Summary
Apollo Global Management, Inc. (APO) announced the entry into a new revolving credit agreement on April 1, 2022, for its subsidiary ACMP Holdings LLC. This ACMP Credit Facility provides up to $1.5 billion in borrowing capacity, with an option to increase it to $2.0 billion under certain conditions. The facility matures on April 1, 2025, with potential for two one-year extensions, and importantly, it allows for full flexibility in prepayments and terminations without penalty. The primary purpose of this credit facility is to support Apollo's capital markets business, specifically to facilitate the settlement of financing transactions funded or syndicated by this segment. The borrowings are secured by capital commitments from specific investors and are structured as non-recourse to Apollo Global Management, Inc. itself, with limited recourse to certain investors via comfort letters. This facility enhances APO's operational flexibility and capital management within its growing capital markets segment.
Key Highlights
- 1Apollo Global Management, Inc. (APO) subsidiary, ACMP Holdings LLC, entered into a $1.5 billion revolving credit facility (ACMP Credit Facility) on April 1, 2022.
- 2The facility has a maturity date of April 1, 2025, with two optional 12-month extensions.
- 3Borrowing capacity can be increased to $2.0 billion subject to customary conditions.
- 4The credit facility allows for penalty-free prepayments and voluntary termination or reduction of revolving commitments.
- 5Funds are intended primarily to facilitate settlement of financing transactions within Apollo's capital markets business.
- 6The facility is secured by capital contributions from specific investors and is non-recourse to Apollo Global Management, Inc., with limited comfort letter recourse to certain investors.