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 December 31, 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 February 5, 2019
$0.001 par value
 
69,187,804
 




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)


December 31, 2018

March 31, 2018

(Unaudited)


Assets



Investments at fair value:





Non-controlled/non-affiliated investments (cost — $1,522,779 and $1,471,492, respectively)
$
1,492,712


$
1,450,033

Non-controlled/affiliated investments (cost — $67,308 and $73,943, respectively)
51,236


68,954

Controlled investments (cost — $767,028 and $723,161, respectively)
764,018


729,060

Cash and cash equivalents
22,654


14,035

Foreign currencies (cost — $7,259 and $1,292, respectively)
7,283


1,298

Cash collateral on options contracts


5,016

Receivable for investments sold
43


2,190

Interest receivable
20,695


22,272

Dividends receivable
3,454


2,550

Deferred financing costs
20,603


14,137

Variation margin receivable on options contracts


1,846

Prepaid expenses and other assets
969


419

Total Assets
$
2,383,667


$
2,311,810





Liabilities



Debt
$
994,487


$
789,846

Payable for investments purchased
7,811


41,827

Distributions payable
31,302


32,447

Management and performance-based incentive fees payable
14,276


16,585

Interest payable
9,508


5,310

Accrued administrative services expense
3,012


2,507

Other liabilities and accrued expenses
6,666


5,202

Total Liabilities
$
1,067,062


$
893,724

Commitments and contingencies (Note 10)





Net Assets
$
1,316,605


$
1,418,086





Net Assets



Common stock, $0.001 par value (400,000,000 shares authorized; 69,187,804 and 72,104,032 shares issued and outstanding, respectively)
$
69


$
72

Paid-in capital in excess of par
2,590,605


2,636,651

Accumulated over-distributed net investment income
(10,565
)

(10,229
)
Accumulated net realized loss
(1,216,679
)

(1,166,471
)
Net unrealized loss
(46,825
)

(41,937
)
Net Assets
$
1,316,605


$
1,418,086







Net Asset Value Per Share
$
19.03


$
19.67


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 December 31,

Nine Months Ended December 31,

2018

2017

2018

2017
Investment Income







Non-controlled/non-affiliated investments:







Interest income (excluding Payment-in-kind (“PIK”) interest income)
$
39,494


$
38,350


$
123,523


$
116,519

Dividend income
2




2



PIK interest income
643


1,752


2,709


5,926

Other income
3,748


1,487


6,961


5,264

Non-controlled/affiliated investments:







Interest income (excluding PIK interest income)






114

Dividend income
298


392


904


2,461

PIK interest income


2,644




7,582

Other income






(306
)
Controlled investments:







Interest income (excluding PIK interest income)
15,061


13,499


44,627


42,789

Dividend income
3,300


5,250


10,550


13,403

PIK interest income
1,495


1,379


4,390


4,046

Total Investment Income
$
64,041


$
64,753


$
193,666


$
197,798

Expenses







Management fees
$
8,720


$
12,048


$
26,851


$
36,463

Performance-based incentive fees
7,409


7,484


21,190


23,433

Interest and other debt expenses
14,217


12,433


42,697


40,479

Administrative services expense
1,657


1,693


5,152


5,061

Other general and administrative expenses
2,564


2,262


8,621


6,438

Total expenses
34,567


35,920


104,511


111,874

Management and performance-based incentive fees waived
(1,852
)

(4,986
)

(5,542
)

(15,077
)
Expense reimbursements
(161
)

(148
)

(500
)

(444
)
Net Expenses
$
32,554


$
30,786


$
98,469


$
96,353

Net Investment Income
$
31,487


$
33,967


$
95,197


$
101,445

Net Realized and Change in Unrealized Gains (Losses)







Net realized gains (losses):







Non-controlled/non-affiliated investments
$
(12,421
)

$
443


$
(22,140
)

