
9,854

MW Industries, Inc.
 
Manufacturing, Capital Equipment
 
10.55% (3M L+925, 1.00% Floor)
 
12/28/20
 
20,000

 
19,610

 
20,100

PAE Holding Corporation
 
Aerospace & Defense
 
10.73% (1M L+950, 1.00% Floor)
 
10/20/23
 
28,097

 
27,334

 
28,378

Parfums Holding Company, Inc.
 
Retail
 
9.75% (3M L+875, 1.00% Floor)
 
6/30/25
 
8,000

 
7,760

 
7,840

Poseidon Merger Sub, Inc.
 
Business Services
 
9.67% (3M L+850, 1.00% Floor)
 
8/15/23
 
18,000

 
17,585

 
18,000

Power Products, LLC (9)
 
Manufacturing, Capital Equipment
 
10.34% (6M L+900, 1.00% Floor)
 
12/20/23
 
32,500

 
31,448

 
32,009

PSI Services, LLC (9)(16)
 
Business Services
 
10.22% (1M L+900, 1.00% Floor)
 
1/20/24
 
25,714

 
24,991

 
25,119

Securus Technologies Holdings, Inc.
 
Telecommunications
 
9.25% (1M L+825, 1.00% Floor)
 
6/20/25
 
12,878

 
12,749

 
12,991

Sequential Brands Group, Inc. (17)
 
Consumer Goods – Durable
 
10.09% (1M L+900)
 
7/1/22
 
17,424

 
17,241

 
17,174

SESAC Holdco II LLC (16)
 
Media – Diversified & Production
 
8.37% (3M L+725, 1.00% Floor)
 
2/24/25
 
3,241

 
3,210

 
3,254

SMG
 
Hotel, Gaming, Leisure, Restaurants
 
9.55% (3M L+825, 1.00% Floor)
 
2/27/21
 
19,649

 
19,649

 
19,625

Smokey Merger Sub, Inc. (9)
 
High Tech Industries
 
9.75% (3M L+875, 1.00% Floor)
 
5/24/24
 
30,000

 
29,113

 
29,100

Sprint Industrial Holdings, LLC (16)(30)
 
Containers, Packaging & Glass
 
13.5% PIK
 
11/14/19
 
16,163

 
15,733

 
6,700

Sprint Industrial Holdings, LLC (16)(31)
 
Containers, Packaging & Glass
 
13.5% PIK
 
11/14/19
 
1,106

 
1,106

 
1,106

STG-Fairway Acquisitions, Inc.
 
Business Services
 
10.45% (3M L+925, 1.00% Floor)
 
6/30/23
 
15,000

 
14,718

 
13,200

TMK Hawk Parent, Corp.
 
Transportation – Cargo, Distribution
 
8.73% (1M L+750, 1.00% Floor)
 
10/1/22
 
34,000

 
33,776

 
34,000

Velocity Technology Solutions, Inc.
 
Business Services
 
9.55% (3M L+825, 1.25% Floor)
 
9/28/20
 
16,500

 
16,335

 
16,459

Wave Holdco Merger Sub, Inc.
 
Telecommunications
 
10.48% (1M L+925, 1.00% Floor)
 
5/27/23
 
10,000

 
9,783

 
9,877

Total Second Lien Secured Debt—47.8% (10)
 
 
 
 
 
 
 
$
711,069

 
$
706,632

Total Secured Debt—81.9% (10)
 
 
 
 
 
 
 
$
1,229,703

 
$
1,210,496

Unsecured Debt
 
 
 
 
 
 
 
 
 
 
American Tire Distributors, Inc. (11)
 
Transportation – Cargo, Distribution
 
10.25%
 
3/1/22
 
$
14,741

 
$
14,806

 
$
15,337

Sorenson Holdings, LLC (11)
 
Consumer Goods – Durable
 
13.85% Cash (13.85% PIK Toggle)
 
10/31/21
 
52

 
35

 
49

U.S. Security Associates Holdings, Inc.
 
