UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-00646

APOLLO INVESTMENT CORPORATION

(Exact name of Registrant as specified in its charter)

Maryland	52-2439556
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
9 West 57th Street 37th Floor New York, New York	10019
(Address of principal executive offices)	(Zip Code)

(212) 515-3450

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Common Stock, $0.001 par value		AINV		NASDAQ Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x  No ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ¨  No ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨	Non-accelerated filer	¨	Smaller reporting company	¨

(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨  No x

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of November 4, 2019 was 66,545,741.

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APOLLO INVESTMENT CORPORATION

Table of Contents

		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Statements of Assets and Liabilities September 30, 2019 and March 31, 2019	1
	Statements of Operations Three and six months ended September 30, 2019 and September 30, 2018	2
	Statements of Changes in Net Assets Three and six months ended September 30, 2019 and September 30, 2018	3
	Statements of Cash Flows Six months ended September 30, 2019 and September 30, 2018	4
	Schedule of Investments September 30, 2019	5
	Schedule of Investments March 31, 2019	29
	Notes to Financial Statements	49
	Report of Independent Registered Public Accounting Firm	77
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	78
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	92
Item 4.	Controls and Procedures	93
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	94
Item 1A.	Risk Factors	94
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	94
Item 3.	Defaults Upon Senior Securities	96
Item 4.	Mine Safety Disclosures	96
Item 5.	Other Information	97
Item 6.	Exhibits	97
	Signatures	98

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Table of Contents

PART I. FINANCIAL INFORMATION

In this report, the terms the “Company,” “Apollo Investment,” “AIC,” “we,” “us,” and “our” refer to Apollo Investment Corporation unless the context specifically states otherwise.

Item 1. Financial Statements

APOLLO INVESTMENT CORPORATION STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share and per share data)
	September 30, 2019				March 31, 2019
	(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $2,159,801 and $1,654,322, respectively)	$	2,121,375			$	1,627,406
Non-controlled/affiliated investments (cost — $67,304 and $67,072, respectively)	49,164				49,681
Controlled investments (cost — $662,657 and $736,717, respectively)	634,221				731,045
Cash and cash equivalents	31,637				36,280
Foreign currencies (cost — $4,860 and $4,963, respectively)	4,801				4,909
Receivable for investments sold	269				336
Interest receivable	28,692				24,280
Dividends receivable	4,381				3,748
Deferred financing costs	17,693				19,776
Prepaid expenses and other assets	729				336
Total Assets	$	2,892,962			$	2,497,797
Liabilities
Debt	$	1,584,128			$	1,128,686
Payable for investments purchased	—				677
Distributions payable	30,171				31,040
Management and performance-based incentive fees payable	12,101				8,880
Interest payable	3,666				5,818
Accrued administrative services expense	2,354				2,983
Other liabilities and accrued expenses	7,150				7,086
Total Liabilities	$	1,639,570			$	1,185,170
Commitments and contingencies (Note 10)
Net Assets	$	1,253,392			$	1,312,627
Net Assets
Common stock, $0.001 par value (130,000,000 and 400,000,000 shares authorized; 67,047,352 and 68,876,986 shares issued and outstanding, respectively)	$	67			$	69
Capital in excess of par value	2,126,502				2,155,836
Accumulated under-distributed (over-distributed) earnings	(873,177		)		(843,278		)
Net Assets	$	1,253,392			$	1,312,627
Net Asset Value Per Share	$	18.69			$	19.06

See notes to financial statements.

