Document
 
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 quarterly period ended September 30, 2017
OR
¨ 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, New York
10019
(Address of principal executive offices)
(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 (or for such shorter period that the Registrant was required to file such reports), 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 (§232.405 of this chapter) 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, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
x
Accelerated filer
¨
Non-accelerated filer
¨
Smaller reporting company
¨
(Do not check if a 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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class of Common Stock
 
Outstanding at November 2, 2017
$0.001 par value
 
218,442,554
 




APOLLO INVESTMENT CORPORATION
Table of Contents
 
 
Page
 
PART I. FINANCIAL INFORMATION
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
PART II. OTHER INFORMATION
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Item 5.
 
 
 
Item 6.
 
 
 
 




PART I. FINANCIAL INFORMATION
In this report, the terms the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” and “our” refer to Apollo Investment Corporation unless the context specifically states otherwise.
Item 1. Financial Statements
APOLLO INVESTMENT CORPORATION
STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except share and per share data)


September 30, 2017
 
March 31, 2017

(Unaudited)
 

Assets

 

Investments and option contracts at fair value:


 


Non-controlled/non-affiliated investments (cost — $1,448,348 and $1,510,980, respectively)
$
1,441,064

 
$
1,402,409

Non-controlled/affiliated investments (cost — $246,083 and $417,471, respectively)
224,881

 
239,050

Controlled investments (cost — $701,852 and $676,972, respectively)
694,345

 
675,249

Option contracts (cost — $5,057 and $0, respectively)
4,020

 

Cash and cash equivalents
31,179

 
9,783

Foreign currencies (cost — $1,961 and $1,494, respectively)
1,966

 
1,497

Collateral on option contracts
6,070

 

Receivable for investments sold
8,129

 
40,226

Interest receivable
18,237

 
17,072

Dividends receivable
3,143

 
6,489

Deferred financing costs
15,791

 
17,632

Prepaid expenses and other assets
581

 
713

Total Assets
$
2,449,406

 
$
2,410,120



 

Liabilities

 

Debt
$
864,906

 
$
848,449

Option contracts at fair value (proceeds — $5,041 and $0, respectively)
5,877

 

Payable for investments purchased
40,878

 
13,970

Distributions payable
32,855

 
32,954

Management and performance-based incentive fees payable
18,370

 
16,306

Interest payable
7,280

 
7,319

Accrued administrative services expense
1,785

 
2,250

Other liabilities and accrued expenses
4,855

 
7,075

Total Liabilities
$
976,806

 
$
928,323

Commitments and contingencies (Note 10)


 


Net Assets
$
1,472,600

 
$
1,481,797



 

Net Assets

 

Common stock, $0.001 par value (400,000,000 shares authorized; 219,034,354 and 219,694,654 shares issued and outstanding, respectively)
$
219

 
$
220

Paid-in capital in excess of par
2,920,820

 
2,924,775

Accumulated underdistributed net investment income
89,802

 
88,134

Accumulated net realized loss
(1,514,999
)
 
(1,277,625
)
Net unrealized loss
(23,242
)
 
(253,707
)
Net Assets
$
1,472,600

 
$
1,481,797




 


Net Asset Value Per Share
$
6.72

 
$
6.74


See notes to financial statements.
1

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,

2017
 
2016
 
2017
 
2016
Investment Income

 

 

 

Non-controlled/non-affiliated investments:

 

 

 

Interest income (excluding Payment-in-kind interest income)
$
39,319

 
$
41,728

 
$
78,271

 
$
88,779

Dividend income

 
1,069

 

 
2,173

Payment-in-kind interest income
2,118

 
678

 
4,174

 
1,971

Other income
2,647

 
349

 
3,777

 
2,047

Non-controlled/affiliated investments:

 

 

 

Interest income (excluding Payment-in-kind interest income)
1

 
247

 
115

 
461

Dividend income
981

 
4,656

 
2,068

 
7,703

Payment-in-kind interest income
2,501

 
122

 
4,938

 
169

Other income

 

 
(306
)
 
70

Controlled investments:

 

 

 

Interest income (excluding Payment-in-kind interest income)
14,241

 
12,247

 
29,315

 
24,677

Dividend income
3,303

 
2,750

 
8,153

 
7,450

Payment-in-kind interest income
1,351

 
5,180

 
2,668

 
9,995

Total Investment Income
$
66,462

 
$
69,026

 
$
133,173

 
$
145,495

Expenses
 
 
 
 
 
 
 
Management fees
$
12,290

 
$
13,302

 
$
24,415

 
$
27,700

Performance-based incentive fees
8,037

 
1,943

 
15,949

 
10,393

Interest and other debt expenses
13,832

 
14,438

 
28,047

 
31,231

Administrative services expense
1,692

 
2,642

 
3,368

 
4,168

Other general and administrative expenses
1,620

 
2,550

 
4,176

 
7,589

Total expenses
37,471

 
34,875

 
75,955

 
81,081

Management and performance-based incentive fees waived
(5,081
)
 
(5,302
)
 
(10,091
)
 
(11,019
)
Expense reimbursements
(85
)
 
