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, 2018
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 7, 2018
$0.001 par value
 
214,898,694
 




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.
 
 
 
 



Table of Contents

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, 2018
 
March 31, 2018

(Unaudited)
 

Assets

 

Investments at fair value:


 


Non-controlled/non-affiliated investments (cost — $1,627,841 and $1,471,492, respectively)
$
1,601,259

 
$
1,450,033

Non-controlled/affiliated investments (cost — $69,977 and $73,943, respectively)
64,123

 
68,954

Controlled investments (cost — $815,599 and $723,161, respectively)
830,077

 
729,060

Cash and cash equivalents
11,612

 
14,035

Foreign currencies (cost — $1,063 and $1,292, respectively)
1,055

 
1,298

Cash collateral on option contracts
4,228

 
5,016

Receivable for investments sold
15,874

 
2,190

Interest receivable
23,406

 
22,272

Dividends receivable
7,815

 
2,550

Deferred financing costs
13,121

 
14,137

Variation margin receivable

 
1,846

Prepaid expenses and other assets
801

 
419

Total Assets
$
2,573,371

 
$
2,311,810



 

Liabilities

 

Debt
$
1,102,679

 
$
789,846

Payable for investments purchased
11,453

 
41,827

Distributions payable
32,293

 
32,447

Management and performance-based incentive fees payable
17,506

 
16,585

Interest payable
10,184

 
5,310

Accrued administrative services expense
1,575

 
2,507

Variation margin payable on option contracts
1,206



Other liabilities and accrued expenses
5,309

 
5,202

Total Liabilities
$
1,182,205

 
$
893,724

Commitments and contingencies (Note 10)


 


Net Assets
$
1,391,166

 
$
1,418,086



 

Net Assets

 

Common stock, $0.001 par value (400,000,000 shares authorized; 214,925,294 and 216,312,096 shares issued and outstanding, respectively)
$
215

 
$
216

Paid-in capital in excess of par
2,628,631

 
2,636,507

Accumulated over-distributed net investment income
(10,974
)
 
(10,229
)
Accumulated net realized loss
(1,189,654
)
 
(1,166,471
)
Net unrealized loss
(37,052
)
 
(41,937
)
Net Assets
$
1,391,166

 
$
1,418,086




 


Net Asset Value Per Share
$
6.47

 
$
6.56


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,

2018
 
2017
Investment Income

 

Non-controlled/non-affiliated investments:

 

Interest income (excluding Payment-in-kind (“PIK”) interest income)
$
39,443

 
$
38,952

PIK interest income
1,250

 
2,056

Other income
1,403

 
1,129

Non-controlled/affiliated investments:

 

Interest income (excluding PIK interest income)

 
114

Dividend income
312

 
1,087

PIK interest income

 
2,437

Other income

 
(306
)
Controlled investments:

 

Interest income (excluding PIK interest income)
14,490

 
15,075

Dividend income
5,265

 
4,850

PIK interest income
1,428

 
1,317

Total Investment Income
$
63,591

 
$
66,711

Expenses

 
 
Management fees
$
8,873

 
$
12,125

Performance-based incentive fees
7,423

 
7,912

Interest and other debt expenses
13,576

 
14,215

Administrative services expense
1,638

 
1,675

Other general and administrative expenses
2,533

 
2,557

Total expenses
34,043

 
38,484

Management and performance-based incentive fees waived
(1,856
)
 
(5,009
)
Expense reimbursements
(144
)
 
(84
)
Net Expenses
$
32,043

 
$
33,391

Net Investment Income
$
31,548

 
$
33,320

Net Realized and Change in Unrealized Gains (Losses)

 
 
Net realized gains (losses):

 
 
Non-controlled/non-affiliated investments
$
(9,946
)
 
$
(89,839
)
Non-controlled/affiliated investments

 
(146,840
)
Option contracts
(13,209
)
 

Foreign currency transactions
(28
)
 
2,924

Net realized losses
(23,183
)
 
(233,755
)
Net change in unrealized gains (losses):

 
 
Non-controlled/non-affiliated investments
(5,123
)
 
91,238

Non-controlled/affiliated investments
(865
)
 
155,730

Controlled investments
8,579

 
(7,068
)
Option contracts
(567
)
 

