The business development company Apollo Investment Corp. a provider of financing to small and mid-sized businesses, said it will raise $150 million through a private placement of convertible notes to fund investments and repay debt, according to Reuters, a sister news service to Buyouts.
The company said it intends to privately offer $150 million in aggregate principal amount of senior unsecured convertible notes due 2016. The initial purchasers also have an option to purchase up to an additional $22.5 million. The notes will be convertible after Dec. 15, 2015, or earlier under certain circumstances.
Apollo Investment Corp. said it would use the proceeds to fund new portfolio investments, reduce its revolving debt and for other corporate purposes. The company said it would offer the notes only to qualified institutional buyers.
The publicly traded Apollo Investment Corp. is managed by Apollo Investment Management—an affiliate of
Abhinav Sharma is a Reuters correspondent in Bangalore.