Apollo Global Management issues $500 million in subordinated notes

Apollo Global Management, Inc. (NYSE:APO) has announced the issuance of $500 million in 6.000% Fixed-Rate Resettable Junior Subordinated Notes due 2054. The notes were issued on Thursday, following a public offering underwritten by major financial institutions including J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC.

The New York-based investment advisor firm stated the notes will initially bear a fixed interest rate of 6.000% per annum until December 15, 2034. After this date, the interest rate will reset for each period based on the Five-Year U.S. Treasury Rate plus a spread of 2.168%. Interest payments are scheduled semi-annually, with the first payment due on June 15, 2025.

Apollo Global Management plans to allocate the proceeds from this offering towards general corporate purposes. Specifically, the company intends to redeem $300 million of Apollo Management Holdings, L.P.'s 4.950% Fixed-Rate Resettable Subordinated Notes due 2050, including paying related fees and expenses.

This financial move comes as part of Apollo's broader strategy to manage its capital structure and obligations. The information regarding the issuance of these notes is based on a press release statement and does not serve as a notice of redemption for the 2050 Subordinated Notes.

In other recent news, Apollo Global Management has been the focus of several notable developments. Analysts at Jefferies have raised their price target for the investment firm to $134.00, reflecting Apollo's new five-year strategic plan. This plan includes a target of approximately 15% annual growth in assets under management over the next five years. BMO Capital Markets, Wells Fargo, and JPMorgan have also increased their price targets for Apollo.

The company recently priced its offering of $500 million 6.000% Fixed-Rate Resettable Junior Subordinated Notes due 2054, expecting net proceeds of roughly $495 million. Apollo also secured a €1 billion investment deal with an affiliate of Vonovia SE, marking their third major transaction together.

In addition to these developments, Apollo proposed a substantial investment of up to $5 billion in Intel (NASDAQ:INTC) and initiated a financing and capital markets collaboration with BNP Paribas (OTC:BNPQY), which committed an initial $5 billion in financing. Furthermore, Apollo established a $25 billion private credit and direct lending program in partnership with Citigroup Inc (NYSE:C).

InvestingPro Insights

Apollo Global Management's recent issuance of $500 million in notes aligns with its strong financial position and market performance. According to InvestingPro data, Apollo boasts a substantial market capitalization of $78.55 billion, reflecting its significant presence in the financial services industry. The company's P/E ratio of 15.3 suggests a reasonable valuation relative to its earnings.

InvestingPro Tips highlight Apollo's financial strength and market performance. The company has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. Additionally, Apollo's stock is trading near its 52-week high, with a strong return of 56.34% over the past year, indicating positive investor sentiment.

These insights suggest that Apollo's decision to issue new notes and refinance existing debt is part of a strategic approach to capital management, leveraging its strong market position and financial stability. Investors seeking more comprehensive analysis can access additional tips on InvestingPro, which offers 16 more insights tailored to Apollo Global Management.

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