Apollo Investment (AINV) Q4 2012 Earnings Call May 23, 2012 10:00 am ET Executives Elizabeth Besen James Charles Zelter - Chief Executive Officer, Chief Investment Officer and Director Edward Goldthorpe Eileen Patrick Gene Donnelly - Chief Financial Officer; Interim Chief Financial Officer and Treasurer of Apollo Investment Corporation Patrick J. Dalton - President and Chief Operating Officer at Apollo Investment Corporation Analysts Arren Cyganovich - Evercore Partners Inc., Research Division Richard B. Shane - JP Morgan Chase & Co, Research Division Greg Mason - Stifel, Nicolaus & Co., Inc., Research Division Kannan Venkateshwar - Barclays Capital, Research Division Mickey M. Schleien - Ladenburg Thalmann & Co. Inc., Research Division Presentation Operator
To obtain copies of our latest SEC filings, please visit our website at www.apolloic.com.At this time, I'd like to turn the call over to Jim Zelter. James Charles Zelter Thank you, Elizabeth. This morning, we issued our press -- earnings press release and filed our annual Form 10-K with the Securities and Exchange Commission. I'll begin my remarks today with some financial highlights for the quarter followed by a review of some other recent business highlights. Following my remarks, Ted will provide a brief overview of the current market environment and we'll then review investment portfolio activity for the quarter. Eileen will then discuss some of our recent strategic accomplishments. And finally, Gene will discuss our financial results in detail. We will then open the call to questions. Consistent with our philosophy of improving transparency and disclosures, we have posted a financial supplemental presentation on our website this morning. Gene will briefly discuss this presentation in his remarks later this morning. Moving to financial highlights, we are pleased to report fourth quarter net investment income per share of $0.21 for the quarter ended March 31, 2012. Net asset value per share rose 5% to $8.55 at the end of the March quarter compared to $8.16 at the end of December 2011. The increase was driven primarily by unrealized appreciation. During the quarter, we invested $147 million and received proceeds from sales and prepayments of $340 million. Our investment portfolio ended the quarter at $2.68 billion at March 31 compared to $2.70 billion -- $2.78 billion at the end of December. In addition to reporting earnings, we made a couple of other important announcements this morning. First, we are extremely pleased to announce that we have entered into a new 4-year $1.14 billion facility, senior secured credit facility. This facility replaces our existing facility and bears an interest rate of LIBOR plus 225 basis points, which is 75 basis points lower than our existing facility. The new facility has a 4-year maturity of May 2016, which includes a 3-year revolving period that ends in May 2015. This new facility provides us with substantial long-term liquidity and in a very favorable rate.
Second, we are also very pleased to announce today that we have named Greg Hunt as Chief Financial Officer and Treasurer of Apollo Investment Corporation. Greg has an extensive finance background and has been a CFO for several companies, including a number of Apollo Global Management private equity portfolio companies. We are excited to have Greg on the senior management team of Apollo Investment Corporation. We'd also -- we and the team would also like to thank Gene for serving as Interim CFO and Treasurer for the company for the last several months.Moving to some other recent highlights. In our last call, we said that we were considering raising additional equity capital. We spoke with many of you and heard your concerns and concluded that raising equity through either a marketed transaction or rights offering was not -- was currently not in the best interest of our shareholders. Apollo Global Management then decided to make a $50 million common equity investment in Apollo investment Corporation and net asset value. Our investment advisor is waving the base management and incentive fees associated with equity capital for a 1 year period. We believe this investment and the fee waiver demonstrates explicit support from Apollo for this flagship private debt vehicle. Also in early April, we announced that we made an investment in the senior loan vehicle managed by Madison Capital. This investment helps us achieve our objective of expanding into additional investment strategies and having greater exposure to proprietarily originated senior secured loans and asset class, which we believe will be an important part of our portfolio going forward. Eileen will discuss this investment in greater detail. Read the rest of this transcript for free on seekingalpha.com