The rating agency does not expect positive rating momentum for Apollo Debt Solutions BDC in the near term.
The non-traded BDC completed another private placement offering, with proceeds earmarked to repay existing debt, including its 3.125% notes due later this month.
Managing Director Jason Mehring will replace Tseng as Director, Board Chair, and CEO across three BlackRock BDCs.
The firm also provided updates on its private equity evergreen fund and non-traded BDC, as well as plans to launch new products targeting the wealth segment.
In connection with the deal, the surviving BDC amended a JPMorgan financing facility, cutting Tranche A commitments from $800 million to $500 million and converting Tranche B into a revolver.
The ~$30 million transaction will provide liquidity to shareholders in private debt funds managed by BlackRock, Apollo, and Ares at 15-30% discounts.
Mark Goldberg of Alternative Investments Market Intelligence analyzes why redemption queues across non-traded BDCs could take years to clear despite easing withdrawal demand.
The private debt vehicle recently capped Q2 redemptions after repurchase requests reached 16.8% of outstanding shares.
The Apollo Debt Solutions BDC gated withdrawals for a second consecutive quarter after investors sought to redeem approximately 16.8% of outstanding shares in Q2.
Apollo Debt Solutions adhered to its 5% cap, fulfilling just 45% of total withdrawal requests.
