Apollo Investment Earnings 2019-09-30

AINV 10Q Quarterly Report

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10-Q 1 ainv2020q210-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 September 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

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 November 4, 2019 was 66,545,741.

APOLLO INVESTMENT CORPORATION

Table of Contents



		Page
	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements	1

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

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

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

	Statements of Cash Flows Six months ended September 30, 2019 and September 30, 2018	4

	Schedule of Investments September 30, 2019	5

	Schedule of Investments March 31, 2019	29

	Notes to Financial Statements	49

	Report of Independent Registered Public Accounting Firm	77

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	78

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	92

Item 4.	Controls and Procedures	93

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	94

Item 1A.	Risk Factors	94

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	94

Item 3.	Defaults Upon Senior Securities	96

Item 4.	Mine Safety Disclosures	96

Item 5.	Other Information	97

Item 6.	Exhibits	97

	Signatures	98

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)

	September 30, 2019			March 31, 2019
	(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $2,159,801 and $1,654,322, respectively)	$	2,121,375		$	1,627,406
Non-controlled/affiliated investments (cost — $67,304 and $67,072, respectively)	49,164			49,681
Controlled investments (cost — $662,657 and $736,717, respectively)	634,221			731,045
Cash and cash equivalents	31,637			36,280
Foreign currencies (cost — $4,860 and $4,963, respectively)	4,801			4,909
Receivable for investments sold	269			336
Interest receivable	28,692			24,280
Dividends receivable	4,381			3,748
Deferred financing costs	17,693			19,776
Prepaid expenses and other assets	729			336
Total Assets	$	2,892,962		$	2,497,797

Liabilities
Debt	$	1,584,128		$	1,128,686
Payable for investments purchased	—			677
Distributions payable	30,171			31,040
Management and performance-based incentive fees payable	12,101			8,880
Interest payable	3,666			5,818
Accrued administrative services expense	2,354			2,983
Other liabilities and accrued expenses	7,150			7,086
Total Liabilities	$	1,639,570		$	1,185,170
Commitments and contingencies (Note 10)
Net Assets	$	1,253,392		$	1,312,627

Net Assets
Common stock, $0.001 par value (130,000,000 and 400,000,000 shares authorized; 67,047,352 and 68,876,986 shares issued and outstanding, respectively)	$	67		$	69
Capital in excess of par value	2,126,502			2,155,836
Accumulated under-distributed (over-distributed) earnings	(873,177		)	(843,278		)
Net Assets	$	1,253,392		$	1,312,627

Net Asset Value Per Share	$	18.69		$	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 September 30,						Six Months Ended September 30,
	2019			2018			2019			2018
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	51,489		$	44,586		$	98,493		$	84,029
Dividend income	5			—			66			—
PIK interest income	732			816			5,438			2,066
Other income	2,185			1,810			3,122			3,213
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	—			—			—			—
Dividend income	313			295			632			607
PIK interest income	—			—			—			—
Other income	—			—			—			—
Controlled investments:
Interest income (excluding PIK interest income)	12,271			15,075			24,910			29,565
Dividend income	2,451			1,985			2,451			7,250
PIK interest income	872			1,467			1,722			2,895
Other income	—			—			—			—
Total Investment Income	$	70,318		$	66,034		$	136,834		$	129,625
Expenses
Management fees	$	10,190		$	9,258		$	19,729		$	18,131
Performance-based incentive fees	1,911			6,359			1,911			13,782
Interest and other debt expenses	18,735			14,903			36,246			28,480
Administrative services expense	1,542			1,857			3,267			3,495
Other general and administrative expenses	2,305			3,524			5,609			6,056
Total expenses	34,683			35,901			66,762			69,944
Management and performance-based incentive fees waived	—			(1,834		)	—			(3,690		)
Expense reimbursements	(99		)	(196		)	(196		)	(339		)
Net Expenses	$	34,584		$	33,871		$	66,566		$	65,915
Net Investment Income	$	35,734		$	32,163		$	70,268		$	63,710
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	(5,701	)	$	228		$	(5,710	)	$	(9,718	)
Non-controlled/affiliated investments	—			2,007			1,089			2,007
Controlled investments	—			—			—			—
Option contracts	—			(10,311		)	—			(23,520		)
Foreign currency transactions	(1,387		)	2			(1,185		)	(26		)
Extinguishment of debt	(4,375		)	—			(4,375		)	—
Net realized gains (losses)	(11,463		)	(8,074		)	(10,181		)	(31,257		)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments	(7,463		)	(5,717		)	(11,508		)	(10,839		)
Non-controlled/affiliated investments	(1,659		)	(3,094		)	(750		)	(3,960		)
Controlled investments	(13,069		)	1,393			(22,765		)	9,973
Option contracts	—			10,926			—			10,359
Foreign currency translations	4,988			432			5,833			3,293
Net change in unrealized gains (losses)	(17,203		)	3,940			(29,190		)	8,826
Net Realized and Change in Unrealized Gains (Losses)	$	(28,666	)	$	(4,134	)	$	(39,371	)	$	(22,431	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	7,068		$	28,029		$	30,897		$	41,279
Earnings Per Share — Basic	$	0.10		$	0.39		$	0.45		$	0.58

