10-Q
Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended September 30, 2015
¨    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number: 814-00646
APOLLO INVESTMENT CORPORATION
(Exact name of registrant as specified in its charter)
 
Maryland
52-2439556
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
 
9 West 57th Street
37th Floor
New York, N.Y.
10019
(Address of principal executive office)
(Zip Code)
(212) 515-3450
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days.    Yes x  No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ¨  No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
 
Large accelerated filer
x
Accelerated filer
¨
Non-accelerated filer  
¨
Smaller Reporting Company  
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨  No x
The number of shares of the registrant’s Common Stock, $.001 par value, outstanding as of November 5, 2015 was 233,400,951.
 
 
 
 



Table of Contents

APOLLO INVESTMENT CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2015
TABLE OF CONTENTS
 

 
 
PAGE  
 
PART I. FINANCIAL INFORMATION
 
 
 
 
Item 1.
Financial Statements
 
 
 
 
Statements of Assets and Liabilities as of September 30, 2015 and March 31, 2015
 

 
 
Statements of Operations for the three and six months ended September 30, 2015 and September 30, 2014
 

 
 
Statements of Changes in Net Assets for the six months ended September 30, 2015 and the year ended March 31, 2015
 

 
 
Statements of Cash Flows for the six months ended September 30, 2015 and September 30, 2014
 

 
 
Schedule of Investments as of September 30, 2015
 
 
 
 
Schedule of Investments as of March 31, 2015
 
 
 
 
Notes to Financial Statements
 
 
 
 
Report of Independent Registered Public Accounting Firm
 
 
 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
 
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
 
 
 
Item 4.
Controls and Procedures
 
 
 
 
PART II. OTHER INFORMATION
 
 
 
 
Item 1.
Legal Proceedings
 
 
 
Item 1A.
Risk Factors
 
 
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 
 
 
Item 3.
Defaults Upon Senior Securities
 
 
 
Item 4.
Mine Safety Disclosures
 
 
 
Item 5.
Other Information
 
 
 
Item 6.
Exhibits
 
 
 
 
Signatures


Table of Contents

PART I. FINANCIAL INFORMATION

In this Quarterly Report, “Apollo Investment”, the “Company”, “AIC”, “we”, “us” and “our” refer to Apollo Investment Corporation unless the context otherwise states.

Item 1. Financial Statements

APOLLO INVESTMENT CORPORATION
STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share data) 
 
September 30, 2015

March 31, 2015
 
(unaudited)
 
 
Assets
 
 
 
Non-controlled/non-affiliated investments (cost — $2,399,503 and $2,514,328, respectively)
$
2,198,354


$
2,357,042

Non-controlled/affiliated investments (cost — $372,477 and $297,948, respectively)
430,480


327,218

Controlled investments (cost — $539,194 and $674,299, respectively)
565,215


665,567

Total investments, at fair value (cost — $3,311,174 and $3,486,575, respectively) (Note 5)
3,194,049


3,349,827

Cash
11,418


3,766

Foreign currencies (cost — $1,099 and $4,856, respectively)
1,098


4,651

Receivable for investments sold
19,045


114,884

Interest receivable
29,131


43,312

Dividends receivable
12,640


5,425

Deferred financing costs
31,531


29,743

Prepaid expenses and other assets
3,943


9,283

Total Assets
$
3,302,855


$
3,560,891

 
 
 
 
Liabilities
 
 
 
Debt (Note 6)
$
1,370,163


$
1,498,759

Payable for investments purchased
396


10,736

Dividends payable
46,851


47,348

Management and performance-based incentive fees payable (Note 3)
29,557


37,361

Interest payable
15,745


15,851

Accrued administrative services expense
1,631


2,000

Other liabilities and accrued expenses
11,652


11,228

Total Liabilities
$
1,475,995


$
1,623,283

 
 
 
 
Net Assets
 
 
 
Common stock, par value $.001 per share, 400,000,000 common shares authorized, 233,400,951 and 236,741,351 issued and outstanding, respectively
$
233


$
237

Paid-in capital in excess of par
3,176,526


3,197,715

Over-distributed net investment income
(29,240
)

(35,589
)
Accumulated net realized loss
(1,213,600
)

(1,102,517
)
Net unrealized loss
(107,059
)

(122,238
)
Total Net Assets
$
1,826,860


$
1,937,608

Total Liabilities and Net Assets
$
3,302,855


$
3,560,891

 
 
 
 
Net asset value per share (Note 9)
$
7.83


$
8.18


See notes to financial statements.
3

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share data)
 
Three Months Ended September 30,
 
Six Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Investment Income
 
 
 
 
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
 
 
 
 
Interest
$
70,255

 
$
96,146

 
$
143,829

 
$
178,693

Dividends
911

 
1,275

 
1,787

 
2,116

Other income
2,828

 
4,038

 
6,145

 
6,294

From non-controlled/affiliated investments:

 
 
 
 
 
 
Interest
224

 
971

 
451

 
3,196

Dividends
9,503

 
4,128

 
18,670

 
8,074

Other income
70

 
44

 
227

 
87

From controlled investments:

 
 
 
 
 
 
Interest
10,629

 
10,104

 
21,183

 
18,955

Dividends
4,000

 
1,891

 
7,731

 
3,699

Other income

 
313

 
63

 
376

Total Investment Income
$
98,420

 
$
118,910

 
$
200,086

 
$
221,490

 
 
 
 
 
 
 
 
Expenses

 
 
 
 
 
 
Management fees (Note 3)
$
16,727

 
$
18,878

 
$
34,079

 
$
36,989

Performance-based incentive fees (Note 3)
10,774

 
15,393

 
22,641

 
27,860

Interest and other debt expenses
21,764

 
18,946

 
44,200

 
37,848

Administrative services expense
1,650

 
1,525

 
3,083

 
2,958

Other general and administrative expenses
2,725

 
2,617

 
4,889

 
4,904

Total Expenses
$
53,640

 
$
57,359

 
$
108,892

 
$
110,559

Management and performance-based incentive fees waived (Note 3)
(4,722
)
 