$
(96,704
)
Non-controlled/affiliated investments


5,369


2,007


(141,472
)
Option contracts
(6,475
)

(614
)

(29,995
)

(619
)
Foreign currency transactions
(55
)

16


(80
)

6,635

Extinguishment of debt


(5,790
)



(5,790
)
Net realized losses
(18,951
)

(576
)

(50,208
)

(237,950
)
Net change in unrealized gains (losses):







Non-controlled/non-affiliated investments
2,235


(12,502
)

(8,603
)

88,785

Non-controlled/affiliated investments
(7,124
)

(6,391
)

(11,084
)

150,828

Controlled investments
(18,883
)

4,988


(8,911
)

(796
)
Option contracts
8,787


(12,100
)

19,146


(13,973
)
Foreign currency translations
1,271


(1,553
)

4,564


(21,937
)
Net change in unrealized gains (losses)
(13,714
)

(27,558
)

(4,888
)

202,907

Net Realized and Change in Unrealized Losses
$
(32,665
)

$
(28,134
)

$
(55,096
)

$
(35,043
)
Net Increase (Decrease) in Net Assets Resulting from Operations
$
(1,178
)

$
5,833


$
40,101


$
66,402

Earnings (Loss) Per Share — Basic
$
(0.02
)

$
0.08


$
0.56


$
0.91


See notes to financial statements.
2

Table of Contents

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

 
Nine Months Ended December 31, 2018
 
Year Ended
March 31, 2018
 
(Unaudited)
 
 
Operations
 
 
 
Net investment income
$
95,197

 
$
133,387

Net realized losses
(50,208
)
 
(258,128
)
Net change in unrealized losses
(4,888
)
 
211,770

Net Increase in Net Assets Resulting from Operations
$
40,101

 
$
87,029

 
 
 
 
Distributions to Stockholders
 
 
 
Distribution of net investment income
$
(95,533
)
 
$
(86,906
)
Distribution of return of capital

 
(44,088
)
Net Decrease in Net Assets Resulting from Distributions to Stockholders
$
(95,533
)
 
$
(130,994
)
 
 
 
 
Capital Share Transactions
 
 
 
Repurchase of common stock
$
(46,049
)
 
$
(19,746
)
Net Decrease in Net Assets Resulting from Capital Share Transactions
$
(46,049
)
 
$
(19,746
)
 
 
 
 
Net Assets
 
 
 
Net decrease in net assets during the period
$
(101,481
)
 
$
(63,711
)
Net assets at beginning of period
1,418,086

 
1,481,797

Net Assets at End of Period
$
1,316,605

 
$
1,418,086

 
 
 
 
Capital Share Activity
 
 
 
Shares repurchased during the period
(2,916,228
)
 
(1,127,519
)
Shares issued and outstanding at beginning of period
72,104,032

 
73,231,551

Shares Issued and Outstanding at End of Period
69,187,804

 
72,104,032


See notes to financial statements.
3

Table of Contents

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

 
Nine Months Ended December 31,
 
2018
 
2017
Operating Activities
 
 
 
Net increase (decrease) in net assets resulting from operations
$
40,101

 
$
66,402

Net realized losses
50,208

 
237,950

Net change in unrealized losses
4,888

 
(202,907
)
Net amortization of premiums and accretion of discounts on investments
(4,597
)
 
(5,240
)
Accretion of discount on notes
447

 
447

Amortization of deferred financing costs
3,723

 
3,575

Gains/losses from foreign currency transactions
(80
)
 
6,635

PIK interest and dividends capitalized
(5,584
)
 
(12,630
)
Changes in operating assets and liabilities:
 
 
 
Purchases of investments
(1,061,858
)
 
(789,231
)
Proceeds from sales and repayments of investments
931,520

 
827,315

Purchases of option contracts

 
(8,976
)
Proceeds from option contracts

 
8,330

Net settlement of option contracts
(9,002
)
 