See notes to financial statements.

Table of Contents

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

	Three Months Ended September 30,						Six Months Ended September 30,
	2019			2018			2019			2018
Operations
Net investment income	$	35,734		$	32,163		$	70,268		$	63,710
Net realized gains (losses)	(11,463		)	(8,074		)	(10,181		)	(31,257		)
Net change in unrealized gains (losses)	(17,203		)	3,940			(29,190		)	8,826
Net Increase in Net Assets Resulting from Operations	$	7,068		$	28,029		$	30,897		$	41,279

Distributions to Stockholders
Distribution of net investment income	$	(30,171	)	$	(31,938	)	$	(60,795	)	$	(64,231	)
Distribution of return of capital	—			—			—			—
Net Decrease in Net Assets Resulting from Distributions to Stockholders	$	(30,171	)	$	(31,938	)	$	(60,795	)	$	(64,231	)

Capital Share Transactions
Repurchase of common stock	(14,215		)	(16,104		)	(29,337		)	(23,982		)
Net Decrease in Net Assets Resulting from Capital Share Transactions	$	(14,215	)	$	(16,104	)	$	(29,337	)	$	(23,982	)

Net Assets
Net decrease in net assets during the period	$	(37,318	)	$	(20,013	)	$	(59,235	)	$	(46,934	)
Net assets at beginning of period	1,290,710			1,391,165			1,312,627			1,418,086
Net Assets at End of Period	$	1,253,392		$	1,371,152		$	1,253,392		$	1,371,152

Capital Share Activity
Shares repurchased during the period	(880,001		)	(956,100		)	(1,829,634		)	(1,418,367		)
Shares issued and outstanding at beginning of period	67,927,353			71,641,765			68,876,986			72,104,032
Shares Issued and Outstanding at End of Period	67,047,352			70,685,665			67,047,352			70,685,665

See notes to financial statements.

Table of Contents

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

	Six Months Ended September 30,
	2019			2018
Operating Activities
Net increase (decrease) in net assets resulting from operations	$	30,897		$	41,279
Net realized (gains) losses	10,181			31,257
Net change in unrealized (gains) losses	29,190			(8,826		)
Net amortization of premiums and accretion of discounts on investments	(4,337		)	(3,358		)
Accretion of discount on notes	297			297
Amortization of deferred financing costs	2,526			2,345
Increase in gains/(losses) from foreign currency transactions	(1,185		)	(26		)
PIK interest and dividends capitalized	(5,982		)	(4,089		)
Changes in operating assets and liabilities:
Purchases of investments	(912,673		)	(760,464		)
Proceeds from sales and repayments of investments	486,112			639,764
Purchases of option contracts	—			(23,740		)
Proceeds from option contracts	—			546
Net settlement of option contracts	—			12,414
Decrease (increase) in interest receivable	(4,402		)	332
Decrease (increase) in dividends receivable	(633		)	—
Decrease (increase) in prepaid expenses and other assets	(393		)	(768		)
Increase (decrease) in management and performance-based incentive fees payable	3,221			268
Increase (decrease) in interest payable	(2,152		)	385
Increase (decrease) in accrued administrative services expense	(629		)	(275		)
Increase (decrease) in other liabilities and accrued expenses	64			3,069
Net Cash Used in/Provided by Operating Activities	$	(369,898	)	$	(69,590	)
Financing Activities
Issuances of debt	$	799,134		$	553,603
Payments of debt	(342,797		)	(394,500		)
Financing costs paid and deferred	(184		)	(10		)
Repurchase of common stock	(29,337		)	(23,982		)
Distributions paid	(61,664		)	(64,736		)
Net Cash Used in/Provided by Financing Activities	$	365,152		$	70,375

