Apollo Investment plans to sell 10 million shares

AP News
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Posted: Dec 08, 2009 6:16 PM

Apollo Investment Corp. said Tuesday it planned to sell 10 million shares of common stock to the public and use the proceeds to pay down debt.

Underwriters would get an option to buy up to another 1.5 million shares to cover overallotments.

Including the overallotments, the new shares would be equal to 7 percent of the current number of shares, which the company put at 164.2 million in a recent regulatory filing. The price of the shares was not immediately set.

Apollo said it would use the net proceeds to pay down debt, fund investments in portfolio companies and for general purposes.

BofA Merrill Lynch, Citi, JPMorgan Securities Inc. and UBS are joint bookrunning managers.

Apollo, with headquarters in New York, invests in middle market companies in many industries.

Shares rose 3 cents to $10.10 in regular trading, then fell 28 cents, or 2.8 percent, to $9.82 in extended trading after the planned offering was announced.