Business Services
 
11.00%
 
7/28/18
 
135,000

 
135,000

 
135,000

UniTek Global Services Inc. (16)
 
Telecommunications
 
15.00% PIK
 
7/13/19
 
8,867

 
8,867

 
9,044

Total Unsecured Debt—10.8% (10)
 
 
 
 
 
 
 
$
158,708

 
$
159,430

Total Corporate Debt—92.7% (10)
 
 
 
 
 
 
 
$
1,388,411

 
$
1,369,926

Structured Products and Other
 
 
 
 
 
 
 
 
 
 
Asset Repackaging Trust Six B.V. (11)(17)(19)
 
Utilities – Electric
 
13.11%
 
5/18/27
 
$
58,411

 
$
25,730

 
$
31,979

Craft 2014-1A, Credit-Linked Note (11)(17)
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
11.26% (3M L+965)
 
5/15/21
 
42,500

 
42,345

 
41,939


See notes to financial statements.
9

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
Par (12)
 
Cost
 
Fair
Value (1)
Craft 2015-2, Credit-Linked Note (11)(17)
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
10.57% (3M L+925)
 
1/16/24
 
26,000

 
25,827

 
24,893

Total Structured Products and Other—6.7% (10)
 
 
 
 
 
 
 
$
93,902

 
$
98,811

Equity
 
 
 
 
 
 
 
 
 
 
Preferred Equity
 
 
 
 
 
Shares
 
 
 
 
Sungevity Inc., Series D Preferred Stock (13)
 
Energy – Electricity
 
N/A
 
N/A
 
114,678,899

 
$
4,408

 
$

Total Preferred Equity—0.0% (10)
 
 
 
 
 
 
 
$
4,408

 
$

Common Equity/Interests
 
 
 
 
 
Shares
 
 
 
 
Accelerate Parent Corp., Common Stock (13)
 
Transportation – Cargo, Distribution
 
N/A
 
N/A
 
1,664,045

 
$
1,714

 
$
1,930

GFRC Holdings LLC, Membership Interests (13)
 
Hotel, Gaming, Leisure, Restaurants
 
N/A
 
N/A
 
2,500,000

 

 

Skyline Data, News and Analytics LLC, Class A Common Unit (13)
 
Business Services
 
N/A
 
N/A
 
4,500,000

 
4,500

 
4,500

Sorenson Holdings, LLC, Membership Interests (13)
 
Consumer Goods – Durable
 
N/A
 
N/A
 
586

 

 
433

Total Common Equity/Interests—0.5% (10)
 
 
 
 
 
 
 
$
6,214

 
$
6,863

Warrants
 
 
 
 
 
Warrants
 
 
 
 
Invuity, Inc., Warrants (9)
 
Healthcare & Pharmaceuticals
 
N/A
 
N/A
 
16,873

 
$
80

 
$
82

Sprint Industrial Holdings, LLC, Warrants (29)
 
Containers, Packaging & Glass
 
N/A
 
N/A
 
7,341

 

 

Total Warrants—0.0% (10)
 
 
 
 
 
 
 
$
80

 
$
82

Total Equity— 0.5% (10)
 
 
 
 
 
 
 
$
10,702

 
$
6,945

Total Non-Controlled/Non-Affiliated Investments—99.9% (10)
 
 
 
 
 
$
1,493,015

 
$
1,475,682


See notes to financial statements.
10

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
Par (12)
 
Cost
 
Fair
Value (1)
Non-Controlled/Affiliated Investments (4)
 
 
 
 
 
 
 
 
 
 
Corporate Debt
 
 
 
 
 
 
 
 
 
 
Secured Debt
 
 
 
 
 
 
 
 
 
 
First Lien Secured Debt
 
 
 
 
 
 
 
 
 
 
Solarplicity Group Limited (3)(17)
 
Energy – Electricity
 
8.00% PIK (8.00% Cash Toggle)
 
11/30/22
 
£
125,468

 
146,598

 
124,297

Total First Lien Secured Debt—8.4% (10)
 
 
 
$
146,598

 
$
124,297

Total Secured Debt—8.4% (10)
 
 
 
 
 
 
 
$
146,598

 
$
124,297

Unsecured Debt
 
 
 
 
 
 
 
 
 
 
Solarplicity UK Holdings Limited (17)
 
Energy – Electricity
 
8.00% PIK (8.00% Cash Toggle)
 
2/24/22
 
£
2,000

 
2,499

 
2,598

Total Unsecured Debt—0.2% (10)
 
 
 
$
2,499

 
$
2,598

Total Corporate Debt—8.6% (10)
 
 
 
 
 
 
 
$
149,097

 
$
126,895

Structured Products and Other
 
 
 
 
 
 
 
 
 
 
Golden Bear 2016-R, LLC, Membership Interests (3)(17)
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
N/A
 
9/20/42
 
$

 
$
16,458

 
$
17,364

Ivy Hill Middle Market Credit Fund IX, Ltd., Subordinated Notes (3)(11)(17)(22)
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
13.34%
 
