Apollo Debt Solutions BDC 8-K

What Happened Apollo Debt Solutions BDC announced on December 19, 2025 that its newly formed subsidiary, Toucan Funding LLC, entered into a Revolving Credit and Security Agreement (the “Toucan Funding Credit Agreement”) with an initial maximum principal amount of $600 million. Truist Bank is the administrative agent, Truist Securities the lead arranger, Citibank the collateral agent/custodian, and Virtus Group the collateral administrator. Toucan Funding may use the facility to finance origination and acquisition of eligible assets, including purchases from the Fund under a Purchase and Contribution Agreement; such transfers will not generate gain or loss for the Fund. The agreement allows borrowings in U.S. dollars and certain other currencies and creates a direct financial obligation for Toucan Funding that counts as the Fund’s borrowings for Investment Company Act (1940 Act) asset coverage purposes.

Key Details

• Closing date: December 19, 2025; initial maximum facility: $600 million (accordion up to $1.0 billion).
• Reinvestment period: up to 3 years after closing; final maturity: 5 years after closing (Dec 19, 2030).
• Interest: advances bear interest at the applicable benchmark (U.S. dollar advances use 1-month Term SOFR) + a margin of 1.60% per annum (margin increases by 0.125% per annum after the scheduled reinvestment period end).
• Security and corporate position: facility is secured by a perfected first-priority lien on Toucan Funding’s assets; pledged assets are not available to satisfy the Fund’s creditors. The Fund retains a residual interest via ownership of Toucan Funding.

Why It Matters This facility provides Apollo Debt Solutions BDC a committed funding source to support origination and acquisition activity through its subsidiary, potentially expanding scale and flexibility in deploying capital. Because Toucan Funding’s borrowings are treated as the Fund’s borrowings for 1940 Act asset coverage calculations, the facility affects regulatory leverage metrics investors watch. The pledged collateral is limited to Toucan Funding’s assets (not the Fund’s broader assets), and the Fund retains residual economic interest in contributed assets — key protections and structural details for investors to note.