Foreign currency translations
2,861

 
(10,684
)
Net change in unrealized losses
4,885

 
229,216

Net Realized and Change in Unrealized Losses
$
(18,298
)
 
$
(4,539
)
Net Increase (Decrease) in Net Assets Resulting from Operations
$
13,250

 
$
28,781

Earnings Per Share — Basic
$
0.06

 
$
0.13

Earnings 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, 2018
 
Year Ended
March 31, 2018
 
(Unaudited)
 
 
Operations
 
 
 
Net investment income
$
31,548

 
$
133,387

Net realized losses
(23,183
)
 
(258,128
)
Net change in unrealized losses
4,885

 
211,770

Net Increase in Net Assets Resulting from Operations
$
13,250

 
$
87,029

 
 
 
 
Distributions to Stockholders
 
 
 
Distribution of net investment income
$
(32,293
)
 
$
(86,906
)
Distribution of return of capital

 
(44,088
)
Net Decrease in Net Assets Resulting from Distributions to Stockholders
$
(32,293
)
 
$
(130,994
)
 
 
 
 
Capital Share Transactions
 
 
 
Repurchase of common stock
$
(7,877
)
 
$
(19,746
)
Net Decrease in Net Assets Resulting from Capital Share Transactions
$
(7,877
)
 
$
(19,746
)
 
 
 
 
Net Assets
 
 
 
Net decrease in net assets during the period
$
(26,920
)
 
$
(63,711
)
Net assets at beginning of period
1,418,086

 
1,481,797

Net Assets at End of Period
$
1,391,166

 
$
1,418,086

 
 
 
 
Capital Share Activity
 
 
 
Shares repurchased during the period
(1,386,802
)
 
(3,382,558
)
Shares issued and outstanding at beginning of period
216,312,096

 
219,694,654

Shares Issued and Outstanding at End of Period
214,925,294

 
216,312,096


See notes to financial statements.
3

Table of Contents

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

 
Three Months Ended June 30,
 
2018
 
2017
Operating Activities
 
 
 
Net increase in net assets resulting from operations
$
13,250

 
$
28,781

Net realized losses
23,183

 
233,755

Net change in unrealized losses
(4,885
)
 
(229,216
)
Net amortization of premiums and accretion of discounts on investments
(1,536
)
 
(1,864
)
Accretion of discount on notes
148

 
148

Amortization of deferred financing costs
1,165

 
1,211

Gains/Losses from foreign currency transactions
(28
)
 
2,924

PIK interest and dividends capitalized
(1,983
)
 
(2,775
)
Changes in operating assets and liabilities:
 
 
 
Purchases of investments
(389,324
)
 
(329,897
)
Proceeds from sales and repayments of investments
94,019

 
285,440

Purchases of option contracts
(13,277
)
 

Proceeds from option contracts
288

 

Net settlement of option contracts
2,265

 

Increase in interest receivable
(1,142
)
 
(1,581
)
Decrease (increase) in dividends receivable
(5,265
)
 
3,326

Increase in prepaid expenses and other assets
(382
)
 
(144
)
Increase in management and performance-based incentive fees payable
921

 
1,039

Increase in interest payable
4,874

 
4,293

Decrease in accrued administrative services expense
(932
)
 
(1,084
)
Increase (decrease) in other liabilities and accrued expenses
107

 
(1,116
)
Net Cash Used in Operating Activities
$
(278,534
)
 
$
(6,760
)
Financing Activities
 
 
 
Issuances of debt
$
328,918

 
$
418,517

Payments of debt
(13,500
)
 
(357,416
)
Financing costs paid and deferred

 
(10
)
Repurchase of common stock
(7,877
)
 

Distributions paid
(32,447
)
 
(32,954
)
Net Cash Provided by Financing Activities
$
275,094

 
$
28,137

 
 
 
 
Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts
 
 
 
Net increase/(decrease) in cash, cash equivalents, foreign currencies and collateral on option contracts during the period
$
(3,440
)
 
$
21,377

Effect of foreign exchange rate changes on cash and cash equivalents
(14
)
 
33

Cash, cash equivalents, foreign currencies and collateral on option contracts at beginning of period
20,349

 
11,280

Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts at the End of Period
$
16,895

 
$
32,690

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Cash interest paid
$
7,437

 
$
8,542

 
 
 
 
Non-Cash Activity
 
 
 
PIK income
$
2,678

 
$
5,810


See notes to financial statements.
4

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

Advertising, Printing & Publishing
 
 
 
 
 
 
A-L Parent LLC
 
Second Lien Secured Debt
 
9.35% (1M L+725, 1.00% Floor)
 
12/02/24
 
$
5,536

 
$
5,489

 
$
5,591

 

American Media, Inc.
 