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APOLLO INVESTMENT CORPORATION STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share data)
	Three Months Ended September 30,								Six Months Ended September 30,
	2019				2018				2019				2018
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)	$	51,489			$	44,586			$	98,493			$	84,029
Dividend income	5				—				66				—
PIK interest income	732				816				5,438				2,066
Other income	2,185				1,810				3,122				3,213
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	—				—				—				—
Dividend income	313				295				632				607
PIK interest income	—				—				—				—
Other income	—				—				—				—
Controlled investments:
Interest income (excluding PIK interest income)	12,271				15,075				24,910				29,565
Dividend income	2,451				1,985				2,451				7,250
PIK interest income	872				1,467				1,722				2,895
Other income	—				—				—				—
Total Investment Income	$	70,318			$	66,034			$	136,834			$	129,625
Expenses
Management fees	$	10,190			$	9,258			$	19,729			$	18,131
Performance-based incentive fees	1,911				6,359				1,911				13,782
Interest and other debt expenses	18,735				14,903				36,246				28,480
Administrative services expense	1,542				1,857				3,267				3,495
Other general and administrative expenses	2,305				3,524				5,609				6,056
Total expenses	34,683				35,901				66,762				69,944
Management and performance-based incentive fees waived	—				(1,834		)		—				(3,690		)
Expense reimbursements	(99		)		(196		)		(196		)		(339		)
Net Expenses	$	34,584			$	33,871			$	66,566			$	65,915
Net Investment Income	$	35,734			$	32,163			$	70,268			$	63,710
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments	$	(5,701	)		$	228			$	(5,710	)		$	(9,718	)
Non-controlled/affiliated investments	—				2,007				1,089				2,007
Controlled investments	—				—				—				—
Option contracts	—				(10,311		)		—				(23,520		)
Foreign currency transactions	(1,387		)		2				(1,185		)		(26		)
Extinguishment of debt	(4,375		)		—				(4,375		)		—
Net realized gains (losses)	(11,463		)		(8,074		)		(10,181		)		(31,257		)
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments	(7,463		)		(5,717		)		(11,508		)		(10,839		)
Non-controlled/affiliated investments	(1,659		)		(3,094		)		(750		)		(3,960		)
Controlled investments	(13,069		)		1,393				(22,765		)		9,973
Option contracts	—				10,926				—				10,359
Foreign currency translations	4,988				432				5,833				3,293
Net change in unrealized gains (losses)	(17,203		)		3,940				(29,190		)		8,826
Net Realized and Change in Unrealized Gains (Losses)	$	(28,666	)		$	(4,134	)		$	(39,371	)		$	(22,431	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	7,068			$	28,029			$	30,897			$	41,279
Earnings Per Share — Basic	$	0.10			$	0.39			$	0.45			$	0.58

See notes to financial statements.

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APOLLO INVESTMENT CORPORATION STATEMENTS OF CHANGES IN NET ASSETS (Unaudited) (In thousands, except share data)
	Three Months Ended September 30,								Six Months Ended September 30,
	2019				2018				2019				2018
Operations
Net investment income	$	35,734			$	32,163			$	70,268			$	63,710
Net realized gains (losses)	(11,463		)		(8,074		)		(10,181		)		(31,257		)
Net change in unrealized gains (losses)	(17,203		)		3,940				(29,190		)		8,826
Net Increase in Net Assets Resulting from Operations	$	7,068			$	28,029			$	30,897			$	41,279
Distributions to Stockholders
Distribution of net investment income	$	(30,171	)		$	(31,938	)		$	(60,795	)		$	(64,231	)
Distribution of return of capital	—				—				—				—
Net Decrease in Net Assets Resulting from Distributions to Stockholders	$	(30,171	)		$	(31,938	)		$	(60,795	)		$	(64,231	)
Capital Share Transactions
Repurchase of common stock	(14,215		)		(16,104		)		(29,337		)		(23,982		)
Net Decrease in Net Assets Resulting from Capital Share Transactions	$	(14,215	)		$	(16,104	)		$	(29,337	)		$	(23,982	)
Net Assets
Net decrease in net assets during the period	$	(37,318	)		$	(20,013	)		$	(59,235	)		$	(46,934	)
Net assets at beginning of period	1,290,710				1,391,165				1,312,627				1,418,086
Net Assets at End of Period	$	1,253,392			$	1,371,152			$	1,253,392			$	1,371,152
Capital Share Activity
Shares repurchased during the period	(880,001		)		(956,100		)		(1,829,634		)		(1,418,367		)
Shares issued and outstanding at beginning of period	67,927,353				71,641,765				68,876,986				72,104,032
Shares Issued and Outstanding at End of Period	67,047,352				70,685,665				67,047,352				70,685,665

See notes to financial statements.

