Apollo Investment postpones planned $200 million offering of six-year convertibles

By Rebecca Melvin

New York, April 26 - Apollo Investment Corp. postponed a $200 million offering of six-year senior unsecured convertible notes that it had proposed to offer in a private placement under Rule 144A, according to a news release Tuesday.

Apollo didn't return calls from Prospect News seeking comment on why the offering was postponed.

The deal had been expected to price after the market close Tuesday, but market sources suggested investor demand may have been lacking due to the fact that Apollo is a business development company and the convertible market has seen no less than five or six deals from companies in the same sector in recent months. Those deals have included paper from Prospect Capital Corp., Ares Capital Corp. and Hercules Technology Growth Capital Inc.

"I wouldn't read too much into this. This is very specific to the space, and not even so much about the company; the company is fine," a New York-based syndicate source said.

The new Apollo convertibles had been talked to yield a coupon of 5.625% to 6.125% and an initial conversion premium of 15% to 20%.

Joint bookrunners were J.P. Morgan Securities LLC, Merrill Lynch, Morgan Stanley & Co. Inc., Deutsche Bank Securities Inc. and Citigroup Global Markets Inc.

The offering has a $30 million greenshoe.

The convertibles had contingent conversion.

Proceeds were to have been 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.