10-Q 1 ainv2019q210-q.htm 10-Q 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 September 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 October 29, 2018
$0.001 par value
 
211,574,594
 




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)


September 30, 2018

March 31, 2018

(Unaudited)


Assets



Investments at fair value:





Non-controlled/non-affiliated investments (cost — $1,511,531 and $1,471,492, respectively)
$
1,479,233


$
1,450,033

Non-controlled/affiliated investments (cost — $67,911 and $73,943, respectively)
58,963


68,954

Controlled investments (cost — $770,675 and $723,161, respectively)
786,545


729,060

Cash and cash equivalents
17,124


14,035

Foreign currencies (cost — $2,139 and $1,292, respectively)
2,134


1,298

Cash collateral on options contracts
1,865


5,016

Receivable for investments sold
3,158


2,190

Interest receivable
21,939


22,272

Dividends receivable
2,550


2,550

Deferred financing costs
12,094


14,137

Variation margin receivable on options contracts


1,846

Prepaid expenses and other assets
1,187


419

Total Assets
$
2,386,792


$
2,311,810





Liabilities



Debt
$
946,236


$
789,846

Payable for investments purchased
3,877


41,827

Distributions payable
31,942


32,447

Management and performance-based incentive fees payable
16,853


16,585

Interest payable
5,695


5,310

Accrued administrative services expense
2,232


2,507

Variation margin payable on options contracts
534



Other liabilities and accrued expenses
8,271


5,202

Total Liabilities
$
1,015,640


$
893,724

Commitments and contingencies (Note 10)





Net Assets
$
1,371,152


$
1,418,086





Net Assets



Common stock, $0.001 par value (400,000,000 shares authorized; 212,056,994 and 216,312,096 shares issued and outstanding, respectively)
$
212


$
216

Paid-in capital in excess of par
2,612,529


2,636,507

Accumulated over-distributed net investment income
(10,750
)

(10,229
)
Accumulated net realized loss
(1,197,728
)

(1,166,471
)
Net unrealized loss
(33,111
)

(41,937
)
Net Assets
$
1,371,152


$
1,418,086







Net Asset Value Per Share
$
6.47


$
6.56


See notes to financial statements.
1


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

Three Months Ended September 30,

Six Months Ended September 30,

2018

2017

2018

2017
Investment Income







Non-controlled/non-affiliated investments:







Interest income (excluding Payment-in-kind (“PIK”) interest income)
$
44,586


$
39,319


$
84,029


$
78,271

PIK interest income
816


2,118


2,066


4,174

Other income
1,810


2,647


3,213


3,777

Non-controlled/affiliated investments:







Interest income (excluding PIK interest income)


1




115

Dividend income
295


981


607


2,068

PIK interest income


2,501




4,938

Other income






(306
)
Controlled investments:







Interest income (excluding PIK interest income)
15,075


14,241


29,565


29,315

Dividend income
1,985


3,303


7,250


8,153

PIK interest income
1,467


1,351


2,895


2,668

Total Investment Income
$
66,034


$
66,462


$
129,625


$
133,173

Expenses







Management fees
$
9,258


$
12,290


$
18,131


$
24,415

Performance-based incentive fees
6,359


8,037


13,782


15,949

Interest and other debt expenses
14,903


13,832


28,480


28,047

Administrative services expense
1,857


1,692


3,495


3,368

Other general and administrative expenses
3,524


1,620


6,056


4,176

Total expenses
35,901


37,471


69,944


75,955

Management and performance-based incentive fees waived
(1,834
)

(5,081
)

(3,690
)

(10,091
)
Expense reimbursements
(196
)

(85
)

(339
)

(168
)
Net Expenses
$
33,871


$
32,305


$
65,915


$
65,696

Net Investment Income
$
32,163


$
34,157


$
63,710


$
67,477

Net Realized and Change in Unrealized Gains (Losses)