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APOLLO INVESTMENT CORPORATION STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
	Six Months Ended September 30,
	2019				2018
Operating Activities
Net increase (decrease) in net assets resulting from operations	$	30,897			$	41,279
Net realized (gains) losses	10,181				31,257
Net change in unrealized (gains) losses	29,190				(8,826		)
Net amortization of premiums and accretion of discounts on investments	(4,337		)		(3,358		)
Accretion of discount on notes	297				297
Amortization of deferred financing costs	2,526				2,345
Increase in gains/(losses) from foreign currency transactions	(1,185		)		(26		)
PIK interest and dividends capitalized	(5,982		)		(4,089		)
Changes in operating assets and liabilities:
Purchases of investments	(912,673		)		(760,464		)
Proceeds from sales and repayments of investments	486,112				639,764
Purchases of option contracts	—				(23,740		)
Proceeds from option contracts	—				546
Net settlement of option contracts	—				12,414
Decrease (increase) in interest receivable	(4,402		)		332
Decrease (increase) in dividends receivable	(633		)		—
Decrease (increase) in prepaid expenses and other assets	(393		)		(768		)
Increase (decrease) in management and performance-based incentive fees payable	3,221				268
Increase (decrease) in interest payable	(2,152		)		385
Increase (decrease) in accrued administrative services expense	(629		)		(275		)
Increase (decrease) in other liabilities and accrued expenses	64				3,069
Net Cash Used in/Provided by Operating Activities	$	(369,898	)		$	(69,590	)
Financing Activities
Issuances of debt	$	799,134			$	553,603
Payments of debt	(342,797		)		(394,500		)
Financing costs paid and deferred	(184		)		(10		)
Repurchase of common stock	(29,337		)		(23,982		)
Distributions paid	(61,664		)		(64,736		)
Net Cash Used in/Provided by Financing Activities	$	365,152			$	70,375
Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts
Net increase (decrease) in cash, cash equivalents, foreign currencies and collateral on option contracts during the period	$	(4,746	)		$	785
Effect of foreign exchange rate changes on cash and cash equivalents	(5		)		(11		)
Cash, cash equivalents, foreign currencies and collateral on option contracts at beginning of period	41,189				20,349
Cash, Cash Equivalents, Foreign Currencies and Collateral on Option Contracts at the End of Period	$	36,438			$	21,123
Supplemental Disclosure of Cash Flow Information
Cash interest paid	$	35,627			$	25,455
Non-Cash Activity
PIK income	$	7,160			$	4,961

See notes to financial statements.

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APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)