First Lien Secured Debt
 
11.36% (3M L+900, 1.00% Floor)
 
08/24/20
 
12,699

 
12,475

 
13,080

 

 
 
First Lien Secured Debt - Revolver
 
12.00% (P+700)
 
08/24/20
 
178

 
178

 
183

 
(23)
 
 
First Lien Secured Debt - Revolver
 
10.34% (3M L+800)
 
08/24/20
 
533

 
533

 
549

 
(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
08/24/20
 
1,067

 
(29
)
 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
13,157

 
13,812

 
 
Simplifi Holdings, Inc.
 
First Lien Secured Debt
 
7.59% (1M L+550, 1.00% Floor)
 
09/28/22
 
25,556

 
25,053

 
25,300

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/28/22
 
2,400

 
(61
)
 
(24
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
24,992

 
25,276

 
 
Total Advertising, Printing & Publishing
 
 
$
43,638

 
$
44,679

 
 
Aerospace & Defense
 
 
 
 
 
 
Erickson Inc
 
First Lien Secured Debt - Revolver
 
9.84% (3M L+750, 1.00% Floor)
 
04/28/22
 
$
26,014

 
$
26,014

 
$
25,429

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
04/28/22
 
12,124

 
(412
)
 
(273
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Letters of Credit
 
7.50%
 
8/16/18 - 4/30/20
 
6,862

 

 
(153
)
 
(8)(9)(23)
 
 
 
 
 
 
 
 
 
 
25,602

 
25,003

 
 
ILC Dover LP
 
Second Lien Secured Debt
 
10.84% (3M L+850, 1.00% Floor)
 
06/28/24
 
20,000

 
19,583

 
19,550

 
 
PAE Holding Corporation
 
Second Lien Secured Debt
 
11.59% (1M L+950, 1.00% Floor)
 
10/20/23
 
28,097

 
27,451

 
28,272

 
(10)
Total Aerospace & Defense
 
 
$
72,636

 
$
72,825

 
 
 Automotive
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accelerate Parent Corp.
 
Common Equity/Interest - Common Stock
 
N/A
 
N/A
 
1,664,046 Shares

 
$
1,714

 
$
100

 
(13)
Crowne Automotive
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vari-Form Group, LLC
 
First Lien Secured Debt
 
13.33% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)
 
02/02/23
 
4,998

 
4,862

 
4,848

 
(9)
Vari-Form Inc.
 
First Lien Secured Debt
 
13.33% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)
 
02/02/23
 
9,997

 
9,725

 
9,697

 
(9)
 
 
14,587

 
14,545

 
 
K&N Parent, Inc.
 
Second Lien Secured Debt
 
11.08% (3M L+875, 1.00% Floor)
 
10/21/24
 
26,765

 
26,336

 
26,096

 
(10)
Total Automotive
 
 
$
42,637

 
$
40,741

 
 
Aviation and Consumer Transport
 
 
 
 
 
 
 
 
 
 
Merx Aviation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merx Aviation Finance Assets Ireland Limited (5)
 
First Lien Secured Debt - Letters of Credit
 
2.25%
 
09/30/18
 
$
3,600

 
$

 
$

 
(23)
Merx Aviation Finance, LLC (5)
 
First Lien Secured Debt - Revolver
 
12.00%
 
10/31/23
 
450,800

 
450,800

 
450,800

 
(23)
 
 
First Lien Secured Debt - Letter of Credit
 
2.25%
 
07/13/18
 
177

 

 

 
(23)
 
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
N/A

 
15,000

 
52,001

 
 
Total Aviation and Consumer Transport
 
 
$
465,800

 
$
502,801

 
 
Beverage, Food & Tobacco
 
 
 
 
 
 
 
 
 
 
Eagle Foods Family Group, LLC
 
First Lien Secured Debt
 
8.84% (3M L+650, 1.00% Floor)
 
06/14/24
 
$
25,000

 
$
24,721

 
$
24,719

 
(9)

