Apollo Investment Earnings 2019-06-30

AINV 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

10-Q 1 ainv2020q110-q.htm 10-Q 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 June 30, 2019

¨ 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 57^th 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)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	AINV	NASDAQ Global Select Market
6.875% Senior Notes due 2043	AIY	New York Stock Exchange

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

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of August 5, 2019 was 67,791,343.

APOLLO INVESTMENT CORPORATION

Table of Contents



		Page
	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	1

	Statements of Assets and Liabilities June 30, 2019 and March 31, 2019	1

	Statements of Operations Three months ended June 30, 2019 and June 30, 2018	2

	Statements of Changes in Net Assets Three months ended June 30, 2019 and June 30, 2018	3

	Statements of Cash Flows Three months ended June 30, 2019 and June 30, 2018	4

	Schedule of Investments June 30, 2019	5

	Schedule of Investments March 31, 2019	28

	Notes to Financial Statements	48

	Report of Independent Registered Public Accounting Firm	76

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	77

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	89

Item 4.	Controls and Procedures	90

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	91

Item 1A.	Risk Factors	91

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	91

Item 3.	Defaults Upon Senior Securities	93

Item 4.	Mine Safety Disclosures	93

Item 5.	Other Information	93

Item 6.	Exhibits	94

	Signatures	95

Table of Contents

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)

	June 30, 2019			March 31, 2019
	(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $1,927,308 and $1,654,322, respectively)	$	1,896,346		$	1,627,406
Non-controlled/affiliated investments (cost — $66,238 and $67,072, respectively)	49,756			49,681
Controlled investments (cost — $689,577 and $736,717, respectively)	674,210			731,045
Cash and cash equivalents	29,210			36,280
Foreign currencies (cost — $1,353 and $4,963, respectively)	1,360			4,909
Receivable for investments sold	684			336
Interest receivable	25,693			24,280
Dividends receivable	4,067			3,748
Deferred financing costs	18,836			19,776
Prepaid expenses and other assets	268			336
Total Assets	$	2,700,430		$	2,497,797

Liabilities
Debt	$	1,349,598		$	1,128,686
Payable for investments purchased	—			677
Distributions payable	30,624			31,040
Management and performance-based incentive fees payable	9,539			8,880
Interest payable	10,404			5,818
Accrued administrative services expense	2,295			2,983
Other liabilities and accrued expenses	7,260			7,086
Total Liabilities	$	1,409,720		$	1,185,170
Commitments and contingencies (Note 10)
Net Assets	$	1,290,710		$	1,312,627

Net Assets
Common stock, $0.001 par value (400,000,000 shares authorized; 67,927,353 and 68,876,986 shares issued and outstanding, respectively)	$	68		$	69
Capital in excess of par value	2,140,715			2,155,836
Accumulated under-distributed (over-distributed) earnings	(850,073		)	(843,278		)
Net Assets	$	1,290,710		$	1,312,627

Net Asset Value Per Share	$	19.00		$	19.06

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)

	Three Months Ended June 30,
	2019			2018
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	47,004		$	39,443
Dividend income	62			—
PIK interest income	4,706			1,250
Other income	937			1,403
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	—			—
Dividend income	319			312
PIK interest income	—			—
Other income	—			—
Controlled investments:
Interest income (excluding PIK interest income)	12,638			14,490
Dividend income	—			5,265
PIK interest income	850			1,428
Other income	—			—
Total Investment Income	$	66,516		$	63,591
Expenses
Management fees	$	9,539		$	8,873
Performance-based incentive fees	—			7,423
Interest and other debt expenses	17,511			13,576
Administrative services expense	1,725			1,638
Other general and administrative expenses	3,305			2,533
Total expenses	32,080			34,043
Management and performance-based incentive fees waived	—			(1,856		)
Expense reimbursements	(98		)	(144		)
Net Expenses	$	31,982		$	32,043
Net Investment Income	$	34,534		$	31,548
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	(9	)	$	(9,946	)
Non-controlled/affiliated investments	1,089			—
Controlled investments	—			—
Option contracts	—			(13,209		)
Foreign currency transactions	202			(28		)
Net realized gains (losses)	1,282			(23,183		)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments	(4,046		)	(5,123		)
Non-controlled/affiliated investments	910			(865		)
Controlled investments	(9,696		)	8,579
Option contracts	—			(567		)
Foreign currency translations	845			2,861
Net change in unrealized gains (losses)	(11,987		)	4,885
Net Realized and Change in Unrealized Gains (Losses)	$	(10,705	)	$	(18,298	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	23,829		$	13,250
Earnings Per Share — Basic	$	0.35		$	0.18

See notes to financial statements.

