Apollo Tactical Income Fund Inc.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file
number 811-22591
Apollo Tactical Income Fund Inc.
(Exact name of registrant as specified in charter)
9 West 57th Street
New York, New York
10019
(Address of principal executive offices) (Zip code)
Joseph Moroney, President
9 West
57th Street
New York, New York
10019
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 515-3200
Date of fiscal year end: December 31
Date of reporting period: March 31, 2018
Item 1. Schedule of Investments.
The Schedule of Investments is attached herewith.
Apollo Tactical Income Fund Inc.
Schedule of Investments
March 31, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
| |
|
|
|
|
|
|
|
|
| Senior Loans - 123.6%(a) |
|
|
|
|
|
|
|
|
|
|
|
| AEROSPACE & DEFENSE - 2.6% |
|
|
|
|
|
|
|
|
|
|
|
| MRO Holdings, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 5.25%, 1.00% Floor), 7.55%, 10/25/23(b) |
|
|
598,500 |
|
|
|
605,981 |
|
| PAE Holding Corp. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 7.49%, 10/20/22(b)
|
|
|
1,916,940 |
|
|
|
1,931,318 |
|
| Second Lien Initial Term Loan, (LIBOR + 9.50%, 1.00% Floor), 11.49%, 10/20/23(b)
|
|
|
1,404,834 |
|
|
|
1,416,543 |
|
| Photonis Technologies SAS (France) |
|
|
|
|
|
|
|
|
| First Lien Initial Dollar Term Loan, (LIBOR + 7.50%, 1.00% Floor), 9.80%,
09/18/19(b)(c)(d) |
|
|
2,856,480 |
|
|
|
2,540,839 |
|
|
|
|
|
|
|
|
6,494,681 |
|
|
|
|
| AUTOMOTIVE - 3.2% |
|
|
|
|
|
|
|
|
|
|
|
| AP Exhaust Acquisition, LLC |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.81%, 05/10/24(b)
|
|
|
5,317,799 |
|
|
|
5,327,770 |
|
| CH Hold Corp. |
|
|
|
|
|
|
|
|
| Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 9.13%, 02/03/25(b)
|
|
|
500,000 |
|
|
|
508,750 |
|
| Innovative XCessories & Services, LLC |
|
|
|
|
|
|
|
|
| Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.58%, 11/29/22(b) |
|
|
2,237,326 |
|
|
|
2,259,699 |
|
|
|
|
|
|
|
|
8,096,219 |
|
|
| BANKING, FINANCE, INSURANCE & REAL ESTATE - 5.0% |
|
|
|
|
| Asurion, LLC |
|
|
|
|
|
|
|
|
| Second Lien Replacement Term Loan B-2, (LIBOR + 6.00%, 0.00% Floor), 7.88%, 08/04/25(b) |
|
|
1,017,647 |
|
|
|
1,047,159 |
|
| CRCI Holdings, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 8.17%, 08/31/23(b) |
|
|
2,086,480 |
|
|
|
2,097,789 |
|
| Mayfield Agency Borrower, Inc. |
|
|
|
|
|
|
|
|
| First Lien Term Loan B, (LIBOR + 4.50%, 0.00% Floor), 6.38%, 02/28/25(b)(d)
|
|
|
2,398,239 |
|
|
|
2,419,224 |
|
| Medical Card System, Inc. |
|
|
|
|
|
|
|
|
| Term Loan, (LIBOR + 0.50%, 1.00% Floor), 1.50%, 05/31/19(b)(e) |
|
|
4,913,829 |
|
|
|
