Apollo Management signs new $1 billion five-year revolver

By William Gullotti

Buffalo, N.Y., Oct. 13 – Apollo Management Holdings, LP entered into a new $1 billion credit agreement with Citibank, NA as administrative agent on Oct. 12, according to an 8-K filing with the Securities and Exchange Commission.

The new revolver, scheduled to mature Oct. 12, 2027, refinances and replaces its previous $750 million revolver dated Nov. 23, 2020. The previous facility was undrawn at closing and has subsequently been terminated.

As with the previous revolver, Apollo may incur incremental facilities in an aggregate amount not to exceed $250 million plus additional amounts as long as it is in compliance with a maximum net leverage ratio.

The facility does not require any scheduled amortization payments or other mandatory prepayments prior to the final maturity date, and Apollo may prepay the loans and/or terminate or reduce the revolving commitments at any time without penalty.

The revolver includes a $100 million sublimit on letters of credit and a conditional sublimit on alternative currency borrowings.

Borrowings will bear interest at SOFR, CDOR, Euribor, Tibor, Sonia or Saron plus a margin ranging from 62.5 basis points to 125 bps. Facility commitment fees range from 5 bps to 15 bps. The margins and fee are determined based on the company’s corporate debt rating. At closing, the applicable margin was 87.5 bps with the commitment fee set at 8 bps.

Additionally, new facility contains financial covenants which require the company and its subsidiaries to maintain a minimum level of fee-generating assets under management and a maximum total net leverage ratio.

There is an ESG amendment which, if implemented unaltered, will increase or decrease the margins by 5 bps and the commitment fee by 1 bp as based on the company’s performance against key performance indicators.

Borrowings may be used for working capital and general corporate purposes, including, without limitation, permitted acquisitions.

The revolver is guaranteed by Apollo Principal Holdings I, LP, Apollo Principal Holdings II, LP, Apollo Principal Holdings III, LP, Apollo Principal Holdings IV, LP, Apollo Principal Holdings V, LP, Apollo Principal Holdings VI, LP, Apollo Principal Holdings VII, LP, Apollo Principal Holdings VIII, LP, Apollo Principal Holdings IX, LP, Apollo Principal Holdings X, LP, Apollo Principal Holdings XI, LLC, Apollo Principal Holdings XII, LP, AMH Holdings (Cayman), LP and each other material operating group entity that owns or controls any of Apollo Asset Management, Inc.’s core businesses.

In addition to serving as administrative agent, Citibank is also a joint lead arranger and joint bookrunner with BofA Securities, Inc. Bank of America, NA is the syndication agent.

The subsidiary of private equity firm Apollo Global Management is based in New York City.

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