Apollo Investment Enters $1.14 Billion Revolving Credit Facility
Apollo Investment Corporation announced that it has entered into a new four-year $1.14 billion senior secured revolving credit facility. The facility matures in May 2016, and includes a one-year amortization period beginning in May 2015. J.P. Morgan Securities acted as lead arranger. SunTrust Bank acted as syndication agent and JPMorgan Chase Bank acted as administrative agent and Bank of America as documentation agent.
The stated interest rate on the facility is LIBOR plus 225 basis points, a 75 basis point reduction from our prior facility.
The facility contains an accordion feature whereby it can be expanded to $1.71 billion under certain conditions. The facility includes customary covenants, including minimum asset coverage and minimum equity requirements, as well as customary events of default.
James Zelter, Apollo Investment Corporation’s CEO, said, “We are pleased to announce this new revolving credit facility which will provide us with substantial long-term liquidity and flexibility to execute our strategic objectives, while lowering our interest costs. We are extremely appreciative of the support Apollo Investment Corporation received from our existing lenders as well as from four new lenders.”
Apollo Investment is a closed-end investment company that provides private debt market solutions to middle-market companies in the form of senior secured, mezzanine and asset-based loans and may also acquire equity interests.