4,181,882 |
|
| Mitchell International, Inc. |
|
|
|
|
|
|
|
|
| Second Lien Initial Term Loan, (LIBOR + 7.25%, 0.00% Floor), 9.14%, 12/01/25(b)
|
|
|
1,636,979 |
|
|
|
1,650,484 |
|
| SG Acquisition, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 7.30%, 03/29/24(b) |
|
|
1,297,637 |
|
|
|
1,304,125 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
|
| |
|
|
|
|
|
|
|
|
| BANKING, FINANCE, INSURANCE & REAL ESTATE (continued) |
|
|
|
|
|
|
| SquareTwo Financial Corp. |
|
|
|
|
|
|
|
|
| Closing Date Term Loan, (LIBOR +10.00%, 1.00% Floor), 11.00%, 05/24/19(b)(e)(f)(g)
|
|
|
1,003,755 |
|
|
35,729 |
|
|
|
|
|
|
|
|
12,736,392 |
|
|
|
|
|
| BEVERAGE, FOOD & TOBACCO - 2.4% |
|
|
|
|
|
|
|
|
|
| The Chef’s Warehouse, Inc. |
|
|
|
|
|
|
|
|
| Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.88%, 06/22/22(b) |
|
|
1,073,550 |
|
|
1,083,615 |
|
|
| PFS Holding Corp. |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.38%, 01/31/21(b)
|
|
|
1,193,058 |
|
|
814,262 |
|
|
| Winebow Holdings, Inc. (The Vintner Group, Inc.) |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.63%, 07/01/21(b)
|
|
|
1,878,864 |
|
|
1,847,159 |
|
|
| Second Lien Term Loan, (LIBOR + 7.50%, 1.00% Floor), 9.38%, 01/02/22(b)(e)
|
|
|
2,505,795 |
|
|
2,342,918 |
|
|
|
|
|
|
|
|
6,087,954 |
|
|
|
|
|
| CAPITAL EQUIPMENT - 0.3% |
|
|
|
|
|
|
|
|
|
| Swordfish Merger Sub, LLC |
|
|
|
|
|
|
|
|
| Second Lien Initial Term Loan, (LIBOR + 6.75%, 1.00% Floor), 8.53%, 02/02/26(b)
|
|
|
807,692 |
|
|
822,331 |
|
|
|
|
|
| CHEMICALS, PLASTICS & RUBBER - 2.3% |
|
|
|
|
|
|
|
|
|
| Archroma Finance S.A.R.L (Luxembourg) |
|
|
|
|
|
|
|
|
| Facility B-2, (LIBOR + 4.25%, 0.00% Floor), 5.97%, 08/12/24(b)(c) |
|
|
2,116,588 |
|
|
2,104,026 |
|
|
| PetroChoice Holdings, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.79%, 08/19/22(b)
|
|
|
989,662 |
|
|
999,559 |
|
|
| Vantage Specialty Chemicals, Inc. |
|
|
|
|
|
|
|
|
| First Lien Closing Date Term Loan, (LIBOR + 4.00%, 1.00% Floor), 6.30%, 10/28/24(b)
|
|
|
1,603,125 |
|
|
1,619,822 |
|
|
| Second Lien Initial Loan, (LIBOR + 8.25%, 1.00% Floor), 10.02%, 10/27/25(b)
|
|
|
1,000,000 |
|
|
1,005,000 |
|
|
|
|
|
|
|
|
5,728,407 |
|
|
|
|
| CONSTRUCTION & BUILDING - 4.2% |
|
|
|
|
|
|
| Associated Asphalt Partners, LLC |
|
|
|
|
|
|
|
|
| Tranche B Term Loan, (LIBOR + 5.25%, 1.00% Floor), 7.13%, 04/05/24(b)
|
|
|
2,177,897 |
|
|
2,099,852 |
|
|
| Henry Company, LLC |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.88%, 10/05/23(b) |
|
|
1,257,779 |
|
|
1,277,041 |
|
|
See accompanying Notes to Schedule
of Investments. | 1
Apollo Tactical Income Fund Inc.