(4,041
)
 
(9,237
)
 
(8,193
)
Expense reimbursements (Note 3)
(59
)
 
(96
)
 
(117
)
 
(116
)
Net Expenses
$
48,859

 
$
53,222

 
$
99,538

 
$
102,250

Net Investment Income
$
49,561

 
$
65,688

 
$
100,548

 
$
119,240

 
 
 
 
 
 
 
 
Realized and Unrealized Gain (Loss) on Investments and Foreign Currencies
 
 
 
 
 
 
 
Net realized gain (loss):
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
$
(34,124
)
 
$
(173
)
 
$
(76,785
)
 
$
(11,889
)
Non-controlled/affiliated investments

 
11,633

 
(67
)
 
11,526

Controlled investments
3,148

 

 
(39,714
)
 

Foreign currencies
819

 
134

 
5,483

 
(1,376
)
Net realized gain (loss) on investments and foreign currencies
$
(30,157
)
 
$
11,594

 
$
(111,083
)
 
$
(1,739
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

See notes to financial statements.
4

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF OPERATIONS (unaudited) (continued)
(in thousands, except per share amounts)
 
Three Months Ended September 30,
 
Six Months Ended September 30,
 
2015
 
2014
 
2015
 
2014
Net change in unrealized gain (loss):
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
$
(48,094
)
 
$
(51,169
)
 
$
(43,863
)
 
$
(48,574
)
Non-controlled/affiliated investments
12,916

 
(1,961
)
 
28,733

 
8,869

Controlled investments
7,980

 
10,700

 
34,753

 
22,080

Foreign currencies
6,047

 
7,115

 
(4,444
)
 
6,727

Net change in unrealized gain (loss) on investments and foreign currencies
$
(21,151
)
 
$
(35,315
)
 
$
15,179

 
$
(10,898
)
Net realized and net change in unrealized loss on investments and foreign currencies
(51,308
)
 
(23,721
)
 
(95,904
)
 
(12,637
)
Net Increase (Decrease) In Net Assets Resulting From Operations
$
(1,747
)
 
$
41,967

 
$
4,644

 
$
106,603

 
 
 
 
 
 
 
 
Earnings (Loss) Per Share — Basic (Note 4)
$
(0.01
)
 
$
0.18

 
$
0.02

 
$
0.45

Earnings (Loss) Per Share — Diluted (Note 4)
$
(0.01
)
 
$
0.18

 
$
0.02

 
$
0.44


See notes to financial statements.
5

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
(in thousands, except shares)
 
 
Six Months Ended September 30, 2015
 
Year ended March 31, 2015
 
(unaudited)
 
 
Net Increase in Net Assets Resulting From Operations
 
 
 
Net investment income
$
100,548

 
$
227,973

Net realized loss on investments and foreign currencies
(111,083
)
 
(13,368
)
Net change in unrealized gain (loss) on investments and foreign currencies
15,179

 
(139,183
)
Net Increase In Net Assets Resulting From Operations
$
4,644

 
$
75,422

 
 
 
 
Distributions To Shareholders
 
 
 
Distribution of net investment income
$
(94,199
)
 
$
(165,626
)
Distribution of return of capital

 
(23,767
)
Net Decrease In Net Assets Resulting From Distributions To Shareholders
$
(94,199
)
 
$
(189,393
)
 
 
 
 
Capital Share Transactions
 
 
 
Offering costs from issuance of common stock
$

 
$
(32
)
Repurchase of common stock
(21,193
)
 

Net Decrease In Net Assets From Capital Share Transactions
$
(21,193
)
 
$
(32
)
 
 
 
 
Total Decrease in Net Assets
$
(110,748
)
 
$
(114,003
)
Net Assets at Beginning of Period
1,937,608

 
2,051,611

Net Assets at End of Period
$
1,826,860

 
$
1,937,608

 
 
 
 
Capital Share Activity
 
 
 
Shares Repurchased
3,340,400

 


See notes to financial statements.
6

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF CASH FLOWS (unaudited)
(in thousands) 
 
Six months ended September 30,
 
2015
 
2014
Cash Flows from Operating Activities
 
 
 
Net increase in net assets resulting from operations
$
4,644

 
$
106,603

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
 
 
 
Paid-in-kind (“PIK”) interest and dividends (Note 5)
(21,732
)
 
(17,058
)
Net amortization on investments
(3,521
)
 
(4,742
)
Accretion of discount on notes
300

 

Amortization of deferred financing costs
3,788

 
3,315

Increase (decrease) from foreign currency transactions
6,129

 
(1,953
)
Net change in unrealized (gain) loss on investments and foreign currencies
(15,179
)
 
10,898

Net realized loss on investments and foreign currencies
111,083

 
1,739

Changes in operating assets and liabilities:
 
 
 
Purchase of investments
(726,206
)
 
(1,264,949
)
Proceeds from disposition of investments
895,793

 
1,033,304

Decrease in interest receivable
14,181

 
4,821

Decrease (increase) in dividends receivable
(7,215
)
 
123

Increase in deferred financing costs

 
(225
)
Decrease (increase) in prepaid expenses and other assets
5,340

 
(736
)
Increase (decrease) in management and performance-based incentive fees payable
(7,804
)
 
7,263

Increase (decrease) in interest payable
(106
)
 
386

Decrease in accrued administrative services expense
(369
)
 
(217
)
Increase in other liabilities and accrued expenses
424

 
1,034

Net Cash (Used in) Provided by Operating Activities
$
259,550

 
$
(120,394
)
Cash Flows From Financing Activities
 
 
 