Net realized gains (losses):







Non-controlled/non-affiliated investments
$
228


$
(7,309
)

$
(9,718
)

$
(97,148
)
Non-controlled/affiliated investments
2,007




2,007


(146,840
)
Option contracts
(10,311
)

(5
)

(23,520
)

(5
)
Foreign currency transactions
2


3,695


(26
)

6,619

Net realized losses
(8,074
)

(3,619
)

(31,257
)

(237,374
)
Net change in unrealized gains (losses):







Non-controlled/non-affiliated investments
(5,717
)

10,049


(10,839
)

101,287

Non-controlled/affiliated investments
(3,094
)

1,489


(3,960
)

157,219

Controlled investments
1,393


1,284


9,973


(5,784
)
Option contracts
10,926


(1,873
)

10,359


(1,873
)
Foreign currency translations
432


(9,700
)

3,293


(20,384
)
Net change in unrealized losses
3,940


1,249


8,826


230,465

Net Realized and Change in Unrealized Losses
$
(4,134
)

$
(2,370
)

$
(22,431
)

$
(6,909
)
Net Increase (Decrease) in Net Assets Resulting from Operations
$
28,029


$
31,787


$
41,279


$
60,568

Earnings Per Share — Basic
$
0.13


$
0.14


$
0.19


$
0.28

Earnings Per Share — Diluted
N/A


N/A


N/A


N/A


See notes to financial statements.
2


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

 
Six Months Ended September 30, 2018
 
Year Ended
March 31, 2018
 
(Unaudited)
 
 
Operations
 
 
 
Net investment income
$
63,710

 
$
133,387

Net realized losses
(31,257
)
 
(258,128
)
Net change in unrealized losses
8,826

 
211,770

Net Increase in Net Assets Resulting from Operations
$
41,279

 
$
87,029

 
 
 
 
Distributions to Stockholders
 
 
 
Distribution of net investment income
$
(64,231
)
 
$
(86,906
)
Distribution of return of capital

 
(44,088
)
Net Decrease in Net Assets Resulting from Distributions to Stockholders
$
(64,231
)
 
$
(130,994
)
 
 
 
 
Capital Share Transactions
 
 
 
Repurchase of common stock
$
(23,982
)
 
$
(19,746
)
Net Decrease in Net Assets Resulting from Capital Share Transactions
$
(23,982
)
 
$
(19,746
)
 
 
 
 
Net Assets
 
 
 
Net decrease in net assets during the period
$
(46,934
)
 
$
(63,711
)
Net assets at beginning of period
1,418,086

 
1,481,797

Net Assets at End of Period
$
1,371,152

 
$
1,418,086

 
 
 
 
Capital Share Activity
 
 
 
Shares repurchased during the period
(4,255,102
)
 
(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
212,056,994

 
216,312,096


See notes to financial statements.
3


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

 
Six Months Ended September 30,
 
2018
 
2017
Operating Activities
 
 
 
Net increase (decrease) in net assets resulting from operations
$
41,279

 
$
60,568

Net realized losses
31,257

 
237,374

Net change in unrealized losses
(8,826
)
 
(230,465
)
Net amortization of premiums and accretion of discounts on investments
(3,358
)
 
(3,563
)
Accretion of discount on notes
297

 
297

Amortization of deferred financing costs
2,345

 
2,418

Gains/losses from foreign currency transactions
(26
)
 
6,619

PIK interest and dividends capitalized
(4,089
)
 
(10,501
)
Changes in operating assets and liabilities:
 
 
 
Purchases of investments
(760,464
)
 
(580,567
)
Proceeds from sales and repayments of investments
639,764

 
618,789

Purchases of option contracts
(23,740
)
 
(5,062
)
Proceeds from option contracts
546

 
5,041

Net settlement of option contracts
12,414

 

Decrease (increase) in interest receivable
332

 
(1,063
)
Decrease (increase) in dividends receivable

 
3,346

Decrease (increase) in prepaid expenses and other assets
(768
)
 
