Press Release
August 05, 2021

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2021

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2021

Fiscal First Quarter and Other Recent Highlights:

  • Net investment income per share for the quarter was $0.39 compared to $0.39 for the quarter ended March 31, 2021

  • Net asset value per share as of the end of the quarter was $16.02 compared to $15.88 as of March 31, 2021, an increase of 0.9% driven primarily by net appreciation on the corporate lending portfolio(1)

  • New investment commitments made during the quarter totaled $332 million(2)

  • Gross fundings during the quarter totaled $295 million(3) consisting of $230 million of term loans and $65 million of revolvers

  • Gross exits during the quarter totaled $266 million primarily consisting of $189 million of term loan repayments and $77 million of gross revolver paydowns

  • Net fundings during the quarter totaled $29 million primarily consisting of $41 million of net term loan fundings and $12 million of net revolver paydowns

  • Net leverage(4) as of the end of the quarter was 1.39x, up from 1.36x as of March 31, 2021

  • $367 million of immediately available liquidity and $300 million of additional capacity under the Facility as of June 30, 2021(5)

  • Repurchased 145,572 shares of common stock at a weighted average price per share of $13.92, inclusive of commissions, for an aggregate cost of $2.0 million during the quarter

  • Declared a distribution of $0.31 per share and a supplemental distribution of $0.05 per share for the quarter ending June 30, 2021

  • Kroll Bond Rating Agency (KBRA) affirmed the BBB- issuer and senior unsecured debt rating for the Company and revised the Outlook to Stable from Negative in July

  • Issued $125 million of 4.500% unsecured notes due 2026 in July

NEW YORK, Aug. 05, 2021 (GLOBE NEWSWIRE) -- Apollo Investment Corporation (NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its first fiscal quarter ended June 30, 2021. The Company’s net investment income was $0.39 per share for the quarter ended June 30, 2021, compared to $0.39 per share for the quarter ended March 31, 2021. The Company’s net asset value (“NAV”) was $16.02 per share as of June 30, 2021, compared to $15.88 as of March 31, 2021.

On August 5, 2021, the Board of Directors declared a distribution of $0.31 per share payable on October 8, 2021 to shareholders of record as of September 21, 2021. On August 5, 2021, the Company’s Board also declared a supplemental distribution of $0.05 per share payable on October 8, 2021 to shareholders of record as of September 21, 2021.

Mr. Howard Widra, Apollo Investment’s Chief Executive Officer commented, “During the quarter we continued to make ongoing progress reducing our exposure to junior capital and non-core positions while increasing our exposure to first lien floating rate corporate loans. Our corporate lending portfolio continues to perform well and is benefiting from its first lien orientation and an improving economic backdrop.”

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(1) Based on corporate lending portfolio. 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) Commitments made for the corporate lending portfolio.
(3) Gross fundings includes $2 million of equity.
(4) 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.
(5) As of June 30, 2021, aggregate lender commitments under the Senior Secured Facility (the “Facility”) totaled $1.81 billion and there were $1.49 billion of outstanding borrowings under the Facility and $0.2 million of letters of credit issued under the Facility. Accordingly, there was $667 million of unused capacity under the Facility as of June 30, 2021, 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 June 30, 2021, the Company had immediate access to $367 million under the Facility based on the Company’s borrowing base and $300 million of additional capacity.
   

FINANCIAL HIGHLIGHTS

($ in billions, except per share data)June 30,
2021
 March 31,
2021
 December 31,
2020
 September 30,
2020
 June 30,
2020
Total assets$2.59  $2.54  $2.58  $2.65  $2.81 
Investment portfolio (fair value)$2.49  $2.45  $2.48  $2.59  $2.67 
Debt outstanding$1.49  $1.47  $1.51  $1.60  $1.76 
Net assets$1.04  $1.04  $1.02  $1.01  $1.00 
Net asset value per share$16.02  $15.88  $15.59  $15.44  $15.29 
          
Debt-to-equity ratio1.43x 1.41x 1.49x 1.59x 1.76x
Net leverage ratio (1)1.39x 1.36x 1.43x 1.56x 1.66x

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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 June 30,
(in millions)*2021 2020
    
Investments made in portfolio companies$295.2  $137.9 
Investments sold  (69.1)
Net activity before repaid investments295.2  68.8 
Investments repaid(266.1) (163.8)
Net investment activity$29.1  $(95.0)
    
Portfolio companies at beginning of period135  152 
Number of new portfolio companies11  1 
Number of exited portfolio companies(6) (4)
Portfolio companies at end of period140  149 
    
Number of investments made in existing portfolio companies37  35 

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* Totals may not foot due to rounding.

OPERATING RESULTS

 Three Months Ended June 30,
(in millions)*2021 2020
Net investment income$25.3  $28.2 
Net realized and change in unrealized gains (losses)