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

	Three Months Ended June 30,
	2019			2018
Operations
Net investment income	$	34,534		$	31,548
Net realized gains (losses)	1,282			(23,183		)
Net change in unrealized gains (losses)	(11,987		)	4,885
Net Increase in Net Assets Resulting from Operations	$	23,829		$	13,250

Distributions to Stockholders
Distribution of net investment income	$	(30,624	)	$	(32,293	)
Distribution of return of capital	—			—
Net Decrease in Net Assets Resulting from Distributions to Stockholders	$	(30,624	)	$	(32,293	)

Capital Share Transactions
Repurchase of common stock	$	(15,122	)	$	(7,877	)
Net Decrease in Net Assets Resulting from Capital Share Transactions	$	(15,122	)	$	(7,877	)

Net Assets
Net decrease in net assets during the period	$	(21,917	)	$	(26,920	)
Net assets at beginning of period	1,312,627			1,418,086
Net Assets at End of Period	$	1,290,710		$	1,391,166

Capital Share Activity
Shares repurchased during the period	(949,633		)	(462,267		)
Shares issued and outstanding at beginning of period	68,876,986			72,104,032
Shares Issued and Outstanding at End of Period	67,927,353			71,641,765

See notes to financial statements.

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

	Three Months Ended June 30,
	2019			2018
Operating Activities
Net increase in net assets resulting from operations	$	23,829		$	13,250
Net realized (gains) losses	(1,282		)	23,183
Net change in unrealized (gains) losses	11,987			(4,885		)
Net amortization of premiums and accretion of discounts on investments	(2,125		)	(1,536		)
Accretion of discount on notes	148			148
Amortization of deferred financing costs	1,266			1,165
Increase in gains/(losses) from foreign currency transactions	201			(28		)
PIK interest and dividends capitalized	(4,883		)	(1,983		)
Changes in operating assets and liabilities:
Purchases of investments	(435,936		)	(389,324		)
Proceeds from sales and repayments of investments	217,988			94,019
Purchases of option contracts	—			(13,277		)
Proceeds from option contracts	—			288
Net settlement of option contracts	—			2,265
Decrease (increase) in interest receivable	(1,402		)	(1,142		)
Decrease (increase) in dividends receivable	(319		)	(5,265		)
Decrease (increase) in prepaid expenses and other assets	68			(382		)
Increase (decrease) in management and performance-based incentive fees payable	659			921
Increase (decrease) in interest payable	4,586			4,874
Increase (decrease) in accrued administrative services expense	(688		)	(932		)
Increase (decrease) in other liabilities and accrued expenses	174			107
Net Cash Used in Operating Activities	$	(185,729	)	$	(278,534	)
Financing Activities
Issuances of debt	$	333,892		$	328,918
Payments of debt	(112,497		)	(13,500		)
Financing costs paid and deferred	(184		)	—
Repurchase of common stock	(15,122		)	(7,877		)
Distributions paid	(31,040		)	(32,447		)
Net Cash Provided by Financing Activities	$	175,049		$	275,094

Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts
Net increase (decrease) in cash, cash equivalents, foreign currencies and collateral on option contracts during the period	$	(10,680	)	$	(3,440	)
Effect of foreign exchange rate changes on cash and cash equivalents	61			(14		)
Cash, cash equivalents, foreign currencies and collateral on option contracts at beginning of period	41,189			20,349
Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts at the End of Period	$	30,570		$	16,895

Supplemental Disclosure of Cash Flow Information
Cash interest paid	$	11,528		$	7,437

