Fiscal Fourth Quarter and Other Recent Highlights:
Net investment income per share for the quarter was $0.59 compared to $0.54 for the quarter ended December 31, 2019Net asset value per share as of the end of the quarter was $15.70 compared to $18.27 as of December 31, 2019, a 14.1% decrease driven by the disruption in the global economy which has resulted from the COVID-19 pandemic and which has negatively impacted the fair value of the Company’s investment portfolioNew investment commitments made during the quarter totaled $153 million (1)Gross fundings during the quarter totaled $210 million (2)Net fundings during the quarter totaled $8 million, including $47 million for revolversNet leverage (3) as of the end of the quarter was 1.71x, compared to 1.43x as of December 31, 2019Received 97% of contractual interest payments during the quarterDeclared a distribution of $0.45 per shareRepurchased 1,286,565 shares of common stock at a weighted average price per share of $11.62, inclusive of commissions, for an aggregate cost of $15.0 million during the quarterCommitments to the Company’s Senior Secured Facility (“Facility”) increased by $100 million during the quarter from an existing lender bringing total commitments to $1.81 billion$224 million of immediately available liquidity and $131 million of additional capacity under the Facility as of March 31, 2020 (4)NEW YORK, May 21, 2020 (GLOBE NEWSWIRE) — Apollo Investment Corporation (NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its fourth fiscal quarter and fiscal year ended March 31, 2020. The Company’s net investment income was $0.59 per share for the quarter ended March 31, 2020, compared to $0.54 per share for the quarter ended December 31, 2019. The Company’s net asset value (“NAV”) was $15.70 per share as of March 31, 2020, compared to $18.27 as of December 31, 2019.On May 20, 2020, the Board of Directors declared a distribution of $0.45 per share, payable on July 8, 2020 to shareholders of record as of June 18, 2020.Mr. Howard Widra, Chief Executive Officer commented, “Prior to the onset of the COVID-19 pandemic, our business continued to execute on its business plan of de-risking and diversifying its portfolio, and as our net investment income for the quarter shows, we were continuing to improve our underlying performance metrics. As a result, we entered this volatile period with a well-diversified senior corporate lending portfolio which we believe will generally withstand the current volatility. However, our non-core portfolio continued to pressure our performance with the economic volatility disproportionately impacting that portfolio. In this regard, non-core and legacy assets accounted for half of the net loss incurred during the period, while only representing 10% of the total portfolio at fair value.”Mr. Widra continued, “Going forward, we are focused on being good partners to our portfolio companies and working with them to manage through these unprecedented times. In addition, we are spending significant time with our Merx team to ensure that we protect the long-term value of our market leading business. In this regard, we believe our diversified fleet and durable financing structure, and growing servicing fee stream gives us good tools to navigate this challenging time.”Mr. Gregory W. Hunt, Chief Financial Officer commented, “In February 2020, we were pleased to secure an additional $100 million commitment to the Company’s revolving credit facility, bringing total commitments to $1.81 billion. As of March 31, 2020, we were in compliance with all covenants under our revolving credit facility. We believe that we have sufficient available liquidity to meet potential funding requirements and withstand additional asset depreciation.”___________________
(1) For corporate lending portfolio. Excludes non-core and legacy assets.
(2) Excludes $214 million of gross fundings for revolvers.
(3) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
(4) As of March 31, 2020, aggregate lender commitments under the Senior Secured Facility totaled $1.81 billion and there were $1.449 billion of outstanding borrowings under the Facility and $6.2 million of letters of credit issued under the Facility. Accordingly, there was $354 million of unused capacity under the Facility as of March 31, 2020, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio. As of March 31, 2020, the Company had immediate access to $224 million under the Facility based on the Company’s borrowing base.FINANCIAL HIGHLIGHTS___________________
(1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.PORTFOLIO AND INVESTMENT ACTIVITY____________________
* Totals may not foot due to rounding.OPERATING RESULTS____________________
* Totals may not foot due to rounding.(1) Based on the weighted average number of shares outstanding for the period presented.SHARE REPURCHASE PROGRAM *During the three months ended March 31, 2020, the Company repurchased 1,286,565 shares at a weighted average price per share of $11.62, inclusive of commissions, for a total cost of $15.0 million. During the period from April 1, 2020 through May 20, 2020 the Company did not repurchase any shares.On March 19, 2020, the Company announced that it was temporarily suspending its stock repurchase program, including amounts allocated to Rule 10b5-1 repurchase plans. The Company and the Board of Directors believed it was prudent to take this action given the then unknown impact of the COVID-19 pandemic on the Company’s investment portfolio and financial results. The Company retains the right to reinstate the stock repurchase program.Since the inception of the share repurchase program and through May 20, 2020, the Company repurchased 13,654,578 shares at a weighted average price per share of $16.34, inclusive of commissions, for a total cost of $223.1 million, leaving a maximum of $26.9 million available for future purchases under the current Board authorization of $250 million.* Share figures have been adjusted for the 1-for-3 reverse stock split which was completed after market close on November 30, 2018.LIQUIDITYOn March 13, 2020, the Company increased commitments to its Senior Secured Facility (the “Facility)” by $100 million increasing total commitment from $1.71 billion to $1.81 billion.As of March 31, 2020, the Company’s outstanding debt obligations, excluding deferred financing cost and debt discount of $4.8 million, totaled $1.799 billion which was comprised of $350 million of Senior Unsecured Notes (the “2025 Notes”) which will mature on March 3, 2025 and $1.449 billion outstanding under the Facility. As of March 31, 2020, $6.2 million in standby letters of credit were issued through the Facility. The available remaining capacity under the Facility was $354 million as of March 31, 2020, which is subject to compliance with a borrowing base that applies different advance rates to different types of assets in the Company’s portfolio.CONFERENCE CALL / WEBCAST AT 10:00 AM ET ON MAY 21, 2020The Company will host a conference call on Thursday, May 21, 2020 at 10:00 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (888) 802-8579 approximately 5-10 minutes prior to the call; international callers should dial (973) 633-6740. Participants should reference Apollo Investment Corporation or Conference ID # 7988933 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Events Calendar in the Shareholders section of our website at www.apolloic.com. Following the call, you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through June 11, 2020 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 7988933. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Events Calendar in the Shareholders section of our website at www.apolloic.com.SUPPLEMENTAL INFORMATIONThe Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available on the Investor Relations section of the Company’s website at www.apolloic.com.Our portfolio composition and weighted average yields as of March 31, 2020, December 31, 2019, September 30, 2019, June 30, 2019, and March 31, 2019 were as follows:(1) An investor’s yield may be lower than the portfolio yield due to sales loads and other expenses.
(2) Exclusive of investments on non-accrual status.
(3) Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status.
(4) The interest rate type information is calculated using the Company’s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status.
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