Press Release
May 16, 2019

Apollo Investment Corporation Reports Financial Results for the Quarter and Fiscal Year Ended March 31, 2019

Apollo Investment Corporation Reports Financial Results for the Quarter and Fiscal Year Ended March 31, 2019

Fiscal Fourth Quarter and Other Recent Highlights:

  • Net investment income per share for the quarter was $0.47 compared to $0.45 for the quarter ended December 31, 2018

  • Net asset value per share as of the end of the quarter was $19.06 compared to $19.03 as of December 31, 2018, a 0.2% increase

  • Continued to successfully execute portfolio repositioning strategy increasing core assets (1) to 81% of the portfolio (2) as of the end of the quarter

  • Gross commitments made during the quarter totaled $228 million(3)

  • Gross fundings totaled $164 million(4) and net fundings totaled $98 million(5)

  • Net leverage (6) as of the end of the quarter was 0.83x, compared to 0.74x as of December 31, 2018

  • Declared a distribution of $0.45 per share

  • Repurchased 310,818 shares of common stock at a weighted average price per share of $15.38, inclusive of commissions, for an aggregate cost of $4.8 million during the quarter

  • Commitments to the Company’s Senior Secured Facility (“Facility”) increased by $50 million with the addition of one new lender during the quarter, which increased the size of the Facility from $1.59 billion to $1.64 billion

  • Effective April 4, 2019, the Company’s asset coverage ratio requirement was reduced from 200% to 150% (7)

NEW YORK, May 16, 2019 (GLOBE NEWSWIRE) -- Apollo Investment Corporation (NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its fourth fiscal quarter and fiscal year ended March 31, 2019. The Company’s net investment income was $0.47 per share for the quarter ended March 31, 2019, compared to $0.45 per share for the quarter ended December 31, 2018. The Company’s net asset value (“NAV”) was $19.06 per share as of March 31, 2019, compared to $19.03 as of December 31, 2018.

On May 16, 2019, the Board of Directors declared a distribution of $0.45 per share, payable on July 5, 2019 to shareholders of record as of June 20, 2019.

Mr. Howard Widra, Chief Executive Officer commented, “During fiscal year 2019, we made significant progress implementing our investment strategy.  Given the recent reduction in our asset coverage requirement, we have accelerated the origination of lower risk loans. As previously discussed, we intend to use our incremental investment capacity to invest in first lien floating rate loans sourced by Apollo’s Direct Origination platform.  We believe the ability to increase our leverage provides a unique opportunity for AINV given the robust volume of senior floating rate corporate loans originated by the platform.   We also remain focused on prudently exiting our remaining non-core positions.”  Mr. Howard Widra continued, “During the quarter, net investment income benefited from growth in the investment portfolio and the impact from the total return provision in our fee structure.  Net  asset value per share was up slightly given the relatively stable performance of our portfolio and the accretive impact from stock repurchases.”

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  1. Core assets include leveraged lending, life sciences, asset based, lender finance and aviation.
  2. At fair value.
  3. For corporate lending portfolio.  Excludes non-core and legacy assets.
  4. Excludes $4 million of gross fundings for Merx Aviation and $82 million of gross fundings for revolvers.
  5. Includes $31 net repayment from Merx Aviation and $9 million net fundings for revolvers.
  6. The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
  7. The Company announced that on April 4, 2018, its Board of Directors approved the application of the modified asset coverage requirements set forth in new Section 61(a)(2) of the Investment Company Act of 1940, as amended by The Small Business Credit Availability Act (“SBCAA”). As a result, the asset coverage ratio test applicable to the Company was reduced from 200% to 150%, effective April 4, 2019. 
          
FINANCIAL HIGHLIGHTS         
          
($ in billions, except per share data)March 31,
 2019
 December 31,
 2018
 September 30,
 2018
 June 30,
 2018
 March 31,
 2018
Total assets$2.50  $2.38  $2.39  $2.57  $2.31 
Investment portfolio (fair value)$2.41  $2.31  $2.32  $2.50  $2.25 
Debt outstanding$1.13  $0.99  $0.95  $1.10  $0.79 
Net assets$1.31  $1.32  $1.37  $1.39  $1.42 
Net asset value per share$19.06  $19.03  $19.40  $19.42  $19.67 
          
Debt-to-equity ratio0.86x 0.76x 0.69x 0.79x 0.56x
Net leverage ratio (1)0.83x 0.74x 0.68x 0.78x 0.57x

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  1. The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
 
PORTFOLIO AND INVESTMENT ACTIVITY
 
 Three Months Ended March 31, Year Ended March 31,
(in millions)*2019 2018 2019 2018
Investments made in portfolio companies$250.2  $243.3  $1,278.1  $1,049.4 
Investments sold(10.8) (119.3) (205.2) (189.0)
Net activity before repaid investments239.4  124.0  1,072.8  860.3 
Investments repaid(141.4) (238.1) (881.6) (964.9)
Net investment activity$98.1  $(114.1) $191.3  $(104.6)
        
Portfolio companies at beginning of period103  86  90  86 
Number of new portfolio companies12  8  42  39 
Number of exited portfolio companies(2) (4) (19) (35)
Portfolio companies at end of period113  90  113  90 
        
Number of investments made in existing portfolio companies31  19  46  28 

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* Totals may not foot due to rounding.

 
OPERATING RESULTS
 
 Three Months Ended March 31, Year Ended March 31,
(in millions)*2019 2018 2019 2018
Net Investment Income$32.6  $31.9  $127.8