Apollo Debt Solutions new unit enters $250 million secured facility

By Mary-Katherine Stinson

Lexington, Ky., July 12 – Grouse Funding LLC, a newly formed subsidiary of Apollo Debt Solutions BDC, entered into a five-year secured credit facility on July 7 providing up to $250 million, according to an 8-K filing with the Securities and Exchange Commission.

The company can draw and redraw revolving loans under the facility for up to three years from closing.

The availability of the amount under the secured facility is subject to the borrowing base, as determined by the value and types of Grouse’s assets from time to time, and the satisfaction of certain conditions including concentration limits.

Advances under the credit facility for the purchase or origination of broadly syndicated loans will initially bear interest at SOFR plus 240 basis points, except that following the application of a rebate amount the spread on broadly syndicated loans shall be 185 bps.

Advances for the purchase or origination of non-broadly syndicated bonds or loans that have an EBITDA of $100 million or above will initially bear interest at SOFR plus 215 bps or SOFR plus 240 bps in the case of any other loans or bonds.

The facility is secured by a perfected first priority security interest in the assets of Grouse Funding and on any payments received by Grouse Funding.

Goldman Sachs Bank USA is the syndication agent and administrative agent.

State Street Bank and Trust Co. is the collateral agent and collateral custodian.

Virtus Group, LP is the collateral administrator.

Proceeds will be used to finance the origination and acquisition of eligible assets by Grouse Funding, including the purchase of such assets from Apollo Debt Solutions.

Apollo Debt Solutions expects to sell and contribute certain investments to Grouse Funding pursuant to a sale and contribution agreement dated July 7.

Based in New York, Apollo Debt Solutions BDC is a regulated, non-listed BDC that provides individual investors access to investments targeted by the largest institutions.

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