APOLLO INVESTMENT CORPORATION Second Quarter Fiscal Year 2019 Earnings Three Months Ended September 30, 2018 October 30, 2018
Disclaimers, Definitions, and Important Notes Forward-Looking Statements We make forward-looking statements in this presentation and other filings we make with the Securities and Exchange Commission ( SEC ) 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. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond our control. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives, including information about our ability to generate attractive returns while attempting to mitigate risk. Words such as believe, expect, anticipate, estimate, plan, continue, intend, should, may or similar expressions, are intended to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: the return on equity; the yield on investments; the ability to borrow to finance assets; and other risks associated with investing including changes in business conditions and the general economy. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Forwardlooking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. Some of these factors are described in the company s filings with the SEC. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This presentation may contain statistics and other data that in some cases has been obtained from or compiled from information made available by third-party service providers. Past Performance Past performance is not indicative nor a guarantee of future returns, the realization of which is dependent on many factors, many of which are beyond the control of Apollo Global Management, LLC; Apollo Investment Management, L.P.; and Apollo Investment Corporation (collectively Apollo ). There can be no assurances that future dividends will match or exceed historic ones, or that they will be made at all. Net returns give effect to all fees and expenses. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page and may change at any time without notice. Apollo Investment Corporation (the Corporation ) is subject to certain significant risks relating to our business and investment objective. For more detailed information on risks relating to the Corporation, see the latest Form 10-K and subsequent quarterly reports filed on Form 10-Q. Financial Data Financial data used in this presentation for the periods shown is from the Corporation s Form 10-K and Form 10-Q filings with the SEC during such periods. Unless otherwise indicated, the numbers shown herein are rounded and unaudited. Quarterly and annual financial information for the Corporation refers to fiscal periods. 2
Summary of Quarterly Results Second quarter of fiscal year 2019 (Three months ended September 30, 2018) and other recent highlights Fiscal Second Quarter Results and Other Recent Highlights Net investment income for the quarter ended September 30, 2018 was $32.2 million, or $0.15 per share, compared to $31.5 million, or $0.15 per share for the quarter ended June 30, 2018 Net realized and change in unrealized losses for the quarter ended September 30, 2018 were ($4.1) million, or ($0.02) per share, compared to ($18.3) million, or ($0.08) per share for the quarter ended June 30, 2018 Net asset value per share as of September 30, 2018 was $6.47 compared to $6.47 as of June 30, 2018 Net leverage 1 as of September 30, 2018 was 0.68 x compared to 0.78 x as of June 30, 2018 Continued to successfully execute our portfolio repositioning strategy, with core 2 strategies representing 78% of the portfolio 3 as of September 30, 2018 Invested $364 million across 9 new and 16 existing portfolio companies during the quarter - 100% of investments made were in core strategies 2-100% of investments made were in floating rate debt 4-97% of investments made were in first lien debt - 96% of investments made were pursuant to our co-investment order 5 Investments sold totaled $163 million and investments repaid totaled $372 million Net investment activity before repaid investments was $200 million, and net investment activity after repayments was ($172) million for the quarter Repurchased 2,868,300 shares of common stock at a weighted average price per share of $5.61, inclusive of commissions, for an aggregate cost of $16.1 million during