(13,031
)
Decrease (increase) in interest receivable
1,579

 
(5,946
)
Decrease (increase) in dividends receivable
(904
)
 
3,939

Decrease (increase) in prepaid expenses and other assets
(550
)
 
(498
)
Increase (decrease) in management and performance-based incentive fees payable
(2,309
)
 
2,270

Increase (decrease) in interest payable
4,198

 
2,355

Increase (decrease) in accrued administrative services expense
505

 
143

Increase (decrease) in other liabilities and accrued expenses
1,464

 
(2,788
)
Net Cash Used in/Provided by Operating Activities
$
(46,251
)
 
$
118,114

Financing Activities
 
 
 
Issuances of debt
$
759,963

 
$
895,483

Payments of debt
(551,657
)
 
(897,719
)
Financing costs paid and deferred
(9,758
)
 
(177
)
Repurchase of common stock
(46,049
)
 
(8,601
)
Distributions paid
(96,678
)
 
(98,764
)
Net Cash Used in/Provided by Financing Activities
$
55,821

 
$
(109,778
)
 
 
 
 
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
$
9,570

 
$
8,336

Effect of foreign exchange rate changes on cash and cash equivalents
18

 
29

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
$
29,937

 
$
19,645

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Cash interest paid
$
34,323

 
$
34,081

 
 
 
 
Non-Cash Activity
 
 
 
PIK income
$
7,099

 
$
17,554


See notes to financial statements.
4

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (28)
 
 Fair
Value (1) (29)
 

Advertising, Printing & Publishing
 
 
 
 
 
 
A-L Parent LLC
 
Second Lien Secured Debt
 
9.78% (1M L+725, 1.00% Floor)
 
12/02/24
 
$
5,536

 
$
5,495

 
$
5,536

 

American Media, Inc.
 
First Lien Secured Debt
 
10.53% (3M L+800, 1.00% Floor)
 
08/24/20
 
11,633

 
11,471

 
12,214

 

 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
08/24/20
 
1,778

 
(22
)
 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
11,449

 
12,214

 
 
Simplifi Holdings, Inc.
 
First Lien Secured Debt
 
8.02% (1M L+550, 1.00% Floor)
 
09/28/22
 
25,427

 
24,983

 
25,173

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

 
(54
)
 
(24
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
24,929

 
25,149

 
 
Total Advertising, Printing & Publishing
 
 
$
41,873

 
$
42,899

 
 
Aerospace & Defense
 
 
 
 
 
 
Erickson Inc
 
First Lien Secured Debt - Revolver
 
10.30% (3M L+750, 1.00% Floor)
 
04/28/22
 
$
21,257

 
$
21,257

 
$
20,779

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
04/28/22
 
17,899

 
(374
)
 
(403
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Letters of Credit
 
7.50%
 
4/21/19 - 4/30/20
 
5,843

 

 
(131
)
 
(8)(9)(23)
 
 
 
 
 
 
 
 
 
 
20,883

 
20,245

 
 
ILC Dover LP
 
Second Lien Secured Debt
 
11.38% (6M L+850, 1.00% Floor)
 
06/28/24
 
20,000

 
19,618

 
19,550

 
 
PAE Holding Corporation
 
Second Lien Secured Debt
 
12.12% (2M L+950, 1.00% Floor)
 
10/20/23
 
28,097

 
27,510

 
27,675

 
(10)
Total Aerospace & Defense
 
 
$
68,011

 
$
67,470

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

 
$
1,714

 
$

 
(13)
Crowne Automotive
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vari-Form Group, LLC
 
First Lien Secured Debt
 
13.80% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)
 
02/02/23
 
$
6,627

 
6,266

 
3,777

 
(9)(13)(14)
Vari-Form Inc.
 
First Lien Secured Debt
 
13.80% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)
 
02/02/23
 
10,443

 
9,836

 
5,953

 
(9)(13)(14)
 
 
16,102

 
9,730

 
 
K&N Parent, Inc.
 
