Apollo to Offer $1.15 Billion of Convertible Preferred Stock
Apollo Global Management Inc. announced on August 7th, 2023 that it plans to offer $1.15 billion of convertible preferred stock. The offering is expected to close on August 12th, 2023.
Apollo’s Business Model
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, London, Frankfurt, Luxembourg, Singapore, Mumbai, and Hong Kong. The company was founded in 1990 and has since grown to become one of the largest and most successful alternative investment managers in the world.
Apollo’s business model is focused on providing investors with access to a wide range of alternative investments, including private equity, real estate, credit, and infrastructure. The company has a long track record of successful investments and has earned a reputation for delivering strong returns for its investors.
The Convertible Preferred Stock Offering
The convertible preferred stock offering is expected to be priced at $25 per share. The offering is expected to be fully subscribed and the proceeds will be used to fund Apollo’s growth initiatives.
The convertible preferred stock will be convertible into common stock at a conversion price of $30 per share. The conversion price is subject to adjustment in certain circumstances. The convertible preferred stock will have a dividend rate of 5.25% per annum, payable quarterly.
The convertible preferred stock will be listed on the New York Stock Exchange under the symbol “APO-CP”.
The Benefits of the Offering
The convertible preferred stock offering is expected to provide Apollo with additional capital to fund its growth initiatives. The offering will also provide Apollo with additional liquidity and flexibility to pursue strategic opportunities.
The convertible preferred stock offering is also expected to provide Apollo with additional capital to fund its dividend payments. The dividend payments are expected to be paid quarterly and will provide investors with a steady stream of income.
Risks of the Offering
The convertible preferred stock offering is subject to certain risks. The convertible preferred stock is subject to market risk, as the stock price may fluctuate due to market conditions. The convertible preferred stock is also subject to conversion risk, as the conversion price may be adjusted in certain circumstances.
In addition, the convertible preferred stock is subject to liquidity risk, as the stock may not be readily tradable in the secondary market. Finally, the convertible preferred stock is subject to interest rate risk, as the dividend rate may be adjusted in certain circumstances.
Conclusion
Apollo Global Management Inc. announced on August 7th, 2023 that it plans to offer $1.15 billion of convertible preferred stock. The offering is expected to close on August 12th, 2023 and is expected to be fully subscribed. The offering is expected to provide Apollo with additional capital to fund its growth initiatives and dividend payments. However, the offering is subject to certain risks, including market risk, conversion risk, liquidity risk, and interest rate risk.