Offering costs for the issuance of common stock
$

 
$
(26
)
Repurchase of common stock
(21,193
)
 

Dividends paid in cash
(94,697
)
 
(94,697
)
Proceeds from debt
1,011,973

 
1,759,696

Payments on debt
(1,146,162
)
 
(1,547,163
)
Deferred financing costs paid
(5,576
)
 
(391
)
Net Cash (Used In) Provided by Financing Activities
$
(255,655
)
 
$
117,419

Net Increase (Decrease) In Cash
$
3,895

 
$
(2,975
)
Effect of exchange rates on cash balances
204

 
(79
)
Cash at the Beginning of Period
8,417

 
14,736

Cash at the End of Period
$
12,516

 
$
11,682

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Cash interest paid
$
38,480

 
$
33,091

 
 
 
 
Non-Cash Financing Activities
 
 
 
PIK income (Note 5)
$
16,328

 
$
14,625

Non-cash re-organizations/restructuring of investments
$
134,089

 
$
16,141



See notes to financial statements.
7

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited)
September 30, 2015
(in thousands except share data)
INVESTMENTS IN NON-CONTROLLED/NON-AFFILIATED INVESTMENTS—120.3%(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par Amount(12)
 
Cost
 
Fair
Value (1)
CORPORATE DEBT—106.8%
SECURED DEBT—90.6%
1ST LIEN SECURED DEBT—39.0%
1st Lien Secured Debt (excluding Revolvers and Letters of Credit)—38.9%
Aventine Renewable Energy Holdings, Inc.
 
 10.500% Cash (15.000% PIK Toggle)
 
9/22/17
 
 Chemicals, Plastics & Rubber
 
$
16,339

 
$
18,192

 
$
16,252

 Aveta, Inc.
 
 9.750%
(3M L+825, 1.50% Floor)
 
12/12/17
 
 Healthcare & Pharmaceuticals
 
51,315

 
50,538

 
38,144

 Caza Petroleum Inc.
 
 12.000%
(12M L+1000, 2.00% Floor)
 
5/23/17
 
 Energy – Oil & Gas
 
45,000

 
44,202

 
42,666

 ChyronHego Corporation (18)
 
 6.625%
(3M L+563, 1.00% Floor)
 
3/9/20
 
 High Tech Industries
 
32,638

 
32,032

 
31,985

 CITGO Holding, Inc. (11)
 
 9.500%
(3M L+850, 1.00% Floor)
 
5/12/18
 
 Utilities - Oil and Gas
 
16,737

 
15,899

 
16,497

 Deep Gulf Energy II, LLC (23)
 
 14.500% (14.500% or 6M L+1300, 1.50% Floor)
 
9/30/18
 
 Energy – Oil & Gas
 
50,000

 
50,000

 
48,000

 Delta Educational Systems, Inc.
 
 16.000% PIK
 
12/11/16
 
 Education
 
6,008

 
6,008

 
6,008

 Dodge Data & Analytics LLC
 
 9.750%
(3M L+875, 1.00% Floor)
 
10/31/19
 
 Business Services
 
53,902

 
52,986

 
52,419

Emergency Communications Network, LLC (18)
 
 8.000%
(3M L+700, 1.00% Floor)
 
6/12/21
 
 High Tech Industries
 
22,444

 
22,121

 
22,107

 Hunt Companies, Inc. (11)
 
9.625%
 
3/1/21
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
19,008

 
18,812

 
17,677

 Magnetation, LLC (16)
 
 12.000% PIK
 
12/7/15
 
 Metals & Mining
 
12,673

 
12,673

 
12,267

 Magnetation, LLC (11)(13)(14)(16)
 
11.000%
 
5/15/18
 
 Metals & Mining
 
32,632

 
33,927

 
6,119

 Maxus Capital Carbon SPE I, LLC (Skyonic Corp.)
 
13.000%
 
9/18/19
 
 Chemicals, Plastics & Rubber
 
66,765

 
66,765

 
66,765

 My Alarm Center, LLC (16)
 
 9.000%
(12M L+800, 1.00% Floor)
 
1/9/18
 
 Business Services
 
42,614

 
42,614

 
42,614

 My Alarm Center, LLC (16)(23)
 
 9.000%
(12M L+800 Funded, 0.350% Unfunded, 1.00% Floor)
 
1/9/18
 
 Business Services
 
12,789

 
12,789

 
12,789

 My Alarm Center, LLC (16)(23)
 
 9.000%
(3M L+800 Funded, 0.350% Unfunded, 1.00% Floor)
 
1/9/18
 
 Business Services
 
3,868

 
3,868

 
3,868

 Osage Exploration & Development, Inc. (11)(17)
 
 13.000%
(12M L+1100, 2.00% Floor)
 
4/27/16
 
 Energy – Oil & Gas
 
25,000

 
24,856

 
14,465

 Pelican Energy, LLC (17)
 
 10.000% (7.000% Cash / 3.000% PIK)
 
12/31/18
 
 Energy – Oil & Gas
 
28,098

 
27,256

 
24,782


See notes to financial statements.
8

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN NON-CONTROLLED/NON-AFFILIATED INVESTMENTS—120.3%(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par Amount(12)
 
Cost
 
Fair
Value (1)
1st Lien Secured Debt (excluding Revolvers and Letters of Credit)—38.9% (continued)
 Saba Software, Inc. (18)
 
 9.750%
(12M L+875, 1.00% Floor)
 
3/30/21
 
 High Tech Industries
 
$
9,975

 
$
9,975

 
$
9,825

 SCM Insurance Services, Inc. (17)
 
9.250%
 
8/22/19
 
 Business Services
 
C$
33,000

 
29,603

 
24,368

 Spotted Hawk Development, LLC
 
 19.000% (13.000% Cash / 6.000% PIK)
 
9/12/16
 
 Energy – Oil & Gas
 
83,106

 
83,106

 
79,574

 Telestream Holdings Corporation (18)
 
 7.430%
(3M L+643, 1.00% Floor)
 
1/15/20
 
 High Tech Industries
 
32,094

 
32,094

 
31,372

 UniTek Global Services Inc. (16)
 
 9.500%
(3M L+750, 1.000% PIK, 1.00% Floor)
 
1/13/19
 
Telecommunications
 
19,501

 
19,501

 
19,501

 UniTek Global Services Inc. (16)
 
 8.500%
(3M L+750, 1.00% Floor)
 
1/13/19
 
Telecommunications
 
32,367

 
32,367

 
30,748

 Venoco, Inc.
 
