Press Release
May 21, 2020

Apollo Investment Corporation Reports Financial Results for the Quarter and Fiscal Year Ended March 31, 2020

Apollo Investment Corporation Reports Financial Results for the Quarter and Fiscal Year Ended March 31, 2020

Fiscal Fourth Quarter and Other Recent Highlights:

  • Net investment income per share for the quarter was $0.59 compared to $0.54 for the quarter ended December 31, 2019

  • Net asset value per share as of the end of the quarter was $15.70 compared to $18.27 as of December 31, 2019, a 14.1% decrease driven by the disruption in the global economy which has resulted from the COVID-19 pandemic and which has negatively impacted the fair value of the Company’s investment portfolio

  • New investment commitments made during the quarter totaled $153 million(1)

  • Gross fundings during the quarter totaled $210 million(2)

  • Net fundings during the quarter totaled $8 million, including $47 million for revolvers

  • Net leverage (3) as of the end of the quarter was 1.71x, compared to 1.43x as of December 31, 2019

  • Received 97% of contractual interest payments during the quarter

  • Declared a distribution of $0.45 per share

  • Repurchased 1,286,565 shares of common stock at a weighted average price per share of $11.62, inclusive of commissions, for an aggregate cost of $15.0 million during the quarter

  • Commitments to the Company’s Senior Secured Facility (“Facility”) increased by $100 million during the quarter from an existing lender bringing total commitments to $1.81 billion

  • $224 million of immediately available liquidity and $131 million of additional capacity under the Facility as of March 31, 2020 (4)

NEW YORK, May 21, 2020 (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, 2020. The Company’s net investment income was $0.59 per share for the quarter ended March 31, 2020, compared to $0.54 per share for the quarter ended December 31, 2019. The Company’s net asset value (“NAV”) was $15.70 per share as of March 31, 2020, compared to $18.27 as of December 31, 2019.

On May 20, 2020, the Board of Directors declared a distribution of $0.45 per share, payable on July 8, 2020 to shareholders of record as of June 18, 2020.

Mr. Howard Widra, Chief Executive Officer commented, “Prior to the onset of the COVID-19 pandemic, our business continued to execute on its business plan of de-risking and diversifying its portfolio, and as our net investment income for the quarter shows, we were continuing to improve our underlying performance metrics.  As a result, we entered this volatile period with a well-diversified senior corporate lending portfolio which we believe will generally withstand the current volatility.  However, our non-core portfolio continued to pressure our performance with the economic volatility disproportionately impacting that portfolio.  In this regard, non-core and legacy assets accounted for half of the net loss incurred during the period, while only representing 10% of the total portfolio at fair value.”

Mr. Widra continued, “Going forward, we are focused on being good partners to our portfolio companies and working with them to manage through these unprecedented times.  In addition, we are spending significant time with our Merx team to ensure that we protect the long-term value of our market leading business.  In this regard, we believe our diversified fleet and durable financing structure, and growing servicing fee stream gives us good tools to navigate this challenging time.”

Mr. Gregory W. Hunt, Chief Financial Officer commented, “In February 2020, we were pleased to secure an additional $100 million commitment to the Company’s revolving credit facility, bringing total commitments to $1.81 billion.  As of March 31, 2020, we were in compliance with all covenants under our revolving credit facility.  We believe that we have sufficient available liquidity to meet potential funding requirements and withstand additional asset depreciation.”

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(1) For corporate lending portfolio.  Excludes non-core and legacy assets.
(2) Excludes $214 million of gross fundings for revolvers.
(3) 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.
(4) As of March 31, 2020, aggregate lender commitments under the Senior Secured Facility totaled $1.81 billion and there were $1.449 billion of outstanding borrowings under the Facility and $6.2 million of letters of credit issued under the Facility. Accordingly,  there was $354 million of unused capacity under the Facility as of March 31, 2020, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.  As of March 31, 2020, the Company had immediate access to $224 million under the Facility based on the Company’s borrowing base.

FINANCIAL HIGHLIGHTS

($ in billions, except per share data)March 31,
 2020
 December 31,
 2019
 September 30,
 2019
 June 30,
 2019
 March 31,
 2019
Total assets$2.87  $3.06  $2.89  $2.70  $2.50 
Investment portfolio (fair value)$2.79  $2.97  $2.80  $2.62  $2.41 
Debt outstanding$1.79  $1.79  $1.58  $1.35  $1.13 
Net assets$1.02  $1.22  $1.25  $1.29  $1.31 
Net asset value per share$15.70  $18.27  $18.69  $19.00  $19.06 
          
Debt-to-equity ratio1.75x 1.47x 1.26x 1.05x 0.86x
Net leverage ratio (1)1.71x 1.43x 1.24x 1.03x 0.83x

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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)*2020
 2019
 2020
 2019
Investments made in portfolio companies$424.2  $250.2  $1,866.3  $1,278.1 
Investments sold(122.6) (10.8) (167.1) (205.2)
Net activity before repaid investments301.6  239.4  1,699.1  1,072.8 
Investments repaid(293.9) (141.4) (1,098.5) (881.6)
Net investment activity$7.7  $98.1  $600.6  $191.3 
        
Portfolio companies at beginning of period151  103  113  90 
Number of new portfolio companies9  12  60  42 
Number of exited portfolio companies(8) (2) (21) (19)
Portfolio companies at end of period152  113  152  113 
        
Number of investments made in existing portfolio companies69  31  87  46 

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* Totals may not foot due to rounding.

OPERATING RESULTS

            
 Three Months Ended
March 31,
 Year Ended March 31,
(in millions)*2020
 2019
 2020
 2019
Net investment income$38.8  $32.6  $145.3  $127.7 
Net realized and change in unrealized gains (losses)(186.0) (0.7