Apollo exchanges $206.2 million of 5.5% convertibles for shares, cash

By Sarah Lizee

Olympia, Wash., Aug. 8 – Apollo Commercial Real Estate Finance, Inc. entered into privately negotiated exchange agreements on Aug. 2 with a limited number of holders of its outstanding 5.5% convertible senior notes due 2019, according to an 8-K filing with the Securities and Exchange Commission.

The company agreed to exchange about $206.2 million of the existing convertible notes for a total of 10,020,328 newly issued shares of Apollo common stock plus roughly $39.3 million in cash, together with accrued interest on the convertible notes up to but excluding the settlement date.

Apollo will not receive any proceeds from the issuance of the exchange shares, the filing noted.

The exchanges settled on or about Aug. 7.

Following the exchanges, about $48.6 million of the convertibles remain outstanding.

Apollo Commercial Real Estate is a New York-based real estate investment trust.

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