Industry / Company		Investment Type		Interest Rate (20)		Maturity Date		Par / Shares (12)				Cost (28)				Fair Value (1)(29)
Advertising, Printing & Publishing
A-L Parent LLC		Second Lien Secured Debt		9.30% (1M L+725, 1.00% Floor)		12/02/24		$	5,536			$	5,500			$	5,508
Simplifi Holdings, Inc.		First Lien Secured Debt		8.04% (1M L+500, 1.00% Floor)		08/02/25		36,582				35,929				35,851				(9)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		08/02/25		2,400				(54		)		(48		)		(8)(9)(21)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		0.50% Unfunded		08/04/25		2,436				(24		)		(49		)		(8)(9)(21)(23)
												35,851				35,754
Total Advertising, Printing & Publishing												$	41,351			$	41,262
Aerospace & Defense
Erickson Inc		First Lien Secured Debt - Revolver		9.82% (3M L+750, 1.00% Floor)		04/28/22		$	32,487			$	32,487			$	31,919			(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		04/28/22		5,965				(290		)		(104		)		(8)(9)(21)(23)
		First Lien Secured Debt - Letters of Credit		7.50%		9/30/19 - 2/24/21		6,548				—				(113		)		(8)(9)(23)
												32,197				31,702
ILC Dover LP		Second Lien Secured Debt		10.70% (3M L+850, 1.00% Floor)		06/28/24		7,800				7,671				7,683
PAE Holding Corporation		Second Lien Secured Debt		11.60% (3M L+950, 1.00% Floor)		10/20/23		28,097				27,599				27,745				(10)
Total Aerospace & Defense												$	67,467			$	67,130
Automotive
Accelerate Parent Corp.		Common Equity/Interests - Common Stock		N/A		N/A		1,664,046 Shares				$	1,714			$	—			(13)(26)
Arlington Industries Group Limited		First Lien Secured Debt		5.96% (1M GBP L+525, 0.50% Floor)		03/29/24		£	7,961			10,126				9,556				(9)(17)
		First Lien Secured Debt		5.75% (1M E+525, 0.50% Floor)		03/29/24		€	3,297			3,693				3,496				(9)(17)
		First Lien Secured Debt - Revolver		5.96% (1M GBP L+525, 0.50% Floor)		03/29/24		£	2,095			2,570				2,509				(9)(17)(23)
		First Lien Secured Debt - Unfunded Revolver		1.25% Unfunded		03/29/24		£	605			(64		)		(21		)		(8)(9)(17)(21)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		1.00% Unfunded		03/29/24		£	1,300			(31		)		(45		)		(8)(9)(17)(21)(23)
												16,294				15,495
Crowne Automotive
Vari-Form Group, LLC		First Lien Secured Debt		13.14% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)		02/02/23		$	5,860			938				938				(9)(13)(14)
Vari-Form Inc.		First Lien Secured Debt		13.14% (3M L+11.00% (7.00% Cash plus 4.00% PIK), 1.00% Floor)		02/02/23		2,446				391				391				(9)(13)(14)
												1,329				1,329
K&N Parent, Inc.		Second Lien Secured Debt		10.79% (1M L+875, 1.00% Floor)		10/21/24		23,765				23,459				23,075
Total Automotive												$	42,796			$	39,899
Aviation and Consumer Transport
Merx Aviation Finance, LLC (5)		First Lien Secured Debt - Revolver		12.00%		10/31/23		$	307,300			$	307,300			$	307,300
		First Lien Secured Debt - Letter of Credit		2.25%		07/13/20		177				—				—				(23)
		Common Equity - Membership Interests		N/A		N/A		N/A				15,000				55,697
Total Aviation and Consumer Transport												$	322,300			$	362,997

See notes to financial statements.

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APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)

Industry / Company		Investment Type		Interest Rate (20)		Maturity Date		Par / Shares (12)				Cost (28)				Fair Value (1)(29)
Beverage, Food & Tobacco
Eagle Foods Family Group, LLC		First Lien Secured Debt		9.12% (6M L+650, 1.00% Floor)		06/14/24		$	24,688			$	24,470			$	24,194			(9)
		First Lien Secured Debt - Revolver		9.12% (6M L+650, 1.00% Floor)		06/14/23		417				417				408				(9)(23)
		First Lien Secured Debt - Revolver		8.71% (3M L+650, 1.00% Floor)		06/14/23		917				917				898				(9)(23)
		First Lien Secured Debt - Revolver		8.72% (3M L+650, 1.00% Floor)		06/14/23		250				250				245				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		06/14/23		2,166				(31		)		(43		)		(8)(9)(21)(23)
												26,023				25,702
Florida Food Products
Florida Food Products, Inc.		First Lien Secured Debt		8.79% (1M L+675, 1.00% Floor)		09/08/25		23,055				22,565				22,824				(9)
Florida Food Products, LLC		First Lien Secured Debt - Revolver		8.79% (1M L+675, 1.00% Floor)		09/06/23		1,473				1,473				1,458				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		09/06/23		240				(34		)		(2		)		(8)(9)(21)(23)
												24,004				24,280
TNT Crust LLC		First Lien Secured Debt		7.29% (1M L+525, 1.00% Floor)		11/06/23		10,377				10,183				10,170				(9)
		First Lien Secured Debt		7.29% (1M L+525, 1.00% Floor)		11/06/23		9,038				8,889				8,857				(9)
		First Lien Secured Debt - Revolver		7.30% (1M L+525, 1.00% Floor)		11/06/23		813				813				797				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		11/06/23		2,439				(57		)		(49		)		(8)(9)(21)(23)
		Common Equity/Interests - Series A Units		N/A		N/A		244 Shares				30				310				(9)(13)
												19,858				20,085
Turkey Hill
IC Holdings LLC		Common Equity/Interests - Series A Units		N/A		N/A		169 Shares				169				155				(9)(13)
THLP CO. LLC		First Lien Secured Debt		7.54% (1M L+550, 1.00% Floor)		05/30/25		19,562				19,192				19,366				(9)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		05/31/24		4,494				(84		)		(45		)		(8)(9)(21)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		1.00% Unfunded		05/30/25		5,618				(47		)		(56		)		(8)(9)(21)(23)
												19,230				19,420
Wm. Bolthouse Farms, Inc.		Common Equity/Interests - Common Stock		N/A		N/A		1,000,000 Shares				1,000				1,000				(13)
Total Beverage, Food & Tobacco												$	90,115			$	90,487
Business Services
Access CIG, LLC		Second Lien Secured Debt		10.07% (3M L+775)		02/27/26		$	15,900			$	15,781			$	15,900			(10)
Aero Operating LLC		First Lien Secured Debt		9.35% (1M L+725, 1.00% Floor)		12/29/22		36,566				35,954				36,200				(9)
		First Lien Secured Debt - Revolver		11.25% (P+625)		12/29/22		160				160				159				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		1.00% Unfunded		12/29/22		3,613				(78		)		(36		)		(8)(9)(21)(23)
		First Lien Secured Debt - Letters of Credit		L+400		4/30/20 - 6/21/20		1,039				—				(10		)		(8)(9)(23)
												36,036				36,313