the quarter During the period from October 1, 2018 through October 29, 2018, the Company repurchased 482,400 shares of common stock at a weighted average price per share of $5.49, inclusive of commissions, for a total cost of $2.6 million On October 30, 2018, the Board of Directors (the Board ) approved a new stock repurchase plan (the Repurchase Plan ) to acquire up to $50 million of the Company s common stock. The new Repurchase Plan is in addition to the Company's existing share repurchase authorization, of which approximately $3.3 million of repurchase capacity remains. Accordingly, the Company now has approximately $53.3 million available for stock repurchases under its repurchase program On October 30, 2018, the Board approved a one-for-three reverse stock split of the Company s common stock which will be effective as of the close of business as of November 30, 2018 (the Effective Time ). The Company's common stock is expected to begin trading on a split-adjusted basis at the market open on December 3, 2018 On October 30, 2018, the Board declared a distribution of $0.15 per share (or $0.45 per share adjusted for the one-for-three reverse stock split) payable on January 4, 2019 to shareholders of record as of December 20, 2018 Received $1.59 billion of commitments for an amendment to the Senior Secured Facility which is expected to close in early November. The amendment reduces the asset coverage covenant from 200% to 150%, increases the size of the facility by $400 million, and extends the maturity from December 2021 to November 2023 1 The Company s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets. 2 Core strategies include corporate lending, aviation, life sciences, asset based and lender finance. 3 On a fair value basis. 4 The interest type information is calculated using the Company s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 5 On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in coinvestment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein. 3
Financial Highlights ($ in thousands, except per share data) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 Sep-18 Jun-18 Mar-18 Dec-17 Sep-17 Operating Results 1 Net investment income $32,163 $31,547 $31,943 $33,966 $34,157 Net realized and change in unrealized gains (losses) from investments and foreign currencies (4,134) (18,297) (11,316) (22,342) (2,370) Net realized loss on extinguishment of debt (5,790) Net increase in net assets resulting from operations $28,029 $13,250 $20,627 $5,834 $31,787 Net investment income per share $0.15 $0.15 $0.15 $0.16 $0.16 Net realized and change in unrealized gains (losses) from investments and foreign currencies p/s ($0.02) ($0.08) ($0.05) ($0.10) ($0.01) Net realized loss on extinguishment of debt per share ($0.03) Earnings per share $0.13 $0.06 $0.10 $0.03 $0.14 Distribution recorded per common share $0.15 $0.15 $0.15 $0.15 $0.15 Select Balance Sheet and Other Data Investment portfolio (at fair value) $2,324,741 $2,495,459 $2,248,047 $2,352,562 $2,360,290 Debt outstanding $946,236 $1,102,679 $789,846 $875,165 $864,906 Net assets $1,371,152 $1,391,166 $1,418,086 $1,441,050 $1,472,600 Net asset value per share $6.47 $6.47 $6.56 $6.60 $6.72 Debt-to-equity ratio 0.69 x 0.79 x 0.56 x 0.61 x 0.59 x Net leverage ratio 2 0.68 x 0.78 x 0.57 x 0.62 x 0.59 x Weighted average shares outstanding 214,099,477 215,914,717 216,700,552 218,550,180 219,519,803 Shares outstanding 212,056,994 214,925,294 216,312,096 218,255,954 219,034,354 Number of portfolio companies, at period end 98 96 90 86 87 Weighted Average Yields, at period end Secured debt 3 10.7% 10.7% 10.7% 10.5% 10.3% Unsecured debt 3 11.0% 11.4% 11.3% 11.2% 11.2% Total debt portfolio 3 10.7% 10.7% 10.7% 10.5% 10.3% Total portfolio 4 9.7% 9.7% 9.6% 9.6% 9.7% 1 Numbers may not sum due to rounding. 2 The Company s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets. 3 On a cost basis. Exclusive of investments on non-accrual status. 4 On a cost basis. Inclusive of all income generating investments, non-income generating investments and investments on non-accrual status. 4