(84
)
 
(168
)
 
(168
)
Net Expenses
$
32,305

 
$
29,489

 
$
65,696

 
$
69,894

Net Investment Income
$
34,157

 
$
39,537

 
$
67,477

 
$
75,601

Net Realized and Change in Unrealized Gains (Losses)

 

 

 

Net realized gains (losses):

 

 

 

Non-controlled/non-affiliated investments
$
(7,309
)
 
$
17,348

 
$
(97,148
)
 
$
(40,127
)
Non-controlled/affiliated investments

 
(21,257
)
 
(146,840
)
 
44,574

Controlled investments

 

 

 
(191
)
Option contracts
(5
)
 

 
(5
)
 

Foreign currency transactions
3,695

 
905

 
6,619

 
1,265

Net realized gains (losses)
(3,619
)
 
(3,004
)
 
(237,374
)
 
5,521

Net change in unrealized losses:

 

 

 

Non-controlled/non-affiliated investments
10,049

 
46,305

 
101,287

 
65,026

Non-controlled/affiliated investments
1,489

 
(36,007
)
 
157,219

 
(129,794
)
Controlled investments
1,284

 
(10,284
)
 
(5,784
)
 
(34,583
)
Option contracts
(1,873
)
 

 
(1,873
)
 

Foreign currency translations
(9,700
)
 
4,567

 
(20,384
)
 
17,257

Net change in unrealized losses
1,249

 
4,581

 
230,465

 
(82,094
)
Net Realized and Change in Unrealized Gains (Losses)
$
(2,370
)
 
$
1,577

 
$
(6,909
)
 
$
(76,573
)
Net Increase (Decrease) in Net Assets Resulting from Operations
$
31,787

 
$
41,114

 
$
60,568

 
$
(972
)
Earnings (Loss) Per Share
$
0.14

 
$
0.18

 
$
0.28

 
$
0.00


See notes to financial statements.
2

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF CHANGES IN NET ASSETS
(In thousands, except share data)

 
Six Months Ended September 30, 2017
 
Year Ended 
 March 31, 2017
 
(Unaudited)
 
 
Operations
 
 
 
Net investment income
$
67,477

 
$
149,243

Net realized losses
(237,374
)
 
(41,823
)
Net change in unrealized losses
230,465

 
(89,050
)
Net Increase in Net Assets Resulting from Operations
$
60,568

 
$
18,370

 
 
 
 
Distributions to Stockholders
 
 
 
Distribution of net investment income
$
(65,809
)
 
$
(76,950
)
Distribution of return of capital

 
(67,286
)
Net Decrease in Net Assets Resulting from Distributions to Stockholders
$
(65,809
)
 
$
(144,236
)
 
 
 
 
Capital Share Transactions
 
 
 
Repurchase of common stock
(3,956
)
 
(37,918
)
Net Decrease in Net Assets Resulting from Capital Share Transactions
$
(3,956
)
 
$
(37,918
)
 
 
 
 
Net Assets
 
 
 
Net decrease in net assets during the period
$
(9,197
)
 
$
(163,784
)
Net assets at beginning of period
1,481,797

 
1,645,581

Net Assets at End of Period
$
1,472,600

 
$
1,481,797

 
 
 
 
Capital Share Activity
 
 
 
Shares repurchased during the period
(660,300
)
 
(6,461,842
)
Shares issued and outstanding at beginning of period
219,694,654

 
226,156,496

Shares Issued and Outstanding at End of Period
219,034,354

 
219,694,654


See notes to financial statements.
3

Table of Contents

APOLLO INVESTMENT CORPORATION
STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)

 
Six Months Ended September 30,
 
2017
 
2016
Operating Activities
 
 
 
Net increase (decrease) in net assets resulting from operations
$
60,568

 
$
(972
)
Net realized (gains) losses
237,374

 
(5,521
)
Net change in unrealized (gains) losses
(230,465
)
 
82,094

Net amortization of premiums and accretion of discounts on investments
(3,563
)
 
(2,620
)
Accretion of discount on notes
297

 
298

Amortization of deferred financing costs
2,418

 
2,985

Increase from foreign currency transactions
6,619

 
1,265

Payment-in-kind interest and dividends capitalized
(10,501
)
 
(21,147
)
Changes in operating assets and liabilities:
 
 
 
Purchases of investments
(580,567
)
 
(251,591
)
Proceeds from sales and repayments of investments
618,789

 
627,113

Purchases of option contracts
(5,062
)
 

Proceeds from option contracts
5,041

 

Decrease (increase) in interest receivable
(1,063
)
 
14,540

Decrease in dividends receivable
3,346

 
2,517

Decrease in prepaid expenses and other assets
132

 
8,472

Increase (decrease) in management and performance-based incentive fees payable
2,064

 
(8,774
)
Decrease in interest payable
(39
)
 
(410
)
Decrease in accrued administrative services expense
(465
)
 
(603
)
Increase (decrease) in other liabilities and accrued expenses
(2,220
)
 
405

Net Cash Provided by Operating Activities
$
102,703

 
$
448,051

Financing Activities
 
 
 
