Apollo Debt Solutions BDC Issues $750M in Notes Amid Record Redemption Demand

Apollo Debt Solutions BDC has closed a $750 million offering of senior unsecured notes, raising approximately $736.7 million in net proceeds. The nontraded business development company continues to build out its long-term fixed-rate debt financing alongside elevated retail redemption pressure.

The notes issued June 30 under the fund’s Seventh Supplemental Indenture with U.S. Bank Trust Company, National Association as trustee, carry a coupon of 6.35% per year payable semi-annually on June 30 and Dec. 30 of each year, beginning Dec. 30, 2026. They mature June 30, 2033. The notes were sold to qualified institutional buyers under Rule 144A and have not been registered under the Securities Act of 1933. The fund said it expects to use the net proceeds for general corporate purposes and to repay indebtedness, including borrowings under its revolving credit facility.

As previously reported by AltsWire, Apollo Debt Solutions BDC priced $300 million in additional senior unsecured notes in May, bringing total outstanding principal on its 6.55% note series due 2032 to $800 million. The June 30 offering opens a new series at a modestly lower coupon – 6.35% versus 6.55% – and extends duration to 2033.

The fund has built a layered debt financing structure over the past two years. In addition to its unsecured note issuances, AltsWire has reported the fund completed a $754.7 million term debt securitization with Morgan Stanley in October 2024, a $496 million CLO in June 2025, and an amendment to its senior secured revolving credit facility in August 2025 that expanded total capacity to $3.453 billion.

The debt capital raise comes as the fund manages the largest redemption demand in its history. As reported last week, Apollo Debt Solutions BDC disclosed that withdrawal requests for the second quarter of 2026 reached approximately 16.8% of outstanding shares – roughly $2.4 billion – against a 5% quarterly repurchase cap. The fund said it expects net outflows of approximately $400 million for the second quarter and year-to-date, representing approximately 3% of net asset value.

Apollo has characterized its decision to maintain the 5% quarterly repurchase cap as intentional, arguing in a March letter to shareholders that preserving flexibility is important for long-term value creation. In that quarter, the fund fulfilled approximately 45% of redemption requests after withdrawal demand reached 11.2% of outstanding shares.

Aggregate fund NAV stood at $14.6 billion as of May 31, 2026. The portfolio comprised approximately $25.9 billion at fair market value across 405 portfolio companies and 57 industries, with approximately 99% first-lien debt and approximately 96% floating-rate investments.

Apollo Debt Solutions BDC is advised by Apollo Credit Management LLC, a subsidiary of Apollo Global Management. The fund is currently offering up to $10.4 billion in shares on a continuous basis, with a parallel private offering to feeder vehicles. Total consideration raised since the fund’s January 2022 launch stood at approximately $16.85 billion as of June 22.

Visit the AltsWire directory page.