See notes to financial statements.
5

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

 
 
First Lien Secured Debt - Revolver
 
8.84% (3M L+650, 1.00% Floor)
 
06/14/23
 
833

 
833

 
824

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.00% Unfunded
 
06/14/23
 
2,917

 
(39
)
 
(33
)
 
(8)(9)(21)(23)
Total Beverage, Food & Tobacco
 
 
$
25,515

 
$
25,510

 
 
Business Services
 
 
 
 
 
 
 
 
 
 
Access CIG, LLC
 
Second Lien Secured Debt
 
9.84% (1M L+775)
 
02/27/26
 
$
19,931

 
$
19,747

 
$
20,056

 
(10)
 
 
Second Lien Secured Debt - Unfunded Delayed Draw
 
0.00% Unfunded
 
02/27/26
 
969

 

 

 
(10)(21)(23)
 
 
 
 
 
 
 
 
 
 
19,747

 
20,056

 
 
Aero Operating LLC
 
First Lien Secured Debt
 
9.34% (1M L+725, 1.00% Floor)
 
12/29/22
 
33,267

 
32,519

 
32,935

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
1.00% Unfunded
 
12/29/22
 
4,812

 
(43
)
 
(48
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
32,476

 
32,887

 
 
Almonde, Inc
 
Second Lien Secured Debt
 
9.56% (3M L+725, 1.00% Floor)
 
06/13/25
 
2,316

 
2,296

 
2,235

 
(10)(17)
Ambrosia Buyer Corp.
 
Second Lien Secured Debt
 
10.09% (1M L+ 800, 1.00% Floor)
 
08/28/25
 
21,429

 
20,950

 
20,948

 

Aptean, Inc.
 
Second Lien Secured Debt
 
11.83% (3M L+950, 1.00% Floor)
 
12/20/23
 
11,148

 
11,050

 
11,217

 
(10)
CT Technologies Intermediate Holdings, Inc
 
Second Lien Secured Debt
 
11.09% (1M L+900, 1.00% Floor)
 
12/01/22
 
31,253

 
30,511

 
30,315

 
(9)
Electro Rent Corporation
 
Second Lien Secured Debt
 
11.31% (3M L+900, 1.00% Floor)
 
01/31/25
 
18,333

 
17,880

 
17,967

 
(9)
 
 
Second Lien Secured Debt
 
11.33% (3M L+900, 1.00% Floor)
 
01/31/25
 
18,265

 
17,766

 
17,899

 
(9)
 
 
 
 
 
 
 
 
 
 
35,646

 
35,866

 
 
Ministry Brands, LLC
 
Second Lien Secured Debt
 
11.75% (6M L+925, 1.00% Floor)
 
06/02/23
 
10,000

 
9,886

 
10,065

 

Newscycle Solutions, Inc.
 
First Lien Secured Debt
 
9.09% (1M L+700, 1.00% Floor)
 
12/29/22
 
16,069

 
15,716

 
15,909

 
(9)
 
 
First Lien Secured Debt - Revolver
 
9.10% (1M L+700, 1.00% Floor)
 
12/29/22
 
160

 
160

 
158

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
12/29/22
 
340

 
(13
)
 
(3
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
15,863

 
16,064

 
 
PSI Services, LLC
 
First Lien Secured Debt
 
7.09% (1M L+500, 1.00% Floor)
 
01/20/23
 
4,609

 
4,522

 
4,565

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
01/20/22
 
397

 
(7
)
 
(4
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
01/20/22
 
£
47

 

 

 
(9)(21)(23)
 
 
Second Lien Secured Debt
 
11.09% (1M L+900, 1.00% Floor)
 
01/20/24
 
33,452

 
32,688

 
32,796

 
(9)
 
 
 
 
 
 
 
 
 
 
37,203

 
37,357

 
 
RA Outdoors, LLC
 
First Lien Secured Debt
 
6.84% (1M L+475, 1.00% Floor)
 
09/11/24
 
7,192

 
7,065

 
7,121

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/09/22
 
1,200

 
(20
)
 
(12
)
 
(8)(9)(21)(23)
 
 
Second Lien Secured Debt
 
10.84% (1M L+875, 1.00% Floor)
 
09/11/25
 
34,200

 
33,430

 
33,515

 
(9)
 
 
 
 
 
 
 
 
 
 
40,475

 
40,624

 
 
Skyline Data/Dodge Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dodge Data & Analytics LLC
 
First Lien Secured Debt
 
11.09% (3M L+875, 1.00% Floor)
 
10/31/19
 
48,209

 
47,950

 
48,210

 
 
Skyline Data, News and Analytics LLC
 
Common Equity/Interests - Class A Common Unit
 
N/A
 
N/A
 
4,500,000 Shares

 
4,500

 
4,500

 
(13)
 
 
 
 
 
 
 
 
 
 
52,450

 
52,710

 
 

See notes to financial statements.
6

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

STG-Fairway Acquisitions, Inc.
 
