Apollo Prices Offering of Senior Notes
Apollo Global Management, Inc. (NYSE: APO) announced the pricing of a $750 million offering of 5.800% Senior Notes due 2054. These notes, guaranteed by multiple Apollo entities, are expected to close on May 21, 2024, subject to customary conditions.
The net proceeds from the offering will be approximately $743.4 million, intended for general corporate purposes. The interest rate for the notes is 5.800% per annum, payable semi-annually starting November 21, 2024.
The offering is managed by BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc., and Morgan Stanley & Co. as joint book-running managers, and several other financial institutions as co-managers. The offering is being made under an effective shelf registration statement filed with the SEC.
- Apollo successfully priced a $750 million offering, reflecting strong market confidence.
- The notes will bear a solid interest rate of 5.800% per annum, offering attractive returns to investors.
- Net proceeds of approximately $743.4 million will support Apollo's general corporate purposes, enhancing financial flexibility.
- The offering is backed by multiple well-reputed financial institutions as joint book-running managers and co-managers.
- The interest rate of 5.800% per annum suggests higher borrowing costs for Apollo.
- The net proceeds are slightly lower than the principal amount, indicating underwriting and other expenses.
Insights
Apollo Global Management's recent pricing of
The use of proceeds for general corporate purposes is somewhat vague, but it indicates flexibility in potential investments or debt repayments, both of which may affect future earnings positively. Investors should watch how Apollo allocates these funds, as efficient use can enhance shareholder value, while inefficient use might lead to suboptimal returns.
In terms of credit quality, the fact that the notes are fully and unconditionally guaranteed by multiple Apollo entities adds a layer of security for bondholders, implying confidence in Apollo’s financial robustness. However, the issuance of new debt also increases the company's leverage, which could be a point of concern if not managed properly in a volatile market.
This bond issuance is notable in the context of current market conditions. The choice of joint book-running managers, including major financial institutions like BofA Securities, Barclays, Citigroup and Morgan Stanley, suggests confidence in demand for these notes. Given the long maturity date in 2054, investors are essentially making a long-term bet on Apollo’s ability to maintain financial health over the next 30 years.
The selected
For retail investors, it is important to recognize that bond investments in a company like Apollo offer predictable income but come with the inherent risk of the company's long-term financial performance. Monitoring Apollo's ongoing financial health and market conditions will be key to evaluating the overall soundness of this investment.
NEW YORK, May 16, 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 of
The notes will be fully and unconditionally guaranteed by Apollo Asset Management, Inc., Apollo Principal Holdings I, L.P., Apollo Principal Holdings II, L.P., Apollo Principal Holdings III, L.P., Apollo Principal Holdings IV, L.P., Apollo Principal Holdings V, L.P., Apollo Principal Holdings VI, L.P., Apollo Principal Holdings VII, L.P., Apollo Principal Holdings VIII, L.P., Apollo Principal Holdings IX, L.P., Apollo Principal Holdings X, L.P., Apollo Principal Holdings XII, L.P., AMH Holdings (Cayman), L.P. and Apollo Management Holdings, L.P. The offering is expected to close on May 21, 2024, subject to customary closing conditions.
The notes will bear interest at a rate of
The net proceeds from the offering will be approximately
BofA Securities, Inc., Barclays Capital Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are acting as joint book-running managers. Apollo Global Securities, LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC, Blaylock Van, LLC and Drexel Hamilton, LLC 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: BofA Securities, Inc., telephone: 1-800-294-1322; Barclays Capital Inc., telephone: 1-888-603-5847; Citigroup Global Markets Inc., telephone: 1-800-831-9146; or Morgan Stanley & Co. LLC, telephone: 1-866-718-1649.
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.
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 and the Issuer’s quarterly report on Form 10-Q filed with the SEC on May 7, 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
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