Schedule of Investments (continued)
March 31, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
| |
|
|
|
|
|
| Senior Loans(a) (continued) |
|
|
|
|
|
|
|
| CONSTRUCTION & BUILDING (continued) |
|
|
|
|
|
|
|
|
| KBR, Inc. |
|
|
|
|
|
|
|
|
| Term Loan B, (LIBOR + 3.75%, 0.00% Floor), 3.75%,
03/28/25(b)(d) |
|
|
4,439,678 |
|
|
|
4,436,903 |
|
| Morsco, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.88%, 10/31/23(b) |
|
|
949,367 |
|
|
|
966,574 |
|
| Terra Millenium Corp. |
|
|
|
|
|
|
|
|
| First Out Term Loan, (LIBOR + 6.25%, 1.00% Floor), 8.19%, 10/31/22(b)(e)
|
|
|
1,937,500 |
|
|
|
1,952,031 |
|
|
|
|
|
|
|
|
10,732,401 |
|
|
|
| CONSUMER GOODS: DURABLE - 0.7% |
|
|
|
|
|
|
|
|
| PT Holdings, LLC |
|
|
|
|
|
|
|
|
| First Lien Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 6.30%, 12/09/24(b)
|
|
|
997,500 |
|
|
|
1,009,969 |
|
| Second Lien Initial Loan, (LIBOR + 8.00%, 1.00% Floor), 10.30%, 12/08/25(b)(e)
|
|
|
625,000 |
|
|
|
634,375 |
|
|
|
|
|
|
|
|
1,644,344 |
|
|
| CONSUMER GOODS: NON-DURABLE - 4.0% |
|
|
|
|
| ABG Intermediate Holdings 2, LLC |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.80%, 09/27/24(b)
|
|
|
2,454,163 |
|
|
|
2,467,452 |
|
| Second Lien Initial Term Loan, (LIBOR + 7.75%, 1.00% Floor), 10.05%, 09/29/25(b)
|
|
|
507,286 |
|
|
|
515,529 |
|
| LTI Holdings, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.63%, 05/16/24(b)
|
|
|
4,027,519 |
|
|
|
4,050,174 |
|
| First Lien Second Amendment Incremental Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.38%, 05/16/24(b) |
|
|
1,231,167 |
|
|
|
1,235,784 |
|
| Parfums Holding Co., Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 7.05%, 06/30/24(b)
|
|
|
1,759,075 |
|
|
|
1,783,262 |
|
|
|
|
|
|
|
|
10,052,201 |
|
|
| CONTAINERS, PACKAGING & GLASS - 3.8% |
|
|
|
|
| Anchor Glass Container Corp. |
|
|
|
|
|
|
|
|
| July 2017 Additional Term Loan, (LIBOR + 2.75%, 1.00% Floor), 4.63%, 12/07/23(b)(d)
|
|
|
2,242,691 |
|
|
|
2,182,778 |
|
| Second Lien Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.49%, 12/07/24(b)
|
|
|
1,083,333 |
|
|
|
1,049,024 |
|
| Hoover Group, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 9.15%, 01/28/21(b)(e)
|
|
|
753,966 |
|
|
|
678,569 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
|
| |
|
|
|
|
|
|
|
|
| CONTAINERS, PACKAGING & GLASS (continued) |