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	$	(4,746	)	$	785
Effect of foreign exchange rate changes on cash and cash equivalents	(5		)	(11		)
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	$	36,438		$	21,123

Supplemental Disclosure of Cash Flow Information
Cash interest paid	$	35,627		$	25,455

Non-Cash Activity
PIK income	$	7,160		$	4,961

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)			Fair Value (1)(29)
Advertising, Printing & Publishing
A-L Parent LLC	Second Lien Secured Debt	9.30% (1M L+725, 1.00% Floor)	12/02/24	$	5,536	$	5,500		$	5,508
Simplifi Holdings, Inc.	First Lien Secured Debt	8.04% (1M L+500, 1.00% Floor)	08/02/25	36,582		35,929			35,851			(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/02/25	2,400		(54		)	(48		)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	08/04/25	2,436		(24		)	(49		)	(8)(9)(21)(23)
						35,851			35,754
Total Advertising, Printing & Publishing						$	41,351		$	41,262
Aerospace & Defense
Erickson Inc	First Lien Secured Debt - Revolver	9.82% (3M L+750, 1.00% Floor)	04/28/22	$	32,487	$	32,487		$	31,919		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/28/22	5,965		(290		)	(104		)	(8)(9)(21)(23)
	First Lien Secured Debt - Letters of Credit	7.50%	9/30/19 - 2/24/21	6,548		—			(113		)	(8)(9)(23)
						32,197			31,702
ILC Dover LP	Second Lien Secured Debt	10.70% (3M L+850, 1.00% Floor)	06/28/24	7,800		7,671			7,683
PAE Holding Corporation	Second Lien Secured Debt	11.60% (3M L+950, 1.00% Floor)	10/20/23	28,097		27,599			27,745			(10)
Total Aerospace & Defense						$	67,467		$	67,130
Automotive
Accelerate Parent Corp.	Common Equity/Interests - Common Stock	N/A	N/A	1,664,046 Shares		$	1,714		$	—		(13)(26)
Arlington Industries Group Limited	First Lien Secured Debt	5.96% (1M GBP L+525, 0.50% Floor)	03/29/24	£	7,961	10,126			9,556			(9)(17)
	First Lien Secured Debt	5.75% (1M E+525, 0.50% Floor)	03/29/24	€	3,297	3,693			3,496			(9)(17)
	First Lien Secured Debt - Revolver	5.96% (1M GBP L+525, 0.50% Floor)	03/29/24	£	2,095	2,570			2,509			(9)(17)(23)
	First Lien Secured Debt - Unfunded Revolver	1.25% Unfunded	03/29/24	£	605	(64		)	(21		)	(8)(9)(17)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	03/29/24	£	1,300	(31		)	(45		)	(8)(9)(17)(21)(23)
						16,294			15,495
Crowne Automotive
Vari-Form Group, LLC	First Lien Secured Debt	13.14% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)	02/02/23	$	5,860	938			938			(9)(13)(14)
Vari-Form Inc.	First Lien Secured Debt	13.14% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)	02/02/23	2,446		391			391			(9)(13)(14)
						1,329			1,329
K&N Parent, Inc.	Second Lien Secured Debt	10.79% (1M L+875, 1.00% Floor)	10/21/24	23,765		23,459			23,075
Total Automotive						$	42,796		$	39,899
Aviation and Consumer Transport
Merx Aviation Finance, LLC (5)	First Lien Secured Debt - Revolver	12.00%	10/31/23	$	307,300	$	307,300		$	307,300
	First Lien Secured Debt - Letter of Credit	2.25%	07/13/20	177		—			—			(23)
	Common Equity - Membership Interests	N/A	N/A	N/A		15,000			55,697
Total Aviation and Consumer Transport						$	322,300		$	362,997

