SEC Filing Summary: Apollo Investment Corporation (Form 8-K)
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Apollo Investment Corporation on March 3, 2015. The report details the entry into a material definitive agreement regarding the issuance of new debt securities. Note: The request metadata referenced "Midcap Financial Investment Corp," but the filing text explicitly identifies the registrant as Apollo Investment Corporation.
Key Financial Metrics and Transaction Details
- Debt Issuance: $350,000,000 aggregate principal amount of 5.250% Notes due 2025.
- Interest Rate: 5.250% per annum, payable semiannually starting September 3, 2015.
- Maturity Date: March 3, 2025.
- Use of Proceeds: Repayment of a portion of outstanding indebtedness under the Company's revolving credit facility.
- Security Status: Direct unsecured obligations of the Company.
- Revenue/Profit/Cash Flow: The filing text does not provide specific values for revenue, profit, cash flow, or operating margins.
Material Changes and Covenants
The Company entered into a Fourth Supplemental Indenture with U.S. Bank National Association. Key terms include:
- Redemption: Notes may be redeemed in whole or in part at the Company's option at specified redemption prices.
- Change of Control: Upon a change of control repurchase event (defined as a change of control combined with a below investment-grade rating by Fitch and S&P), the Company must offer to purchase the Notes at 100% of principal plus accrued interest.
- Regulatory Compliance: Covenants require compliance with the Investment Company Act of 1940 and provision of financial information if Exchange Act reporting requirements cease.
Outlook, Risks, and Unusual Items
The transaction closed on March 3, 2015. The filing incorporates by reference the Registration Statement on Form N-2 and the prospectus supplement filed on February 26, 2015. The text notes that the description of the Indenture is qualified by the full text of the exhibits. No specific forward-looking guidance or unusual items beyond the debt issuance were detailed in this specific report.
Investor Verification Checklist
- Verify the exact amount of revolving credit facility debt repaid with the $350 million proceeds.
- Review the full text of the Fourth Supplemental Indenture (Exhibit 4.1) for specific redemption price schedules and limitations on covenants.
- Confirm the Company's current credit rating status relative to the "below investment grade" trigger for the change of control repurchase event.
- Check the Form N-2 Registration Statement (File No. 333-189817) for additional risk factors and use of proceeds details.