NEW YORK (TheStreet) -- Apollo Investment Corporation (AINV) has priced the public offering of 12 million shares of its common stock, with an underwriter option of an additional 1.8 million shares. However, the firm has not yet disclosed the price at which it is listing this secondary offering.
The closed-end fund currently has 224.84 million shares outstanding.
The offering is expected to take place on Feb. 28, subject to customary closing conditions.
The New York-based business expects to use the net proceeds of the offering to repay outstanding indebtedness under its senior secured facility.
Bank of America, Barclays, Citigroup and RBC Capital Markets are acting as joint book-running managers, while Deutsche Bank will act as lead manager.
By midafternoon Tuesday, shares had taken off 6.2% to $8.58. Trading volume of 20 million was more than 10 times its three-month daily average.
TheStreet Ratings team rates APOLLO INVESTMENT CORP as a Hold with a ratings score of C. The team has this to say about their recommendation:
"We rate APOLLO INVESTMENT CORP (AINV) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."