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)			Fair Value (1)(29)
Beverage, Food & Tobacco
Eagle Foods Family Group, LLC	First Lien Secured Debt	9.12% (6M L+650, 1.00% Floor)	06/14/24	$	24,688	$	24,470		$	24,194		(9)
	First Lien Secured Debt - Revolver	9.12% (6M L+650, 1.00% Floor)	06/14/23	417		417			408			(9)(23)
	First Lien Secured Debt - Revolver	8.71% (3M L+650, 1.00% Floor)	06/14/23	917		917			898			(9)(23)
	First Lien Secured Debt - Revolver	8.72% (3M L+650, 1.00% Floor)	06/14/23	250		250			245			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/14/23	2,166		(31		)	(43		)	(8)(9)(21)(23)
						26,023			25,702
Florida Food Products
Florida Food Products, Inc.	First Lien Secured Debt	8.79% (1M L+675, 1.00% Floor)	09/08/25	23,055		22,565			22,824			(9)
Florida Food Products, LLC	First Lien Secured Debt - Revolver	8.79% (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		(34		)	(2		)	(8)(9)(21)(23)
						24,004			24,280
TNT Crust LLC	First Lien Secured Debt	7.29% (1M L+525, 1.00% Floor)	11/06/23	10,377		10,183			10,170			(9)
	First Lien Secured Debt	7.29% (1M L+525, 1.00% Floor)	11/06/23	9,038		8,889			8,857			(9)
	First Lien Secured Debt - Revolver	7.30% (1M L+525, 1.00% Floor)	11/06/23	813		813			797			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	11/06/23	2,439		(57		)	(49		)	(8)(9)(21)(23)
	Common Equity/Interests - Series A Units	N/A	N/A	244 Shares		30			310			(9)(13)
						19,858			20,085
Turkey Hill
IC Holdings LLC	Common Equity/Interests - Series A Units	N/A	N/A	169 Shares		169			155			(9)(13)
THLP CO. LLC	First Lien Secured Debt	7.54% (1M L+550, 1.00% Floor)	05/30/25	19,562		19,192			19,366			(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	05/31/24	4,494		(84		)	(45		)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	05/30/25	5,618		(47		)	(56		)	(8)(9)(21)(23)
						19,230			19,420
Wm. Bolthouse Farms, Inc.	Common Equity/Interests - Common Stock	N/A	N/A	1,000,000 Shares		1,000			1,000			(13)
Total Beverage, Food & Tobacco						$	90,115		$	90,487
Business Services
Access CIG, LLC	Second Lien Secured Debt	10.07% (3M L+775)	02/27/26	$	15,900	$	15,781		$	15,900		(10)
Aero Operating LLC	First Lien Secured Debt	9.35% (1M L+725, 1.00% Floor)	12/29/22	36,566		35,954			36,200			(9)
	First Lien Secured Debt - Revolver	11.25% (P+625)	12/29/22	160		160			159			(9)(23)
	First Lien Secured Debt - Unfunded Revolver	1.00% Unfunded	12/29/22	3,613		(78		)	(36		)	(8)(9)(21)(23)
	First Lien Secured Debt - Letters of Credit	L+400	4/30/20 - 6/21/20	1,039		—			(10		)	(8)(9)(23)
						36,036			36,313

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
Ambrosia Buyer Corp.	Second Lien Secured Debt	10.20% (6M L+800, 1.00% Floor)	08/28/25	21,429		21,033		20,756
Claritas, LLC	First Lien Secured Debt	8.10% (3M L+600, 1.00% Floor)	12/21/23	3,895		3,860		3,856		(9)
	First Lien Secured Debt - Revolver	8.04% (1M L+600, 1.00% Floor)	12/21/23	258		258		255		(9)(23)
	First Lien Secured Debt - Revolver	10.00% (P+500)	12/21/23	26		26		26		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/21/23	747		(9	)	(7	)	(8)(9)(21)(23)
						4,135		4,130
Continuum Global Solutions, LLC	First Lien Secured Debt - Revolver	7.60% (1M L+550, 1.00% Floor)	02/15/22	5,858		5,858		5,741		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	02/15/22	4,911		(171	)	(98	)	(8)(9)(21)(23)
	Preferred Equity - Preferred Stock	N/A	N/A	620 Shares		62		62		(9)(13)
						5,749		5,705
CT Technologies Intermediate Holdings, Inc	First Lien Secured Debt	6.29% (1M L+425, 1.00% Floor)	12/01/21	4,437		3,940		4,066		(9)(10)
	Second Lien Secured Debt	11.04% (1M L+900, 1.00% Floor)	12/01/22	31,253		30,719		28,128		(9)
						34,659		32,194
Education Personnel	First Lien Secured Debt	5.51% (3M GBP L+475, 0.50% Floor)	08/31/24	£	4,077	5,178		4,979		(9)(17)
	First Lien Secured Debt - Revolver	5.51% (3M GBP L+475, 0.50% Floor)	08/31/24	£	1,471	1,868		1,796		(9)(17)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.66% Unfunded	08/31/24	£	4,412	—		—		(9)(17)(21)(23)
						7,046		6,775
Electro Rent Corporation	Second Lien Secured Debt	11.13% (2M L+900, 1.00% Floor)	01/31/25	34,235		33,485		33,551		(9)
Ensemble RCM, LLC	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	08/01/24	4,155		(388	)	(374	)	(8)(21)(23)
Jacent Strategic Merchandising	First Lien Secured Debt	8.01% (3M L+575, 1.00% Floor)	04/23/24	22,693		22,382		22,350		(9)
	First Lien Secured Debt - Revolver	7.85% (3M L+575, 1.00% Floor)	04/23/24	467		467		460		(9)(23)
	First Lien Secured Debt - Revolver	9.75% (P+475)	04/23/24	933		933		919		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	04/23/24	2,100		(48	)	(32	)	(8)(9)(21)(23)
	Common Equity/Interests - Common Stock	N/A	N/A	5,000 Shares		500		500		(9)(13)
						24,234		24,197
JF Acquisition, LLC	First Lien Secured Debt	7.60% (3M L+550, 1.00% Floor)	07/31/24	5,272		5,168		5,167		(9)
	First Lien Secured Debt	7.76% (3M L+550, 1.00% Floor)	07/31/24	8,159		8,002		7,996		(9)
	First Lien Secured Debt - Revolver	7.75% (3M L+550, 1.00% Floor)	07/31/24	188		188		185		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	07/31/24	1,381		(30	)	(28	)	(8)(9)(21)(23)
						13,328		13,320
McLarens Global Ltd
Margaux Acquisition Inc.	First Lien Secured Debt	8.32% (3M L+600, 1.00% Floor)	12/19/24	18,895		18,590		18,706		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/19/24	1,601		(28	)	(16	)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	1.00% Unfunded	12/19/24	4,461		(101	)	(45	)	(8)(9)(21)(23)

