Apollo Nontraded BDC’s Aggregate NAV Falls to $13.5B as Leverage Climbs
Apollo Debt Solutions BDC, the nontraded business development company sponsored by Apollo Global Management, reported a net asset value per share of $23.78 across its Class I, S, and D shares as of Sept. 30. That is down $0.06, or about 0.25%, from $23.84 on Aug. 31.
The fund’s aggregate NAV was $13.5 billion as of Sept. 30, the company said. That compares with $14.6 billion as of May 31, which AltsWire reported in June. With approximately $12.9 billion in principal debt outstanding, the fund’s debt-to-equity leverage ratio rose to approximately 0.96x. It was 0.73x as of March 31. Net leverage was 0.85x, up from 0.77x at the end of May.
The shrinking equity base follows a third consecutive quarter of capped redemptions. In September, the fund disclosed that third-quarter repurchase requests reached about 14.7% of outstanding shares and that it would honor requests for 5% of shares. Requests were 16.8% in the second quarter and 11.2% in the first.
The investment portfolio totaled approximately $25.5 billion at fair value across 377 portfolio companies and 56 industries as of Sept. 30. At the end of May, it was $25.9 billion across 405 companies. The portfolio was approximately 99% first-lien debt and 96% floating rate.
Ten issuers were on nonaccrual status as of Sept. 30, representing approximately 1.1% of the portfolio at cost and 0.6% at fair value. As of March 31, 12 issuers were on nonaccrual, at 1% of cost and 0.4% of fair value.
The fund originated approximately $1.6 billion in private debt investments during the third quarter, focused on large-cap issuers. New directly originated investments carried a weighted average spread of 486 basis points. The fund said it had approximately $5 billion of excess availability under its secured funding facilities.
Among recent transactions, the fund participated alongside other Apollo-managed funds in a $9 billion equity financing for midstream operator ONEOK Inc., the company said. Apollo structured and led the deal, which was made through a minority investment in a newly formed intermediate holding company.
Class I shares returned 0.51% for September, 4.23% year-to-date, and 6.05% over one year, the company said. The annualized inception-to-date return was 8.13%.
On Oct. 20, the fund declared October distributions of $0.18 per share on a gross basis for all share classes, unchanged from prior months. After shareholder servicing and distribution fees, net distributions are $0.18 for Class I, $0.175 for Class D, and $0.1628 for Class S. The annualized distribution rate was 9.08% for Class I, 8.83% for Class D, and 8.22% for Class S, according to Apollo. Distributions are payable to shareholders of record as of Oct. 31 and will be paid on or around Nov. 27.
Apollo Debt Solutions BDC is publicly offering up to $10.4 billion in shares on a continuous basis, with parallel private offerings to feeder vehicles. Total shares issued across both offerings stood at approximately 691.3 million, representing about $17 billion in total consideration since inception. That figure excludes shares issued through the distribution reinvestment plan.
Apollo Debt Solutions BDC is advised by Apollo Credit Management LLC, a subsidiary of Apollo Global Management.
Visit the AltsWire directory page.