132

Increase (decrease) in management and performance-based incentive fees payable
268

 
2,064

Increase (decrease) in interest payable
385

 
(39
)
Increase (decrease) in accrued administrative services expense
(275
)
 
(465
)
Increase (decrease) in other liabilities and accrued expenses
3,069

 
(2,220
)
Net Cash Used in/Provided by Operating Activities
$
(69,590
)
 
$
102,703

Financing Activities
 
 
 
Issuances of debt
$
553,603

 
$
622,483

Payments of debt
(394,500
)
 
(627,219
)
Financing costs paid and deferred
(10
)
 
(170
)
Repurchase of common stock
(23,982
)
 
(3,956
)
Distributions paid
(64,736
)
 
(65,908
)
Net Cash Used in/Provided by Financing Activities
$
70,375

 
$
(74,770
)
 
 
 
 
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
$
785

 
$
27,933

Effect of foreign exchange rate changes on cash and cash equivalents
(11
)
 
2

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
$
21,123

 
$
39,215

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Cash interest paid
$
25,455

 
$
25,326

 
 
 
 
Non-Cash Activity
 
 
 
PIK income
$
4,961

 
$
11,780


See notes to financial statements.
4

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 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
 
9.50% (1M L+725, 1.00% Floor)
 
12/02/24
 
$
5,536

 
$
5,491

 
$
5,591

 
(10)
American Media, Inc.
 
First Lien Secured Debt
 
10.35% (3M L+800, 1.00% Floor)
 
08/24/20
 
12,344

 
12,149

 
12,714

 

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

 
(25
)
 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
12,124

 
12,714

 
 
Simplifi Holdings, Inc.
 
First Lien Secured Debt
 
7.74% (1M L+550, 1.00% Floor)
 
09/28/22
 
25,492

 
25,018

 
25,237

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

 
(9
)
 
(24
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
25,009

 
25,213

 
 
Total Advertising, Printing & Publishing
 
 
$
42,624

 
$
43,518

 
 
Aerospace & Defense
 
 
 
 
 
 
Erickson Inc
 
First Lien Secured Debt - Revolver
 
9.90% (3M L+750, 1.00% Floor)
 
04/28/22
 
$
27,956

 
$
27,956

 
$
27,327

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
04/28/22
 
10,479

 
(402
)
 
(236
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Letters of Credit
 
7.50%
 
9/30/18 - 4/30/20
 
6,564

 

 
(147
)
 
(8)(9)(23)
 
 
 
 
 
 
 
 
 
 
27,554

 
26,944

 
 
ILC Dover LP
 
Second Lien Secured Debt
 
10.89% (3M L+850, 1.00% Floor)
 
06/28/24
 
20,000

 
19,601

 
19,550

 
 
PAE Holding Corporation
 
Second Lien Secured Debt
 
11.89% (3M L+950, 1.00% Floor)
 
10/20/23
 
28,097

 
27,481

 
28,237

 
(10)
Total Aerospace & Defense
 
 
$
74,636

 
$
74,731

 
 
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
 
13.31% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)
 
02/02/23
 
$
5,122

 
4,993

 
2,919

 
(9)
 
 
First Lien Secured Debt
 
6.31% (3M 4.00% PIK, 1.00% Floor)
 
02/02/23
 
515

 
500

 
294

 
(9)
Vari-Form Inc.
 
First Lien Secured Debt
 
13.31% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)
 
02/02/23
 
10,125

 
9,867

 
5,771

 
(9)
 
 
15,360

 
8,984

 
 
K&N Parent, Inc.
 