Second Lien Secured Debt
 
11.27% (1M L+875, 1.00% Floor)
 
10/21/24
 
23,765

 
23,414

 
22,873

 
(10)
Total Automotive
 
 
$
41,230

 
$
32,603

 
 
Aviation and Consumer Transport
 
 
 
 
 
 
 
 
 
 
Merx Aviation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Merx Aviation Finance Assets Ireland Limited (5)
 
First Lien Secured Debt - Letters of Credit
 
2.25%
 
2/18/19 - 2/22/19
 
$
3,600

 
$

 
$

 
(23)
Merx Aviation Finance, LLC (5)
 
First Lien Secured Debt - Revolver
 
12.00%
 
10/31/23
 
402,200

 
402,200

 
402,200

 
(23)
 
 
First Lien Secured Debt - Letter of Credit
 
2.25%
 
07/13/19
 
177

 

 

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

 
15,000

 
53,351

 
 
Total Aviation and Consumer Transport
 
 
$
417,200

 
$
455,551

 
 
Beverage, Food & Tobacco
 
 
 
 
 
 
 
 
 
 
Eagle Foods Family Group, LLC
 
First Lien Secured Debt
 
9.30% (3M L+650, 1.00% Floor)
 
06/14/24
 
$
24,875

 
$
24,621

 
$
24,626

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.00% Unfunded
 
06/14/23
 
3,750

 
(38
)
 
(38
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
24,583

 
24,588

 
 

See notes to financial statements.
5

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (28)
 
 Fair
Value (1) (29)
 

Florida Food Products
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida Food Products, Inc.
 
First Lien Secured Debt
 
9.27% (1M L+675, 1.00% Floor)
 
09/08/25
 
23,229

 
22,675

 
22,997

 
(9)
Florida Food Products, LLC
 
First Lien Secured Debt - Revolver
 
9.27% (1M L+675, 1.00% Floor)
 
09/06/23
 
1,062

 
1,062

 
1,051

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/06/23
 
651

 
(40
)
 
(7
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
23,697

 
24,041

 
 
TNT Crust LLC
 
First Lien Secured Debt
 
8.77% (1M L+625, 1.00% Floor)
 
11/06/23
 
9,106

 
8,929

 
8,924

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
11/06/23
 
1,626

 
(32
)
 
(33
)
 
(8)(9)(21)(23)
 
 
Common Equity/Interests - Series A Units
 
N/A
 
N/A
 
244 Shares

 
244

 
244

 
(9)(13)
 
 
 
 
 
 
 
 
 
 
9,141

 
9,135

 
 
Total Beverage, Food & Tobacco
 
 
$
57,421

 
$
57,764

 
 
Business Services
 
 
 
 
 
 
 
 
 
 
Access CIG, LLC
 
Second Lien Secured Debt
 
10.46% (3M L+775)
 
02/27/26
 
$
15,900

 
$
15,768

 
$
15,761

 
(10)
Aero Operating LLC
 
First Lien Secured Debt
 
9.77% (1M L+725, 1.00% Floor)
 
12/29/22
 
37,249

 
36,483

 
36,876

 
(9)
 
 
First Lien Secured Debt - Revolver
 
11.75% (P+625)
 
12/29/22
 
2,406

 
2,406

 
2,382

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
1.00% Unfunded
 
12/29/22
 
2,303

 
(96
)
 
(23
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.25%
 
06/21/19
 
103

 

 
(1
)
 
(8)(9)(23)
 
 
 
 
 
 
 
 
 
 
38,793

 
39,234

 
 
Ambrosia Buyer Corp.
 
Second Lien Secured Debt
 
10.50% (2M L+800, 1.00% Floor)
 
08/28/25
 
21,428

 
20,982

 
20,966

 

Aptean, Inc.
 