See notes to financial statements.

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APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)

Industry / Company		Investment Type		Interest Rate (20)		Maturity Date		Par / Shares (12)				Cost (28)				Fair Value (1)(29)
Ambrosia Buyer Corp.		Second Lien Secured Debt		10.20% (6M L+800, 1.00% Floor)		08/28/25		21,429				21,033				20,756
Claritas, LLC		First Lien Secured Debt		8.10% (3M L+600, 1.00% Floor)		12/21/23		3,895				3,860				3,856				(9)
		First Lien Secured Debt - Revolver		8.04% (1M L+600, 1.00% Floor)		12/21/23		258				258				255				(9)(23)
		First Lien Secured Debt - Revolver		10.00% (P+500)		12/21/23		26				26				26				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		12/21/23		747				(9		)		(7		)		(8)(9)(21)(23)
												4,135				4,130
Continuum Global Solutions, LLC		First Lien Secured Debt - Revolver		7.60% (1M L+550, 1.00% Floor)		02/15/22		5,858				5,858				5,741				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		02/15/22		4,911				(171		)		(98		)		(8)(9)(21)(23)
		Preferred Equity - Preferred Stock		N/A		N/A		620 Shares				62				62				(9)(13)
												5,749				5,705
CT Technologies Intermediate Holdings, Inc		First Lien Secured Debt		6.29% (1M L+425, 1.00% Floor)		12/01/21		4,437				3,940				4,066				(9)(10)
		Second Lien Secured Debt		11.04% (1M L+900, 1.00% Floor)		12/01/22		31,253				30,719				28,128				(9)
												34,659				32,194
Education Personnel		First Lien Secured Debt		5.51% (3M GBP L+475, 0.50% Floor)		08/31/24		£	4,077			5,178				4,979				(9)(17)
		First Lien Secured Debt - Revolver		5.51% (3M GBP L+475, 0.50% Floor)		08/31/24		£	1,471			1,868				1,796				(9)(17)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		1.66% Unfunded		08/31/24		£	4,412			—				—				(9)(17)(21)(23)
												7,046				6,775
Electro Rent Corporation		Second Lien Secured Debt		11.13% (2M L+900, 1.00% Floor)		01/31/25		34,235				33,485				33,551				(9)
Ensemble RCM, LLC		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		08/01/24		4,155				(388		)		(374		)		(8)(21)(23)
Jacent Strategic Merchandising		First Lien Secured Debt		8.01% (3M L+575, 1.00% Floor)		04/23/24		22,693				22,382				22,350				(9)
		First Lien Secured Debt - Revolver		7.85% (3M L+575, 1.00% Floor)		04/23/24		467				467				460				(9)(23)
		First Lien Secured Debt - Revolver		9.75% (P+475)		04/23/24		933				933				919				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		04/23/24		2,100				(48		)		(32		)		(8)(9)(21)(23)
		Common Equity/Interests - Common Stock		N/A		N/A		5,000 Shares				500				500				(9)(13)
												24,234				24,197
JF Acquisition, LLC		First Lien Secured Debt		7.60% (3M L+550, 1.00% Floor)		07/31/24		5,272				5,168				5,167				(9)
		First Lien Secured Debt		7.76% (3M L+550, 1.00% Floor)		07/31/24		8,159				8,002				7,996				(9)
		First Lien Secured Debt - Revolver		7.75% (3M L+550, 1.00% Floor)		07/31/24		188				188				185				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		07/31/24		1,381				(30		)		(28		)		(8)(9)(21)(23)
												13,328				13,320
McLarens Global Ltd
Margaux Acquisition Inc.		First Lien Secured Debt		8.32% (3M L+600, 1.00% Floor)		12/19/24		18,895				18,590				18,706				(9)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		12/19/24		1,601				(28		)		(16		)		(8)(9)(21)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		1.00% Unfunded		12/19/24		4,461				(101		)		(45		)		(8)(9)(21)(23)

