Apollo Debt Solutions BDC 8-K

What Happened

• Apollo Debt Solutions BDC announced a private placement of $300 million aggregate principal amount of 6.550% notes due March 15, 2032 (the “New Notes”). The offering was priced May 5, 2026 and the New Notes were issued May 7, 2026 under the Fund’s existing indenture and third supplemental indenture.
• The New Notes were issued as “Additional Notes” to the Fund’s existing $500 million of 6.550% Notes due 2032 issued January 16, 2025 and will be treated as a single class with those Existing Notes. They were issued at 100.604% of par (plus accrued interest from March 15, 2026), producing an effective yield to maturity of 6.421%. Net proceeds (excluding accrued interest) were approximately $298.7 million.
• The notes are general unsecured obligations, payable semi‑annually (March 15 and September 15), bear interest at 6.550% per year (first cash payment Sept 15, 2026) and may be redeemed at the Fund’s option per the indenture; a Change of Control Repurchase Event would require an offer to repurchase the notes at 100% of principal plus accrued interest.

Key Details

• Aggregate principal: $300,000,000; issue price: 100.604% of face value; effective yield: 6.421%.
• Maturity date: March 15, 2032; interest rate: 6.550% paid semi‑annually (payments March 15 & Sept 15).
• Net proceeds: ~ $298.7 million (after initial purchaser discount and estimated offering expenses); intended uses: general corporate purposes and/or repay indebtedness (including revolving credit facility).
• Registration Rights Agreement (dated May 7, 2026) obligates the Fund to file an exchange offer registration or a resale shelf if the exchange cannot be effected; additional interest may be payable if registration deadlines are missed. Initial purchasers’ reps: Goldman Sachs, ING Financial Markets, Truist Securities, Wells Fargo Securities.

Why It Matters

• This filing creates a new direct financial obligation for the Fund and increases readily available cash by roughly $298.7M, which can be used for debt repayment or general corporate needs—potentially affecting leverage and liquidity.
• The coupon (6.550%) and effective yield (6.421%) set the Fund’s borrowing cost on this issuance; investors should compare this to the Fund’s existing debt costs and market rates to assess interest expense impact.
• Registration rights mean holders should eventually be able to exchange for registered notes or resell under a shelf, and the indenture’s ranking and covenant provisions (including asset coverage and change‑of‑control repurchase mechanics) define holder protections and the notes’ relative credit standing.