Apollo Prices Offering of Fixed-Rate Resettable Junior Subordinated Notes
Apollo Global Management (NYSE: APO) has priced an offering of $500 million in 6.000% Fixed-Rate Resettable Junior Subordinated Notes due 2054. The notes will bear interest at 6.000% per year until December 15, 2034, after which the rate will reset based on the five-year U.S. Treasury rate plus a 2.168% spread. Interest payments will be semi-annual, starting June 15, 2025.
The offering is expected to close on October 10, 2024, with net proceeds of approximately $495 million. Apollo plans to use the proceeds for general corporate purposes, including redeeming $300 million of Apollo Management Holdings' 4.950% Fixed-Rate Resettable Subordinated Notes due 2050. The offering is being made through a shelf registration statement filed with the SEC, with J.P. Morgan Securities, BofA Securities, Citigroup Global Markets, and Goldman Sachs & Co. as joint book-running managers.
Apollo Global Management (NYSE: APO) ha impostato un'offerta di 500 milioni di dollari in Note Junior Subordinate Riaffermabili a Tasso Fisso del 6,000% in scadenza nel 2054. Le note porteranno interessi del 6,000% all'anno fino al 15 dicembre 2034, dopodiché il tasso verrà ripristinato in base al tasso del Treasury statunitense a cinque anni più uno spread di 2,168%. I pagamenti degli interessi saranno semestrali, a partire dal 15 giugno 2025.
L’offerta dovrebbe concludersi il 10 ottobre 2024, con ricavi netti di circa 495 milioni di dollari. Apollo prevede di utilizzare i proventi per fini aziendali generali, inclusa la riacquisizione di 300 milioni di dollari delle Note Subordinate Riaffermabili a Tasso Fisso del 4,950% di Apollo Management Holdings in scadenza nel 2050. L'offerta viene effettuata tramite una dichiarazione di registrazione a scaffale depositata presso la SEC, con J.P. Morgan Securities, BofA Securities, Citigroup Global Markets e Goldman Sachs & Co. come gestori congiunti di libro.
Apollo Global Management (NYSE: APO) ha establecido una oferta de 500 millones de dólares en Notas Subordinadas Reajustables a Tasa Fija del 6.000% que vencen en 2054. Las notas devengarán intereses del 6.000% anual hasta el 15 de diciembre de 2034, después de lo cual la tasa se reajustará en función de la tasa del Tesoro estadounidense a cinco años más un margen del 2.168%. Los pagos de intereses serán semestrales, comenzando el 15 de junio de 2025.
Se espera que la oferta se cierre el 10 de octubre de 2024, con ingresos netos de aproximadamente 495 millones de dólares. Apollo planea utilizar los ingresos para fines corporativos generales, incluyendo la recompra de 300 millones de dólares de las Notas Subordinadas Reajustables a Tasa Fija del 4.950% de Apollo Management Holdings que vencen en 2050. La oferta se realiza a través de una declaración de registro de estante presentada ante la SEC, con J.P. Morgan Securities, BofA Securities, Citigroup Global Markets y Goldman Sachs & Co. como gerentes conjuntos de libros.
Apollo Global Management (NYSE: APO)는 2054년 만기의 5억 달러 규모의 6.000% 고정금리 리셋 가능한 하위채권을 발행하기로 결정했습니다. 이 채권은 2034년 12월 15일까지 연 6.000%의 이자를 지급하며, 그 이후에는 5년 만기 미국 재무부 금리와 2.168%의 스프레드를 기준으로 금리가 리셋됩니다. 이자는 반년마다 지급되며, 첫 지급일은 2025년 6월 15일입니다.
이번 발행은 2024년 10월 10일에 종료될 예정이며, 약 4억 9천 5백만 달러의 순수익을 예상하고 있습니다. Apollo는 이 수익을 일반 기업 용도로 사용할 계획이며, 여기에는 Apollo Management Holdings의 4.950% 고정금리 리셋 가능한 하위채권 중 3억 달러를 상환하는 것이 포함됩니다. 이번 발행은 SEC에 제출된 선반 등록 성명서를 통해 이루어지며, J.P. Morgan Securities, BofA Securities, Citigroup Global Markets 및 Goldman Sachs & Co.가 공동 주관사로 참여합니다.
Apollo Global Management (NYSE: APO) a fixé une offre de 500 millions de dollars d'Obligations Subordonnées Rémunérées à Taux Fixe de 6,000% arrivant à échéance en 2054. Les obligations porteront intérêt à un taux de 6,000% par an jusqu'au 15 décembre 2034, après quoi le taux sera réajusté sur la base du taux des bons du Trésor américain à cinq ans plus une marge de 2,168%. Les paiements d'intérêts seront semestriels, à partir du 15 juin 2025.
L'offre devrait se clôturer le 10 octobre 2024, avec des produits nets d'environ 495 millions de dollars. Apollo prévoit d'utiliser les produits à des fins d'entreprise générales, y compris le rachat de 300 millions de dollars des Obligations Subordonnées Rémunérées à Taux Fixe de 4,950% d'Apollo Management Holdings arrivant à échéance en 2050. L'offre se fait par le biais d'une déclaration d'enregistrement par étagère déposée auprès de la SEC, avec J.P. Morgan Securities, BofA Securities, Citigroup Global Markets et Goldman Sachs & Co. comme gestionnaires de livre conjoints.