See notes to financial statements.

7

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Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)

Industry / Company		Investment Type		Interest Rate (20)		Maturity Date		Par / Shares (12)				Cost (28)				Fair Value (1)(29)
Margaux UK Finance Limited		First Lien Secured Debt		7.00% (3M GBP L+600, 1.00% Floor)		12/19/24		£	5,926			7,357				7,229				(9)(17)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		12/19/24		£	541			(12		)		(7		)		(8)(9)(17)(21)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		1.00% Unfunded		12/19/24		£	1,353			(30		)		(17		)		(8)(9)(17)(21)(23)
												25,776				25,850
Ministry Brands, LLC		Second Lien Secured Debt		11.34% (2M L+925, 1.00% Floor)		06/02/23		10,000				9,914				9,977
Newscycle Solutions, Inc.		First Lien Secured Debt		9.04% (1M L+700, 1.00% Floor)		12/29/22		15,046				14,796				14,896				(9)
		First Lien Secured Debt		9.10% (1M L+700, 1.00% Floor)		12/29/22		1,163				1,150				1,151				(9)
		First Lien Secured Debt - Revolver		9.05% (1M L+700, 1.00% Floor)		12/29/22		400				400				396				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		12/29/22		100				(8		)		(1		)		(8)(9)(21)(23)
												16,338				16,442
PSI Services, LLC		First Lien Secured Debt		7.04% (1M L+500, 1.00% Floor)		01/20/23		4,551				4,488				4,529				(9)
		First Lien Secured Debt - Revolver		9.00% (P+400)		01/20/22		278				278				277				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		01/20/22		119				(5		)		(1		)		(8)(9)(21)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		01/20/22		£	47			—				—				(8)(9)(21)(23)
		Second Lien Secured Debt		11.04% (1M L+900, 1.00% Floor)		01/20/24		37,893				37,192				37,935				(9)
												41,953				42,740
RA Outdoors, LLC		First Lien Secured Debt		6.79% (1M L+475, 1.00% Floor)		09/11/24		7,102				7,001				6,889				(9)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		09/09/22		1,200				(14		)		(24		)		(8)(9)(21)(23)
		Second Lien Secured Debt		10.79% (1M L+875, 1.00% Floor)		09/11/25		34,200				33,563				32,832				(9)
												40,550				39,697
STG-Fairway Acquisitions, Inc.		Second Lien Secured Debt		11.29% (1M L+925, 1.00% Floor)		06/30/23		15,000				14,823				14,400
TGG TS Acquisition Company		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		12/14/23		1,750				—				(44		)		(8)(21)(23)
Transplace Holdings, Inc.		Second Lien Secured Debt		10.80% (1M L+875, 1.00% Floor)		10/06/25		8,599				8,436				8,427				(10)
U.S. Legal Support
USLS Acquisition, Inc.		First Lien Secured Debt		7.85% (3M L+575, 1.00% Floor)		12/02/24		24,623				24,234				24,175				(9)
		First Lien Secured Debt - Revolver		8.08% (3M L+575)		12/02/24		536				536				526				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		12/02/24		986				(28		)		(18		)		(8)(9)(21)(23)
		First Lien Secured Debt - Letters of Credit		5.75%		10/15/19-06/06/20		86				—				(1		)		(8)(9)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		0.50% Unfunded		12/02/24		12				(40		)		—				(9)(21)(23)
US Legal Support Investment Holdings, LLC		Common Equity/Interests - Series A-1 Units		N/A		N/A		631,972 Shares				632				712				(9)(13)
												25,334				25,394