Issuances of debt
$
622,483

 
$
506,747

Payments of debt
(627,219
)
 
(788,487
)
Financing costs paid and deferred
(170
)
 
(485
)
Repurchase of common stock
(3,956
)
 
(24,343
)
Distributions paid
(65,908
)
 
(90,245
)
Net Cash Used in Financing Activities
$
(74,770
)
 
$
(396,813
)
 
 
 
 
Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts
 
 
 
Net increase in cash, cash equivalents, foreign currencies and collateral on option contracts during the period
$
27,933

 
$
51,238

Effect of foreign exchange rate changes
2

 
(31
)
Cash, cash equivalents, foreign currencies and collateral on option contracts at beginning of period
11,280

 
18,905

Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts at the End of Period
$
39,215

 
$
70,112

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Cash interest paid
$
25,326

 
$
27,120

 
 
 
 
Non-Cash Activity
 
 
 
Payment-in-kind income
$
11,780

 
$
12,544


See notes to financial statements.
4

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
 Par (12)
 
Cost
 
Fair
Value (1)
 
ASC 820 Level (32)
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Debt
 
 
 
 
 
 
 
 
 
 
 
 
Secured Debt
 
 
 
 
 
 
 
 
 
 
 
 
First Lien Secured Debt
 
 
 
 
 
 
 
 
 
 
 
 
First Lien Secured Debt (excluding Revolvers and Letters of Credit)
 
 
 
 
 
 
 
 
 
 
American Media, Inc. (16)
 
Advertising, Printing & Publishing
 
10.24% (1M L+900, 1.00% Floor)
 
8/24/20
 
$
14,667

 
$
14,324

 
$
15,033

 
Level 3
Simplifi Holdings, Inc. (9)(16)
 
Advertising, Printing & Publishing
 
7.74% (1M L+650, 1.00% Floor)
 
9/28/22
 
12,200

 
11,835

 
11,834

 
Level 3
Total Advertising, Printing & Publishing— 1.8%(10)
 
 
 
 
 
$
26,159

 
$
26,867

 
 
Dodge Data & Analytics LLC
 
Business Services
 
10.13% (3M L+875, 1.00% Floor)
 
10/31/19
 
$
50,478

 
$
50,055

 
$
49,090

 
Level 3
PSI Services, LLC (9)(16)
 
Business Services
 
6.24% (1M L+500, 1.00% Floor)
 
1/20/23
 
4,142

 
4,050

 
4,070

 
Level 3
RA Outdoors, LLC (9)(16)
 
Business Services
 
5.99% (1M L+475, 1.00% Floor)
 
9/11/24
 
8,800

 
8,625

 
8,624

 
Level 3
Total Business Services— 4.2%(10)
 
 
 
 
 
$
62,730

 
$
61,784

 
 
Maxus Capital Carbon SPE I, LLC
 
Chemicals, Plastics & Rubber
 
5.22% PIK
 
12/31/18
 
$
59,305

 
$
59,305

 
$
49,544

 
Level 3
Total Chemicals, Plastics & Rubber— 3.4%(10)
 
 
 
 
 
$
59,305

 
$
49,544

 
 
KLO / 9357-5991 Quebec Inc
 
Consumer Goods – Durable
 
9.00% (1M L+775, 0.75% Floor)
 
4/7/22
 
$
9,382

 
$
9,276

 
$
9,273

 
Level 3
KLO Acquisition LLC
 
Consumer Goods – Durable
 
9.00% (1M L+775, 0.75% Floor)
 
4/7/22
 
5,466

 
5,404

 
5,403

 
Level 3
Total Consumer Goods – Durable— 1.0%(10)
 
 
 
 
 
$
14,680

 
$
14,676

 
 
Westinghouse Electric Co LLC (9)
 
Energy – Electricity
 
7.50% (1M L+625, 1.25% Floor)
 
3/31/18
 
$
40,000

 
$
39,449

 
$
40,000

 
Level 3
Total Energy – Electricity— 2.7%(10)
 
 
 
 
 
$
39,449

 
$
40,000

 
 
Bumble Bee Holdings, Inc.
 
Food & Grocery
 
9.32% (3M L+800, 1.00% Floor)
 
8/15/23
 
$
15,585

 
$
15,278

 
$
15,273

 
Level 3
Connors Bros Clover Leaf Seafoods Company
 
Food & Grocery
 
9.32% (3M L+800, 1.00% Floor)
 
8/15/23
 
4,415

 
4,328

 
4,327

 
Level 3
Total Food & Grocery— 1.3%(10)
 
 
 
 
 
$
19,606

 
$
19,600

 
 
Altasciences / 9360-1367 Quebec Inc. (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
7.62% (3M L+625, 1.00% Floor)
 
6/9/23
 
C$
2,430

 
$
1,771

 
$
1,900

 
Level 3
Altasciences / 9360-1367 Quebec Inc. (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
7.58% (3M L+625, 1.00% Floor)
 
6/9/23
 
2,913

 
2,851

 
2,848

 
Level 3
Altasciences US Acquistion, Inc. (9)(16)
 