Non-Cash Activity
PIK income	$	5,556		$	2,678

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (29)			Fair Value (1) (30)
Advertising, Printing & Publishing
A-L Parent LLC	Second Lien Secured Debt	9.66% (1M L+725, 1.00% Floor)	12/02/24	$	5,536	$	5,498		$	5,501		(10)
Simplifi Holdings, Inc.	First Lien Secured Debt	7.40% (1M L+500, 1.00% Floor)	09/28/22	24,691		24,317			24,444			(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/28/22	2,400		(47		)	(24		)	(8)(9)(21)(23)
						24,270			24,420
Total Advertising, Printing & Publishing						$	29,768		$	29,921
Aerospace & Defense
Erickson Inc	First Lien Secured Debt - Revolver	9.82% (3M L+750, 1.00% Floor)	04/28/22	$	30,313	$	30,313		$	29,782		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/28/22	8,251		(318		)	(144		)	(8)(9)(21)(23)
	First Lien Secured Debt - Letters of Credit	7.50%	7/15/19 - 10/01/20	6,436		—			(113		)	(8)(9)(23)
						29,995			29,525
ILC Dover LP	Second Lien Secured Debt	10.70% (6M L+850, 1.00% Floor)	06/28/24	20,000		19,652			19,650
PAE Holding Corporation	Second Lien Secured Debt	11.83% (3M L+950, 1.00% Floor)	10/20/23	28,097		27,570			27,745			(10)
Total Aerospace & Defense						$	77,217		$	76,920
Automotive
Accelerate Parent Corp.	Common Equity/Interests - Common Stock	N/A	N/A	1,664,046 Shares		$	1,714		$	—		(13)(28)
Arlington Industries Group Limited	First Lien Secured Debt	5.97% (1M GBP L+525, 0.50% Floor)	03/29/24	£	1,300	1,637			1,622			(9)(17)
	First Lien Secured Debt	5.97% (1M GBP L+525, 0.50% Floor)	03/29/24	£	6,780	8,629			8,461			(9)(17)
	First Lien Secured Debt	5.25% (1M E L+525, 0.50% Floor)	03/29/24	€	3,297	3,693			3,682			(9)(17)
	First Lien Secured Debt - Revolver	5.97% (1M GBP L+525, 0.50% Floor)	03/29/24	£	687	871			858			(9)(17)(23)
	First Lien Secured Debt - Unfunded Revolver	1.25% Unfunded	03/29/24	£	1,104	(68		)	(27		)	(8)(9)(17)(21)(23)
	First Lien Secured Debt - Revolver	5.25% (1M E L+525, 0.50% Floor)	03/29/24	€	1,027	1,155			1,147			(9)(17)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	03/29/24	£	1,300	(33		)	(32		)	(8)(9)(17)(21)(23)
						15,884			15,711
Crowne Automotive
Vari-Form Group, LLC	First Lien Secured Debt	L+11.00% (7.00% Cash plus 4.00% PIK)	02/02/23	$	5,860	5,382			938			(9)(13)(14)
Vari-Form Inc.	First Lien Secured Debt	L+11.00% (7.00% Cash plus 4.00% PIK)	02/02/23	2,446		2,604			391			(9)(13)(14)
						7,986			1,329
K&N Parent, Inc.	Second Lien Secured Debt	11.15% (1M L+875, 1.00% Floor)	10/21/24	23,765		23,444			23,289			(10)
Total Automotive						$	49,028		$	40,329
Aviation and Consumer Transport
Merx Aviation Finance, LLC (5)	First Lien Secured Debt - Revolver	12.00%	10/31/23	$	325,200	$	325,200		$	325,200		(23)
	First Lien Secured Debt - Letter of Credit	2.25%	07/13/19	177		—			—			(23)
	Common Equity/Interests - Membership Interests	N/A	N/A	N/A		15,000			55,715
Total Aviation and Consumer Transport						$	340,200		$	380,915

See notes to financial statements.

