Business Context and Reporting Period
This Form 8-K filing by Apollo Investment Corporation (not Midcap Financial Investment Corp) reports a material definitive agreement entered into on April 24, 2015. The report was filed on April 30, 2015.
Key Financial Metrics and Debt Structure
The filing details an amendment and restatement of the Company's senior secured, multi-currency, revolving credit facility. Key terms include:
- Increased Commitments: Lender commitments increased to $1,310,000,000.
- Expansion Capacity: The Company may seek additional commitments up to an aggregate facility size of $1,965,000,000.
- Maturity Dates: Commitments extend through April 2019, with a final maturity date of April 24, 2020.
- Pricing: Eurocurrency borrowings are priced at 175 or 200 basis points over Adjusted LIBO Rate; Alternate Base Rate borrowings are priced at 75 or 100 basis points over the Alternate Base Rate.
The filing does not provide specific values for revenue, profit, cash flow, margins, or current liquidity positions.
Material Changes
The primary material change is the restructuring of the Company's credit facility to increase available capital and extend the maturity timeline. The pricing structure is now variable based on the total amount of the Borrowing Base relative to total commitments and other indebtedness.
Guidance, Outlook, and Risks
The filing incorporates a press release issued on April 24, 2015, regarding the new facility. No specific financial guidance, outlook, or management commentary on future performance is included in this text. The filing notes that the summary of the facility is qualified by reference to the full agreement attached as Exhibit 10.1.
Investor Verification Checklist
- Verify the full terms of the Amended and Restated Senior Secured Revolving Credit Agreement in Exhibit 10.1.
- Confirm the current utilization rate of the $1,310,000,000 facility.
- Review the specific calculation methodology for the "Borrowing Base" to understand pricing triggers.
- Check for any covenants or restrictions associated with the expansion up to $1,965,000,000.