Second Lien Secured Debt
 
11.34% (1M L+925, 1.00% Floor)
 
06/30/23
 
15,000

 
14,765

 
14,400

 
(10)
Transplace Holdings, Inc.
 
Second Lien Secured Debt
 
10.80% (1M L+875, 1.00% Floor)
 
10/06/25
 
13,599

 
13,288

 
13,735

 
(10)
U.S. Security Associates Holdings, Inc.
 
Unsecured Debt
 
11.00%
 
01/28/20
 
80,000

 
80,000

 
80,000

 
 
Total Business Services
 
 
$
416,606

 
$
418,479

 
 
Chemicals, Plastics & Rubber
 
 
 
 
 
 
 
 
 
 
Carbon Free Chemicals
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)
 
First Lien Secured Debt
 
5.215% PIK
 
09/30/20
 
$
51,805

 
$
51,805

 
$
46,457

 

 
 
Common Equity/Partnership Interests - Residual Interests
 
N/A
 
09/30/20
 
7,500

 
7,500

 

 
(13)
Carbonfree Caustic SPE LLC
 
Unfunded Delayed Draw - Promissory Note
 
N/A
 
06/30/20
 
6,111

 

 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
59,305

 
46,457

 
 
Hare Bidco, Inc.
 
Second Lien Secured Debt
 
9.75% (3M E+875, 1.00% Floor)
 
08/01/24
 
13,574

 
14,434

 
15,532

 
 
Total Chemical, Plastics & Rubber
 
 
$
73,739

 
$
61,989

 
 
Consumer Goods – Durable
 
 
 
 
 
 
 
 
 
 
Hayward Industries, Inc.
 
Second Lien Secured Debt
 
10.34% (1M L+825)
 
08/04/25
 
$
25,110

 
$
24,664

 
$
24,660

 
 
KLO Holdings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9357-5991 Quebec Inc.
 
First Lien Secured Debt
 
11.75% (1M L+975, 0.75% Floor)
 
04/07/22
 
9,203

 
9,117

 
8,857

 
 
KLO Acquisition LLC
 
First Lien Secured Debt
 
11.88% (1M L+975, 0.75% Floor)
 
04/07/22
 
5,363

 
5,312

 
5,161

 
 
 
 
 
 
 
 
 
 
 
 
14,429

 
14,018

 
 
Sorenson Holdings, LLC
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
587 Shares

 

 
471

 
(13)
Total Consumer Goods - Durable
 
 
$
39,093

 
$
39,149

 
 
Consumer Goods – Non-Durable
 
 
 
 
 
 
 
 
 
 
ABG Intermediate Holdings 2, LLC
 
Second Lien Secured Debt
 
9.84% (1M L+775, 1.00% Floor)
 
09/29/25
 
$
11,232

 
$
11,168

 
$
11,260

 
 (10)
 
 
Second Lien Secured Debt - Unfunded Delayed Draw
 
0.3875% Unfunded
 
09/29/25
 
1,139

 

 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
11,168

 
11,260

 
 
Sequential Brands Group, Inc.
 
Second Lien Secured Debt
 
11.09% (1M L+900)
 
07/01/22
 
17,072

 
16,929

 
17,168

 
 (17)
Total Consumer Goods - Non-Durable
 
 
$
28,097

 
$
28,428

 
 
Consumer Services
 
 
 
 
 
 
 
 
 
 
 
 
1A Smart Start LLC
 
Second Lien Secured Debt
 
10.34% (1M L+825, 1.00% Floor)
 
08/22/22
 
$
25,100

 
$
24,654

 
$
24,645

 
 
Total Consumer Services
 
 
$
24,654

 
$
24,645

 
 
Containers, Packaging & Glass
 
 
 
 
 
 
 
 
 
 
Sprint Industrial Holdings, LLC
 
Second Lien Secured Debt
 
13.5% PIK
 
11/14/19
 
$
19,714

 
$
18,107

 
$
11,770

 
(13)(14)
 
 
Common Equity/Interests - Warrants
 
N/A
 
N/A
 
7,341 Warrants

 

 

 
(13)(26)
 
 
 
 
 
 
 
 
 
 
18,107

 
11,770

 
 
TricorBraun Holdings, Inc.
 