Healthcare & Pharmaceuticals
 
7.58% (3M L+625, 1.00% Floor)
 
6/9/23
 
5,261

 
5,149

 
5,143

 
Level 3
Altasciences US Acquistion, Inc., Unfunded Delayed Draw (8)(9)(16)(21)(23)(28)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
6/9/23
 
2,851

 
(34
)
 
(64
)
 
Level 3
Aptevo Therapeutics Inc. (9)(16)(23)
 
Healthcare & Pharmaceuticals
 
8.84% (1M L+760)
 
2/1/21
 
8,571

 
8,664

 
8,508

 
Level 3
Aptevo Therapeutics Inc., Unfunded Delayed Draw (8)(9)(16)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.00% Unfunded
 
2/1/21
 
6,429

 
(24
)
 
(48
)
 
Level 3
Invuity, Inc. (9)(16)
 
Healthcare & Pharmaceuticals
 
8.00% (1M L+650, 1.50% Floor)
 
3/1/22
 
10,000

 
9,914

 
9,808

 
Level 3
Oxford Immunotec, Inc. (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
8.84% (1M L+760)
 
10/1/21
 
9,750

 
9,824

 
9,859

 
Level 3
PTC Therapeutics, Inc (9)(16)(17)
 
Healthcare & Pharmaceuticals
 
7.39% (1M L+615, 1.00% Floor)
 
5/1/21
 
12,667

 
12,610

 
12,667

 
Level 3
PTC Therapeutics, Inc, Unfunded Delayed Draw (9)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.00% Unfunded
 
5/1/21
 
6,333

 

 

 
Level 3

See notes to financial statements.
5

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
 Par (12)
 
Cost
 
Fair
Value (1)
 
ASC 820 Level (32)
RiteDose Holdings I, Inc. (9)(16)
 
Healthcare & Pharmaceuticals
 
7.82% (1M L + 650, 1.00% Floor)
 
9/13/23
 
15,000

 
14,516

 
14,513

 
Level 3
Teladoc, Inc. (16)(17)
 
Healthcare & Pharmaceuticals
 
8.49% (1M L + 725, 1.00% Floor)
 
7/14/22
 
20,000

 
19,805

 
20,400

 
Level 3
Total Healthcare & Pharmaceuticals— 5.8%(10)
 
 
 
 
 
$
85,046

 
$
85,534

 
 
ChyronHego Corporation (18)
 
High Tech Industries
 
7.43% (3M L+643, 1.00% Floor)
 
3/9/20
 
$
35,743

 
$
35,349

 
$
34,670

 
Level 3
LabVantage Solutions Inc.
 
High Tech Industries
 
9.24% (1M L+800, 1.00% Floor)
 
12/29/20
 
14,063

 
13,763

 
13,922

 
Level 3
LabVantage Solutions Limited (16)(17)
 
High Tech Industries
 
9.00% (3M E+800, 1.00% Floor)
 
12/29/20
 
12,883

 
13,558

 
15,077

 
Level 3
Nextech Systems, LLC (18)
 
High Tech Industries
 
8.40% (1M L+725, 1.00% Floor)
 
6/22/21
 
21,435

 
21,034

 
21,006

 
Level 3
Telestream Holdings Corporation (18)
 
High Tech Industries
 
7.61% (3M L +6.45%, 1.00% Floor)
 
3/24/22
 
36,933

 
36,595

 
36,194

 
Level 3
Total High Tech Industries— 8.2%(10)
 
 
 
 
 
$
120,299

 
$
120,869

 
 
GFRC Holdings LLC
 
Hotel, Gaming, Leisure, Restaurants
 
9.50% (1M L+800 Cash (L+800 PIK Toggle), 1.50% Floor)
 
2/1/22
 
$
2,500

 
$
2,500

 
$
2,500

 
Level 3
Total Hotel, Gaming, Leisure, Restaurants— 0.2%(10)
 
 
 
 
 
$
2,500

 
$
2,500

 
 
Magnetation, LLC (14)
 
Metals & Mining
 
9.15% (3M L+800 Cash (PIK Toggle)
 
12/31/19
 
$
1,898

 
$
1,819

 
$
654

 
Level 3
Total Metals & Mining—0.0%(10)
 
 
 
 
 
$
1,819

 
$
654

 
 
UniTek Global Services Inc. (16)
 
Telecommunications
 
9.84% (3M L+750 Cash plus 1.00% PIK, 1.00% Floor)
 
1/13/19
 
$
1,941

 
$
1,941

 
$
1,941

 
Level 3
UniTek Global Services Inc. (16)
 
Telecommunications
 
9.84% (3M L+850, 1.00% Floor)
 
1/13/19
 
32,367

 
32,367

 
33,014

 
Level 3
Total Telecommunications— 2.4%(10)
 
 
 
 
 
$
34,308

 
$
34,955

 
 
Sunedison, Inc.
 