12.000%
 
2/28/19
 
 Energy – Oil & Gas
 
40,517

 
40,517

 
39,301

Total 1st Lien Secured Debt (excluding Revolvers and Letters of Credit)
 
$
782,701

 
$
710,113

 
Funded and Unfunded Revolver Obligations—0.1%
Alliant Holdings, (Unfunded Revolver) (8)(21)(23)
 
 0.500% Unfunded
 
8/14/20
 
 Insurance
 
$
15,000

 
$
(1,575
)
 
$
(1,575
)
Avaya Inc., (Revolver) (23)
 
 2.933%
(12M L+275, 0.190% Floor)
 
10/26/16
 
Telecommunications
 
3,303

 
3,106

 
3,138

 CIT Group, Inc., (Unfunded Revolver) (8)(17)(21)(23)
 
0.625% Unfunded
 
1/27/17
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
25,000

 
(11
)
 
(750
)
 Confie Seguros Holding II Co., (Revolver) (16)(23)
 
 4.672%
(3M L+450, 0.17% Floor) / 6.750%
(3M P+350, 3.25% Floor) Funded
 
12/10/18
 
 Insurance
 
1,800

 
1,800

 
1,611

 Confie Seguros Holding II Co., (Unfunded Revolver) (8)(16)(21)
 
0.500% Unfunded
 
12/10/18
 
 Insurance
 
1,864

 
(294
)
 
(196
)
 My Alarm Center, LLC, (Revolver) (16)(23)
 
 9.000%
(3M L+800, 1.00% Floor)
 
1/9/18
 
 Business Services
 
833

 
833

 
833

 My Alarm Center, LLC, (Unfunded Revolver) (16)(21)(23)
 
0.350% Unfunded
 
1/9/18
 
 Business Services
 
5,417

 

 

 Tibco Software Inc., (Unfunded Revolver) (8)(21)(23)
 
0.500% Unfunded
 
12/5/19
 
 High Tech Industries
 
6,000

 
(50
)
 
(450
)
 Transfirst Holdings, Inc., (Unfunded Revolver) (8)(16)(21)
 
0.500% Unfunded
 
11/12/19
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
2,943

 
(12
)
 
(88
)
 UniTek Global Services Inc., (Unfunded Revolver) (16)(21)
 
0.500% Unfunded
 
1/13/19
 
Telecommunications
 
5,000

 

 

Total Funded and Unfunded Revolver Obligations
 
$
3,797

 
$
2,523


See notes to financial statements.
9

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN NON-CONTROLLED/NON-AFFILIATED INVESTMENTS—120.3%(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par Amount(12)
 
Cost
 
Fair
Value (1)
 
Letters of Credit—-0.0%
 Confie Seguros Holding II Co., Letter of Credit (8)(16)(23)
 
4.500%
 
6/29/16
 
 Insurance
 
$
500

 
$

 
$
(53
)
 Confie Seguros Holding II Co., Letter of Credit (8)(16)(23)
 
4.500%
 
1/13/16
 
 Insurance
 
336

 

 
(35
)
 Transfirst Holdings, Inc., Letter of Credit (8)(16)(23)
 
3.750%
 
11/12/19
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
57

 

 
(2
)
 UniTek Global Services Inc., Letter of Credit (16)(23)
 
7.500%
 
1/13/19
 
Telecommunications
 
15,711

 

 

 UniTek Global Services Inc., Letter of Credit (16)(23)
 
7.500%
 
1/13/19
 
Telecommunications
 
1,850

 

 

Total Letters of Credit
 
$

 
$
(90
)
TOTAL 1ST LEIN SECURED DEBT
 
$
786,498

 
$
712,546

 
2nd Lien Secured Debt—51.6%
 Access CIG, LLC
 
 9.750%
(3M L+875, 1.00% Floor)
 
10/17/22
 
 Business Services
 
$
35,755

 
$
34,096

 
$
34,861

 Active Network, Inc.
 
 9.500%
(3M L+850, 1.00% Floor)
 
11/15/21
 
 Business Services
 
19,672

 
19,591

 
18,615

 American Energy - Woodford LLC/AEW Finance Corp (11)
 
12.000%
 
12/30/20
 
 Energy – Oil & Gas
 
3,500

 
2,409

 
1,199

 Appriss Holdings, Inc.
 
 9.250%
(3M L+825, 1.00% Floor)
 
5/21/21
 
 Business Services
 
32,750

 
32,299

 
32,750

 Armor Holdings, Inc. (American Stock Transfer and Trust Company)
 
 10.250%
(3M L+900, 1.25% Floor)
 
12/26/20
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
8,000

 
7,876

 
7,930

 Asurion Corporation
 
 8.500%
(3M L+750, 1.00% Floor)
 
3/3/21
 
 Insurance
 
67,590

 
67,301

 
61,507

1A Smart Start, LLC
 
 9.500%
(3M L+850, 1.00% Floor)
 
8/19/22
 
 Consumer Services
 
35,000

 
34,308

 
34,300

 Confie Seguros Holding II Co.
 