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APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (29)			Fair Value (1) (30)
Beverage, Food & Tobacco
Eagle Foods Family Group, LLC	First Lien Secured Debt	9.12% (6M L+650, 1.00% Floor)	06/14/24	$	24,333	$	24,107		$	23,968		(9)
	First Lien Secured Debt	8.82% (3M L+650, 1.00% Floor)	06/14/24	417		413			410			(9)
	First Lien Secured Debt - Revolver	9.12% (6M L+650, 1.00% Floor)	06/14/23	917		917			903			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/14/23	2,833		(33		)	(43		)	(8)(9)(21)(23)
						25,404			25,238
Florida Food Group
Florida Food Products, Inc.	First Lien Secured Debt	9.15% (1M L+675, 1.00% Floor)	09/08/25	23,113		22,602			22,882			(9)
Florida Food Products, LLC	First Lien Secured Debt - Revolver	9.15% (1M L+675, 1.00% Floor)	09/06/23	1,473		1,473			1,458			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/06/23	240		(36		)	(2		)	(8)(9)(21)(23)
						1,437			1,456
IC Holdings LLC	Common Equity - Series A Units	N/A	N/A	169 Shares		169			169			(9)(13)
THLP CO. LLC	First Lien Secured Debt	7.90% (1M L+550, 1.00% Floor)	05/30/25	19,562		19,176			19,171			(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/31/24	4,494		(88		)	(90		)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	05/30/25	5,618		(54		)	(112		)	(8)(9)(21)(23)
						19,034			18,969
TNT Crust LLC	First Lien Secured Debt	8.65% (1M L+625, 1.00% Floor)	11/06/23	9,060		8,903			8,879			(9)
	First Lien Secured Debt	7.63% (1M L+525, 1.00% Floor)	11/06/23	10,403		10,196			10,195			(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/06/23	3,252		(61		)	(65		)	(8)(9)(21)(23)
	Common Equity - Series A Units	N/A	N/A	244 Shares		30			321			(9)(13)
						19,068			19,330
Wm. Bolthouse Farms, Inc.	Common Equity - Common Stock	N/A	N/A	1,000,000 Shares		1,000			1,000			(13)
Total Beverage, Food & Tobacco						$	88,714		$	89,044
Business Services
Access CIG, LLC	Second Lien Secured Debt	10.07% (3M L+775)	02/27/26	$	15,900	$	15,776		$	15,811		(10)
Aero Operating LLC	First Lien Secured Debt	9.65% (1M L+725, 1.00% Floor)	12/29/22	36,803		36,140			36,435			(9)
	First Lien Secured Debt - Unfunded Revolver	1.00% Unfunded	12/29/22	3,773		(84		)	(38		)	(8)(9)(21)(23)
	First Lien Secured Debt - Letters of Credit	L+400	04/30/20 - 06/21/20	1,039		—			(10		)	(8)(9)(23)
						36,056			36,387
Ambrosia Buyer Corp.	Second Lien Secured Debt	10.20% (6M L+800, 1.00% Floor)	08/28/25	21,429		21,016			20,885
Claritas, LLC	First Lien Secured Debt	8.33% (1M L+600, 1.00% Floor)	12/21/23	3,919		3,883			3,880			(9)
	First Lien Secured Debt - Revolver	8.40% (1M L+600, 1.00% Floor)	12/21/23	129		129			128			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/21/23	902		(10		)	(9		)	(8)(9)(21)(23)
						4,002			3,999
Continuum Global Solutions, LLC	First Lien Secured Debt - Revolver	7.90% (1M L+550, 1.00% Floor)	02/15/22	941		941			922			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/15/22	9,829		(189		)	(197		)	(8)(9)(21)(23)