Second Lien Secured Debt
 
12.31% (3M L+950, 1.00% Floor)
 
12/20/23
 
11,148

 
11,059

 
11,162

 
(10)
CT Technologies Intermediate Holdings, Inc
 
Second Lien Secured Debt
 
11.52% (1M L+900, 1.00% Floor)
 
12/01/22
 
31,253

 
30,594

 
29,378

 
(9)
Education Personnel
 
First Lien Secured Debt
 
7.28% (6M L+475, 0.50% Floor)
 
08/31/24
 
£
4,118

 
5,213

 
5,193

 
(9)(17)
 
 
First Lien Secured Debt - Revolver
 
7.28% (6M L+475, 0.50% Floor)
 
08/31/24
 
£
1,471

 
1,861

 
1,855

 
(9)(17)(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
1.66% Unfunded
 
08/31/24
 
£
4,412

 

 

 
(9)(17)(21)(23)
 
 
 
 
 
 
 
 
 
 
7,074

 
7,048

 
 
Electro Rent Corporation
 
Second Lien Secured Debt
 
11.53% (3M L+900, 1.00% Floor)
 
01/31/25
 
36,598

 
35,706

 
35,866

 
(9)
McLarens Global Ltd.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Margaux Acquisition Inc.
 
First Lien Secured Debt
 
8.18% (3M L+600, 1.00% Floor)
 
12/19/24
 
17,614

 
17,264

 
17,262

 
(9)
 
 
First Lien Secured Debt - Revolver
 
10.50% (P+500)
 
12/19/24
 
343

 
343

 
336

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
12/19/24
 
1,258

 
(32
)
 
(25
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
1.00% Unfunded
 
12/19/24
 
5,833

 
(116
)
 
(117
)
 
(8)(9)(21)(23)
Margaux UK Finance Limited
 
First Lien Secured Debt
 
8.80% (3M L+600, 1.00% Floor)
 
12/19/24
 
£
5,955

 
7,375

 
7,433

 
(9)(17)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
12/19/24
 
£
541

 
(14
)
 
(14
)
 
(8)(9)(17)(21)(23)

See notes to financial statements.
6

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (28)
 
 Fair
Value (1) (29)
 

 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
1.00% Unfunded
 
12/19/24
 
£
1,353

 
(34
)
 
(34
)
 
(8)(9)(17)(21)(23)
 
 
 
 
 
 
 
 
 
 
24,786

 
24,841

 
 
Ministry Brands, LLC
 
Second Lien Secured Debt
 
11.77% (1M L+925, 1.00% Floor)
 
06/02/23
 
10,000

 
9,897

 
10,050

 

Newscycle Solutions, Inc.
 
First Lien Secured Debt
 
9.52% (1M L+700, 1.00% Floor)
 
12/29/22
 
15,663

 
15,357

 
15,507

 
(9)
 
 
First Lien Secured Debt
 
9.51% (1M L+700, 1.00% Floor)
 
12/29/22
 
1,201

 
1,171

 
1,189

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
12/29/22
 
500

 
(10
)
 
(5
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
16,518

 
16,691

 
 
PSI Services, LLC
 
First Lien Secured Debt
 
7.52% (1M L+500, 1.00% Floor)
 
01/20/23
 
4,586

 
4,508

 
4,566

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

 
(6
)
 
(2
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
01/20/22
 
£
47

 

 

 
(9)(21)(23)
 
 
Second Lien Secured Debt
 
11.52% (1M L+900, 1.00% Floor)
 
01/20/24
 
37,893

 
37,081

 
37,720

 
(9)
 
 
 
 
 
 
 
 
 
 
41,583

 
42,284

 
 
RA Outdoors, LLC
 
First Lien Secured Debt
 
7.27% (1M L+475, 1.00% Floor)
 
09/11/24
 
7,156

 
7,040

 
7,013

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

 
(18
)
 
(24
)
 
(8)(9)(21)(23)
 
 
Second Lien Secured Debt
 
11.27% (1M L+875, 1.00% Floor)
 
09/11/25
 
34,200

 
33,483

 
33,345

 
(9)
 
 
 
 
 
 
 
 
 
 
40,505

 
40,334

 
 
STG-Fairway Acquisitions, Inc.
 
