NEW YORK - Apollo Global Management, Inc. (NYSE: NYSE:APO), a leading global alternative investment manager, has priced its offering of $500 million 6.000% Fixed-Rate Resettable Junior Subordinated Notes due 2054. The notes are guaranteed by certain subsidiaries that are obligors under Apollo's outstanding debt securities. The offering is slated to close on October 10, 2024, with customary closing conditions.
The notes will initially bear a fixed interest rate of 6.000% per annum until December 15, 2034. Post this date, the interest rate will reset to the five-year U.S. Treasury rate plus a spread of 2.168%. Apollo reserves the right to defer interest payments, which are scheduled semi-annually on June 15 and December 15, beginning June 15, 2025.
Apollo anticipates net proceeds of approximately $495 million after underwriting discounts and before offering expenses. The company plans to allocate the proceeds for general corporate purposes. This includes the redemption of the $300 million 4.950% Fixed-Rate Resettable Subordinated Notes due 2050 and paying related fees and expenses.
The joint book-running managers for the offering include J.P. Morgan Securities LLC, BofA Securities, Inc., Citigroup Global Markets Inc., and Goldman Sachs & Co. LLC. Co-managers include Apollo Global Securities, LLC, Academy Securities, Inc., and several other financial services firms.
The offering is made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC). Interested parties can access the preliminary prospectus supplement and accompanying prospectus on the SEC's website or directly from the joint book-running managers.
This announcement does not constitute an offer to sell or solicit the purchase of the notes or any other securities and will not be a notice of redemption for the 2050 Subordinated Notes. The forward-looking statements in this release are subject to risks, uncertainties, and assumptions, including market conditions and regulatory changes.
This article is based on a press release statement from Apollo Global Management, Inc.
In other recent news, Apollo Global Management has secured a €1 billion investment deal with an affiliate of Vonovia SE, marking the third major transaction between the two entities. This investment is part of Apollo's High Grade Capital Solutions strategy, which has provided nearly $100 billion in bespoke capital solutions to major corporations since 2020. In addition, Apollo Global Management has been the subject of positive projections from BMO Capital Markets, Wells Fargo, and JPMorgan, all of which have increased their price targets for the company. Apollo has also proposed a significant investment of up to $5 billion in Intel (NASDAQ:INTC) and initiated a financing and capital markets collaboration with BNP Paribas (OTC:BNPQY), which committed an initial $5 billion in financing. Furthermore, Apollo established a $25 billion private credit and direct lending program in partnership with Citigroup Inc (NYSE:C). These are among the recent developments for Apollo Global Management, reflecting a positive trajectory for the company's growth and financial performance.
InvestingPro Insights
Apollo Global Management's recent $500 million note offering comes at a time when the company is showing strong financial performance. According to InvestingPro data, Apollo's market capitalization stands at an impressive $74.6 billion, reflecting its position as a prominent player in the Financial Services industry.
The company's P/E ratio of 14.09 suggests that investors are willing to pay a premium for Apollo's earnings, possibly due to its strong market position and growth prospects. This is further supported by an InvestingPro Tip indicating that Apollo has maintained dividend payments for 14 consecutive years, demonstrating financial stability and commitment to shareholder returns.
Apollo's revenue for the last twelve months as of Q2 2024 was $25.96 billion, with a gross profit of $9.65 billion. The company's profitability is underscored by another InvestingPro Tip, which notes that Apollo has been profitable over the last twelve months.
Investors considering Apollo's new notes offering might be interested to know that the company's stock has shown a strong return of 55.92% over the past year. This performance aligns with an InvestingPro Tip highlighting Apollo's high return over the last year.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Apollo Global Management, providing deeper insights into the company's financial health and market position.
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