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (29)		Fair Value (1) (30)
	Preferred Equity - Preferred Equity	N/A	N/A	620 Shares		62		62		(9)(13)
						814		787
CT Technologies Intermediate Holdings, Inc	First Lien Secured Debt	6.65% (1M L+425, 1.00% Floor)	12/01/21	4,449		3,896		3,804		(9)(10)
	Second Lien Secured Debt	11.40% (1M L+900, 1.00% Floor)	12/01/22	31,253		30,677		28,128		(9)
						34,573		31,932
Education Personnel	First Lien Secured Debt	5.55% (3M GBP L+475, 0.50% Floor)	08/31/24	£	4,118	5,225		5,192		(9)(17)
	First Lien Secured Debt - Revolver	5.55% (3M GBP L+475, 0.50% Floor)	08/31/24	£	1,471	1,866		1,854		(9)(17)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.66% Unfunded	08/31/24	£	4,412	—		—		(9)(17)(21)(23)
						7,091		7,046
Electro Rent Corporation	Second Lien Secured Debt	11.52% (2M L+900, 1.00% Floor)	01/31/25	34,235		33,456		33,551		(9)
Jacent Strategic Merchandising	First Lien Secured Debt	8.33% (3M L+575, 1.00% Floor)	04/23/24	22,750		22,422		22,750		(9)
	First Lien Secured Debt - Revolver	8.08% (3M L+575, 1.00% Floor)	04/23/24	467		467		467		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/23/24	3,033		(51	)	—		(9)(21)(23)
	Common Equity/Interests - Membership Interests	N/A	N/A	5,000 Shares		500		500		(9)(13)
						23,338		23,717
McLarens Global Ltd.
Margaux Acquisition Inc.	First Lien Secured Debt	8.32% (3M L+600, 1.00% Floor)	12/19/24	18,943		18,623		18,754		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/19/24	1,601		(29	)	(16	)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/19/24	4,461		(106	)	(45	)	(8)(9)(21)(23)
Margaux UK Finance Limited	First Lien Secured Debt	7.00% (3M GBP L+600, 1.00% Floor)	12/19/24	£	5,940	7,369		7,485		(9)(17)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/19/24	£	541	(12	)	(7	)	(8)(9)(17)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/19/24	£	1,353	(31	)	(17	)	(8)(9)(17)(21)(23)
						25,814		26,154
Ministry Brands, LLC	Second Lien Secured Debt	11.58% (3M L+925, 1.00% Floor)	6/2/2023	10,000		9,908		10,050
Newscycle Solutions, Inc.	First Lien Secured Debt	9.40% (1M L+700, 1.00% Floor)	12/29/22	16,427		16,140		16,263		(9)
	First Lien Secured Debt - Revolver	9.40% (1M L+700, 1.00% Floor)	12/29/22	320		320		317		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/29/22	180		(9	)	(2	)	(8)(9)(21)(23)
						16,451		16,578
PSI Services, LLC	First Lien Secured Debt	7.40% (1M L+500, 1.00% Floor)	01/20/23	4,563		4,495		4,540		(9)
	First Lien Secured Debt - Revolver	10.50% (P+500, 1.00% Floor)	01/20/22	278		278		277		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/20/22	£	47	—		—		(8)(9)(21)(23)