 10.250%
(3M L+900, 1.25% Floor)
 
5/8/19
 
 Insurance
 
22,344

 
22,236

 
22,288

 Delta Educational Systems, Inc.
 
 35.000% PIK
 
6/10/18
 
 Education
 
1,083

 
1,083

 
1,603

 Deltek, Inc.
 
 9.500%
(3M L+850, 1.00% Floor)
 
6/26/23
 
 Business Services
 
33,736

 
33,243

 
33,841

 Elements Behavioral Health, Inc.
 
11.750%
(3M L+875 Cash / 2.000% PIK, 1.00% Floor)
 
2/11/20
 
 Healthcare & Pharmaceuticals
 
9,500

 
9,426

 
9,443

 Extraction Oil & Gas Holdings, LLC
 
 11.000% & 10.000%
 
5/29/19
 
 Energy – Oil & Gas
 
52,633

 
52,000

 
52,264

 Garden Fresh Restaurant Corp. (16)
 
 7.750%
(3M L+625 PIK, 1.50% Floor)
 
1/1/19
 
 Hotel, Gaming, Leisure, Restaurants
 
8,585

 
7,034

 
6,267

 Garden Fresh Restaurant Corp. (16)
 
 15.000%
(12M L+1350 PIK, 1.50% Floor)
 
1/1/19
 
 Hotel, Gaming, Leisure, Restaurants
 
43,037

 
41,367

 
38,303


See notes to financial statements.
10

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN NON-CONTROLLED/NON-AFFILIATED INVESTMENTS—120.3%(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par Amount(12)
 
Cost
 
Fair
Value (1)
2nd Lien Secured Debt—51.6% (continued)
 GCA Services Group, Inc.
 
 9.250%
(3M L+800, 1.25% Floor)
 
11/2/20
 
 Business Services
 
$
19,333

 
$
19,464

 
$
19,333

 Grocery Outlet, Inc.
 
 9.250%
(3M L+825, 1.00% Floor)
 
10/21/22
 
 Food & Grocery
 
28,000

 
27,614

 
27,930

 GTCR Valor Companies, Inc.
 
 9.500%
(3M L+850, 1.00% Floor)
 
11/30/21
 
 Business Services
 
35,000

 
34,685

 
34,475

 Infiltrator Systems Integrated, LLC
 
 9.750%
(3M L+875, 1.00% Floor)
 
5/26/23
 
 Manufacturing, Capital Equipment
 
13,889

 
13,619

 
13,819

 Institutional Shareholder Services, Inc.
 
 8.500%
(3M L+750, 1.00% Floor)
 
4/30/22
 
 Business Services
 
6,640

 
6,582

 
6,408

 Kronos, Inc.
 
 9.750%
(3M L+850, 1.25% Floor)
 
4/30/20
 
 Business Services
 
4,525

 
4,502

 
4,621

MediaOcean, LLC
 
 9.500%
(3M L+850, 1.00% Floor)
 
8/15/23
 
 Business Services
 
18,000

 
17,468

 
18,000

 Miller Energy Resources, Inc. (17)(14)
 
 14.750% (3M L+1075 Cash / 2.000% PIK, 2.000% Floor)
 
2/3/18
 
 Energy – Oil & Gas
 
88,568

 
88,568

 
62,978

 MSC Software Corp. (17)
 
 8.500%
(3M L+750, 1.00% Floor)
 
5/31/21
 
 High Tech Industries
 
13,448

 
13,333

 
13,078

 Novolex Holdings, Inc.
 
 9.750%
(3M L+875, 1.00% Floor)
 
6/5/22
 
 Containers, Packaging & Glass
 
42,045

 
41,065

 
41,782

 Pabst Brewing Company
 
 9.250%
(3M L+825, 1.00% Floor)
 
11/14/22
 
 Consumer Goods – Durable
 
27,000

 
26,687

 
26,663

 Premier Trailer Leasing, Inc.
 
 10.000%
(3M L+900, 1.00% Floor)
 
9/24/20
 
 Transportation – Cargo, Distribution
 
52,000

 
51,098

 
53,040

 River Cree Enterprises LP (11)(17)
 
11.000%
 
1/20/21
 
 Hotel, Gaming, Leisure, Restaurants
 
C$
23,000

 
21,683

 
17,198

 SiTV, Inc. (11)
 
10.375%
 
7/1/19
 
 Broadcasting & Subscription
 
2,219

 
2,219

 
1,642

 SMG
 
 9.250%
(3M L+825, 1.00% Floor)
 
2/27/21
 
 Hotel, Gaming, Leisure, Restaurants
 
19,900

 
19,900

 
20,000

 Sprint Industrial Holdings, LLC
 
 11.250%
(3M L+1000, 1.25% Floor)
 
11/14/19
 
 Containers, Packaging & Glass
 
16,163

 
15,431

 
12,688

 SquareTwo Financial Corp. (Collect America, Ltd.) (17)
 
11.625%
 
4/1/17
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
65,152

 
64,516

 
40,720

 STG-Fairway Acquisitions, Inc.
 
 10.250%
(3M L+925, 1.00% Floor)
 
6/26/23
 
 Business Services
 
15,000

 
14,633

 
14,700

 TASC, Inc.
 
12.000%
 
5/21/21
 
 Aerospace & Defense
 
21,815

 
21,072

 
22,197

 TMK Hawk Parent, Corp.
 
 8.500%
(3M L+750, 1.00% Floor)
 
10/1/22
 
 Transportation – Cargo, Distribution
 
34,000

 
33,692

 
34,170


See notes to financial statements.
11

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN NON-CONTROLLED/NON-AFFILIATED INVESTMENTS—120.3%(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par Amount(12)
 
Cost
 
Fair
Value (1)
2nd Lien Secured Debt—51.6% (continued)
 Transfirst Holdings, Inc.
 
