NEW YORK--(BUSINESS WIRE)--
Apollo Investment Corporation (NASDAQ: AINV) or "Apollo Investment" or
the "Company" today announced that Apollo Investment Management, L.P.
("AIM"), the Company's Investment Adviser, in consultation with Apollo
Investment's Board of Directors, has agreed to reduce fees for fiscal
year 2017. From April 1, 2016 through March 31, 2017, the base
management fee will be reduced to 1.50% on gross assets. In addition,
the calculation of the incentive fee will include a performance
adjustment that could lower the incentive fee rate to as low as 15%
based on the Company's cumulative change in net asset value during the
period. In order to simplify the Company's fee structure, this reduction
supersedes waivers in place during prior years.
In addition, the Company has been informed that a subsidiary of Apollo
Global Management, LLC (NYSE: APO) or "Apollo Global Management" will
embark on a program to purchase $50 million of Apollo Investment's
common stock, subject to certain regulatory approvals. Under the
program, shares may be purchased from time to time in open market
transactions. Similar to the investment made by a subsidiary of Apollo
Global Management in Apollo Investment in 2012, this share purchase
program combined with the fee reductions being announced today,
demonstrate Apollo Global Management's support for Apollo Investment and
will further align Apollo Investment's shareholders with Apollo Global
Management and its employees, who may receive a portion of such shares
in the form of compensation. Including the $50 million investment being
announced today, Apollo Global Management's total investment in Apollo
Investment will be approximately $118 million.
Purchases made by a subsidiary of Apollo Global Management and
repurchases made by Apollo Investment under its existing stock
repurchase program will be coordinated and conducted in accordance with
Rule 10b-18 under the Exchange Act and other applicable securities laws
and regulations that set certain restrictions on the method, timing,
price and volume of stock purchases. A portion of Apollo Global
Management's purchase program and a portion of Apollo Investment's stock
repurchase program may be made in accordance with Rule 10b5-1 of the
Exchange Act which allows for the purchase of stock at times when
prevented from doing so under applicable insider trading laws or because
of self-imposed trading blackout periods.
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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