Summary Investment Activity ($ in thousands) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 Sep-18 Jun-18 Mar-18 Dec-17 Sep-17 Portfolio Activity 1 Investments made $363,565 $358,950 $243,329 $198,355 $265,439 Investments sold (163,249) (14,832) (119,302) (48,084) (11,703) Net investment activity before repayments $200,316 $344,117 $124,027 $150,271 $253,737 Investments repaid (372,056) (93,786) (238,131) (156,716) (328,096) Net investment activity ($171,740) $250,331 ($114,104) ($6,445) ($74,359) Number of portfolio companies, at beginning of period 96 90 86 87 84 Number of new portfolio companies 9 7 8 8 12 Number of exited portfolio companies (7) (1) (4) (9) (9) Number of portfolio companies, at period end 98 96 90 86 87 Number of investments in existing portfolio companies 16 20 19 12 11 Yield on Activity 2 Yield on investments made 9.5% 9.4% 9.7% 9.9% 10.0% Yield on debt sales and repayments 10.1% 9.4% 9.6% 10.2% 10.3% 1 Numbers may not sum due to rounding. 2 Yield on activity is for debt investments and excludes select short-term trades and investments on non-accrual status. 5
Quarterly Investment Activity Investment Activity ($ in millions) Total Debt Portfolio Yield 1,2 10.3% 10.5% 10.7% 10.7% 10.7% $265 $198 ($12) ($48) ($157) ($328) $243 ($119) ($238) $359 $364 ($15) ($94) ($163) ($372) Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 New Investments Sales Repayments Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Net Investment Activity ($ in millions) Yield on Investment Activity 2,3 10.8% 11.2% $250 10.3% 10.2% 10.2% 10.0% 9.9% 9.7% 9.4% 10.1% 10.1% 9.5% 9.3% 9.1% ($74) ($6) ($114) 7.6% Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 ($172) Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 New Investments Sales Repayments 1 Weighted average yield on total debt portfolio on a cost basis at period end, exclusive of investments on non-accrual status. 2 Change in terms on investments may impact the weighted average yield of the total debt portfolio but are not reflected in new, sold or repaid investments. 3 Yield on activity is for debt investments and excludes select short-term trades and investments on non-accrual status. 6
Detailed Quarterly Investment Activity ($ in thousands) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 Sep-18 Jun-18 Mar-18 Dec-17 Sep-17 Purchases 1 First lien 2 $351,623 $319,224 $186,265 $108,008 $111,229 Second lien 9,339 39,323 49,426 89,544 152,972 Total secured debt 360,962 358,547 235,691 197,552 264,201 Unsecured debt 0 0 0 Structured products and other 47 43 47 Preferred equity 1,500 0 333 Common equity/interests and warrants 1,056 360 7,258 803 1,238 Total Purchases $363,565 $358,950 $243,329 $198,355 $265,439 Yield at Cost on Debt Purchases 3 First lien 9.5% 9.3% 9.5% 9.3% 9.3% Second lien 11.0% 10.4% 10.3% 10.7% 10.4% Total secured debt 9.5% 9.4% 9.7% 9.9% 10.0% Unsecured debt N/A N/A N/A N/A N/A Preferred equity N/A N/A N/A N/A N/A Yield at Cost on Debt Purchases 9.5% 9.4% 9.7% 9.9% 10.0% Sales and Repayments 1 First lien 2 $400,720 $93,006 $228,989 $79,659 $128,848 Second lien 119,450 8,728 91,255 90,981 140,034 Total secured debt 520,170 101,735 320,243 170,639 268,882 Unsecured debt 10,681 2,453 2,060 55 55,000 Structured products and other 129 92 27,349 27,292 8,961 Preferred equity 0 (30) 0 0 0 Common equity/interests and warrants 4,326 4,369 7,780 6,814 6,956 Total Sales and Repayments $535,305 $108,618 $357,433 $204,800 $339,799 Yield at Cost on Debt Sales and Repayments 3 First lien 9.6% 9.3% 9.0% 10.0% 10.4% Second lien 11.3% 10.0% 11.2% 10.5% 9.9% Total secured debt 10.0% 9.3% 9.6% 10.2% 10.1% Unsecured debt 15.0% 10.8% 10.2% 13.0% 11.0% Preferred equity N/A N/A N/A N/A N/A Yield at Cost on Debt Sales and Repayments 10.1% 9.4% 9.6% 10.2% 10.3% Yield at Cost on Sales 10.1% 11.2% 7.6% 10.2% 9.3% Yield at Cost on Debt Repayments 10.1% 9.1% 10.8% 10.2% 10.3% 1 Numbers may not sum due to rounding. 2 First lien purchases include revolver drawdowns; first lien sales and repayments includes revolver repayments. 3 Yield on activity is for debt investments and excludes select short-term trades and investments on non-accrual status. 7