Second Lien Secured Debt
 
11.96% (3M L+925, 1.00% Floor)
 
06/30/23
 
15,000

 
14,788

 
14,400

 

TGG TS Acquisition Company
 
First Lien Secured Debt - Revolver
 
9.29% (3M L+650)
 
12/14/23
 
1,115

 
1,115

 
1,087

 
(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
12/14/23
 
635

 

 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
1,115

 
1,087

 
 
Transplace Holdings, Inc.
 
Second Lien Secured Debt
 
11.21% (1M L+875, 1.00% Floor)
 
10/06/25
 
8,599

 
8,416

 
7,825

 
(10)
U.S. Legal Support
 

 

 

 


 


 


 
 
USLS Acquisition, Inc.
 
First Lien Secured Debt
 
8.46% (3M L+575, 1.00% Floor)
 
12/02/24
 
20,099

 
19,703

 
19,698

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
12/02/24
 
1,608

 
(32
)
 
(32
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.50% Unfunded
 
12/02/24
 
4,690

 
(46
)
 
(94
)
 
(8)(9)(21)(23)
U.S. Legal Support Investment Holdings, LLC
 
Common Equity/Interests - Series A-1 Units
 
N/A
 
N/A
 
602,978 Shares

 
603

 
619

 
(9)(13)
 
 
 
 
 
 
 
 
 
 
20,228

 
20,191

 
 
Vertafore, Inc.
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
06/30/23
 
14,591

 
(1,552
)
 
(1,678
)
 
(8)(21)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
3.25%
 
06/30/23
 
409

 

 
(47
)
 
(8)(23)
 
 
 
 
 
 
 
 
 
 
(1,552
)
 
(1,725
)
 
 
Total Business Services
 
 
$
336,260

 
$
335,393

 
 
Chemicals, Plastics & Rubber
 
 
 
 
 
 
 
 
 
 
Carbonfree 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
 
$
50,305

 
$
50,305

 
$
47,129

 


See notes to financial statements.
7

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (28)
 
 Fair
Value (1) (29)
 

 
 
Common Equity/Interests - Residual Interests
 
N/A
 
N/A
 
9,000

 
9,000

 

 
(13)
Carbonfree Caustic SPE LLC
 
First Lien Secured Debt
 
5.00%
 
12/31/21
 
3,800

 
3,800

 
3,800

 
 
 
 
First Lien Secured Debt - Unfunded Delayed Draw - Promissory Note
 
N/A
 
12/31/21
 
9,311

 

 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
63,105

 
50,929

 
 
Hare Bidco, Inc.
 
Second Lien Secured Debt
 
9.75% (1M E+875, 1.00% Floor)
 
08/01/24
 
13,574

 
14,455

 
15,207

 
 
Westfall Technik, Inc.
 
First Lien Secured Debt
 
7.78% (3M L+500, 1.00% Floor)
 
09/13/24
 
4,700

 
4,610

 
4,606

 
(9)
 
 
First Lien Secured Debt
 
7.79% (3M L+500, 1.00% Floor)
 
09/13/24
 
1,238

 
1,226

 
1,214

 
(9)
 
 
First Lien Secured Debt - Revolver
 
7.61% (3M L+500, 1.00% Floor)
 
09/13/24
 
135

 
135

 
132

 
(9)(23)
 
 
First Lien Secured Debt - Revolver
 
9.50% (P+400)
 
09/13/24
 
539

 
539

 
528

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/13/24
 
1,346

 
(38
)
 
(27
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
1.00% Unfunded
 
09/13/24
 
9,531

 
(102
)
 
(215
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
6,370

 
6,238

 
 
Total Chemical, Plastics & Rubber
 
 
$
83,930

 
$
72,374

 
 
Consumer Goods – Durable
 
 
 
 
 
 
 
 
 
 
Hayward Industries, Inc.
 
