Apollo Debt Solutions BDC Announces $514.9M CLO Term Debt Securitization

What Happened
Apollo Debt Solutions BDC filed an 8-K (Aug 7, 2026) reporting that on Aug 6, 2026 it completed a $514,900,000 term debt securitization (a collateralized loan obligation, or CLO) through its indirect, wholly-owned consolidated subsidiary ADL CLO 3 LLC. The CLO issued secured notes and subordinated notes and incurred related loans; proceeds will be used to buy first‑lien commercial loans from the Company under a master loan sale agreement. The Company will serve as collateral manager to the CLO issuer.

Key Details

• Total transaction size: $514,900,000 (closing date Aug 6, 2026).
• Secured notes issued: $248,700,000 Class A-1a (AAA(sf), SOFR + 1.50%), $20,600,000 Class A-1b (AAA(sf), SOFR + 1.70%), $30,900,000 Class A-2 (AA(sf), SOFR + 1.85%), $41,200,000 Class B (A(sf), SOFR + 2.25%), $30,900,000 Class C (BBB-(sf), SOFR + 3.60%) — total secured notes ≈ $372.3M.
• Subordinated notes: $92,600,000 due 7/15/2126 (no interest).
• Additional loan facility: $50,000,000 Class A-1a Loans (SOFR + 1.50%) under a credit agreement.
• Maturities and call: Secured debt scheduled to mature 7/15/2038; subordinated notes scheduled to mature 7/15/2126; Debt may be redeemed on any business day on or after 7/15/2028 at the direction of ADL CLO 3 Depositor LLC (the CLO retention holder).
• Retention and roles: The CLO retention holder (a consolidated subsidiary of the Company) retained part of the Class A-2 notes and 100% of the Class B, Class C and Subordinated Notes to satisfy regulatory retention rules. Apollo Debt Solutions BDC is the collateral manager; collateral management fee while manager = 0.0% per annum.
• Transaction parties: Initial purchaser and placement agent: Citigroup Global Markets Inc.; placement agent: Apollo Global Securities, LLC; collateral trustee/loan agent: Western Alliance Trust Company, N.A.
• Legal/registration: Debt is not registered under the Securities Act and cannot be offered or sold in the U.S. absent registration or an exemption.

Why It Matters
This filing shows the Company used a consolidated subsidiary to securitize a portfolio of loans, raising financing and transferring ownership of collateral loans to the CLO issuer. The transaction increases the Company’s consolidated indebtedness subject to its asset‑coverage rules, while retaining economic exposure through the retention holder. Investors should note the size of the securitization ($514.9M), the retained subordinated and junior tranches (which absorb first loss), the maturity and redemption terms, and that the debt is unregistered. These facts affect the Company’s consolidated leverage, exposure to the CLO’s collateral performance, and regulatory retention compliance.