Utilities – Electric
 
8.74% (1M L+750, 1.00% Floor)
 
5/2/18
 
$
13,698

 
$
13,648

 
$
13,758

 
Level 2
Total Utilities – Electric— 1.0%(10)
 
 
 
 
 
$
13,648

 
$
13,758

 
 
Total First Lien Secured Debt (excluding Revolvers and Letters of Credit)—32.0%(10)
 
 
 
 
 
$
479,549

 
$
470,741

 
 
Revolvers and Letters of Credit
 
 
 
 
 
 
 
 
 
 
 
 
American Media, Inc., Letter of Credit (16)(23)
 
Advertising, Printing & Publishing
 
 L+900
 
8/24/20
 
$
154

 
$

 
$

 
Level 3
American Media, Inc., Revolver (16)(23)
 
Advertising, Printing & Publishing
 
10.34% (3M L+900, 1.00% Floor)
 
8/24/20
 
1,244

 
1,245

 
1,275

 
Level 3
American Media, Inc., Revolver (16)(23)
 
Advertising, Printing & Publishing
 
12.25% (P+800)
 
8/24/20
 
237

 
237

 
243

 
Level 3
American Media, Inc., Unfunded Revolver (16)(21)(23)
 
Advertising, Printing & Publishing
 
0.50% Unfunded
 
8/24/20
 
143

 
(39
)
 
0

 
Level 3
Simplifi Holdings, Inc., Unfunded Revolver (8)(9)(16)(21)(23)
 
Advertising, Printing & Publishing
 
0.50% Unfunded
 
9/28/22
 
2,400

 
(72
)
 
(72
)
 
Level 3
Total Advertising, Printing & Publishing— 0.1%(10)
 
 
 
 
 
$
1,371

 
$
1,446

 
 
Erickson Inc, Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
9/30/18
 
$
103

 
$

 
$
(2
)
 
Level 3
Erickson Inc, Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
12/10/18
 
37

 

 
(1
)
 
Level 3
Erickson Inc, Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
4/1/18
 
277

 

 
(4
)
 
Level 3
Erickson Inc, Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
10/31/17
 
73

 

 
(1
)
 
Level 3

See notes to financial statements.
6

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
 Par (12)
 
Cost
 
Fair
Value (1)
 
ASC 820 Level (32)
Erickson Inc, Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
11/28/17
 
670

 

 
(10
)
 
Level 3
Erickson Inc, Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
6/25/18
 
3

 

 

 
Level 3
Erickson Inc, Letter of Credit (8)(9)(16)(23)
 
Aerospace & Defense
 
7.50%
 
12/31/17
 
180

 

 
(3
)
 
Level 3
Erickson Inc, Revolver (9)(16)(23)
 
Aerospace & Defense
 
8.84% (3M L+750)
 
4/28/22
 
26,062

 
26,062

 
25,672

 
Level 3
Erickson Inc, Unfunded Revolver (8)(9)(16)(21)(23)
 
Aerospace & Defense
 
0.50% Unfunded
 
4/28/22
 
17,595

 
(514
)
 
(264
)
 
Level 3
Total Aerospace & Defense— 1.7%(10)
 
 
 
 
 
$
25,548

 
$
25,387

 
 
PSI Services, LLC, Revolver (9)(16)(23)
 
Business Services
 
6.24% (1M L+500, 1.00% Floor)
 
1/20/22
 
$
278

 
$
278

 
$
273

 
Level 3
PSI Services, LLC, Unfunded Revolver (8)(9)(16)(21)(23)
 
Business Services
 
0.50% Unfunded
 
1/20/22
 
119

 
(9
)
 
(1
)
 
Level 3
PSI Services, LLC, Unfunded Revolver (9)(16)(21)(23)
 
Business Services
 
0.50% Unfunded
 
1/20/22
 
£
47

 

 

 
Level 3
RA Outdoors, LLC, Unfunded Revolver (8)(9)(16)(21)(23)
 
Business Services
 
 0.50% Unfunded
 
9/9/22
 
1,200

 
(24
)
 
(24
)
 
Level 3
Total Business Services— 0.0%(10)
 
 
 
 
 
$
245

 
$
248

 
 
Avantor Performance Materials Holdings, LLC, Letter of Credit (8)(16)(23)
 
Chemicals, Plastics & Rubber
 
4.00%
 
3/10/22
 
$
122

 
$

 
$
(1
)
 
Level 3
Avantor Performance Materials Holdings, LLC, Unfunded Revolver (8)(16)(21)(23)
 
Chemicals, Plastics & Rubber
 
0.50% Unfunded
 
3/10/22
 
4,878

 
(555
)
 
(32
)
 
Level 3
Total Chemicals, Plastics & Rubber— 0.0%(10)
 
 
 
 
 
$
(555
)
 
$
(33
)
 
 
TricorBraun Holdings, Inc., Revolver (23)
 
Containers, Packaging & Glass
 
6.50% (P+225)
 
11/30/21
 
$
323

 
$
323

 
$
323

 
Level 3
TricorBraun Holdings, Inc., Unfunded Revolver (21)(23)
 
Containers, Packaging & Glass
 
0.50% Unfunded
 
11/30/21
 
5,303

 
(422
)
 

 
Level 3
Total Containers, Packaging & Glass— 0.0%(10)
 
 
 
 
 
$
(99
)
 
