May 20, 2021
Apollo Investment Corporation Reports Financial Results for the Quarter Ended March 31, 2021
Fiscal Fourth Quarter and Other Recent Highlights:
- Net investment income per share for the quarter was $0.39 compared to $0.43 for the quarter ended December 31, 2020
- Net asset value per share as of the end of the quarter was $15.88 compared to $15.59 as of December 31, 2020, an increase of 1.9% driven primarily by net appreciation across the investment portfolio
- New investment commitments made during the quarter totaled $106 million(1)
- Gross fundings during the quarter totaled $216 million(2), including $112 million of term loans and $100 million of revolvers(3)
- Gross exits during the quarter totaled $269 million, including $173 million of term loan repayments, and $96 million of gross revolver paydowns(4)
- Net paydowns during the quarter totaled $53, million including a $9.5 million net repayment from Merx
- Net leverage(5) as of the end of the quarter was 1.36x, down from 1.43x as of December 31, 2020
- Declared a distribution of $0.31 per share and a supplemental distribution of $0.05 per share for the quarter ending March 31, 2021
- $358 million of immediately available liquidity and $333 million of additional capacity under the Facility as of March 31, 2021(6)
- Since the end of the quarter(7), new investment commitments made totaled $193 million(1)
- Since the end of the quarter(7), gross fundings were $157 million and gross exits were $149 million
NEW YORK, May 20, 2021 (GLOBE NEWSWIRE) -- Apollo Investment Corporation (NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its fourth fiscal quarter ended March 31, 2021. The Company’s net investment income was $0.39 per share for the quarter ended March 31, 2021, compared to $0.43 per share for the quarter ended December 31, 2020. The Company’s net asset value (“NAV”) was $15.88 per share as of March 31, 2021, compared to $15.59 as of December 31, 2020.
On May 20, 2021, the Board of Directors declared a distribution of $0.31 per share payable on July 7, 2021 to shareholders of record as of June 17, 2021. On May 20, 2021, the Company’s Board also declared a supplemental distribution of $0.05 per share payable on July 7, 2021 to shareholders of record as of June 17, 2021.
Mr. Howard Widra, Apollo Investment’s Chief Executive Officer commented, “We are pleased to report solid results for the March quarter including a 1.9% increase in NAV per share.” Mr. Howard Widra continued, “Looking ahead, we will continue to focus on first lien floating rate corporate loans while we continue to seek to reduce our exposure to the remaining non-core and junior assets.”
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| (1) | Commitments made for the corporate lending portfolio. Corporate lending portfolio includes leveraged lending, life sciences, asset based and lender finance. Excludes Merx Aviation Finance, LLC (“Merx”) and non-core and legacy assets. |
| (2) | Gross fundings includes $4 million of equity. |
| (3) | Revolver fundings includes $10.5 million funding for the Merx revolver. |
| (4) | Revolver paydowns includes $20.0 million paydown for the Merx revolver. |
| (5) | The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets. |
| (6) | As of March 31, 2021, aggregate lender commitments under the Senior Secured Facility (the “Facility”) totaled $1.81 billion and there were $1.12 billion of outstanding borrowings under the Facility and $0.2 million of letters of credit issued under the Facility. Accordingly, there was $691 million of unused capacity under the Facility as of March 31, 2021, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio. As of March 31, 2021, the Company had immediate access to $358 million under the Facility based on the Company’s borrowing base and $333 million of additional capacity. |
| (7) | From April 1, 2021 through May 18, 2021. |
FINANCIAL HIGHLIGHTS
| ($ in billions, except per share data) | March 31, 2021 | December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | |||||||||||||||
| Total assets | $ | 2.54 | $ | 2.58 | $ | 2.65 | $ | 2.81 | $ | 2.87 | ||||||||||
| Investment portfolio (fair value) | $ | 2.45 | $ | 2.48 | $ | 2.59 | $ | 2.67 | $ | 2.79 | ||||||||||
| Debt outstanding | $ | 1.47 | $ | 1.51 | $ | 1.60 | $ | 1.76 | $ | 1.79 | ||||||||||
| Net assets | $ | 1.04 | $ | 1.02 | $ | 1.01 | $ | 1.00 | $ | 1.02 | ||||||||||
| Net asset value per share | $ | 15.88 | $ | 15.59 | $ | 15.44 | $ | 15.29 | $ | 15.70 | ||||||||||
| Debt-to-equity ratio | 1.41 | x | 1.49 | x | 1.59 | x | 1.76 | x | 1.75 | x | ||||||||||
| Net leverage ratio (1) | 1.36 | x | 1.43 | x | 1.56 | x | 1.66 | x | 1.71 | x | ||||||||||
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(1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
PORTFOLIO AND INVESTMENT ACTIVITY
| Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
| (in millions)* | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Investments made in portfolio companies | $ | 216.2 | $ | 424.2 | $ | 617.1 | $ | 1,866.3 | ||||||||
| Investments sold | — | (122.6 | ) | (101.1 | ) | (167.1 | ) | |||||||||
| Net activity before repaid investments | 216.2 | 301.6 | 516.0 | 1,699.1 | ||||||||||||
| Investments repaid | (268.8 | ) | (293.9 | ) | (896.9 | ) | (1,098.5 | ) | ||||||||
| Net investment activity | $ | (52.6 | ) | $ | 7.7 | $ | (380.8 | ) | $ | 600.6 | ||||||
| Portfolio companies at beginning of period | 143 | 151 | 152 | 113 | ||||||||||||