Apollo Debt Solutions BDC Reports Another Increase to Monthly Total NAV

Apollo Debt Solutions BDC, a non-traded perpetual-life business development company sponsored by affiliates of Apollo Global Management, recently announced its monthly net asset value per share as of July 31, 2024.

The BDC fund again reported that its Class I, Class S, and Class D shares had a NAV per share of $24.90. This is the third consecutive month that the shares’ NAV held steady, up 0.24% compared to $24.84 at the end of April 2024. Shares were originally priced at $25 each.

As of July 31, the fund’s aggregate NAV increased to $7.3 billion, compared to $6.9 billion as of June 30, 2024, an increase of nearly 5.8%.

As previously reported by The DI Wire, the BDC also reported that its board has declared special distributions totaling $0.06 per share to be distributed in three consecutive monthly payments of $0.02 per share. Payments will be made to shareholders of record as of July 31, Aug. 30, and Sept. 30, 2024, on or around August 27; Sept. 26; and Oct. 29, 2024, respectively. The special distributions will be paid in cash or reinvested in shares of the fund for shareholders participating in the fund’s distribution reinvestment plan.

The fund reported that its one-month, three-month, year-to-date, 12-month, and annualized inception-to-date returns through July 31 for Class I common shares were 0.83%, 2.71%, 6.98%, 12.35%, and 8.70%. As of Aug. 21, the fund’s annualized distribution rate for Class I shares, including the most recently declared distribution and a special distribution announced in June was 9.64%.

As of the end of July, the BDC’s portfolio was approximately $11.7 billion based on fair market value across 273 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, depreciation, and amortization of the fund’s directly originated debt investments were $226 million, and the portfolio’s overall weighted-average net loan-to-value, weighted-average net leverage, and interest coverage were 39%, 4.5x, and 2.2x, respectively. The fund’s net leverage ratio was 0.6x. The fund also stated that it had approximately $1.7 billion of excess availability under its secured funding facilities.

Additionally in July 2024, Apollo served as a lead arranger on a $1.85 billion first lien term loan to global printing company R.R. Donnelley to fund an acquisition. Following this, Apollo participated in a $775 million first lien term loan as part of a broader $2.3 billion financing to repay the previous facility and refinance R.R. Donnelley’s existing debt. As an incumbent lender, Apollo was able to play a meaningful role in the transaction, and the BDC participated in the transaction alongside other Apollo-managed investment funds.

Furthermore, in July, Apollo participated in a $1.05 billion first lien term loan to ASC Engineered Solutions to refinance ASC Engineered Solutions syndicated debt. ASC is a supplier of pipe fittings, valves, and support products for construction applications. The BDC participated in the transaction alongside other Apollo-managed investment funds.

On July 24, the fund priced an offering of $600 million in aggregate principal amount of its 6.7% notes due 2031 in a private placement to those qualifying as institutional buyers pursuant to Rule 144A under the Securities Act of 1933 and to certain non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The notes will mature on July 29, 2031, and may be redeemed fully or partially at any time at par value plus a “make-whole” premium. The offering closed on July 29.

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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