 9.000%
(3M L+800, 1.00% Floor)
 
11/11/22
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
$
21,840

 
$
21,674

 
$
21,663

 Velocity Technology Solutions, Inc.
 
 9.000%
(3M L+775, 1.25% Floor)
 
9/28/20
 
 Business Services
 
16,500

 
16,230

 
16,005

 Venoco, Inc.
 
 8.875% Cash (12.000% PIK Toggle)
 
2/28/19
 
 Energy – Oil & Gas
 
35,843

 
46,020

 
28,029

 Vertafore, Inc.
 
 9.750%
(3M L+825, 1.50% Floor)
 
10/27/17
 
 Business Services
 
36,436

 
36,320

 
36,755

Total 2nd Lien Secured Debt
 
$
1,022,344

 
$
943,065

TOTAL SECURED DEBT
 
$
1,808,842

 
$
1,655,611

 
UNSECURED DEBT—16.2%
 Aerojet Rocketdyne Holdings, Inc. (formerly GenCorp, Inc.) (17)
 
 9.500%
(3M L+850, 1.00% Floor)
 
4/18/22
 
 Aerospace & Defense
 
$
10,500

 
$
10,500

 
$
10,500

 American Tire Distributors, Inc. (11)
 
10.250%
 
3/1/22
 
 Transportation – Cargo, Distribution
 
24,281

 
24,281

 
24,888

 Canacol Energy Ltd. (17)(23)
 
 9.500%
(3M L+850, 1.00% Floor)
 
12/31/19
 
 Energy – Oil & Gas
 
75,000

 
73,256

 
71,813

 Delta Educational Systems, Inc.
 
 16.000% PIK
 
5/12/17
 
 Education
 
26,128

 
25,935

 
20,314

 My Alarm Center, LLC
 
 16.250% (13.000% Cash / 3.250% PIK)
 
7/9/18
 
 Business Services
 
4,320

 
4,320

 
4,320

 Radio One, Inc. (11)
 
 9.250%
 
2/15/20
 
 Broadcasting & Subscription
 
15,804

 
15,717

 
13,611

Sorenson Holdings, LLC (11)
 
 13.000% Cash (13.000% PIK Toggle)
 
10/31/21
 
 Consumer Goods – Durable
 
68

 
45

 
68

 Tibco Software Inc. (11)
 
11.375%
 
12/1/21
 
 High Tech Industries
 
6,984

 
6,798

 
7,001

 U.S. Security Associates Holdings, Inc.
 
11.000%
 
7/28/18
 
 Business Services
 
135,000

 
135,000

 
136,350

 UniTek Global Services Inc.
 
 15.000% PIK
 
7/13/19
 
Telecommunications
 
6,814

 
6,814

 
6,814

TOTAL UNSECURED DEBT
 
$
302,666

 
$
295,679

TOTAL CORPORATE DEBT
 
$
2,111,508

 
$
1,951,290

 
STRUCTURED PRODUCTS AND OTHER—10.7%
 Asset Repackaging Trust Six B.V. (11)(17)(19)
 
13.945%
 
5/18/27
 
 Utilities – Electric
 
$
58,411

 
$
25,139

 
$
33,294

 Craft 2013-1, Credit-Linked Note (11)(16)(17)
 
 9.524%
(3M L+925)
 
4/17/22
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
25,000

 
25,071

 
24,259

 Craft 2013-1, Credit-Linked Note (16)(17)
 
 9.524%
(3M L+925)
 
4/17/22
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
7,625

 
7,736

 
7,402

 Craft 2014-1A, Credit-Linked Note (11)(17)
 
 9.924%
(3M L+965)
 
5/15/21
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
42,500

 
42,443

 
41,516


See notes to financial statements.
12

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN NON-CONTROLLED/NON-AFFILIATED INVESTMENTS—120.3%(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par Amount(12)
 
Cost
 
Fair
Value (1)
STRUCTURED PRODUCTS AND OTHER—10.7% (continued)
 Craft 2015-2, Credit-Linked Note (11)(17)
 
 9.589%
(3M L+925)
 
1/16/24
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
$
26,000

 
$
26,000

 
$
24,797

 Dark Castle Holdings, LLC
 
35.400%
 
N/A
 
 Media – Diversified & Production
 
24,395

 
1,189

 
2,270

 JP Morgan Chase & Co., Credit-Linked Note (17)
 
 12.531%
(12M L+1225)
 
12/20/21
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
43,250

 
41,727

 
42,506

 NXT Capital CLO 2014-1, LLC, Class E Notes (11)(17)
 
 5.777%
(3M L+550)
 
4/23/26
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
5,000

 
4,680

 
4,462

 Renaissance Umiat, LLC, ACES Tax Receivable (15)(17)

11.240%- 12.370%

N/A

 Energy – Oil & Gas



15,296


15,236

TOTAL STRUCTURED PRODUCTS AND OTHER
 
$
189,281

 
$
195,742

 
 
 
 
 
 
 
PREFERRED EQUITY—1.6%
 
Shares
 
 
 
 
 CA Holding, Inc. (Collect America, Ltd.), Series A Preferred Stock (13)(17)
 
N/A
 
N/A
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
32,961

 
$
788

 
$

 Crowley Holdings, Series A Preferred Stock (11)
 
12.000% (10.000% Cash / 2.000% PIK)
 
N/A
 
 Transportation – Cargo, Distribution
 
22,500

 
23,310

 
23,712

 Gryphon Colleges Corp. (Delta Educational Systems, Inc.), Preferred Stock (Convertible) (13)(14)
 
12.500% PIK
 
N/A
 
 Education
 
332,500

 
6,863

 