|
|
|
|
|
|
| SMI Acquisition, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.52%,
11/01/24(b)
|
|
|
1,047,375 |
|
|
1,055,230 |
|
|
| Sprint Industrial Holdings, LLC |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 5.75%, 1.25% Floor), 8.05%,
05/14/19(b)
|
|
|
4,847,303 |
|
|
4,574,642 |
|
|
|
|
|
|
|
|
9,540,243 |
|
|
|
|
| ENERGY: OIL & GAS - 0.5% |
|
|
|
|
|
|
| Ascent Resources - Marcellus, LLC |
|
|
|
|
|
|
|
|
| Exit Term Loan, (Prime + 5.50%, 1.00% Floor), 10.25%, 03/30/23(b) |
|
|
230,586 |
|
|
230,586 |
|
|
| Azure Midstream Energy, LLC |
|
|
|
|
|
|
|
|
| Term Loan, (LIBOR + 6.50%, 1.00% Floor), 8.38%, 11/15/18(b) |
|
|
402,376 |
|
|
395,000 |
|
|
| HGIM Corp. |
|
|
|
|
|
|
|
|
| Senior Secured Term Loan A, (Prime + 3.25%, 1.00% Floor),
8.00%,
06/18/18(b)(g)(h) |
|
|
398,725 |
|
|
174,442 |
|
|
| Sheridan Investment |
|
|
|
|
|
|
|
|
| Partners I, LLC |
|
|
|
|
|
|
|
|
| Deferred Principal Facility I,
10/01/19(e)(g) |
|
|
4,749 |
|
|
2,850 |
|
|
| Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.53%,
10/01/19(b) |
|
|
441,873 |
|
|
375,225 |
|
|
| Sheridan Production |
|
|
|
|
|
|
|
|
| Partners I-A, L.P. |
|
|
|
|
|
|
|
|
| Deferred Principal Facility
I-A,
10/01/19(e)(g) |
|
|
629 |
|
|
378 |
|
|
| Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.53%,
10/01/19(b) |
|
|
58,552 |
|
|
49,720 |
|
|
| Sheridan Production |
|
|
|
|
|
|
|
|
| Partners I-M, L.P. |
|
|
|
|
|
|
|
|
| Deferred Principal Facility
I-M,
10/01/19(e)(g) |
|
|
384 |
|
|
231 |
|
|
| Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 5.53%, 10/01/19(b) |
|
|
35,763 |
|
|
30,369 |
|
|
| Southcross Holdings Borrower, LP |
|
|
|
|
|
|
|
|
| Tranche B Term Loan (5.50% PIK), 9.00%, 04/13/23(i)(j) |
|
|
126,789 |
|
|
125,521 |
|
|
|
|
|
|
|
|
1,384,322 |
|
|
|
|
| ENVIRONMENTAL INDUSTRIES - 1.2% |
|
|
|
|
|
|
| Emerald 2, Ltd. (United Kingdom) |
|
|
|
|
|
|
|
|
| Facility B-1, (LIBOR + 4.00%, 1.00% Floor), 6.45%, 05/14/21(b)(c) |
|
|
3,091,110 |
|
|
3,093,057 |
|
|
|
|
| HEALTHCARE & PHARMACEUTICALS - 23.2% |
|
|
|
|
|
|
| Amneal Pharmaceuticals, LLC |
|
|
|
|
|
|
|
|
| First Lien Term Loan B, (LIBOR + 3.50%, 0.00% Floor), 3.50%,
03/21/25(b)(d)
|
|
|
2,017,845 |
|
|
2,021,628 |
|
|
|
|
|
| 2 |
|
See accompanying Notes to Schedule of Investments. |
Apollo Tactical Income Fund Inc.