Detailed Quarterly Investment Activity (Continued) ($ in thousands) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 Sep-18 Jun-18 Mar-18 Dec-17 Sep-17 Investment Activity, excluding Merx Aviation and Revolver Activity Deployment $265,874 $199,714 $157,985 $165,066 $234,414 Sales ($154,776) ($14,832) ($119,302) ($48,084) ($11,703) Repayments ($248,107) ($13,464) ($157,061) ($119,070) ($272,397) Net Investment Activity ($137,008) $171,418 ($118,378) ($2,087) ($49,686) Merx Aviation Deployment - $91,000 $18,500 $5,800 $10,000 Repayments (47,250) - ($25,000) ($26,000) ($41,538) Net funding into Merx Aviation ($47,250) $91,000 ($6,500) ($20,200) ($31,538) Revolvers, excluding Merx Aviation Deployment $97,691 $68,236 $66,844 $27,489 $21,025 Sales ($8,473) - - - - Repayments ($76,700) ($80,322) ($56,070) ($11,646) ($14,161) Net funding on revolvers $12,518 ($12,086) $10,774 $15,843 $6,864 Total Deployment $363,565 $358,950 $243,329 $198,355 $265,439 Sales ($163,249) ($14,832) ($119,302) ($48,084) ($11,703) Repayments ($372,056) ($93,786) ($238,131) ($156,716) ($328,096) Net Investment Activity ($171,740) $250,331 ($114,104) ($6,445) ($74,359) Note: Numbers may not sum due to rounding. 8
Net Asset Value ($ in thousands, except per share data) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 Sep-18 Jun-18 Mar-18 Dec-17 Sep-17 Per Share NAV, beginning of period $6.47 $6.56 $6.60 $6.72 $6.73 Net investment income 0.15 0.15 0.15 0.16 0.16 Net realized and change in unrealized gain (loss) (0.02) (0.08) (0.05) (0.10) (0.01) Net realized loss on extinguishment of debt (0.03) Net increase (decrease) in net assets resulting from operations 0.13 0.06 0.10 0.03 0.14 Repurchase of common stock 0.01 0.01 0.01 0.00 0.00 Distribution recorded (0.15) (0.15) (0.15) (0.15) (0.15) NAV, end of period $6.47 $6.47 $6.56 $6.60 $6.72 Total NAV, beginning of period $1,391,166 $1,418,086 $1,441,050 $1,472,600 $1,477,624 Net investment income 32,163 31,547 31,943 33,966 34,157 Net realized and change in unrealized gains (losses) (4,134) (18,297) (11,316) (22,342) (2,370) Net realized loss on extinguishment of debt (5,790) Net increase (decrease) in net assets resulting from operations 28,029 13,251 20,627 5,834 31,787 Repurchase of common stock (16,105) (7,877) (11,145) (4,645) (3,956) Distributions recorded (31,938) (32,293) (32,447) (32,738) (32,855) NAV, end of period $1,371,152 $1,391,166 $1,418,086 $1,441,050 $1,472,600 Net Asset Value Per Share $6.72 $6.60 $6.56 $6.47 $6.47 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Note: Numbers may not sum due to rounding. 9
Portfolio as of September 30, 2018 By Asset Class 1 Fixed Rate vs. Floating Rate 1,2 3% 3% 10% First lien debt Second lien debt 6% Unsecured debt 27% 57% Structured products and other Preferrred equity, common equity/interests and warrants 94% Fixed Rate Assets Floating Rate Assets By Industry 1,3 Sponsored vs. Non-sponsored 1,4 2.2% 2.5% 2.9% 3.2% 7.1% 16.3% 19.7% 15.8% 18% 7.8% 8.7% 13.8% 82% Aviation and Consumer Transport Healthcare & Pharmaceuticals Energy Oil & Gas Aerospace & Defense Diversified Investment Vehicles, Banking, Finance, Real Estate Other Business Services High Tech Industries Transportation Cargo, Distribution Chemicals, Plastics & Rubber Energy Electricity Sponsored Non-sponsored Note: Numbers may not sum due to rounding. 1 On a fair value basis. 2 The interest type information is calculated using the Company s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 3 Other consists of: Consumer Goods Non-durable; Beverage, Food & Tobacco; Food & Grocery; Advertising, Printing & Publishing; Consumer Goods Durable; Automotive; Consumer Services; Utilities Electric; Telecommunications; Insurance; Containers, Packaging & Glass; Manufacturing, Capital Equipment; Media Diversified & Production; Hotel, Gaming, Leisure, Restaurants; and Metals & Mining. 10
