01—Abstract
Summary
Summary of the 8-K filed October 10, 2024. Cited figures are marked; the original filing is the authoritative source.
Apollo Global Management, Inc. (APO) has filed an 8-K detailing the issuance of $500 milliona 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 millionb 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%c. 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.
02—Key points
Key Highlights
- Apollo Global Management successfully issued $500 million in 6.000% Fixed-Rate Resettable Junior Subordinated Notes due 2054.
- The 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.
- The new notes have a fixed interest rate of 6.000% until December 15, 2034.
- Post-2034, the interest rate will reset every five years to the Five-Year U.S. Treasury Rate plus a spread of 2.168%.
- Interest payments are semi-annual, due on June 15 and December 15, with the first payment on June 15, 2025.
- The company has the option to defer interest payments.
- The offering was conducted under an effective automatic shelf registration statement.
03—Questions
Frequently Asked Questions
What is the purpose of the new debt issuance?
The $500 million issuance of 6.000% Fixed-Rate Resettable Junior Subordinated Notes due 2054 is primarily intended for general corporate purposes. A key objective is to redeem the company's outstanding $300 million of 4.950% Fixed-Rate Resettable Subordinated Notes due 2050.
What are the interest rate terms for the new notes?
The notes carry a fixed interest rate of 6.000% per year until December 15, 2034. From that date onwards, the interest rate will reset every five years to the Five-Year U.S. Treasury Rate plus a spread of 2.168%.
When will interest payments be made, and are there any deferral options?
Interest payments are scheduled to be made semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2025. Apollo Global Management, Inc. retains the right to defer these interest payments.
How does this debt issuance impact Apollo's existing debt structure?
This issuance facilitates the redemption of a portion of Apollo's existing subordinated debt, specifically the 4.950% notes due 2050. This likely reflects a strategy to manage interest costs and potentially extend the maturity profile of its debt.
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