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (29)			Fair Value (1) (30)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/20/22	119		(5		)	(1		)	(8)(9)(21)(23)
	Second Lien Secured Debt	11.40% (1M L+900, 1.00% Floor)	01/20/24	37,893		37,154			37,926			(9)
						41,922			42,742
RA Outdoors, LLC	First Lien Secured Debt	7.15% (1M L+475, 1.00% Floor)	09/11/24	7,120		7,014			6,942			(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/09/22	1,176		(15		)	(24		)	(8)(9)(21)(23)
	First Lien Secured Debt - Letter of Credit	4.75%	08/28/19	24		—			—			(8)(9)(23)
	Second Lien Secured Debt	11.15% (1M L+875, 1.00% Floor)	09/11/25	34,200		33,536			33,174			(9)
						40,535			40,092
STG-Fairway Acquisitions, Inc.	Second Lien Secured Debt	11.65% (1M L+925, 1.00% Floor)	06/30/23	15,000		14,811			14,400
TGG TS Acquisition Company	First Lien Secured Debt - Revolver	8.90% (1M L+650)	12/14/23	290		290			283			(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/14/23	1,460		—			(37		)	(8)(21)(23)
						290			246
Transplace Holdings, Inc.	Second Lien Secured Debt	11.15% (1M L+875, 1.00% Floor)	10/06/25	8,599		8,429			8,427			(10)
U.S. Legal Support
USLS Acquisition, Inc.	First Lien Secured Debt	8.19% (3M L+575, 1.00% Floor)	12/02/24	19,999		19,638			19,616			(9)
	First Lien Secured Debt	8.08% (3M L+575, 1.00% Floor)	12/02/24	1,738		1,721			1,704			(9)
	First Lien Secured Debt - Revolver	8.08% (3M L+575)	12/02/24	536		536			526			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/02/24	986		(29		)	(19		)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	12/02/24	2,948		(42		)	(53		)	(8)(9)(21)(23)
	First Lien Secured Debt - Letter of Credit	5.75%	10/15/19 - 06/06/20	86		—			(1		)	(8)(9)(23)
US Legal Support Investment Holdings, LLC	Common Equity/Interests - Series A-1 Units	N/A	N/A	631,972 Shares		632			684			(9)(13)
						22,456			22,457
Vertafore, Inc.	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/30/23	14,576		(1,381		)	(1,676		)	(8)(21)(23)
	First Lien Secured Debt - Letter of Credit	3.25%	01/17/20	424		—			(49		)	(8)(23)
						(1,381		)	(1,725		)
Total Business Services						$	355,357		$	353,536
Chemicals, Plastics & Rubber
Carbon Free Chemicals
Carbonfree Caustic SPE LLC	First Lien Secured Debt	5.00%	12/31/21	$	11,200	$	11,200		$	11,200
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)	First Lien Secured Debt	5.22% PIK	12/31/21	50,305		50,305			43,732
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded	12/31/21	1,911		—			—			(21)(23)
	Common Equity/Interests - Membership Interests	N/A	N/A	9,000,000 Shares		9,000			—			(13)
						70,505			54,932

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (29)			Fair Value (1) (30)
Hare Bidco, Inc.	Second Lien Secured Debt	9.75% (3M E+875)	08/01/24	€	13,574	14,475			15,304
Westfall Technik, Inc.	First Lien Secured Debt	7.83% (3M L+550, 1.00% Floor)	09/13/24	15,132		14,953			14,981			(9)
	First Lien Secured Debt - Revolver	8.04% (3M L+550, 1.00% Floor)	09/13/24	1,077		1,077			1,066			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/13/24	942		(35		)	(9		)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	09/13/24	13,774		(225		)	(138		)	(8)(9)(21)(23)
						15,770			15,900
Total Chemical, Plastics & Rubber						$	100,750		$	86,136
Construction & Building
Englert
Gutter Buyer, Inc.	First Lien Secured Debt	8.66% (1M L+625, 1.00% Floor)	03/06/25	$	23,864	$	23,298		$	23,276		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	03/06/24	2,727		(64		)	(67		)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	03/06/25	3,409		(48		)	(50		)	(8)(9)(21)(23)
Gutter Holdings, LP	Common Equity/Interests - Membership Interests	N/A	N/A	500 Shares		500			551			(9)(13)
Total Construction & Building						$	23,686		$	23,710
Consumer Goods – Durable
Hayward Industries, Inc.	Second Lien Secured Debt	10.65% (1M L+825)	08/04/25	$	21,919	$	21,661		$	21,590
KDC US Holdings	First Lien Secured Debt - Revolver	7.75% (P+225)	12/21/23	1,445		1,445			1,323			(23)
	First Lien Secured Debt - Unfunded Revolver	0.25% Unfunded	12/21/23	4,471		—			(376		)	(8)(21)(23)
	First Lien Secured Debt - Letters of Credit	3.25%	12/31/19 - 03/08/20	104		—			(9		)	(8)(23)
						1,445			938
KLO Holdings
9357-5991 Quebec Inc.	First Lien Secured Debt	10.25% (1M L+775)	04/07/22	8,763		8,702			7,447			(13)(14)
KLO Acquisition LLC	First Lien Secured Debt	10.25% (1M L+775)	04/07/22	5,073		5,038			4,311			(13)(14)
						13,740			11,758
Project Comfort Buyer, Inc.	First Lien Secured Debt	9.81% (6M L+700, 1.00% Floor)	02/03/25	23,621		22,960			23,384			(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/01/24	3,462		(95		)	(35		)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	02/03/25	2,308		(32		)	(23		)	(8)(9)(21)(23)
	Preferred Equity - Preferred Equity	N/A	N/A	461,538 Shares		462			508			(9)(13)
						23,295			23,834
Sorenson Holdings, LLC	Common Equity/Interests - Membership Interests	N/A	N/A	587 Shares		—			477			(10)(13)
Total Consumer Goods - Durable						$	60,141		$	58,597
Consumer Goods – Non-durable
ABG Intermediate Holdings 2, LLC	Second Lien Secured Debt	10.15% (1M L+775, 1.00% Floor)	09/29/25	$	7,229	$	7,205		$	7,162		(10)
BIG Buyer, LLC	First Lien Secured Debt	8.90% (1M L+650, 1.00% Floor)	11/20/23	29,190		28,419			28,898			(9)
	First Lien Secured Debt - Revolver	8.90% (1M L+650, 1.00% Floor)	11/20/23	361		361			357			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/20/23	1,444		(48		)	(14		)	(8)(9)(21)(23)
						28,732			29,241