Second Lien Secured Debt
 
11.14% (3M L+875, 1.00% Floor)
 
10/21/24
 
23,765

 
23,399

 
23,171

 
(10)
Total Automotive
 
 
$
40,473

 
$
32,155

 
 
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
 
403,550

 
403,550

 
403,550

 
(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

 
53,336

 
 
Total Aviation and Consumer Transport
 
 
$
418,550

 
$
456,886

 
 
Beverage, Food & Tobacco
 
 
 
 
 
 
 
 
 
 
Eagle Foods Family Group, LLC
 
First Lien Secured Debt
 
8.89% (3M L+650, 1.00% Floor)
 
06/14/24
 
$
24,937

 
$
24,671

 
$
24,688

 
(9)

See notes to financial statements.
5

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 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
 
0.00% Unfunded
 
06/14/23
 
3,750

 
(24
)
 
(38
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
24,647

 
24,650

 
 
Florida Food Products
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Florida Food Products, Inc.
 
First Lien Secured Debt
 
8.99% (1M L+675, 1.00% Floor)
 
09/08/25
 
23,288

 
22,711

 
23,055

 
(9)
Florida Food Products, LLC
 
First Lien Secured Debt - Revolver
 
8.99% (1M L+675, 1.00% Floor)
 
09/06/23
 
514

 
514

 
509

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/06/23
 
1,199

 
(37
)
 
(12
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
23,188

 
23,552

 
 
Total Beverage, Food & Tobacco
 
 
$
47,835

 
$
48,202

 
 
Business Services
 
 
 
 
 
 
 
 
 
 
Access CIG, LLC
 
Second Lien Secured Debt
 
9.99% (1M L+775)
 
02/27/26
 
$
15,186

 
$
15,057

 
$
15,309

 
(10)
 
 
Second Lien Secured Debt - Unfunded Delayed Draw
 
0.00% Unfunded
 
02/27/26
 
714

 

 

 
(10)(21)(23)
 
 
 
 
 
 
 
 
 
 
15,057

 
15,309

 
 
Aero Operating LLC
 
First Lien Secured Debt
 
9.51% (1M L+725, 1.00% Floor)
 
12/29/22
 
33,058

 
32,356

 
32,728

 
(9)
 
 
First Lien Secured Debt - Unfunded Revolver
 
1.00% Unfunded
 
12/29/22
 
4,716

 
(26
)
 
(47
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Letter of Credit
 
7.25%
 
06/21/19
 
96

 

 
(1
)
 
(8)(9)(23)
 
 
 
 
 
 
 
 
 
 
32,330

 
32,680

 
 
Ambrosia Buyer Corp.
 
Second Lien Secured Debt
 
10.24% (1M L+ 800, 1.00% Floor)
 
08/28/25
 
21,429

 
20,966

 
20,962

 

Aptean, Inc.
 
Second Lien Secured Debt
 
11.89% (3M L+950, 1.00% Floor)
 
12/20/23
 
11,148

 
11,054

 
11,203

 
(10)
CT Technologies Intermediate Holdings, Inc
 
Second Lien Secured Debt
 
11.24% (1M L+900, 1.00% Floor)
 
12/01/22
 
31,253

 
30,553

 
30,159

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

 
5,207

 
5,316

 
(9)(17)
 
 
First Lien Secured Debt - Revolver
 
7.28% (6M L+475, 0.50% Floor)
 
08/31/24
 
£
1,470

 
1,866

 
1,898

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

 

 

 
(9)(17)(21)(23)
 
 
 
 
 
 
 
 
 
 
7,073

 
7,214

 
 
Electro Rent Corporation
 
Second Lien Secured Debt
 
11.21% (1M L+900, 1.00% Floor)
 
01/31/25
 
36,598

 
35,676

 
35,866

 
(9)
Ministry Brands, LLC
 
Second Lien Secured Debt
 
11.75% (6M L+925, 1.00% Floor)
 
06/02/23
 
10,000

 
9,891

 
10,050

 

Newscycle Solutions, Inc.
 
