Apollo Tactical Income Fund announced the closing of a $138 million credit facility with JPMorgan Chase Bank, as lender and administrative agent.

The fund may borrow under the credit facility on a revolving basis until April 26, 2015. Any loans outstanding under the credit facility must be repaid in full on April 26, 2015. The loans generally bear interest at a rate of the 3-month LIBOR plus an applicable margin rate initially set at 1.20%. The credit facility contains customary affirmative and negative covenants, including limitations on debt, liens and restricted payments, as well as certain portfolio limitations and customary prepayment provisions, including a requirement to prepay loans or take certain other actions if certain asset value tests are not met.

Apollo Credit Management, an affiliate of Apollo Global Management, is the fund’s investment adviser.