Second Lien Secured Debt
 
10.77% (1M L+825)
 
08/04/25
 
$
21,919

 
$
21,640

 
$
21,590

 
 
KDC US Holdings
 
First Lien Secured Debt - Unfunded Revolver
 
0.00% Unfunded
 
12/21/23
 
6,020

 

 

 
(21)(23)
KLO Holdings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9357-5991 Quebec Inc.
 
First Lien Secured Debt
 
10.27% (1M L+775, 1.50% Floor)
 
04/07/22
 
8,822

 
8,750

 
8,469

 
 
KLO Acquisition LLC
 
First Lien Secured Debt
 
10.27% (1M L+775, 1.50% Floor)
 
04/07/22
 
5,108

 
5,066

 
4,903

 
 
 
 
 
 
 
 
 
 
 
 
13,816

 
13,372

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

 

 
440

 
(13)
Total Consumer Goods - Durable
 
 
$
35,456

 
$
35,402

 
 
Consumer Goods – Non-Durable
 
 
 
 
 
 
 
 
 
 
ABG Intermediate Holdings 2, LLC
 
Second Lien Secured Debt
 
10.27% (1M L+775, 1.00% Floor)
 
09/29/25
 
$
7,371

 
$
7,344

 
$
7,261

 
(10)
BIG Buyer, LLC
 
First Lien Secured Debt
 
9.14% (3M L+650, 1.00% Floor)
 
11/20/23
 
25,278

 
24,536

 
24,519

 
(9)
 
 
First Lien Secured Debt
 
9.28% (3M L+650, 1.00% Floor)
 
11/20/23
 
2,326

 
2,292

 
2,256

 
(9)
 
 
First Lien Secured Debt - Revolver
 
9.14% (3M L+650, 1.00% Floor)
 
11/20/23
 
271

 
271

 
263

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
11/20/23
 
1,535

 
(53
)
 
(46
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.00% Unfunded
 
11/20/23
 
3,091

 
(79
)
 
(163
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
26,967

 
26,829

 
 
Sequential Brands Group, Inc.
 
Second Lien Secured Debt
 
11.25% (1M L+875)
 
02/07/24
 
13,141

 
13,029

 
13,002

 
 (17)
Reddy Ice Corporation
 
First Lien Secured Debt
 
10.02% (1M L+750, 1.00% Floor)
 
06/30/23
 
30,488

 
30,075

 
30,195

 
(9)

 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
06/30/23
 
2,920

 
(39
)
 
(28
)
 
(8)(9)(21)(23)

 
First Lien Secured Debt - Letter of Credit
 
4.50%
 
04/05/19
 
9,680

 

 
(93
)
 
(8)(9)(23)

See notes to financial statements.
8

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (28)
 
 Fair
Value (1) (29)
 


 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.00% Unfunded
 
06/30/23
 
266

 

 

 
(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
30,036

 
30,074

 
 
Total Consumer Goods - Non-Durable
 
 
$
77,376

 
$
77,166

 
 
Consumer Services
 
 
 
 
 
 
 
 
 
 
 
 
1A Smart Start LLC
 
Second Lien Secured Debt
 
10.77% (1M L+825, 1.00% Floor)
 
08/22/22
 
$
25,100

 
$
24,708

 
$
24,687

 
 
Nemo (BC) Bidco Pty Ltd
 
First Lien Secured Debt
 
7.84% (3M BBSW+575, 1.00% Floor)
 
04/06/24
 
A$
6,768

 
4,906

 
4,669

 
(17)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
2.59% Unfunded
 
04/06/24
 
A$
232

 
(9
)
 
