Apollo Investment Corporation’s Board of Directors Approved the Reduction in the Asset Coverage Requirement
April 04 2018 - 5:55PM
Business Wire
Apollo Investment Corporation Expects to Use
Incremental Investment Capacity to Invest in Lower Risk Assets
Apollo Investment Corporation (NASDAQ:AINV) or the “Company”
announced that on April 4, 2018, its board of directors approved
the application of the modified asset coverage requirements set
forth in new Section 61(a)(2) of the Investment Company Act of
1940, as amended by The Small Business Credit Availability Act
(“SBCAA”). As a result, the asset coverage ratio test applicable to
the Company will be decreased from 200% to 150%, effective April 4,
2019. The SBCAA was signed into law on March 23, 2018 and includes
a provision that permits business development companies to operate
with a reduced minimum asset coverage ratio, provided that certain
disclosure and approval requirements are met.
Howard Widra, President of Apollo Investment Corporation
commented, “We intend to use the incremental investment capacity to
invest in lower risk assets which we believe will continue to
support our strategy and provide consistent and stable returns for
our shareholders. We believe that the ability to increase our
leverage provides a unique opportunity for AINV given the robust
volume of senior floating rate assets currently originated by the
Apollo platform. Over the next year, we will work closely with all
constituents – our lenders, our shareholders, the rating agencies,
and our Board – to discuss how this additional capital will be
deployed, and the impact to the Company.”
About Apollo Investment Corporation
Apollo Investment Corporation (NASDAQ:AINV) is a closed-end
investment company that has elected to be treated as a business
development company under the Investment Company Act of 1940. The
Company invests primarily in various forms of debt investments,
including secured and unsecured debt, loan investments, and/or
equity in private middle-market companies. The Company may also
invest in the securities of public companies and structured
products and other investments such as collateralized loan
obligations and credit-linked notes. The Company seeks to provide
private financing solutions for private companies that do not have
access to the more traditional providers of credit. Apollo
Investment Corporation is managed by Apollo Investment Management,
L.P., an affiliate of Apollo Global Management, LLC, a leading
global alternative investment manager. For more information, please
visit www.apolloic.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve risks and uncertainties,
including, but not limited to, statements as to our future
operating results; our business prospects and the prospects of our
portfolio companies; the impact of investments that we expect to
make; our contractual arrangements and relationships with third
parties; the dependence of our future success on the general
economy and its impact on the industries in which we invest; the
ability of our portfolio companies to achieve their objectives; our
expected financings and investments; the adequacy of our cash
resources and working capital; and the timing of cash flows, if
any, from the operations of our portfolio companies.
We may use words such as “anticipates,” “believes,” “expects,”
“intends,” “will,” “should,” “may” and similar expressions to
identify forward-looking statements. Such statements are based on
currently available operating, financial and competitive
information and are subject to various risks and uncertainties that
could cause actual results to differ materially from our historical
experience and our present expectations. Statements regarding the
following subjects, among others, may be forward-looking: the
return on equity; the yield on investments; the ability to borrow
to finance assets; new strategic initiatives; the ability to
reposition the investment portfolio; the market outlook; future
investment activity; and risks associated with investing in real
estate assets, including changes in business conditions and the
general economy. Undue reliance should not be placed on such
forward-looking statements as such statements speak only as of the
date on which they are made. We do not undertake to update our
forward-looking statements unless required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180404006354/en/
Apollo Investment CorporationElizabeth Besen,
212-822-0625Investor Relations Managerebesen@apollolp.com
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