Press Release
November 05, 2020

Apollo Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2020

Apollo Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2020

Fiscal Second Quarter and Other Recent Highlights:

  • Net investment income per share for the quarter was $0.43 compared to $0.43 for the quarter ended June 30, 2020
     
  • Net asset value per share as of the end of the quarter was $15.44 compared to $15.29 as of June 30, 2020, an increase of 1.0% driven by a net gain on the corporate lending portfolio(1) and retained earnings, partially offset by a net loss on Merx and on non-core and legacy assets(2)

  • New investment commitments made during the quarter totaled $18 million(3)

  • Gross fundings during the quarter totaled $106 million consisting of $54 million of term loans and $52 million of revolvers

  • Gross exits during the quarter totaled $209 millions consisting of $13 million of term loan sales, $1 million of revolver sales, $108 million of term loan repayments, and $87 million of gross revolver paydowns
  • Net paydowns during the quarter totaled $103 million, consisting of $67 million of net term loan paydowns and $36 million of net revolver paydowns
    - Gross paydowns subsequent to quarter end total approximately $130 million(4)
  • Net leverage(5) as of the end of the quarter was 1.56x, down from to 1.66x as of June 30, 2020

  • Declared a distribution of $0.31 per share and a supplemental distribution of $0.05 per share for the quarter ending December 31, 2020

  • $268 million of immediately available liquidity and $287 million of additional capacity under the Senior Secured Facility as of September 30, 2020(6)

NEW YORK, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Apollo Investment Corporation (NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its second fiscal quarter ended September 30, 2020. The Company’s net investment income was $0.43 per share for the quarter ended September 30, 2020, compared to $0.43 per share for the quarter ended June 30, 2020. The Company’s net asset value (“NAV”) was $15.44 per share as of September 30, 2020, compared to $15.29 as of June 30, 2020.

On November 5, 2020, the Board of Directors declared a distribution of $0.31 per share payable on January 7, 2021 to shareholders of record as of December 21, 2020. On November 5, 2020, the Company’s Board also declared a supplemental distribution of $0.05 per share payable on January 7, 2021 to shareholders of record as of December 21, 2020.

Mr. Howard Widra, Apollo Investment’s Chief Executive Officer commented, “During the quarter, we made significant progress deleveraging to within our target range of 1.40x to 1.60x. Net leverage at the end of September was 1.56x, down from 1.66x at the end of June. The quarter over quarter decline was due to a combination of strong repayment activity, a net gain on the portfolio, and retained earnings. Notably, repayments included $21 million from non-core assets which we continue to seek to monetize. Furthermore, we have visibility into meaningful additional repayments for the remainder December quarter. Given the reduction in our leverage, combined with our better understanding of how our portfolio companies have been affected by the pandemic and of their expected performance, we can now shift our focus to making new commitments.” Mr. Howard Widra continued, “As announced last quarter, in addition to a quarterly base distribution of 31-cents per share, the Company’s Board of Directors expects to also declare a supplemental distribution in an amount to be determined each quarter. To that end, the Board of Directors, at the recommendation of management, has declared a 5-cent supplemental distribution for the quarter.”
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(1) Corporate lending portfolio includes leveraged lending, life sciences, asset based and lender finance. Excludes Merx Aviation Finance, LLC ("Merx") and non-core and legacy assets.
(2) Non-core and legacy assets include oil & gas, renewables, shipping, commodities, and legacy assets.
(3) For corporate lending portfolio.
(4) From October 1, 2020 through November 3, 2020.
(5) 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.
(6) As of September 30, 2020, aggregate lender commitments under the Senior Secured Facility (the “Facility”) totaled $1.81 billion and there were $1.25 billion of outstanding borrowings under the Facility and $0.2 million of letters of credit issued under the Facility. Accordingly, there was $555 million of unused capacity under the Facility as of September 30, 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 September 30, 2020, the Company had immediate access to $268 million under the Facility based on the Company’s borrowing base and $287 million of additional capacity.

FINANCIAL HIGHLIGHTS

($ in billions, except per share data)September 30,
2020
 June 30,
2020
 March 31,
2020
 December 31,
2019
 September 30,
2019
Total assets$2.65  $2.81  $2.87  $3.06  $2.89 
Investment portfolio (fair value)$2.59  $2.67  $2.79  $2.97  $2.80 
Debt outstanding$1.60  $1.76  $1.79  $1.79  $1.58 
Net assets$1.01  $1.00  $1.02  $1.22  $1.25 
Net asset value per share$15.44  $15.29  $15.70  $18.27  $18.69 
          
Debt-to-equity ratio1.59 x 1.76 x 1.75 x 1.47 x 1.26 x
Net leverage ratio (1)1.56 x 1.66 x 1.71 x 1.43 x 1.24 x

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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
September 30,
 Six Months Ended
September 30,
(in millions)*2020 2019 2020 2019
Investments made in portfolio companies$105.9   $476.7   $243.8   $912.0  
Investments sold(14.2)  (20.0)  (83.3)  (29.6) 
Net activity before repaid investments91.7   456.7   160.5   882.4  
Investments repaid(194.8)  (249.7)  (358.6)  (460.4) 
Net investment activity$(103.1)  $207.1   $(198.1)  $422.1  
        
Portfolio companies at beginning of period149   129   152   113  
Number of new portfolio companies2   14   3   35  
Number of exited portfolio companies(4)  (4)  (8)  (9