Corporate Lending Portfolio Metrics as of September 30, 2018 Total Investment Portfolio (Corporate Lending, Merx, & Non-Core and Legacy) Corporate Lending Portfolio $ in millions, unless indicated otherwise $ in millions, unless indicated otherwise Metrics for $1.1 Billion Corporate Lending Portfolio Originated After 7/1/16 53% first lien (81% of deployment over the past 12 months has been first lien) 100% floating rate 62% pursuant to co-investment order 1 $506 $15.7 million average borrower exposure $457 $2.32 billion $1,097 $265 19% $1.36 billion $1,097 81% 5.3x weighted average net leverage 2 4.5x weighted average net leverage for first lien $265 5.8x weighted average net leverage for second lien ~755 weighted average spread ~670 weighted average spread for first lien Core Corporate Lending Portfolio Originated After 7/1/16 Core Corporate Lending Portfolio Originated Before 7/1/16 Merx Aviation Non-Core and Legacy Core Corporate Lending Portfolio Originated After 7/1/16 Core Corporate Lending Portfolio Originated Before 7/1/16 ~855 weighted average spread for second lien Notes: All data as of September 30, 2018. On a fair value basis. July 1, 2016 is the approximate date of the appointment of the current Chief Executive Officer and President / Chief Investment Officer. 1 On March 29, 2016, the Company received an exemptive order from the SEC permitting greater flexibility to participate in co-investment transactions with certain of its affiliates where terms other than price and quantity are negotiated, subject to the conditions included therein. 2 Source: Company data. Excludes select investments where debt-to-ebitda is not a relevant or appropriate metric, or data is not available. Weighted average by cost. Current. 11
Portfolio Composition ($ in thousands) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 Sep-18 Jun-18 Mar-18 Dec-17 Sep-17 Portfolio Composition, measured at fair value ($) First lien $1,313,114 $1,363,867 $1,131,942 $1,169,317 $1,142,148 Second lien 631,551 737,124 706,011 743,299 750,710 Total secured debt $1,944,665 $2,100,991 $1,837,953 $1,912,616 $1,892,857 Unsecured debt 80,000 90,599 103,166 107,678 107,558 Structured products and other 67,131 67,373 67,968 97,884 124,269 Preferred equity 32,524 31,401 31,053 25,690 25,780 Common equity/interests and warrants 200,421 205,095 207,908 208,694 209,826 Total investment portfolio $2,324,741 $2,495,459 $2,248,047 $2,352,562 $2,360,290 Portfolio Composition, measured at fair value (%) First lien 57% 55% 50% 50% 48% Second lien 27% 30% 31% 32% 32% Total secured debt 84% 84% 82% 81% 80% Unsecured debt 3% 4% 5% 5% 5% Structured products and other 3% 3% 3% 4% 5% Preferred equity 1% 1% 1% 1% 1% Common equity/interests and warrants 9% 8% 9% 9% 9% Portfolio Composition by Strategy, measured at fair value (%) Core strategies 1 78% 80% 77% 74% 73% Non-core strategies 2 18% 17% 19% 22% 23% Legacy & Other 3% 3% 4% 4% 4% Interest Rate Type, measured at fair value 3 Fixed rate % 6% 6% 8% 8% 9% Floating rate % 94% 94% 92% 92% 91% Sponsored / Non-sponsored, measured at fair value 4 Sponsored % 82% 81% 81% 82% 81% Non-sponsored % 18% 19% 19% 18% 19% Note: Numbers may not sum due to rounding. 1 Core strategies include corporate lending, aviation, life sciences, asset based and lender finance. 2 Non-core strategies include oil & gas, structured credit, renewables, shipping and commodities. 3 The interest type information is calculated using the Company s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 4 The sponsored/non-sponsored percentages are calculated using the Company s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping and commodities. 12
Credit Quality As of September 30, 2018, 3.2% of total investments at amortized cost, or 2.6% of total investments at fair value, were on non-accrual status. ($ in thousands) 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 Investments on Non-Accrual Status Sep-18 Jun-18 Mar-18 Dec-17 Sep-17 Non-accrual investments at amortized cost $75,671 $75,671 $75,671 $57,928 $46,199 Non-accrual investments/total portfolio, at amortized cost 3.2% 3.0% 3.3% 2.4% 1.9% Non-accrual investments at fair value $61,580 $57,646 $51,426 $35,175 $30,204 Non-accrual investments/total portfolio, at fair value 2.6% 2.3% 2.3% 1.5% 1.3% Portfolio Company Credit Metrics 1 Net Leverage (Close) 5.4 x 5.5 x 5.5 x 5.4 x 5.5 x Net Leverage (Current) 5.5 x 5.6 x 5.5 x 5.5 x 5.5 x Interest Coverage (Close) 2.4 x 2.4 x 2.5 x 2.7 x 2.7 x Interest Coverage (Current) 2.3 x 2.3 x 2.5 x 2.7 x 2.7 x Industry Cost Fair Value Investments on Non-Accrual Status as of September 30, 2018 Elements Behavioral Health, Inc. Healthcare & Pharmaceuticals $11,911 $0 Magnetation, LLC Metals & Mining $1,273 $157 Spotted Hawk Energy Oil & Gas $44,380 $47,788 Sprint Industrial Holdings, LLC. Containers, Packaging & Glass $18,107 $13,636 Total $75,671 $61,580 Note: Numbers may not sum due to rounding. 1 Source: Company data. Includes all portfolio company investments except structured products, common equities, warrants and investments on non-accrual status. Also excludes select investments where debt-to-ebitda is not a relevant or appropriate metric, or data is not available. Weighted average by cost. 13