First Lien Secured Debt
 
9.24% (1M L+700, 1.00% Floor)
 
12/29/22
 
14,641

 
14,328

 
14,494

 
(9)
 
 
First Lien Secured Debt
 
9.26% (1M L+700, 1.00% Floor)
 
12/29/22
 
1,226

 
1,208

 
1,213

 
(9)
 
 
First Lien Secured Debt - Revolver
 
9.23% (1M L+700, 1.00% Floor)
 
12/29/22
 
240

 
240

 
238

 
(9)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
12/29/22
 
260

 
(11
)
 
(3
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
15,765

 
15,942

 
 
PSI Services, LLC
 
First Lien Secured Debt
 
7.24% (1M L+500, 1.00% Floor)
 
01/20/23
 
4,598

 
4,515

 
4,574

 
(9)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.00% Unfunded
 
01/20/23
 
519

 

 

 
(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
01/20/22
 
397

 
(7
)
 
(2
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
01/20/22
 
£
47

 

 

 
(9)(21)(23)

See notes to financial statements.
6

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 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)
 

 
 
Second Lien Secured Debt
 
11.24% (1M L+900, 1.00% Floor)
 
01/20/24
 
37,893

 
37,044

 
37,669

 
(9)
 
 
 
 
 
 
 
 
 
 
41,552

 
42,241

 
 
RA Outdoors, LLC
 
First Lien Secured Debt
 
6.92% (1M L+475, 1.00% Floor)
 
09/11/24
 
7,174

 
7,052

 
7,103

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

 
(19
)
 
(12
)
 
(8)(9)(21)(23)
 
 
Second Lien Secured Debt
 
10.92% (1M L+875, 1.00% Floor)
 
09/11/25
 
34,200

 
33,457

 
33,516

 
(9)
 
 
 
 
 
 
 
 
 
 
40,490

 
40,607

 
 
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)
STG-Fairway Acquisitions, Inc.
 
Second Lien Secured Debt
 
11.49% (1M L+925, 1.00% Floor)
 
06/30/23
 
15,000

 
14,776

 
14,400

 
(10)
Transplace Holdings, Inc.
 
Second Lien Secured Debt
 
10.90% (1M L+875, 1.00% Floor)
 
10/06/25
 
8,599

 
8,409

 
8,717

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

 
80,000

 
80,000

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

 
(1,639
)
 
(1,678
)
 
(8)(21)(23)
 
 
First Lien Secured Debt - Letters of Credit
 
3.25%
 
06/30/23
 
409

 

 
(47
)
 
(8)(23)
 
 
 
 
 
 
 
 
 
 
(1,639
)
 
(1,725
)
 
 
Total Business Services
 
 
$
366,453

 
$
368,125

 
 
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
 
$
48,805

 
$
48,805

 
$
47,412

 

 
 
Common Equity/Partnership Interests - Residual Interests
 
N/A
 
09/30/20
 
10,500

 
10,500

 

 
(13)
Carbonfree Caustic SPE LLC
 
Unfunded Delayed Draw - Promissory Note
 
N/A
 
06/30/20
 
7,611

 

 

 
(21)(23)
 
 
 
 
 
 
 
 
 
 
59,305

 
47,412

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

 
14,445

 
15,451

 
 
Westfall Technik, Inc.
 
First Lien Secured Debt
 
7.33% (3M L+500, 1.00% Floor)
 
09/13/24
 
4,712

 
4,618

 
4,617

 
(9)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
1.00% Unfunded
 
09/13/24
 
10,769

 
(100
)
 
(108
)
 
(8)(9)(21)(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
09/13/24
 
2,019

 
(37
)
 
(40
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
4,481

 
4,469

 
 
Total Chemical, Plastics & Rubber
 
 
$
78,231

 
$
67,332

 
 
Consumer Goods – Durable
 
 
 
 
 
 
 
 
 
 
Hayward Industries, Inc.
 