First Lien Secured Debt - Revolver
 
7.25% (P+225)
 
11/30/21
 
450

 
450

 
451

 
(23)
 
 
First Lien Secured Debt - Revolver
 
5.34% (1M L+325)
 
11/30/21
 
1,500

 
1,500

 
1,503

 
(23)

See notes to financial statements.
7

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
11/30/21
 
3,675

 
(346
)
 

 
(21)(23)
 
 
1,604

 
1,954

 
 
Total Containers, Packaging & Glass
 
 
$
19,711

 
$
13,724

 
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
 
 
 
 
 
 
 
 
 
Armor Holding II LLC
 
Second Lien Secured Debt
 
11.09% (1M L+900, 1.25% Floor)
 
12/26/20
 
$
8,000

 
$
7,946

 
$
8,070

 
(10)
Craft 2014-1A
 
Structured Products and Other - Credit-Linked Note
 
N/A
 
05/15/21
 
42,500

 

 

 
(11)(17)
Craft 2015-2
 
Structured Products and Other - Credit-Linked Note
 
10.62% (3M L+925)
 
01/16/24
 
24,998

 
25,599

 
24,998

 
(11)(17)
Golden Bear 2016-R, LLC (3)(4)
 
Structured Products and Other - Membership Interests
 
N/A
 
09/20/42
 

 
16,548

 
13,634

 
(17)
Mayfield Agency Borrower Inc.
 
Second Lien Secured Debt
 
10.59% (1M L+850, 1.00% Floor)
 
03/02/26
 
5,000

 
4,928

 
4,978

 
(10)
Purchasing Power, LLC
 
First Lien Secured Debt - Revolver
 
10.09% (1M L + 800, 1.00% Floor)
 
07/10/19
 
2,179

 
2,179

 
2,167

 
(9)(23)

 
First Lien Secured Debt - Unfunded Revolver
 
0.75% Unfunded
 
07/10/19
 
2,321

 
(23
)
 
(12
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
2,156

 
2,155

 
 
Ten-X, LLC
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/29/22
 
4,680

 
(358
)
 
(366
)
 
(8)(21)(23)
Total Diversified Investment Vehicles, Banking, Finance, Real Estate
 
 
$
56,819

 
$
53,469

 
 
Energy – Electricity
 
 
 
 
 
 
 
 
 
 
 
 
AMP Solar Group, Inc. (4)
 
Common Equity/Interests - Class A Common Unit
 
N/A
 
N/A
 
243,646 Shares

 
10,000

 
5,114

 
(13)(17)
Renew Financial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AIC SPV Holdings II, LLC (4)
 
Preferred Equity - Preferred Stock
 
N/A
 
N/A
 
143 Shares

 
534

 
886

 
(15)(17)
Renew Financial LLC (f/k/a Renewable Funding, LLC) (4)
 
Preferred Equity - Series B Preferred Stock
 
N/A
 
N/A
 
1,505,868 Shares

 
8,343

 
18,809

 
(13)
 
 
Preferred Equity - Series D Preferred Stock
 
N/A
 
N/A
 
436,689 Shares

 
5,568

 
6,620

 
(13)
Renew JV LLC (4)
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
N/A

 
3,065

 
5,207

 
(13)(17)
 
 
 
 
 
 
 
 
 
 
17,510

 
31,522

 
 
Solarplicity Group
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Solarplicity Group Limited (3)(4)
 
First Lien Secured Debt
 
N/A
 
11/30/22
 
£
4,331

 
5,811

 
5,705

 
(13)(17)
Solarplicity UK Holdings Limited
 
First Lien Secured Debt
 
4.00%
 
03/08/23
 
£
5,562

 
7,636

 
7,317

 
(17)
 
