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Apollo Senior Floating Rate Fund Inc. Closes Credit Facility And Issuance Of Series A Preferred Stock

Apollo Senior Floating Rate Fund Inc. (the “Fund”) today announced the closing of a credit facility and the issuance of shares of its Series A Preferred Stock. The Fund is a closed-end management investment company investing primarily in a portfolio of senior secured floating rate loans with the objective of current income and preservation of capital. Shares of the Fund’s common stock began trading on February 24, 2011 on the New York Stock Exchange (NYSE) under the symbol “AFT”.

The Fund entered into a $137,950,000 credit facility with Wells Fargo Bank, National Association (“Wells Fargo”), as lender, and Wells Fargo Securities LLC, as administrative agent. The Fund may borrow under the credit facility on a revolving basis until June 24, 2011. Any loans outstanding under the credit facility must be repaid in full in March 2015. The loans generally bear interest at a rate of the 3-month London Interbank Offered Rate (“LIBOR”) plus an applicable margin rate initially set at 1.40%. On or before April 8, 2011, the Fund may increase Wells Fargo’s total aggregate commitment to an amount determined pursuant to a formula set forth in the credit facility based on the number of shares of the Fund’s common stock issued by April 8, 2011. The credit facility contains customary affirmative and negative covenants, including limitations on debt, liens and restricted payments, as well as certain portfolio limitations and customary prepayment provisions, including a requirement to prepay loans or take certain other actions if certain asset value tests are not met.

The Fund also issued shares of the Fund’s Series A Preferred Stock to Wells Fargo with an aggregate liquidation preference of $20,620,000. The Series A Preferred Stock generally is entitled to quarterly dividends at a floating rate of 1.90% plus 3-month LIBOR, subject to adjustment for unpaid dividends. In the event that the Fund chooses to increase Wells Fargo’s total aggregate commitment under the credit facility as described above, the Fund will also issue to Wells Fargo additional shares of Series A Preferred Stock. The preferences, rights, powers and other terms applicable to the Series A Preferred Stock are set forth in the Articles Supplementary filed with the State Department of Assessments and Taxation of Maryland today. No public offering of the Series A Preferred Stock is being made by the Fund.

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