Second Lien Secured Debt
 
10.49% (1M L+825)
 
08/04/25
 
$
20,836

 
$
20,565

 
$
20,718

 
 
KLO Holdings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9357-5991 Quebec Inc.
 
First Lien Secured Debt
 
10.01% (1M L+775, 0.75% Floor)
 
04/07/22
 
9,203

 
9,122

 
8,873

 
 
KLO Acquisition LLC
 
First Lien Secured Debt
 
10.01% (1M L+775, 0.75% Floor)
 
04/07/22
 
5,328

 
5,281

 
5,137

 
 
 
 
 
 
 
 
 
 
 
 
14,403

 
14,010

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

 

 
493

 
(13)
Total Consumer Goods - Durable
 
 
$
34,968

 
$
35,221

 
 
 
 
 
 
 
 
 
 
 
 
 

See notes to financial statements.
7

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 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)
 

Consumer Goods – Non-Durable
 
 
 
 
 
 
 
 
 
 
ABG Intermediate Holdings 2, LLC
 
Second Lien Secured Debt
 
9.99% (1M L+775, 1.00% Floor)
 
09/29/25
 
$
7,371

 
$
7,343

 
$
7,431

 
 (10)
Sequential Brands Group, Inc.
 
Second Lien Secured Debt
 
10.92% (1M L+875)
 
02/07/24
 
13,229

 
13,111

 
13,209

 
 (17)
Reddy Ice Corporation
 
First Lien Secured Debt
 
9.76% (1M L+750, 1.00% Floor)
 
06/30/23
 
29,167

 
28,751

 
28,877

 
(9)

 
First Lien Secured Debt
 
9.76% (1M L+750, 1.00% Floor)
 
06/30/23
 
191

 
188

 
189

 
(9)

 
First Lien Secured Debt - Revolver
 
11.75% (P+650)
 
06/30/23
 
76

 
76

 
75

 
(9)(23)

 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
06/30/23
 
2,844

 
(42
)
 
(13
)
 
(8)(9)(21)(23)

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

 

 
(96
)
 
(8)(9)(23)

 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.00% Unfunded
 
06/30/23
 
1,469

 

 

 
(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
28,973

 
29,032

 
 
Total Consumer Goods - Non-Durable
 
 
$
49,427

 
$
49,672

 
 
Consumer Services
 
 
 
 
 
 
 
 
 
 
 
 
1A Smart Start LLC
 
Second Lien Secured Debt
 
10.49% (1M L+825, 1.00% Floor)
 
08/22/22
 
$
25,100

 
$
24,681

 
$
24,667

 
 
Nemo (BC) Bidco Pty Ltd
 
First Lien Secured Debt
 
8.06% (3M BBSW+575, 1.00% Floor)
 
04/06/24
 
A$
6,008

 
4,350

 
4,250

 
 (17)
 
 
First Lien Secured Debt
 
8.06% (3M BBSW+575, 1.00% Floor)
 
04/06/24
 
A$
303

 
221

 
215

 
 (17)
 
 
First Lien Secured Debt - Unfunded Delayed Draw
 
2.59% Unfunded
 
04/06/24
 
A$
688

 
(7
)
 
(11
)
 
 (8)(17)(21)(23)
 
 
 
 
 
 
 
 
 
 
4,564

 
4,454

 
 
Total Consumer Services
 
 
$
29,245

 
$
29,121

 
 
Containers, Packaging & Glass
 
 
 
 
 
 
 
 
 
 
Sprint Industrial Holdings, LLC
 
Second Lien Secured Debt
 
13.50% PIK
 
11/14/19
 
$
20,378

 
$
18,107

 
$
13,636

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

 

 

 
(13)(26)
 
 
 
 
 
 
 
 
 
 
18,107

 
13,636

 
 
TricorBraun Holdings, Inc.
 