$
323

 
 
Purchasing Power, LLC, Revolver (9)(16)(23)
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
9.24% (1M L + 800, 1.00% Floor)
 
7/10/19
 
$
2,021

 
$
2,021

 
$
2,004

 
Level 3
Purchasing Power, LLC, Unfunded Revolver (8)(9)(16)(21)(23)
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
1.50% Unfunded
 
7/10/19
 
6,329

 
(74
)
 
(53
)
 
Level 3
Ten-X, LLC, Unfunded Revolver (8)(21)(23)
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
0.50% Unfunded
 
9/29/22
 
4,680

 
(421
)
 
(421
)
 
Level 3
Total Diversified Investment Vehicles, Banking, Finance, Real Estate— 0.1%(10)
 
 
 
 
 
$
1,526

 
$
1,530

 
 
Altasciences US Acquistion, Inc., Unfunded Revolver (8)(9)(16)(21)(23)(28)
 
Healthcare & Pharmaceuticals
 
0.25% Unfunded
 
6/9/23
 
$
1,426

 
$
(30
)
 
$
(32
)
 
Level 3
Invuity, Inc., Revolver (9)(16)(23)
 
Healthcare & Pharmaceuticals
 
4.75% (1M L+325, 1.00% Floor)
 
3/1/22
 
1,024

 
1,024

 
1,018

 
Level 3
Invuity, Inc., Unfunded Revolver (8)(9)(16)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
3/1/22
 
976

 
(9
)
 
(5
)
 
Level 3
Oxford Immunotec, Inc., Unfunded Revolver (9)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
10/1/21
 
1,000

 
(4
)
 

 
Level 3
RiteDose Holdings I, Inc., Unfunded Revolver (8)(9)(16)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
9/13/22
 
2,000

 
(64
)
 
(65
)
 
Level 3
Teladoc, Inc., Unfunded Revolver (8)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
7/14/20
 
1,667

 
(67
)
 
(67
)
 
Level 3

See notes to financial statements.
7

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
 Par (12)
 
Cost
 
Fair
Value (1)
 
ASC 820 Level (32)
Wright Medical Group, Inc., Revolver (9)(16)(17)(23)
 
Healthcare & Pharmaceuticals
 
5.49% (1M L+425, 0.75% Floor)
 
12/23/21
 
18,333

 
18,333

 
18,333

 
Level 3
Wright Medical Group, Inc., Unfunded Revolver (9)(16)(17)(21)(23)
 
Healthcare & Pharmaceuticals
 
0.50% Unfunded
 
12/23/21
 
31,667

 
(423
)
 

 
Level 3
Total Healthcare & Pharmaceuticals— 1.3%(10)
 
 
 
 
 
$
18,760

 
$
19,182

 
 
LabVantage Solutions Limited, Unfunded Revolver (8)(16)(17)(21)(23)
 
High Tech Industries
 
0.50% Unfunded
 
12/29/20
 
3,435

 
$
(77
)
 
$
(41
)
 
Level 3
Tibco Software Inc., Unfunded Revolver (8)(21)(23)
 
High Tech Industries
 
 0.50% Unfunded
 
12/5/19
 
$
6,000

 

 
(840
)
 
Level 3
Total High Tech Industries— -0.1%(10)
 
 
 
 
 
$
(77
)
 
$
(881
)
 
 
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
5/4/17
 
$
8

 
$

 
$

 
Level 3
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
7/29/17
 
80

 

 
(3
)
 
Level 3
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
10/3/17
 
8

 

 

 
Level 3
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
11/30/17
 
37

 

 
(1
)
 
Level 3
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
4/23/18
 
37

 

 
(1
)
 
Level 3
Alliant Holdings Intermediate, LLC, Letter of Credit (8)(16)(23)
 
Insurance
 
3.375%
 
7/30/18
 
17

 

 
(1
)
 
Level 3
Alliant Holdings Intermediate, LLC, Unfunded Revolver (8)(16)(21)(23)
 
Insurance
 
0.50% Unfunded
 
8/14/20
 
14,813

 
(981
)
 
(509
)
 
Level 3
Total Insurance— 0.0%(10)
 
 
 
 
 
$
(981
)
 
$
(515
)
 
 
SESAC Holdco II LLC, Unfunded Revolver (8)(16)(21)(23)
 
Media – Diversified & Production
 
 0.50% Unfunded
 
2/23/22
 
$
587

 
$
(46
)
 
$
(44
)
 
Level 3
Total Media – Diversified & Production— 0.0%(10)
 
 
 
 
 
$
(46
)
 
$
(44
)
 
 
UniTek Global Services Inc., Letter of Credit (16)(23)
 
Telecommunications
 
7.50%
 
1/13/19
 
$
7,762

 
$

 
$

 
Level 3
UniTek Global Services Inc., Unfunded Revolver (16)(21)(23)
 
Telecommunications
 
0.50% Unfunded
 
1/13/19
 
5,000

 

 

 
Level 3
Total Telecommunications— 0.0%(10)
 
 
 
 
 
$

 
$

 
 
Total Revolvers and Letters of Credit—3.1%(10)
 