Diversified Funding Sources as of September 30, 2018 Debt Facilities Debt Issued/ Amended Final Maturity Date Interest Rate Principal Amount Outstanding (in thousands) Senior Secured Facility ($1.19 billion) 12/22/2016 12/22/2021 L + 200 bps $441,016 Senior Secured Notes (Series B) 1 9/29/2011 9/29/2018 6.250% 16,000 2043 Notes (redeemable on or after 7/15/18) 6/17/2013 7/15/2043 6.875% 150,000 2025 Notes 3/3/2015 3/3/2025 5.250% 350,000 Weighted Average Annualized Interest Cost 2 & Total Debt Obligations 5.103% 957,016 Deferred Financing Cost and Debt Discount (10,780) Total Debt Obligations,Net of Deferred Financing Cost and Debt Discount $946,236 1 On September 29, 2018, the Series B Notes, which had an outstanding principal balance of $16,000, matured and were repaid in full on October 1, 2018. 2 Includes the stated interest expense and commitment fees on the unused portion of the Senior Secured Facility. Excludes amortized debt issuance costs. For the three months ended September 30, 2018. Based on average debt obligations outstanding. 14
Interest Rate Exposure as of September 30, 2018 Investment Portfolio 1,2 Funding Sources 3 6% 22% 59% 19% Fixed Rate Assets 94% Floating Rate Assets Fixed Rate Debt Floating Rate Debt Common Equity Floating Rate Asset Floor Net Investment Income Interest Rate Sensitivity 4 ($ in millions) Par or Cost Interest Rate Floors % of Floating Rate Portfolio No Floor $256 18% < 1.00% 109 8% 1.00% to 1.24% 991 70% 1.25% to 1.49% 27 2% 1.50% to 1.74% 35 2% > =1.75% 0 0% Basis Point Change Annual Net Investment Income (in millions) Annual Net Investment Income Per Share Up 400 basis points $30.4 $0.143 Up 300 basis points $22.8 $0.108 Up 200 basis points $15.2 $0.072 Up 100 basis points $7.6 $0.036 Down 100 basis points ($7.6) ($0.036) Total $1,419 100% 1 On a fair value basis. 2 The interest type information is calculated using the Company s corporate debt portfolio and excludes aviation, oil and gas, structured credit, renewables, shipping, commodities and investments on non-accrual status. 3 Based on total debt obligations before deferred financing cost and debt discount. 4 The table shows the estimated annual impact on net investment income of base rate changes in interest rates (considering interest rate floors for floating rate instruments) to our loan portfolio and outstanding debt as of September 30, 2018, assuming no changes in our investment and borrowing structure. 15
Select Data Pro Forma for 1-for-3 Reverse Stock Split 2Q'19 1Q'19 4Q'18 3Q'18 2Q'18 Sep-18 Jun-18 Mar-18 Dec-17 Sep-17 Net Investment Income Per Share As reported $0.15 $0.15 $0.15 $0.16 $0.16 Adjusted for 1-for-3 reverse stock split 1 $0.45 $0.44 $0.44 $0.47 $0.47 Earnings Per Share As reported $0.13 $0.06 $0.10 $0.03 $0.14 Adjusted for 1-for-3 reverse stock split 1 $0.39 $0.18 $0.29 $0.08 $0.43 Net Asset Value Per Share As reported $6.47 $6.47 $6.56 $6.60 $6.72 Adjusted for 1-for-3 reverse stock split 1 $19.40 $19.42 $19.67 $19.81 $20.17 Shares Outstanding As reported 212,056,994 214,925,294 216,312,096 218,255,954 219,034,354 Adjusted for 1-for-3 reverse stock split 1 70,685,665 71,641,765 72,104,032 72,751,985 73,011,451 Note: Figures adjusted for 1-for-3 reverse stock split may not be precisely three times the as reported figures due to rounding. 1 On October 30, 2018, the Company announced that its Board of Directors approved a 1-for-3 reverse stock split of the Company s common stock which will be effective as of the close of business on November 30, 2018. The Company's common stock is expected to begin trading on a split-adjusted basis at the market open on December 3, 2018. 16
Contact Information For more information, please contact: Elizabeth Besen Investor Relations Manager Phone: (212) 822-0625 Email: ebesen@apollo.com Gregory W. Hunt Chief Financial Officer and Treasurer Phone: (212) 822-0655 Email: ghunt@apollo.com 17