NEW YORK - Apollo Global Management, Inc. (NYSE: NYSE:APO) has priced a significant debt offering, announcing on Thursday the issuance of $750 million in senior notes with a 5.800% interest rate, maturing in 2054. The offering, backed by a robust guarantee structure involving multiple Apollo holdings, is set to close on May 21, 2024, under standard closing conditions.
Interest on these senior notes will be paid semi-annually, with the first payment scheduled for November 21, 2024. Apollo anticipates that the net proceeds, estimated at approximately $743.4 million after underwriting discounts and before expenses, will be allocated for general corporate purposes.
A consortium of financial institutions, including BofA Securities, Inc., Barclays (LON:BARC) Capital Inc., Citigroup Global Markets Inc., and Morgan Stanley (NYSE:MS) & Co. LLC, are managing the book-running process. Co-managers for the offering include Apollo Global Securities, LLC, Deutsche Bank (ETR:DBKGn) Securities Inc., Goldman Sachs (NYSE:GS) & Co. LLC, among others.
The offering is part of a shelf registration statement previously filed with and made effective by the U.S. Securities and Exchange Commission (SEC). Interested parties can access the preliminary prospectus supplement and accompanying prospectus on the SEC's website or directly through the joint book-running managers.
Apollo Global Management, a leading global alternative investment manager, has provided this information as part of a forward-looking statement, which includes the anticipated use of proceeds and other expectations related to the offering's completion. These statements are subject to the usual risks and uncertainties, including market conditions and regulatory factors, and there can be no assurance that the expectations will be realized.
InvestingPro Insights
As Apollo Global Management (NYSE: APO) ventures into the debt market with its recent senior notes offering, investors are closely monitoring the company's financial health and market position. With a substantial market capitalization of $64.6 billion, Apollo stands as a significant entity in the financial services sector. The company's P/E ratio, a key metric for valuation, stands at a stable 12.69, reflecting a reasonable market expectation of its earnings potential. Adjusted for the last twelve months as of Q1 2024, the P/E ratio is slightly higher at 13.34, indicating a modest uptick in valuation.
While analysts have revised their earnings expectations downwards for the upcoming period, Apollo's revenue growth has been impressive, with a 120.25% increase over the last twelve months as of Q1 2024. This is complemented by a strong gross profit margin of 26.29%, showcasing the company's ability to maintain profitability. Moreover, the firm's stock has experienced a high return over the last year, with a 1-year price total return of 89.8%, and is trading near its 52-week high, at 96.71% of the peak price.
InvestingPro Tips suggest that Apollo is a prominent player in the Financial Services industry and has maintained dividend payments for 14 consecutive years, a testament to its financial stability and commitment to shareholder returns. Additionally, the company's liquid assets exceed its short-term obligations, further solidifying its fiscal standing.
For investors seeking a deeper dive into Apollo's financial metrics and strategic positioning, InvestingPro offers additional tips and insights. There are currently 13 more InvestingPro Tips available, which can provide a more detailed perspective on the company's performance and market outlook. To access these valuable insights, visit https://www.investing.com/pro/APO and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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