Summary
Apollo Global Management, Inc. (APO) has filed an 8-K report detailing the successful issuance of $600 million in 7.625% Fixed-Rate Resettable Junior Subordinated Notes due 2053. This offering, which closed on August 23, 2023, was conducted under a shelf registration statement and is intended to raise capital to redeem outstanding Series A and Series B Preferred Stock of its subsidiary, Apollo Asset Management Inc. (AAM), along with associated fees. The new notes carry a fixed interest rate of 7.625% until December 15, 2028, after which the rate will reset quarterly to the Five-Year U.S. Treasury Rate plus a spread of 3.226%. Interest payments are scheduled quarterly, commencing December 15, 2023, with the company retaining the right to defer payments. This move signifies a strategic financial operation to manage outstanding preferred equity and potentially optimize the company's capital structure.
Key Highlights
- 1Apollo Global Management, Inc. issued $600 million in 7.625% Fixed-Rate Resettable Junior Subordinated Notes due 2053.
- 2The Notes closed on August 23, 2023, under a shelf registration statement.
- 3Proceeds will be used to redeem $575 million (aggregate liquidation value) of Series A and Series B Preferred Stock of Apollo Asset Management, Inc. (AAM).
- 4The Notes carry a fixed rate of 7.625% until December 15, 2028 (First Call Date).
- 5Post-2028, the interest rate resets quarterly to the Five-Year U.S. Treasury Rate plus a spread of 3.226%.
- 6Interest payments are quarterly, starting December 15, 2023, with an option for interest deferral.
- 7This issuance is part of a capital management strategy to refinance preferred equity.