Summary
Apollo Global Management, Inc. (APO) has filed an 8-K detailing the issuance of $500 million in 6.000% Fixed-Rate Resettable Junior Subordinated Notes due 2054. This offering, completed on October 10, 2024, is intended for general corporate purposes. A significant portion of the proceeds will be used to redeem the company's outstanding $300 million in 4.950% Fixed-Rate Resettable Subordinated Notes due 2050, along with associated fees and expenses. The new notes carry a fixed interest rate of 6.000% until December 15, 2034. After this date, the interest rate will reset every five years based on the Five-Year U.S. Treasury Rate plus a spread of 2.168%. Interest payments are scheduled semi-annually in arrears, commencing June 15, 2025, though the company retains the right to defer interest payments. This issuance is part of Apollo's ongoing capital management strategy and is registered under an automatic shelf registration statement.
Key Highlights
- 1Apollo Global Management successfully issued $500 million in 6.000% Fixed-Rate Resettable Junior Subordinated Notes due 2054.
- 2The primary use of proceeds is for general corporate purposes, including the redemption of $300 million of 4.950% Fixed-Rate Resettable Subordinated Notes due 2050.
- 3The new notes have a fixed interest rate of 6.000% until December 15, 2034.
- 4Post-2034, the interest rate will reset every five years to the Five-Year U.S. Treasury Rate plus a spread of 2.168%.
- 5Interest payments are semi-annual, due on June 15 and December 15, with the first payment on June 15, 2025.
- 6The company has the option to defer interest payments.
- 7The offering was conducted under an effective automatic shelf registration statement.