Apollo Debt Solutions BDC Declares Additional Special Distributions

Apollo Debt Solutions BDC – a non-traded perpetual-life business development company sponsored by affiliates of Apollo Global Management – announced special distributions and other portfolio highlights for the month ended May 31, 2025. Its net asset value per share rose to $24.64 from $24.58 at the end of April, a 0.24% increase.

The fund’s Class I common shares delivered a one-month return of 1.08% and a year-to-date return of 3.20%. Over the past year, the shares have seen an 8.96% return, with an impressive 10.86% over three years, i.e., since inception on Jan. 7, 2022.

As of June 23, 2025, the annualized distribution rate for Class I Common Shares stood at 9.74%, including a recent special distribution.

On June 23, 2025, the fund announced that its board declared special distributions totaling $0.06 per share to be distributed in three consecutive monthly payments of $0.02 per share. Payments will be made to shareholders of record as of July 31, Aug. 29 and Sept. 30, on or around Aug. 27, Sept. 26 and Oct. 28, respectively. The special distributions will be paid in cash or reinvested in shares of the fund for shareholders participating in the fund’s distribution reinvestment plan.

The latest special distributions announcement succeeded special distributions for shareholders of record in April through June that followed the same amounts and payment/reinvestment structure.

As of May 31, 2025, the fund’s portfolio boasted an approximate fair market value of $18.8 billion, diversified across 345 portfolio companies spanning 54 industries. The portfolio is heavily weighted toward secure debt investments, with approximately 100% in first lien debt and around 95% in floating rate debt.

Key financial metrics for the fund’s directly originated debt investments highlight a weighted average earnings before interest, taxes, depreciation, and amortization of $275 million. The portfolio had a weighted-average net loan-to-value of 40%, a weighted average yield at amortized cost of 9.22%, net leverage of 4.7x, and interest coverage of 2.3x.

The fund’s net leverage ratio was 0.45x at the end of May with approximately $3 billion of excess availability under its secured funding facilities.

In May 2025, the BDC participated in two notable transactions:

• Polywood LLC: Apollo was able to lead the transaction due to its incumbency in Polywood’s existing first lien $400 million term loan in March 2024, where Apollo served as a joint lead arranger. Polywood is a recycled plastic outdoor furniture company and a player in the high-density polyethylene outdoor furniture market. ADS participated in the transaction alongside other Apollo-managed investment funds.
• Adevinta: Apollo increased its investment in Adevinta, a group of online classifieds portals, by participating in a €6.25 billion dividend-recapitalization, equal to approximately $7.25 million. This follows Apollo’s initial investment in the €4.5 billion unitranche financing for Adevinta’s take-private transaction in May 2024, marking the largest unitranche deal to date in the European market.

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