(10
)
 
(8)(17)(21)(23)
 
 
 
 
 
 
 
 
 
 
4,897

 
4,659

 
 
Pinstripe Holdings, LLC
 
First Lien Secured Debt
 
8.52% (1M L+600)
 
01/15/25
 
7,000

 
6,860

 
6,860

 
 
Tidewater Consumer Receivables, LLC
 
First Lien Secured Debt
 
8.26% (1M L+575)
 
12/28/23
 
11,333

 
11,220

 
11,220

 
(9)(17)
 
 
First Lien Secured Debt - Revolver
 
8.26% (1M L+575)
 
12/28/23
 
18

 
18

 
18

 
(9)(17)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.00% Unfunded
 
12/28/23
 
1,148

 
(12
)
 
(11
)
 
(8)(9)(17)(21)(23)
 
 
 
 
 
 
 
 
 
 
11,226

 
11,227

 
 
Total Consumer Services
 
 
$
47,691

 
$
47,433

 
 
Containers, Packaging & Glass
 
 
 
 
 
 
 
 
 
 
Sprint Industrial Holdings, LLC
 
Second Lien Secured Debt
 
13.50% PIK
 
11/14/19
 
$
21,086

 
$
18,107

 
$
14,560

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

 

 

 
(13)(26)
 
 
 
 
 
 
 
 
 
 
18,107

 
14,560

 
 
TricorBraun Holdings, Inc.
 
First Lien Secured Debt - Revolver
 
7.75% (P+225)
 
11/30/21
 
4,208

 
4,208

 
4,215

 
(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
11/30/21
 
1,418

 
(295
)
 

 
(21)(23)
 
 
3,913

 
4,215

 
 
Total Containers, Packaging & Glass
 
 
$
22,020

 
$
18,775

 
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
 
 
 
 
 
 
 
 
 
Alera Group Holdings
 
First Lien Secured Debt - Unfunded Delayed Draw
 
1.00% Unfunded
 
08/01/25
 
$
20,000

 
$
(177
)
 
$
(180
)
 
(8)(21)(23)
Craft 2015-2
 
Structured Products and Other - Credit-Linked Note
 
12.70% (3M L+925)
 
01/16/24
 
13,379

 
13,307

 
13,379

 
(11)(17)
Flock SPV I, LLC
 
First Lien Secured Debt
 
9.02% (1M L+650)
 
08/30/22
 
8,000

 
7,927

 
7,894

 
(9)(17)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
08/30/22
 
1,333

 
(12
)
 
(18
)
 
(8)(9)(17)(21)(23)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.50% Unfunded
 
08/30/22
 
10,667

 
(98
)
 
(141
)
 
(8)(9)(17)(21)(23)
 
 
 
 
 
 
 
 
 
 
7,817

 
7,735

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

 
16,633

 
13,432

 
(17)
Mayfield Agency Borrower Inc.
 
Second Lien Secured Debt
 
11.02% (1M L+850)
 
03/02/26
 
5,000

 
4,933

 
4,966

 
(10)
Purchasing Power, LLC
 
First Lien Secured Debt
 
8.02% (1M L+550)
 
05/09/19
 
21,300

 
21,285

 
21,248

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
05/09/19
 
3,000

 
(7
)
 
(7
)
 
(8)(9)(21)(23)

 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.50% Unfunded
 
05/09/19
 
5,700

 
(49
)
 
(51
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
21,229

 
21,190

 
 

See notes to financial statements.
9

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
December 31, 2018
(In thousands, except share data)

Industry / Company
 
Investment Type
 
Interest Rate (20)
 
Maturity
Date
 
 Par / Shares (12)
 
 Cost (28)
 
 Fair
Value (1) (29)
 

Taupo River II, LLC
 
First Lien Secured Debt
 
8.05% (3M L+525, 1.00% Floor)
 
06/08/20
 
14,000