 
 
 
 
 
 
$
45,692

 
$
46,643

 
 
Total First Lien Secured Debt—35.1%(10)
 
 
 
 
 
 
 
$
525,241

 
$
517,384

 
 
Second Lien Secured Debt
 
 
 
 
 
 
 
 
 
 
 
 
A-L Parent LLC
 
Advertising, Printing & Publishing
 
8.49% (1M L+725, 1.00% Floor)
 
12/2/24
 
$
10,048

 
$
9,957

 
$
10,098

 
Level 3
Total Advertising, Printing & Publishing— 0.7%(10)
 
 
 
 
 
$
9,957

 
$
10,098

 
 
PAE Holding Corporation
 
Aerospace & Defense
 
10.74% (1M L+950, 1.00% Floor)
 
10/20/23
 
$
28,097

 
$
27,363

 
$
28,272

 
Level 2
Total Aerospace & Defense— 1.9%(10)
 
 
 
 
 
$
27,363

 
$
28,272

 
 
K&N Parent, Inc.
 
Automotive
 
9.99% (1M L+875, 1.00% Floor)
 
10/21/24
 
$
27,000

 
$
26,517

 
$
26,730

 
Level 3
Total Automotive— 1.8%(10)
 
 
 
 
 
$
26,517

 
$
26,730

 
 
Access CIG, LLC
 
Business Services
 
9.98% (1M L+875, 1.00% Floor)
 
10/17/22
 
$
50,970

 
$
49,356

 
$
50,608

 
Level 3
Almonde, Inc (17)
 
Business Services
 
8.57% (3M L+725, 1.00% Floor)
 
6/13/25
 
2,316

 
2,293

 
2,364

 
Level 2
Ambrosia Buyer Corp.
 
Business Services
 
9.27% (3M L + 800)
 
8/28/25
 
21,429

 
20,900

 
20,896

 
Level 3
Appriss Holdings, Inc.
 
Business Services
 
10.58% (3M L+925, 1.00% Floor)
 
5/21/21
 
23,309

 
23,104

 
23,309

 
Level 3

See notes to financial statements.
8

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
 Par (12)
 
Cost
 
Fair
Value (1)
 
ASC 820 Level (32)
Aptean, Inc.
 
Business Services
 
10.84% (3M L+950, 1.00% Floor)
 
12/20/23
 
9,548

 
9,419

 
9,613

 
Level 2
CT Technologies Intermediate Hldgs, Inc (9)
 
Business Services
 
10.24% (1M L+900, 1.00% Floor)
 
12/1/22
 
31,253

 
30,387

 
30,315

 
Level 3
Electro Rent Corporation (9)
 
Business Services
 
10.27% (1M L+900, 1.00% Floor)
 
1/31/25
 
52,863

 
51,338

 
51,806

 
Level 3
Institutional Shareholder Services, Inc.
 
Business Services
 
9.74% (1M L+850, 1.00% Floor)
 
4/30/22
 
8,232

 
8,173

 
8,232

 
Level 3
Ministry Brands, LLC
 
Business Services
 
10.49% (1M L+925, 1.00% Floor)
 
6/2/23
 
10,000

 
9,868

 
9,859

 
Level 3
Poseidon Merger Sub, Inc.
 
Business Services
 
9.81% (3M L+850, 1.00% Floor)
 
8/15/23
 
18,000

 
17,602

 
18,000

 
Level 3
PSI Services, LLC (9)(16)
 
Business Services
 
10.24% (1M L+900, 1.00% Floor)
 
1/20/24
 
25,714

 
25,018

 
25,134

 
Level 3
RA Outdoors, LLC (9)(16)
 
Business Services
 
9.99% (1M L+875, 1.00% Floor)
 
9/11/25
 
34,200

 
33,351

 
33,345

 
Level 3
STG-Fairway Acquisitions, Inc.
 
Business Services
 
10.57% (3M L+925, 1.00% Floor)
 
6/30/23
 
15,000

 
14,730

 
13,499

 
Level 3
Velocity Technology Solutions, Inc.
 
Business Services
 
9.58% (3M L+825, 1.25% Floor)
 
9/28/20
 
16,500

 
16,347

 
16,583

 
Level 3
Total Business Services— 21.3%(10)
 
 
 
 
 
$
311,886

 
$
313,563

 
 
Avantor Performance Materials Holdings, LLC (16)
 
Chemicals, Plastics & Rubber
 
9.49% (1M L+825, 1.00% Floor)
 
3/10/25
 
$
1,629

 
$
1,614

 
$
1,633

 
Level 3
Hare Bidco, Inc.
 
Chemicals, Plastics & Rubber
 
9.75% (3M L+875, 1.00% Floor)
 
8/1/24
 
13,574

 
14,402

 
15,727

 
Level 3
Total Chemicals, Plastics & Rubber— 1.2%(10)
 
 
 
 
 
$
16,016

 
$
17,360

 
 
Hayward Industries, Inc.
 