 
Preferred Equity - Preferred Stock
 
N/A
 
N/A
 
4,286 Shares

 
5,862

 
4,752

 
(2)(13)(17)
 
 
Common Equity/Interests - Ordinary Shares
 
N/A
 
N/A
 
2,825 Shares

 
4

 
974

 
(2)(13)(17)
 
 
 
 
 
 
 
 
 
 
19,313

 
18,748

 
 
Westinghouse Electric Co LLC
 
First Lien Secured Debt
 
6.63% (1M L+450, 1.00% Floor)
 
01/11/19
 
30,000

 
30,000

 
30,000

 
(9)
Total Energy – Electricity
 
 
$
76,823

 
$
85,384

 
 
Energy – Oil & Gas
 
 
 
 
 
 
 
 
 
 
Glacier Oil & Gas Corp. (f/k/a Miller Energy Resources, Inc.) (5)
 
First Lien Secured Debt
 
8.00% Cash (10.00% PIK Toggle)
 
03/29/19
 
$
15,000

 
$
15,000

 
$
15,000

 
 
 
 
Second Lien Secured Debt
 
10.00% PIK (8.00% Cash Toggle)
 
03/29/21
 
31,279

 
31,279

 
31,279

 
 

See notes to financial statements.
8

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

 
 
Common Equity/Interests - Common Stock
 
N/A
 
N/A
 
5,000,000 Shares

 
30,078

 
15,981

 
(13)
 
 
 
 
 
 
 
 
 
 
76,357

 
62,260

 
 
Pelican Energy, LLC (4)
 
Common Equity/Interests - Membership Interests
 
N/A
 
N/A
 
1,444 Shares

 
20,108

 
8,148

 
(13)(17)(29)
SHD Oil & Gas, LLC (5)
 
First Lien Secured Debt - Tranche A Note
 
14.00% (8.00% Cash plus 6.00% PIK)
 
12/31/19
 
44,095

 
44,095

 
45,417

 
 
 
 
First Lien Secured Debt - Tranche B Note
 
14.00% PIK
 
12/31/19
 
75,823

 
44,380

 
45,470

 
(13)(14)
 
 
First Lien Secured Debt - Tranche C Note
 
12.00%
 
12/31/19
 
19,200

 
19,200

 
19,776

 
 
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.00% Unfunded
 
12/31/19
 
2,800

 

 

 
(21)(23)
 
 
Common Equity/Interests - Series A Units
 
N/A
 
N/A
 
7,600,000 Shares

 
1,411

 

 
(13)(29)
 
 
 
 
 
 
 
 
 
 
109,086

 
110,663

 
 
Total Energy – Oil & Gas
 
 
$
205,551

 
$
181,071

 
 
Food & Grocery
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bumble Bee Foods
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bumble Bee Holdings, Inc.
 
First Lien Secured Debt
 
10.33% (3M L+800, 1.00% Floor)
 
08/15/23
 
$
15,468

 
$
15,193

 
$
15,158

 
 
Connors Bros Clover Leaf Seafoods Company
 
First Lien Secured Debt
 
10.33% (3M L+800, 1.00% Floor)
 
08/15/23
 
4,382

 
4,304

 
4,294

 
 
 
 
 
 
 
 
 
 
 
 
19,497

 
19,452

 
 
Grocery Outlet, Inc.
 
Second Lien Secured Debt
 
10.34% (1M L+825, 1.00% Floor)
 
10/21/22
 
25,000

 
24,796

 
25,250

 
(10)
Total Food & Grocery
 
 
$
44,293

 
$
44,702

 
 
Healthcare & Pharmaceuticals
 
 
 
 
 
 
 
 
 
 
Altasciences
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9360-1367 Quebec Inc.
 
First Lien Secured Debt
 
8.58% (3M L+625, 1.00% Floor)
 
06/09/23
 
$
2,891

 
$
2,838

 
$
2,805

 
(9)(17)
 
 
First Lien Secured Debt
 
7.94% (3M L+625, 1.00% Floor)
 
06/09/23
 
C$
2,412

 
1,763

 
1,779

 
(9)(17)
Altasciences US Acquisition, Inc.
 
