Apollo BDC Reports 9.5% Increase in Total Monthly NAV, Serves as Lead Arranger on Pair of Loans
Apollo Debt Solutions BDC, a non-traded perpetual-life business development company sponsored by affiliates of Apollo Global Management, reported that its monthly aggregate net asset value was $6.9 billion, as of June 30, 2024. This is compared to $6.3 billion the previous month, an increase of 9.52%.
Apollo reported that their Class I, S, and D shares had a monthly NAV per share of $24.90 as of June 30, the same as the previous month. Shares were originally priced at $25.00 each.
Apollo also stated that on July 22, 2024, the fund declared a gross distribution of $0.18 for each class of its common shares of beneficial interest. The distributions for each class of shares are payable to shareholders of record as of the opening of business on July 31, 2024, and will be paid on or around Aug. 27, 2024. These distributions will be paid in cash or reinvested in shares of the fund for shareholders participating in the fund’s distribution reinvestment plan.
This follows on the fund’s previous June announcement that its board declared special distributions totaling $0.06 per share to be distributed in three consecutive monthly payments of $0.02 per share.
The fund also reported that its one-month, three-month, year-to-date, 12-month, and annualized inception-to-date returns through June 30 for Class I common shares were 0.79%, 2.64%, 6.09%, 13.18% and 8.64%, respectively. As of July 22, 2024, the fund’s annualized distribution rate, including the distribution declared on July 22, 2024, and the special distribution announced on June 21, 2024, was 9.64% for Class I common shares.
Additionally, Apollo reported that, in June, it had served as the sole lead arranger on a €790 million first lien term loan to Ardagh Investment Holdings Sarl, a subsidiary of Ardagh Group SA. AIHS owns Ardagh Metal Packaging, a global metal beverage packaging company. According to Apollo, the loan proceeds were used to refinance a 2025 bond maturity.
During the same month, Apollo served as the lead arranger and administrative agent on a $345 million first lien term loan to GridTek to finance the sponsor’s acquisition of GridTek. GridTek is a repair and maintenance service provider for electric transmission and distribution infrastructure.
Apollo also reported that it served as administrative agent on a $645 million first lien term loan to PDC Brands. PDC Brands develops, markets, and sells beauty and personal care products.
Finally, the fund disclosed that it had entered into a fourth amendment to the Merlin Funding Credit Agreement on July 11, 2024. In October 2023, Merlin Funding, a wholly owned subsidiary of the BDC, entered into a credit agreement in which it may use borrowed amounts to acquire eligible assets. Pursuant to the new fourth amendment, the maximum principal amount which can be drawn upon by Merlin was increased from $300 million to $375 million.
As of June 30, the Apollo BDC’s portfolio was approximately $11 billion based on fair market value across 261 portfolio companies and 52 industries, and its portfolio consisted of approximately 100% first lien debt investments and approximately 97% floating rate debt investments based on fair market value. The weighted average earnings before interest, taxes, and amortization of the fund’s directly originated debt investments were $217 million; and the portfolio’s overall weighted-average net loan-to-value, weighted-average net leverage, and interest coverage were 39%, 4.5x, and 2.3x, respectively. The fund’s net leverage ratio was 0.59x. The fund also stated that it had approximately $1.3 billion of excess availability under its secured funding facilities.
Apollo Debt Solutions BDC launched its offering in early 2022 and is currently publicly offering on a continuous basis up to $10 billion in shares.
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