Consumer Goods – Durable
 
9.48% (1M L+825)
 
8/4/25
 
$
25,110

 
$
24,618

 
$
24,616

 
Level 3
Total Consumer Goods – Durable— 1.7%(10)
 
 
 
 
 
$
24,618

 
$
24,616

 
 
ABG Intermdiate Holdings 2, LLC
 
Consumer Goods – Non-durable
 
9.75% (1M L+775, 2.00% Floor)
 
9/29/25
 
$
8,094

 
$
8,033

 
$
8,195

 
Level 2
Sequential Brands Group, Inc. (17)
 
Consumer Goods – Non-durable
 
10.24% (1M L+900)
 
7/1/22
 
17,336

 
17,163

 
17,096

 
Level 3
Total Consumer Goods – Non-durable— 1.7%(10)
 
 
 
 
 
$
25,196

 
$
25,291

 
 
Sprint Industrial Holdings, LLC (16)(30)
 
Containers, Packaging & Glass
 
13.50% PIK
 
11/14/19
 
$
16,163

 
$
15,775

 
$
6,491

 
Level 3
Sprint Industrial Holdings, LLC (16)(31)
 
Containers, Packaging & Glass
 
13.50% PIK
 
11/14/19
 
1,688

 
1,688

 
1,688

 
Level 3
Total Containers, Packaging & Glass— 0.6%(10)
 
 
 
 
 
$
17,463

 
$
8,179

 
 
Armor Holding II LLC
 
Diversified Investment Vehicles, Banking, Finance, Real Estate
 
10.34% (3M L+900, 1.25% Floor)
 
12/26/20
 
$
8,000

 
$
7,930

 
$
8,110

 
Level 3
Total Diversified Investment Vehicles, Banking, Finance, Real Estate— 0.6%
 
 
 
 
 
$
7,930

 
$
8,110

 
 
Grocery Outlet, Inc.
 
Food & Grocery
 
9.58% (3M L+825, 1.00% Floor)
 
10/21/22
 
$
25,000

 
$
24,761

 
$
25,281

 
Level 2
Total Food & Grocery— 1.7%(10)
 
 
 
 
 
$
24,761

 
$
25,281

 
 
Avalign Technologies, Inc.
 
Healthcare & Pharmaceuticals
 
9.57% (6M L+825, 1.00% Floor)
 
9/2/24
 
$
5,500

 
$
5,446

 
$
5,445

 
Level 3
BioClinica Holding I, LP
 
Healthcare & Pharmaceuticals
 
9.56% (3M L+825, 1.00% Floor)
 
10/21/24
 
24,612

 
24,175

 
24,174

 
Level 2
Elements Behavioral Health, Inc.
 
Healthcare & Pharmaceuticals
 
13.32% (3M L+1200 PIK, 1.00% Floor)
 
2/11/20
 
11,946

 
11,909

 
9,199

 
Level 3
Lanai Holdings III, Inc.
 
Healthcare & Pharmaceuticals
 
10.00% (6M L+850, 1.00% Floor)
 
8/28/23
 
17,391

 
16,954

 
16,957

 
Level 3
Total Healthcare & Pharmaceuticals— 3.8%(10)
 
 
 
 
 
$
58,484

 
$
55,775

 
 

See notes to financial statements.
9

Table of Contents
APOLLO INVESTMENT CORPORATION
SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2017
(In thousands, except share data)

Investment
 
Industry
 
Interest
Rate (20)
 
Maturity
Date
 
 Par (12)
 
Cost
 
Fair
Value (1)
 
ASC 820 Level (32)
DigiCert Holding, Inc.
 
High Tech Industries
 
9.33% (3M L+800, 1.00% Floor)
 
9/19/25
 
$
20,196

 
$
20,095

 
$
20,405

 
Level 2
Smokey Merger Sub, Inc. (9)
 
High Tech Industries
 
9.75% (3M L+875, 1.00% Floor)
 
5/24/24
 
30,000

 
29,145

 
29,100

 
Level 3
Total High Tech Industries— 3.4%(10)
 
 
 
 
 
$
49,240

 
$
49,505

 
 
SMG
 
Hotel, Gaming, Leisure, Restaurants
 
9.49% (1M L+825, 1.00% Floor)
 
2/27/21
 
$
19,649

 
$
19,649

 
$
19,600

 
Level 2
Total Hotel, Gaming, Leisure, Restaurants— 1.3%(10)
 
 
 
 
 
$
19,649

 
$
19,600

 
 
Confie Seguros Holding II Co.
 
Insurance
 
11.00% (1M L+975, 1.25% Floor)
 
5/8/19
 
$
21,844

 
$
21,791

 
$
21,462

 
Level 2
Total Insurance— 1.5%(10)
 
 
 
 
 
$
21,791

 
$
21,462

 
 
ATS Consolidated, Inc.
 
Manufacturing, Capital Equipment
 
9.74% (1M L+850, 1.00% Floor)
 
5/30/25
 
$
15,000

 
$
14,710

 
$
15,038

 
Level 3
MedPlast Holdings Inc.
 
Manufacturing, Capital Equipment
 
10.02% (3M L+875, 1.00% Floor)
 
6/6/23
 
8,000

 
7,816

 
7,800