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

June 30, 2019

(In thousands, except share data)

Industry / Company

Investment Type

Interest Rate (20)

Maturity
Date

Par / Shares (12)

Cost (29)

Fair
Value (1) (30)

Lion Cashmere Midco Limited

First Lien Secured Debt

10-Q	2019-06-30	Quarter: 2019-06-30
10-K	2019-03-31	Annual: 2019-03-31
10-Q	2018-12-31	Quarter: 2018-12-31
10-Q	2018-09-30	Quarter: 2018-09-30
10-Q	2018-06-30	Quarter: 2018-06-30
10-K	2018-03-31	Annual: 2018-03-31
10-Q	2017-12-31	Quarter: 2017-12-31
10-Q	2017-09-30	Quarter: 2017-09-30
10-Q	2017-06-30	Quarter: 2017-06-30
10-K	2017-03-31	Annual: 2017-03-31
10-Q	2016-12-31	Quarter: 2016-12-31
10-Q	2016-09-30	Quarter: 2016-09-30
10-Q	2016-06-30	Quarter: 2016-06-30
10-K	2016-03-31	Annual: 2016-03-31
10-Q	2015-12-31	Quarter: 2015-12-31
10-Q	2015-09-30	Quarter: 2015-09-30
10-Q	2015-06-30	Quarter: 2015-06-30
10-K	2015-03-31	Annual: 2015-03-31
10-Q	2014-12-31	Quarter: 2014-12-31
10-Q	2014-09-30	Quarter: 2014-09-30
10-Q	2014-06-30	Quarter: 2014-06-30
10-K	2014-03-31	Annual: 2014-03-31
10-Q	2013-12-31	Quarter: 2013-12-31

8-K	2019-09-30	Officers
8-K	2019-08-09	Shareholder Vote
8-K	2019-08-06	Other Events, Exhibits
8-K	2019-07-22	Amend Bylaw
8-K	2019-07-12	Other Events
8-K	2019-05-31	Other Events
8-K	2019-05-16	Earnings, Exhibits
8-K	2019-03-01	Other Events
8-K	2019-02-06	Earnings, Other Events, Exhibits
8-K	2019-01-16	Other Events
8-K	2018-12-03	Amend Bylaw, Other Events, Exhibits
8-K	2018-11-20	Enter Agreement, Other Events, Exhibits
8-K	2018-10-30	Earnings, Other Events, Exhibits
8-K	2018-08-09	Enter Agreement, Shareholder Vote, Exhibits
8-K	2018-08-08	Other Events, Exhibits
8-K	2018-04-04	Other Events

APOP	Cellect Biotechnology	65
AQB	Aquabounty Technologies	63
FPF	Futures Portfolio Fund	0
PBY	Pep Boys Manny Moe & Jack	0
PNNT	Pennantpark Investment	0
FDUS	Fidus Investment	0
RCG	Renn Fund	0
AIQ	Alliance Healthcare Services	0
SAF	Safeco	0
OFS	OFS Capital	0

EX-31.1	ainv2020q110-qex311.htm
EX-31.2	ainv2020q110-qex312.htm
EX-32.1	ainv2020q110-qex321.htm