Apollo BDC Closes $514.9M CLO Amid Record Redemption Demand
Redemption demand at Apollo Debt Solutions BDC reached its highest level since the nontraded business development company launched in 2022, according to final second-quarter tender offer results confirmed the same week the fund closed a $514.9 million term debt securitization on Aug. 6.
Investors tendered 101,541,297 shares in the offer, which expired June 15, 2026, and the fund accepted 30,224,152 shares — 5% of shares outstanding as of March 31 — on a pro rata basis. The fund accepted approximately 29.8% of tendered shares, down from about 45% in the first quarter, when the fund accepted 30.3 million of 66.9 million shares tendered.
The final numbers confirmed the scale of redemption pressure Apollo Debt Solutions BDC disclosed in a shareholder letter in June, when the fund said withdrawal demand had reached approximately 16.8% of outstanding shares, or roughly $2.4 billion, and attributed the increase primarily to offshore investor redemptions.
The fund’s net asset value per share stood at $23.83 for Class I, Class S, and Class D shares as of June 30, down from $23.87 at the end of May. That extends a decline AltsWire has tracked since earlier in the year; NAV per share fell to $23.90 as of March 31, down from $24.14 a month earlier, amid a roughly $700 million contraction in aggregate fund size.
New Collateralized Loan Obligation Financing
An indirect subsidiary of the fund, ADL CLO 3 LLC, issued the $514.9 million in notes and loans across multiple tranches. The senior-most notes carry a AAA rating and price at the three-month secured overnight financing rate, or SOFR, plus 1.5%, with lower tranches priced at wider spreads down to a BBB- tranche at SOFR plus 3.6%. The subsidiary also issued $92.6 million in subordinated notes that do not bear interest.
The financing extends a pattern AltsWire has tracked over the past two years. The fund completed a $754.7 million term debt securitization with Morgan Stanley in October 2024 and a $496 million CLO in June 2025. It then priced $300 million in additional senior unsecured notes in May and $750 million in senior unsecured notes in June as it continued building out long-term, fixed-rate financing alongside the redemption pressure.
Apollo Debt Solutions BDC is a nontraded business development company advised by Apollo Credit Management LLC, a subsidiary of Apollo Global Management. The fund is offering up to $10.4 billion in shares on a continuous basis.
Visit the AltsWire directory page.