 Gryphon Colleges Corp. (Delta Educational Systems, Inc.), Preferred Stock (13)(14)
 
13.500% PIK
 
5/12/18
 
 Education
 
12,360

 
27,685

 
138

 Varietal Distribution Holdings, LLC, Class A Preferred Unit
 
8.000% PIK
 
N/A
 
 Transportation – Cargo, Distribution
 
3,097

 
4,842

 
4,842

TOTAL PREFERRED EQUITY
 
$
63,488

 
$
28,692


See notes to financial statements.
13

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN NON-CONTROLLED/NON-AFFILIATED INVESTMENTS—120.3%(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par Amount(12)
 
Cost
 
Fair
Value (1)
EQUITY—1.2%
Common Equity/Interests—1.0%
 
 
 
 
 
 
 
Shares
 
 
 
 
 ATD Corporation (Accelerate Parent Corp), Common Stock
 
N/A
 
N/A
 
 Transportation – Cargo, Distribution
 
1,664,046

 
$
1,714

 
$
2,640

 CA Holding, Inc. (Collect America, Ltd.), Series A Common Stock (13)(17)
 
N/A
 
N/A
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
25,000

 
2,500

 

 CA Holding, Inc. (Collect America, Ltd.), Series AA Common Stock (13)(17)
 
N/A
 
N/A
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
4,294

 
429

 

 Caza Petroleum Inc., Net Profits Interest (13)
 
N/A
 
N/A
 
 Energy – Oil & Gas
 

 
1,202

 

 Caza Petroleum Inc., Overriding Royalty Interest
 
N/A
 
N/A
 
 Energy – Oil & Gas
 

 
339

 
34

 Clothesline Holdings, Inc. (Angelica Corporation), Common Stock (13)
 
N/A
 
N/A
 
 Healthcare & Pharmaceuticals
 
6,000

 
6,000

 
1,014

 Explorer Coinvest, LLC (Booz Allen), Common Stock (17)
 
N/A
 
N/A
 
 Business Services
 
192

 
1,468

 
4,675

 Garden Fresh Restaurant Holdings, LLC., Common Stock (13)
 
N/A
 
N/A
 
 Hotel, Gaming, Leisure, Restaurants
 
50,000

 
5,000

 

 Gryphon Colleges Corp. (Delta Educational Systems, Inc.), Common Stock (13)
 
N/A
 
N/A
 
 Education
 
17,500

 
175

 

 Pelican Energy, LLC, Net Profits Interest (13)(17)
 
N/A
 
N/A
 
 Energy – Oil & Gas
 
1,098,572

 
1,099

 

 Skyline Data, News and Analytics LLC, Class A Common Unit (13)
 
N/A
 
N/A
 
 Business Services
 
4,500

 
4,500

 
4,500

 Sorenson Holdings, LLC, Membership Interests (13)
 
N/A
 
N/A
 
 Consumer Goods – Durable
 
587

 

 
103

 Univar, Inc., Common Stock (13)
 
N/A
 
N/A
 
 Wholesale
 
290,015

 
5,755

 
5,264

 Varietal Distribution Holdings, LLC, Class A Common Unit (13)
 
N/A
 
N/A
 
 Transportation – Cargo, Distribution
 
28,028

 
28

 
73

Total Common Equity/Interests
 
$
30,209

 
$
18,303


See notes to financial statements.
14

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except warrants)
INVESTMENTS IN NON-CONTROLLED/NON-AFFILIATED INVESTMENTS—120.3%(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Warrants
 
Cost
 
Fair
Value (1)
Warrants—0.2%
 CA Holding, Inc. (Collect America, Ltd.), Common Stock Warrants (13)(17)
 
N/A
 
N/A
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
12,255

 
$
8

 
$

 Energy & Exploration Partners, Inc., Common Stock Warrants (13)
 
N/A
 
N/A
 
 Energy – Oil & Gas
 
60,778

 
2,374

 

 Fidji Luxco (BC) S.C.A., Common Stock Warrants (2)(13)(17)
 
N/A
 
N/A
 
 High Tech Industries
 
18,113

 
182

 
4,105

 Gryphon Colleges Corp. (Delta Educational Systems, Inc.), Class A-1 Preferred Stock Warrants (13)
 
N/A
 
N/A
 
 Education
 
45,947

 
459

 

 Gryphon Colleges Corp. (Delta Educational Systems, Inc.), Class B-1 Preferred Stock Warrants (13)
 
N/A
 
N/A
 
 Education
 
104,314

 
1,043

 

 Gryphon Colleges Corp. (Delta Educational Systems, Inc.), Common Stock Warrants (13)
 
N/A
 
N/A
 
 Education
 
9,820

 
98

 

 Osage Exploration & Development, Inc., Common Stock Warrants (13)(17)
 
N/A
 
N/A
 
 Energy – Oil & Gas
 
1,496,843

 

 

 Spotted Hawk Development, LLC, Common Stock Warrants (13)
 
N/A
 
N/A
 
 Energy – Oil & Gas
 
54,545

 
852

 
222

Total Warrants
 
$
5,016

 
$
4,327

TOTAL EQUITY
 
$
35,225

 
$
22,630

Total Investments in Non-Controlled/ Non-Affiliated Investments
 
$
2,399,503

 
$
2,198,354


See notes to financial statements.
15

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN NON-CONTROLLED/AFFILIATED
INVESTMENTS—23.6%(4)(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par
Amount(12)
 
Cost
 
Fair
Value (1)
CORPORATE DEBT—0.1%
SECURED DEBT—0.1%
1st Lien Secured Debt—0.1%
 Renewable Funding Group, Inc. (16)
 
