Apollo Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2014

Fiscal Second Quarter Highlights:

Net investment income per share for the quarter was $0.28, compared to $0.23 for the quarter ended June 30, 2014
Net asset value per share at the end of the quarter was $8.72, compared to $8.74 at June 30, 2014
Declared a dividend of $0.20 per share for the quarter
Invested $581 million during the quarter, substantially driven by secured debt opportunities in the primary market
Net investment activity was $22 million for the quarter

NEW YORK--(BUSINESS WIRE)--Nov. 6, 2014-- Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its second fiscal quarter ended September 30, 2014. The Company’s net investment income was $0.28 per share for the quarter ended September 30, 2014, compared to $0.23 for the quarter ended June 30, 2014. The Company’s net asset value (“NAV”) was $8.72 per share as of September 30, 2014, down from $8.74 at June 30, 2014.

Additionally, the Company also announced that its Board of Directors has declared a dividend of $0.20 per share for the second fiscal quarter of 2015, payable on January 5, 2015 to stockholders of record as of December 19, 2014. The specific tax characteristics of this dividend will be reported to stockholders on Form 1099 after the end of the calendar year.

Mr. James Zelter, Apollo Investment Corporation’s Chief Executive Officer, commented, "For our second fiscal quarter, we are pleased to report strong net investment income and a stable net asset value. A few years ago, we began a portfolio rotation strategy which included moving the portfolio into more proprietary secured debt investments which has better positioned us during these periods of market volatility where underlying fundamentals are often overshadowed by technical market fluctuations.”

FINANCIAL HIGHLIGHTS

($ in billions, except per share data)	September 30, 2014		June 30, 2014		March 31, 2014
Total assets	$	3.83	$	3.81	$	3.64
Investment portfolio (fair value)	$	3.67	$	3.64	$	3.48
Debt outstanding	$	1.58	$	1.57	$	1.37
Total net assets	$	2.06	$	2.07	$	2.05
Net asset value per share	$	8.72	$	8.74	$	8.67

Debt-to-equity ratio	0.76 x		0.76 x		0.67 x
Net leverage ratio ⁽¹⁾	0.76 x		0.75 x		0.68 x

(1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, plus due to custodian, less receivable for investments sold, less cash, less foreign currency, divided by total net assets.

INVESTMENT ACTIVITY AND PORTFOLIO COMPANIES

($ in millions)	Three months ended September 30, 2014			Six months ended September 30, 2014
Investments made ⁽²⁾	$	581		$	1,231
Investments sold	$	(229	)	$	(626	)
Net activity before repaid investments	$	352		$	605
Investments repaid	$	(330	)	$	(450	)
Net investment activity	$	22		$	155

Portfolio companies, at beginning of period		117			111
New portfolio companies		15			40
Exited portfolio companies		(19	)		(38	)
Portfolio companies, at end of period		113			113

Number of investments in existing companies		18			42

(2) Investments were primarily made through a combination of primary and secondary debt investments.

OPERATING RESULTS

($ in thousands, except per share data)	Three months ended September 30, 2014			Six months ended September 30, 2014
Net investment income	$	65,688		$	119,240
Net realized and unrealized loss	$	(23,721	)	$	(12,637	)
Net increase in net assets from operations	$	41,967		$	106,603

(per share)
Net investment income per share	$	0.28		$	0.50
Net realized and unrealized loss per share	$	(0.10	)	$	(0.05	)
Earnings per share – basic	$	0.18		$	0.45
Earnings per share – diluted	$	0.18		$	0.44

CONFERENCE CALL / WEBCAST AT 10:00 AM EST ON NOVEMBER 6, 2014

The Company will host a conference call on Thursday, November 6, 2014 at 10:00 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (888) 802-8579 approximately 5-10 minutes prior to the call; international callers should dial (973) 633-6740. Participants should reference Apollo Investment Corporation or Conference ID # 14809426 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Event Calendar in the Investor Relations section of our website at www.apolloic.com. Following the call you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through November 13, 2014 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 14809426. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Event Calendar in the Investor Relations section of our website at www.apolloic.com.

SUPPLEMENTAL INFORMATION

The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the investor relations section of the Company's website at www.apolloic.com.

Our portfolio composition and weighted average yields at September 30, 2014, June 30, 2014 and March 31, 2014 are as follows:

	September 30, 2014		June 30, 2014		March 31, 2014
Portfolio composition, measured at fair value:
Secured debt	63	%	59	%	56	%
Unsecured debt	17	%	22	%	27	%
Structured products and other	9	%	8	%	6	%
Common equity, preferred equity and warrants	11	%	11	%	11	%
Weighted average yields, at current cost basis, exclusive of securities on non-accrual status:
Secured debt portfolio	10.9	%	10.9	%	10.8	%
Unsecured debt portfolio	11.1	%	11.5	%	11.5	%
Total debt portfolio	11.0	%	11.1