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)		Fair Value (1)(29)
Margaux UK Finance Limited	First Lien Secured Debt	7.00% (3M GBP L+600, 1.00% Floor)	12/19/24	£	5,926	7,357		7,229		(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	(30	)	(17	)	(8)(9)(17)(21)(23)
						25,776		25,850
Ministry Brands, LLC	Second Lien Secured Debt	11.34% (2M L+925, 1.00% Floor)	06/02/23	10,000		9,914		9,977
Newscycle Solutions, Inc.	First Lien Secured Debt	9.04% (1M L+700, 1.00% Floor)	12/29/22	15,046		14,796		14,896		(9)
	First Lien Secured Debt	9.10% (1M L+700, 1.00% Floor)	12/29/22	1,163		1,150		1,151		(9)
	First Lien Secured Debt - Revolver	9.05% (1M L+700, 1.00% Floor)	12/29/22	400		400		396		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/29/22	100		(8	)	(1	)	(8)(9)(21)(23)
						16,338		16,442
PSI Services, LLC	First Lien Secured Debt	7.04% (1M L+500, 1.00% Floor)	01/20/23	4,551		4,488		4,529		(9)
	First Lien Secured Debt - Revolver	9.00% (P+400)	01/20/22	278		278		277		(9)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/20/22	119		(5	)	(1	)	(8)(9)(21)(23)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	01/20/22	£	47	—		—		(8)(9)(21)(23)
	Second Lien Secured Debt	11.04% (1M L+900, 1.00% Floor)	01/20/24	37,893		37,192		37,935		(9)
						41,953		42,740
RA Outdoors, LLC	First Lien Secured Debt	6.79% (1M L+475, 1.00% Floor)	09/11/24	7,102		7,001		6,889		(9)
	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	09/09/22	1,200		(14	)	(24	)	(8)(9)(21)(23)
	Second Lien Secured Debt	10.79% (1M L+875, 1.00% Floor)	09/11/25	34,200		33,563		32,832		(9)
						40,550		39,697
STG-Fairway Acquisitions, Inc.	Second Lien Secured Debt	11.29% (1M L+925, 1.00% Floor)	06/30/23	15,000		14,823		14,400
TGG TS Acquisition Company	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	12/14/23	1,750		—		(44	)	(8)(21)(23)
Transplace Holdings, Inc.	Second Lien Secured Debt	10.80% (1M L+875, 1.00% Floor)	10/06/25	8,599		8,436		8,427		(10)
U.S. Legal Support
USLS Acquisition, Inc.	First Lien Secured Debt	7.85% (3M L+575, 1.00% Floor)	12/02/24	24,623		24,234		24,175		(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		(28	)	(18	)	(8)(9)(21)(23)
	First Lien Secured Debt - Letters of Credit	5.75%	10/15/19-06/06/20	86		—		(1	)	(8)(9)(23)
	First Lien Secured Debt - Unfunded Delayed Draw	0.50% Unfunded	12/02/24	12		(40	)	—		(9)(21)(23)
US Legal Support Investment Holdings, LLC	Common Equity/Interests - Series A-1 Units	N/A	N/A	631,972 Shares		632		712		(9)(13)
						25,334		25,394

See notes to financial statements.

Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)



Industry / Company	Investment Type	Interest Rate (20)	Maturity Date	Par / Shares (12)		Cost (28)			Fair Value (1)(29)
Vertafore, Inc.	First Lien Secured Debt - Unfunded Revolver	0.50% Unfunded	06/30/23	14,576		(1,294		)	(1,676		)	(8)(21)(23)
	First Lien Secured Debt - Letter of Credit	3.25%	01/17/20	424		—			(49		)	(8)(23)
						(1,294		)	(1,725		)
Total Business Services						$	376,928		$	373,625
Chemicals, Plastics & Rubber
Carbon Free Chemicals
Carbonfree Caustic SPE LLC	First Lien Secured Debt	5.00%	12/31/21	$	12,800	$	12,800		$	12,800
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			43,076
	First Lien Secured Debt - Unfunded Delayed Draw	0.00% Unfunded

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$0.00	0	$0

10-Q	2019-11-05	Quarter: 2019-09-30
10-Q	2019-08-06	Quarter: 2019-06-30
10-K	2019-05-16	Annual: 2019-03-31
10-Q	2019-02-06	Quarter: 2018-12-31
10-Q	2018-10-30	Quarter: 2018-09-30
10-Q	2018-08-08	Quarter: 2018-06-30
10-K	2018-05-18	Annual: 2018-03-31
10-Q	2018-02-07	Quarter: 2017-12-31
10-Q	2017-11-03	Quarter: 2017-09-30
10-Q	2017-08-04	Quarter: 2017-06-30
10-K	2017-05-18	Annual: 2017-03-31
10-Q	2017-02-06	Quarter: 2016-12-31
10-Q	2016-11-08	Quarter: 2016-09-30
10-Q	2016-08-05	Quarter: 2016-06-30
10-K	2016-05-19	Annual: 2016-03-31
10-Q	2016-02-09	Quarter: 2015-12-31
10-Q	2015-11-05	Quarter: 2015-09-30
10-Q	2015-08-06	Quarter: 2015-06-30
10-K	2015-05-19	Annual: 2015-03-31
10-Q	2015-02-05	Quarter: 2014-12-31
10-Q	2014-11-06	Quarter: 2014-09-30
10-Q	2014-08-07	Quarter: 2014-06-30
10-K	2014-05-20	Annual: 2014-03-31
10-Q	2014-02-06	Quarter: 2013-12-31
10-Q	2013-11-08	Quarter: 2013-09-30
10-Q	2013-08-08	Quarter: 2013-06-30
10-K	2013-05-23	Annual: 2013-03-31
10-Q	2013-02-06	Quarter: 2012-12-31
10-Q	2012-11-08	Quarter: 2012-09-30
10-Q	2012-08-08	Quarter: 2012-06-30
10-K	2012-05-23	Annual: 2012-03-31
10-Q	2012-02-08	Quarter: 2011-12-31
10-Q	2011-11-03	Quarter: 2011-09-30
10-Q	2011-08-03	Quarter: 2011-06-30
10-K	2011-05-31	Annual: 2011-03-31
10-Q	2011-02-03	Quarter: 2010-12-31
10-Q	2010-11-04	Quarter: 2010-09-30
10-Q	2010-08-04	Quarter: 2010-06-30
10-K	2010-05-26	Annual: 2010-03-31
10-Q	2010-02-08	Quarter: 2009-12-31

8-K	2020-01-03	Officers
8-K	2019-12-02	Officers
8-K	2019-11-05	Earnings, Exhibits
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	2018-05-18	Enter Agreement, Officers, Amend Bylaw, Exhibits
8-K	2018-04-04	Other Events
8-K	2018-02-07	Other Events, Exhibits

EX-31.1	ainv2020q210-qex311.htm
EX-31.2	ainv2020q210-qex312.htm
EX-32.1	ainv2020q210-qex321.htm