Moody's assigns A3 to Apollo notes

Moody's Investors Service said it assigned an A3 (hyb) rating to Apollo Global Management, Inc.'s new issue of junior subordinated notes due 2053. The notes will be guaranteed, jointly and severally, by Apollo Asset Management, Inc. (AAM), and subsidiaries that are holding entities of members of the Apollo Operating Group.

“The A3 (hyb) rating assigned to the new 2053 junior subordinated notes reflects their relative priority of claim. Due to certain features of the notes, including their optional coupon suspension mechanism and cumulative settlement of deferred interest, in addition to their thirty-year maturity, Moody's assigns 25% equity credit to the notes. Interest on the notes will be payable quarterly in arrears unless optionally deferred,” the agency said in a press release.

Apollo intends to use the proceeds with cash on hand, to redeem all of AAM's outstanding shares of series A and series B preferred stock, which have a total liquidation value of $575 million, and to pay related fees and expenses.

Apollo's outlook is stable.

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