Apollo Investment to price $200 million six-year convertibles at 5.625%-6.125%, up 15%-20%

By Devika Patel

Knoxville, Tenn., April 25 - Apollo Investment Corp. plans to price $200 million six-year senior unsecured convertible notes with a 5.625% to 6.125% coupon and a 15% to 20% initial conversion premium, according to market sources.

The notes are expected to price after the market close Tuesday via joint bookrunners J.P. Morgan Securities LLC, Merrill Lynch, Morgan Stanley & Co. Inc., Deutsche Bank Securities Inc. and Citigroup Global Markets Inc.

The Rule 144A offering has a $30 million greenshoe.

The notes, which mature April 30, 2017, may be converted into common shares. The interest rate, conversion rate and other terms will be determined at pricing.

Proceeds will be used for new portfolio investments, to reduce debt under the company's revolving credit facility and for general corporate purposes.

Apollo is a New York-based closed-end investment company.

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