Apollo Global Management issued $600 million of notes due in 2056, with a coupon tied to U.S. Treasury rates after 2036 and proceeds partly intended for a previously announced Mubadala investment.
The Nov. 13 filing with the Securities and Exchange Commission identifies the securities as 7.550% Fixed-Rate Resettable Junior Subordinated Notes due 2056. Apollo said the sale closed Nov. 13, creating a long-term debt obligation with a maturity date of Dec. 15, 2056.
The annual coupon is 7.550% through Dec. 15, 2036. For each reset period after that, the rate will be calculated by adding 2.672 percentage points to the five-year U.S. Treasury rate on the applicable determination date. The terms therefore set one rate for the initial period and a benchmark-based formula for later periods.
Apollo plans to direct the net proceeds toward general corporate purposes, including its previously announced investment in Mubadala Capital Asset Management. The filing does not break out how much of the proceeds will go to that investment.
Interest payments are scheduled for June 15 and Dec. 15 each year, starting June 15, 2027. Apollo may defer those payments under the note terms. The notes mature Dec. 15, 2056.