10/18/25
 
12,500

 
8,963

 
9,283

Ivy Hill Middle Market Credit Fund X, Ltd., Subordinated Notes (3)(11)(17)(22)
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
11.25%
 
7/26/27
 
14,000

 
10,845

 
10,406

Total Structured Products and Other—2.5% (10)
 
 
 
 
 
 
 
$
36,266

 
$
37,053

Equity
 
 
 
 
 
 
 
 
 
 
Preferred Equity
 
 
 
 
 
Shares
 
 
 
 
Renew Financial LLC (f/k/a Renewable Funding, LLC), Series B Preferred Stock (13)
 
Energy – Electricity
 
 N/A
 
N/A
 
1,505,868

 
$
8,343

 
$
18,665

Renew Financial LLC (f/k/a Renewable Funding, LLC), Series D Preferred Stock (13)
 
Energy – Electricity
 
 N/A
 
N/A
 
436,689

 
5,568

 
7,090

Total Preferred Equity—1.7% (10)
 
 
 
 
 
 
 
$
13,911

 
$
25,755

Common Equity/Interests
 
 
 
 
 
Shares
 
 
 
 
AIC SPV Holdings II, LLC, Membership Interests (13)(15)(17)
 
Energy – Electricity
 
N/A
 
N/A
 
N/A

 
$
534

 
$
1,456

AMP Solar Group, Inc., Class A Common Unit (13)(17)
 
Energy – Electricity
 
N/A
 
N/A
 
243,646

 
10,000

 
5,116

Pelican Energy, LLC, Membership Interests (13)(17)
 
Energy – Oil & Gas
 
N/A
 
N/A
 
1,444

 
27,764

 
15,603

Renew JV LLC, Membership Interests (13)(17)
 
Energy – Electricity
 
N/A
 
N/A
 
2,527,756

 
2,792

 
3,550

Solarplicity Group Limited, Class B Common Shares (2)(3)(13)(17)(26)
 
Energy – Electricity
 
N/A
 
N/A
 
2,825

 
2,472

 

Solarplicity UK Holdings Limited, Ordinary Shares (2)(13)(17)
 
Energy – Electricity
 
N/A
 
N/A
 
2,825

 
4

 
4,721

Total Common Equity/Interests—2.1% (10)
 
 
 
 
 
 
 
$
43,566

 
$
30,446

Warrants
 
 
 
 
 
Warrants
 
 
 
 
Total Warrants—0.0% (10)
 
 
 
 
 
 
 
$

 
$

Total Equity—3.8% (10)
 
 
 
 
 
 
 
$
57,477

 
$
56,201

Total Non-Controlled/Affiliated Investments—14.9% (10)
 
 
 
 
 
 
 
$
242,840

 
$
220,149


See notes to financial statements.
11

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
Par (12)
 
Cost
 
Fair
Value (1)
Controlled Investments (5)
 
 
 
 
 
 
 
 
 
 
Corporate Debt
 
 
 
 
 
 
 
 
 
 
Secured Debt
 
 
 
 
 
 
 
 
 
 
First Lien Secured Debt
 
 
 
 
 
 
 
 
 
 
First Lien Secured Debt (excluding Revolvers and Letters of Credit)
 
 
 
 
 
 
 
 
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (16)(23)
 
Energy – Oil & Gas
 
8.00% Cash (10.00% PIK Toggle)
 
3/29/19
 
$
12,500

 
$
12,500

 
$
12,500

Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (16)(21)(23)
 
Energy – Oil & Gas
 
0.00% Unfunded
 
3/29/19
 
7,500

 

 

SHD Oil & Gas, LLC, Tranche A Note (16)
 
Energy – Oil & Gas
 
14.00% (8.00% Cash plus 6.00% PIK)
 
12/31/19
 
41,511

 
41,511

 
42,756

SHD Oil & Gas, LLC, Tranche B Note (14)(16)
 
Energy – Oil & Gas
 
14.00% PIK
 
12/31/19
 
65,951

 
44,380

 
26,741

SHD Oil & Gas, LLC, Tranche C Note (16)
 
Energy – Oil & Gas
 
12.00%
 
12/31/19
 
15,750

 
15,750

 
16,223

SHD Oil & Gas, LLC, Unfunded Tranche C Note (16)(21)(23)
 
Energy – Oil & Gas
 
0.00% Unfunded
 
12/31/19
 
2,250