First Lien Secured Debt
 
8.58% (3M L+625, 1.00% Floor)
 
06/09/23
 
5,222

 
5,124

 
5,066

 
(9)
 
 
First Lien Secured Debt - Revolver
 
8.61% (3M L+625, 1.00% Floor)
 
06/09/23
 
107

 
107

 
104

 
(9)(23)(28)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.25% Unfunded
 
06/09/23
 
1,319

 
(26
)
 
(40
)
 
(8)(9)(21)(23)(28)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.50% Unfunded
 
06/09/23
 
2,851

 
(29
)
 
(86
)
 
(8)(9)(21)(23)(28)
 
 
 
 
 
 
 
 
 
 
9,777

 
9,628

 
 
Amerivet Partners Management, Inc.
 
First Lien Secured Debt
 
7.85% (1M L+575, 1.00% Floor)
 
06/05/24
 
6,045

 
5,895

 
5,895

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
06/05/24
 
806

 
(21
)
 
(20
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.50% Unfunded
 
06/05/24
 
20,149

 
(225
)
 
(499
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
5,649

 
5,376

 
 
Analogic Corporation
 
First Lien Secured Debt
 
8.33% (3M L+600, 1.00% Floor)
 
06/22/24
 
27,391

 
26,710

 
27,117

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
06/22/23
 
2,609

 
(67
)
 
(26
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
26,643

 
27,091

 
 
Aptevo Therapeutics Inc.
 
First Lien Secured Debt
 
9.69% (1M L+760, 0.50% Floor)
 
02/01/21
 
8,571

 
8,739

 
8,563

 
(9)

See notes to financial statements.
9

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
June 30, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (30)
 
 Fair
Value (1) (31)
 

Argon Medical Devices Holdings, Inc.
 
Second Lien Secured Debt
 
10.09% (1M L+800, 1.00% Floor)
 
01/23/26
 
21,300

 
21,198

 
21,580

 
(10)
Avalign Technologies, Inc.
 
Second Lien Secured Debt
 
10.38% (6M L+825, 1.00% Floor)
 
09/02/24
 
5,500

 
5,451

 
5,459

 
(10)
BioClinica Holding I, LP
 
Second Lien Secured Debt
 
10.63% (3M L+825, 1.00% Floor)
 
10/21/24
 
24,612

 
24,213

 
22,889

 
(10)
Genesis Healthcare, Inc.
 
First Lien Secured Debt
 
8.34% (3M L+600, 0.50% Floor)
 
03/06/23
 
25,000

 
24,649

 
24,652

 
(9)
 
 
First Lien Secured Debt - Revolver
 
8.36% (3M L+600, 0.50% Floor)
 
03/06/23
 
9,966

 
9,966

 
9,828

 
(9)(23)
 
 
First Lien Secured Debt - Revolver
 
5.86% (3M L+350, 0.50% Floor)
 
03/06/23
 
10,336

 
10,336

 
10,192

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
03/06/23
 
40,567

 
(773
)
 
(562
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
2.00% Unfunded
 
03/06/23
 
9,131

 
(171
)
 
(127
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
44,007

 
43,983

 
 
Elements Behavioral Health, Inc.
 
Second Lien Secured Debt
 
15.09% (3M L+1275 PIK, 1.00% Floor)
 
02/11/20
 
12,353

 
11,911

 

 
(13)(14)
Invuity, Inc.
 
First Lien Secured Debt
 
8.59% (1M L+650, 1.50% Floor)
 
03/01/22
 
10,000

 
9,875

 
9,750

 
(9)
 
 
First Lien Secured Debt - Revolver
 
5.34% (1M L+325, 1.50% Floor)
 
03/01/22
 
809

 
809

 
799

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
03/01/22
 
1,191

 
(7
)
 
(15
)
 
(8)(9)(21)(23)
 
 
Common Equity/Interests - Warrants
 
N/A
 
N/A
 
32,803 Warrants

 
180

 
69

 
(9)(13)
 
 
 
 
 
 
 
 
 
 
10,857

 
10,603

 
 
Lanai Holdings III, Inc.
 
Second Lien Secured Debt
 
10.86% (3M L+850, 1.00% Floor)
 
08/28/23
 
17,391

 
17,009

 
16,696

 
(10)
LSCS Holdings, Inc
 
Second Lien Secured Debt
 
10.58% (3M L+825)
 
03/16/26
 
20,455

 
20,010

 
20,351

 
 
 
 
Second Lien Secured Debt
 
10.34% (1M L+825)