Apollo Global Management (NYSE: APO) hat ein Angebot von 500 Millionen Dollar für 6,000% festverzinsliche, umstellbare nachrangige Anleihen mit Fälligkeit im Jahr 2054 festgelegt. Die Anleihen werden bis zum 15. Dezember 2034 einen Zinssatz von 6,000% pro Jahr tragen, wonach der Zinssatz auf der Grundlage des fünfjährigen US-Staatsanleiherates zuzüglich einer Marge von 2,168% neu festgesetzt wird. Die Zinszahlungen erfolgen halbjährlich, beginnend am 15. Juni 2025.
Das Angebot soll voraussichtlich am 10. Oktober 2024 abgeschlossen sein, mit einem Nettoerlös von etwa 495 Millionen Dollar. Apollo plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich der Rückzahlung von 300 Millionen Dollar der 4,950% festverzinslichen, umstellbaren nachrangigen Anleihen von Apollo Management Holdings, die 2050 fällig werden. Das Angebot erfolgt im Rahmen einer Shelf-Registrierungsformulare, die bei der SEC eingereicht wurde, und wird von J.P. Morgan Securities, BofA Securities, Citigroup Global Markets und Goldman Sachs & Co. als gemeinsamen Buchführern geleitet.
- Successful pricing of $500 million in new notes
- Higher interest rate of 6.000% compared to the 4.950% notes being redeemed
- Expected net proceeds of $495 million from the offering
- Increased debt burden with $500 million in new notes
- Higher interest expenses due to 6.000% rate on new notes
Insights
Apollo Global Management's offering of
The redemption of the
This transaction demonstrates Apollo's proactive approach to liability management and its ability to access capital markets effectively. The involvement of major financial institutions as joint book-running managers underscores the deal's credibility and Apollo's strong market position.
The successful pricing of this note offering signals strong investor confidence in Apollo's long-term prospects and financial stability. The
Investors should consider the following implications:
- Improved liquidity position, enhancing Apollo's financial flexibility
- Potential for strategic investments or acquisitions using the additional capital
- Possible positive impact on Apollo's credit ratings, which could lower future borrowing costs
The offering's structure, with its fixed-to-floating rate mechanism, provides a hedge against future interest rate fluctuations, aligning with prudent risk management practices. This could be viewed favorably by both equity and debt investors, potentially supporting Apollo's stock price in the near term.
NEW YORK, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Apollo Global Management, Inc. (NYSE: APO) (the “Issuer” and, together with its consolidated subsidiaries, “Apollo”) today announced that it has priced an offering (the “Offering”) of
The notes will be fully and unconditionally guaranteed by certain subsidiaries of the Issuer that are obligors under the Issuer’s outstanding debt securities. The Offering is expected to close on October 10, 2024, subject to customary closing conditions.
The notes will bear interest at a fixed rate of
The net proceeds from the Offering will be approximately
J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are acting as joint book-running managers for the Offering. Apollo Global Securities, LLC, Academy Securities, Inc., HSBC Securities (USA) Inc., MUFG Securities Americas Inc., R. Seelaus & Co., LLC, SG Americas Securities, LLC and U.S. Bancorp Investments, Inc. are acting as co-managers for the Offering.
The Offering is being made pursuant to an effective shelf registration statement on file with the U.S. Securities and Exchange Commission (the “SEC”). The Offering is being made by means of a prospectus and related preliminary prospectus supplement only. An electronic copy of the preliminary prospectus supplement, together with the accompanying prospectus, is available on the SEC’s website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and accompanying prospectus may be obtained by contacting the joint book-running managers: J.P. Morgan Securities LLC, telephone: 1-212-834-4533; BofA Securities, Inc., telephone: 1-800-294-1322; Citigroup Global Markets Inc., telephone: 1-800-831-9146; or Goldman Sachs & Co. LLC, telephone: 1-866-471-2526.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. This press release shall not constitute a notice of redemption with respect to the 2050 Subordinated Notes.
Forward-Looking Statements
In this press release, references to “Apollo,” “we,” “us,” “our” and the “Company” refer collectively to Apollo Global Management, Inc. and its subsidiaries, or as the context may otherwise require. This press release may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, discussions related to Apollo’s expectations regarding the completion of, and the use of proceeds from, the sale of the notes, the performance of its business, its liquidity and capital resources and the other non-historical statements in the discussion and analysis. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this press release, the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “target” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to inflation, interest rate fluctuations and market conditions generally, the impact of energy market dislocation, our ability to manage our growth, our ability to operate in highly competitive environments, the performance of the funds we manage, our ability to raise new funds, the variability of our revenues, earnings and cash flow, the accuracy of management’s assumptions and estimates, our dependence on certain key personnel, our use of leverage to finance our businesses and investments by the funds we manage, the ability of Athene Holding Ltd. (“Athene”) to maintain or improve financial strength ratings, the impact of Athene’s reinsurers failing to meet their assumed obligations, Athene’s ability to manage its business in a highly regulated industry, changes in our regulatory environment and tax status, and litigation risks, among others. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in the Issuer’s annual report on Form 10-K filed with the SEC on February 27, 2024, the Issuer’s quarterly report on Form 10-Q filed with the SEC on May 7, 2024 and the Issuer’s quarterly report on Form 10-Q filed with the SEC on August 8, 2024, as such factors may be updated from time to time in the Issuer’s periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in the Issuer’s other filings with the SEC. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. This press release does not constitute an offer of Apollo or any Apollo fund.
Contacts
For investors please contact:
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
communications@apollo.com
FAQ
What is the interest rate for Apollo's (APO) new Fixed-Rate Resettable Junior Subordinated Notes?
When is the expected closing date for Apollo's (APO) $500 million notes offering?
How does Apollo (APO) plan to use the proceeds from the $500 million notes offering?
What is the maturity date for Apollo's (APO) newly offered Fixed-Rate Resettable Junior Subordinated Notes?