First Lien Secured Debt - Revolver
 
7.50% (P+225)
 
11/30/21
 
818

 
818

 
819

 
(23)
 
 
First Lien Secured Debt - Revolver
 
5.49% (1M L+325)
 
11/30/21
 
1,500

 
1,500

 
1,503

 
(23)
 
 
First Lien Secured Debt - Unfunded Revolver
 
0.50% Unfunded
 
11/30/21
 
3,307

 
(320
)
 

 
(21)(23)
 
 
1,998

 
2,322

 
 
Total Containers, Packaging & Glass
 
 
$
20,105

 
$
15,958

 
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
 
 
 
 
 
 
 
 
 
Craft 2015-2
 
Structured Products and Other - Credit-Linked Note
 
11.23% (3M L+925)
 
01/16/24
 
24,998

 
25,495

 
24,998

 
(11)(17)
Flock SPV I, LLC
 
First Lien Secured Debt
 
8.77% (1M L+650)
 
08/30/22
 
8,000

 
7,922

 
7,922

 
(9)(17)
 
 
First Lien Secured Debt - Revolver
 
8.74% (1M L+650)
 
08/30/22
 
1,333

 
1,320

 
1,320

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

 
(104
)
 
(104
)
 
(8)(9)(17)(21)(23)
 
 
 
 
 
 
 
 
 
 
9,138

 
9,138

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

 
16,595

 
13,386

 
(17)
Mayfield Agency Borrower Inc.
 
Second Lien Secured Debt
 
10.74% (1M L+850, 0.00% Floor)
 
03/02/26
 
5,000

 
4,930

 
4,981

 
(10)

See notes to financial statements.
8

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 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)
 

Purchasing Power, LLC
 
First Lien Secured Debt
 
7.62% (1M L+550)
 
05/09/19
 
6,300

 
6,275

 
6,274

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

 
(12
)
 
(12
)
 
(8)(9)(21)(23)

 
First Lien Secured Debt - Unfunded Delayed Draw
 
0.50% Unfunded
 
05/09/19
 
20,700

 
(83
)
 
(85
)
 
(8)(9)(21)(23)
 
 
 
 
 
 
 
 
 
 
6,180

 
6,177

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

 
(337
)
 
(348
)
 
(8)(21)(23)
Total Diversified Investment Vehicles, Banking, Finance, Real Estate
 
 
$
62,001

 
$
58,332

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

 
10,000

 
5,238

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

 
534

 
949

 
(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

 
18,469

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

 
5,568

 
6,426

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

 
1,602

 
1,682

 
(13)(17)
 
 
 
 
 
 
 
 
 
 
16,047

 
27,526

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

 
5,811

 
5,514

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

 
7,637

 
7,038

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

 
5,861

 
4,847

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

 
4

 
794

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

 
18,193

 
 
Total Energy – Electricity
 
 
$
45,360

 
$
50,957

 
 
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
 
32,067

 
32,067

 
32,067

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

 
30,079

 
13,715

 
(13)
 
 
 
 
 
 
 
 
 
 
77,146

 
60,782

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

 
19,458

 
7,299

 
(13)(17)(29)
SHD Oil & Gas, LLC (5)
 
First Lien Secured Debt - Tranche C Note
 
12.00%
 
12/31/19
 
19,200

 
19,200

 
19,776

 
 
 
 
First Lien Secured Debt - Tranche A Note
 
14.00% (8.00% Cash plus 6.00% PIK)
 
12/31/19
 
44,771

 
44,771

 
46,114

 

 
 
First Lien Secured Debt - Tranche B Note
 
14.00% PIK
 
12/31/19
 
78,536

 
44,380

 
47,788

 
(13)(14)
 
 
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

 
1,412

 

 
(13)(29)
 
 
 
 
 
 
 
 
 
 
109,763

 
113,678

 
 
Total Energy – Oil & Gas
 
 
$
206,367

 
$
181,759

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

See notes to financial statements.
9

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 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)
 

Food & Grocery