Business Context and Reporting Period
This Form 8-K Current Report was filed by Apollo Investment Corporation (not Midcap Financial Investment Corp) on December 30, 2005. Apollo is a closed-end investment company operating as a business development company under the Investment Company Act of 1940. Its portfolio primarily consists of senior secured loans, mezzanine loans, and equity investments in middle-market private companies, managed by an affiliate of Apollo Management, L.P.
Key Financial Metrics and Debt
The filing details a material change to the company's debt facility rather than reporting period-end financial performance metrics like revenue or profit.
- Debt Facility: Senior Secured Revolving Credit Agreement.
- Initial Commitment: $800 million (established April 14, 2005).
- Updated Commitment: Increased to $900 million effective December 29, 2005.
- Pricing: 100 basis points over LIBOR.
- Expansion Capacity: The company retains the ability to seek an additional $300 million in commitments.
- Usage: The facility supplements equity capital for additional portfolio investments.
Note: The filing text does not provide clear values for revenue, net income, operating cash flow, or current liquidity ratios.
Material Changes
The primary material change reported is the expansion of the revolving credit facility. On December 29, 2005, lenders provided additional commitments of $100 million, increasing the total facility size from $800 million to $900 million. This expansion was executed on the same terms and conditions as the existing commitments.
Outlook, Risks, and Management Commentary
Management indicates the credit facility is utilized to fund portfolio investments. The filing includes standard forward-looking statements, noting that actual results may differ materially due to various risks and uncertainties. The company explicitly states it undertakes no duty to update these forward-looking statements.
Key Facts for Investor Verification
- Verify the actual drawdown amount on the $900 million facility versus the total commitment.
- Confirm the current LIBOR rate to calculate the effective interest cost (LIBOR + 100 bps).
- Review subsequent filings to determine if the remaining $300 million expansion option was exercised.
- Check the company's latest 10-K or 10-Q for specific revenue, profit, and liquidity metrics not included in this 8-K.