See notes to financial statements.

8

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Table of Contents

APOLLO INVESTMENT CORPORATION

SCHEDULE OF INVESTMENTS (Unaudited)

September 30, 2019

(In thousands, except share data)

Industry / Company		Investment Type		Interest Rate (20)		Maturity Date		Par / Shares (12)				Cost (28)				Fair Value (1)(29)
Vertafore, Inc.		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		06/30/23		14,576				(1,294		)		(1,676		)		(8)(21)(23)
		First Lien Secured Debt - Letter of Credit		3.25%		01/17/20		424				—				(49		)		(8)(23)
												(1,294		)		(1,725		)
Total Business Services												$	376,928			$	373,625
Chemicals, Plastics & Rubber
Carbon Free Chemicals
Carbonfree Caustic SPE LLC		First Lien Secured Debt		5.00%		12/31/21		$	12,800			$	12,800			$	12,800
Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC)		First Lien Secured Debt		5.22% PIK		12/31/21		50,305				50,305				43,076
		First Lien Secured Debt - Unfunded Delayed Draw		0.00% Unfunded		12/31/21		311				—				—				(21)(23)
		Common Equity/Interests - Residual Interests		N/A		N/A		9,000,000 Shares				9,000				—				(13)
												72,105				55,876
Hare Bidco, Inc.		Second Lien Secured Debt		9.75% (1M E+875)		08/01/24		€	13,574			14,486				14,651
Westfall Technik, Inc.		First Lien Secured Debt		7.60% (3M L+575, 1.00% Floor)		09/13/24		15,345				15,172				15,192				(9)
		First Lien Secured Debt - Revolver		7.68% (1M L+575, 1.00% Floor)		09/13/24		1,615				1,615				1,599				(9)(23)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		09/13/24		404				(33		)		(4		)		(8)(9)(21)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		1.00% Unfunded		09/13/24		13,502				(214		)		(135		)		(8)(9)(21)(23)
												16,540				16,652
Total Chemical, Plastics & Rubber												$	103,131			$	87,179
Construction & Building
Englert
Gutter Buyer, Inc.		First Lien Secured Debt		8.29% (1M L+625, 1.00% Floor)		03/06/25		$	23,804			$	23,265			$	23,233			(9)
		First Lien Secured Debt - Unfunded Revolver		0.50% Unfunded		03/06/24		2,727				(60		)		(65		)		(8)(9)(21)(23)
		First Lien Secured Debt - Unfunded Delayed Draw		1.00% Unfunded		03/06/25		3,409				(46		)		(49		)		(8)(9)(21)(23)
Gutter Holdings, LP		Common Equity/Interests - Common Stock		N/A		N/A		500 Shares				500				608				(9)(13)
Total Construction & Building												$	23,659			$	23,727
Consumer Goods – Durable
Hayward Industries, Inc.		Second Lien Secured Debt		10.29% (1M L+825)		08/04/25		$	21,919			$	21,672			$	21,480			(10)
KDC US Holdings		First Lien Secured Debt - Unfunded Revolver		0.25% Unfunded		12/21/23		5,916				—				(477		)		(8)(21)(23)
		First Lien Secured Debt - Letters of Credit		3.25%		12/31/19 - 03/08/20		104				—				(9		)		(8)(23)
												—				(486		)
KLO Holdings