8.000%
 
6/3/16
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
$
2,014,941

 
$
2,015

 
$
2,383

Total 1st Lien Secured Debt
 
$
2,015

 
$
2,383

TOTAL SECURED DEBT
 
$
2,015

 
$
2,383

TOTAL CORPORATE DEBT
 
$
2,015

 
$
2,383

 
STRUCTURED PRODUCTS AND OTHER—11.9%
 Golden Bear Warehouse LLC, Equity (3)(17)
 
N/A
 
N/A
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
$
20,741

 
$
20,741

 
$
23,268

 Golden Hill CLO I, LLC, Equity (3)(17)
 
N/A
 
N/A
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
70,944

 
70,752

 
73,072

 Highbridge Loan Management 3-2014, Ltd, Subordinated Notes (3)(11)(17)(22)
 
14.510%
 
1/18/25
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
8,163

 
5,974

 
5,922

 Ivy Hill Middle Market Credit Fund IX, Ltd, Subordinated Notes (3)(11)(17)(22)
 
16.410%
 
10/18/25
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
12,500

 
10,790

 
10,448

 Ivy Hill Middle Market Credit Fund X, Ltd, Subordinated Notes (3)(11)(17)(22)
 
13.780%
 
7/18/27
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
14,000

 
12,457

 
12,154

 Jamestown CLO I LTD, Subordinated Notes (3)(11)(17)(22)
 
 
11/5/24
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
4,325

 
3,261

 
2,803

 MCF CLO I, LLC, Membership Interests (3)(4)(11)(17)(22)
 
23.740%
 
4/20/23
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
38,918

 
34,035

 
36,548

 MCF CLO III, LLC, Class E Notes (3)(11)(17)
 
 4.725%
(3M L+445)
 
1/20/24
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
12,750

 
11,512

 
10,959

 MCF CLO III, LLC, Membership Interests (3)(11)(17)(22)
 
19.840%
 
1/20/24
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
41,900

 
35,676

 
37,020

 Slater Mill Loan Fund LP, LP Certificates (3)(17)(22)
 
8.200%
 
N/A
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
8,375

 
5,569

 
5,529

TOTAL STRUCTURED PRODUCTS AND OTHER
 
$
210,767

 
$
217,723

 
 
 
 
 
 
 
 
 
 
 
 
 
PREFERRED EQUITY—7.2%
 
 
 
 
 
 
 
Shares
 
 
 
 
 AMP Solar (UK) Limited, Class A Preference Shares (2)(17)
 
16.430%
 
10/31/49
 
 Energy - Electricity
 
74,429,212

 
$
114,307

 
$
112,302


See notes to financial statements.
16

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN NON-CONTROLLED/AFFILIATED
INVESTMENTS—23.6%(4)(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par
Amount(12)
 
Cost
 
Fair
Value (1)
PREFERRED EQUITY—7.2% (continued)
 
 
 
 
 
Shares
 
 
 
 
 Renewable Funding Group, Inc., Series B Preferred Stock (13)
 
N/A
 
N/A
 
 Diversified Investment Vehicles, Banking, Finance, Real Estate
 
1,505,868

 
$
8,343

 
$
19,114

TOTAL PREFERRED EQUITY
 
$
122,650

 
$
131,416

 
 
 
 
 
 
 
 
 
 
 
 
 
EQUITY—4.3%
 
 
 
 
 
 
 
 
 
 
Common Equity/Interests—4.3%
 
 
 
 
 
 
 AMP Solar Group, Inc., Class A Common Unit (3)(13)(17)
 
N/A
 
N/A
 
 Energy - Electricity
 
140,688

 
$
6,000

 
$
6,000

 Generation Brands Holdings, Inc., Basic Common Stock (3)(13)
 
N/A
 
N/A
 
 Consumer Goods – Durable
 
9,007

 

 
8,264

 Generation Brands Holdings, Inc., Series 2L Common Stock (3)(13)
 
N/A
 
N/A
 
 Consumer Goods – Durable
 
36,700

 
11,242

 
33,674

 Generation Brands Holdings, Inc., Series H Common Stock (3)(13)
 
N/A
 
N/A
 
 Consumer Goods – Durable
 
7,500

 
2,298

 
6,881

 LVI Group Investments, LLC, Common Units (3)(13)
 
N/A
 
N/A
 
 Environmental Industries
 
212,460

 
17,505

 
24,139

Total Common Equity/Interests
 
$
37,045

 
$
78,958

TOTAL EQUITY
 
$
37,045

 
$
78,958

Total Investments in Non-Controlled/Affiliated Investments
 
$
372,477

 
$
430,480


See notes to financial statements.
17

Table of Contents

APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (unaudited) (continued)
September 30, 2015
(in thousands, except share data)
INVESTMENTS IN CONTROLLED INVESTMENTS—30.9%(5)(10)
 
Interest Rate (20)
 
Maturity Date
 
Industry (9)
 
Par
Amount(12)
 
Cost
 
Fair
Value (1)
CORPORATE DEBT—19.3%
SECURED DEBT—19.3%
Funded and Unfunded Revolver Obligations—19.3%
 Merx Aviation Finance, LLC, (Revolver) (5)(16)
 
12.000% Funded
 
10/31/18
 
 Aviation and Consumer Transport
 
$
352,084

 
$
352,084

 
$
352,084

 Merx Aviation Finance, LLC, (Unfunded Revolver) (5)(13)(16)
 
0.000% Unfunded
 
10/31/18
 
 Aviation and Consumer Transport
 
47,916

 

 

Total Funded and Unfunded Revolver Obligations
 
$
352,084

 
$
352,084

Letters of Credit—0.0%
 
 
 
 
 
 
 
 
 
 
 
 
 Merx Aviation Finance Assets Ireland Limited, Letter of Credit (5)(16)(23)
 
2.250%
 
9/30/16
 
 Aviation and Consumer Transport
 
$
1,800

 
$

 
$