Schedule of Investments (continued)
March 31, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
| |
|
|
|
|
|
| Senior Loans(a) (continued) |
|
|
| HEALTHCARE & PHARMACEUTICALS (continued) |
|
|
|
|
| Argon Medical Devices Holdings, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.75%, 0.00% Floor), 6.05%,
01/23/25(b)
|
|
|
1,563,830 |
|
|
|
1,574,581 |
|
| BioClinica Holding I, LP |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 6.00%,
10/20/23(b)
|
|
|
2,212,223 |
|
|
|
2,167,979 |
|
| Community Health Systems, Inc. |
|
|
|
|
|
|
|
|
| Incremental 2021 Term Loan H, (LIBOR + 3.00%, 1.00% Floor),
5.23%,
01/27/21(b)(d) |
|
|
6,067,726 |
|
|
|
5,844,828 |
|
| CT Technologies Intermediate Hldgs, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 6.13%, 12/01/21(b) |
|
|
3,978,014 |
|
|
|
3,971,390 |
|
| Diplomat Pharmacy, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan B, (LIBOR + 4.50%, 1.00% Floor), 6.38%, 12/20/24(b)
|
|
|
741,847 |
|
|
|
749,730 |
|
| Endo Luxembourg Finance I Co. S.A.R.L |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 4.25%, 0.75% Floor), 6.19%, 04/29/24(b)(d)
|
|
|
4,071,805 |
|
|
|
4,070,950 |
|
| Hanger, Inc. |
|
|
|
|
|
|
|
|
| Term Loan B, (LIBOR + 3.50%, 0.00% Floor), 5.38%, 03/06/25(b)(d)(e) |
|
|
1,932,648 |
|
|
|
1,939,895 |
|
| Lanai Holdings II, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.54%,
08/29/22(b)
|
|
|
3,687,726 |
|
|
|
3,586,313 |
|
| Lanai Holdings III, Inc. |
|
|
|
|
|
|
|
|
| Second Lien Initial Term Loan, (LIBOR + 8.50%, 1.00% Floor), 10.29%, 08/28/23(b)
|
|
|
869,565 |
|
|
|
834,782 |
|
| Lantheus Medical Imaging, Inc. |
|
|
|
|
|
|
|
|
| New Term Loan B 2017, (LIBOR + 3.75%, 1.00% Floor), 5.63%,
06/30/22(b)
|
|
|
1,040,846 |
|
|
|
1,048,866 |
|
| Medical Solutions Holdings, Inc. |
|
|
|
|
|
|
|
|
| First Lien Closing Date Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.63%,
06/14/24(b)(d) |
|
|
6,116,375 |
|
|
|
6,143,165 |
|
| Second Lien Closing Date Loan, (LIBOR + 8.25%, 1.00% Floor), 10.13%, 06/16/25(b)
|
|
|
2,000,000 |
|
|
|
2,005,000 |
|
| MModal, Inc. |
|
|
|
|
|
|
|
|
| Term Loan B, (LIBOR + 4.75%, 1.00% Floor), 6.52%, 02/13/23(b) |
|
|
2,035,714 |
|
|
|
2,023,836 |
|
| NMSC Holdings, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 7.45%, 04/19/23(b) |
|
|
561,524 |
|
|
|
558,015 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
|
| |
|
|
|
|
|
|
|
|
| HEALTHCARE & PHARMACEUTICALS (continued) |
|
|
|
|
|
|
| Onex TSG Intermediate Corp. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.88%, 07/29/22(b)(d)
|
|
|
2,725,619 |
|
|
2,659,182 |
|
|
| Opal Acquisition, Inc. |
|
|
|
|
|
|
|
|
| Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 6.03%, 11/27/20(b)(d) |
|
|
5,639,730 |
|
|
5,400,042 |
|
|
| PharMerica Corp. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.50%, 0.00% Floor), 5.21%, 12/06/24(b)
|
|
|
1,732,523 |
|
|
1,741,549 |
|
|
| Quorum Health Corp. |
|
|
|
|
|
|
|
|
| Term Loan, (LIBOR + 6.75%, 1.00% Floor), 8.63%, 04/29/22(b) |
|
|
2,658,042 |
|
|
2,720,134 |
|
|
| Team Health Holdings, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 2.75%, 1.00% Floor), 4.63%, 02/06/24(b)(d)
|
|
|
3,989,924 |
|
|
3,825,340 |
|
|
| U.S. Renal Care, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 6.55%, 12/30/22(b)
|
|
|
3,966,652 |
|
|
3,989,778 |
|
|
|
|
|
|
|
|
58,876,983 |
|
|
|
|
| HIGH TECH INDUSTRIES - 14.8% |
|
|
|
|
|
|
| Aptean, Inc. |
|
|
|
|
|
|
|
|
| Term Loan B, (LIBOR + 4.25%, 1.00% Floor), 6.56%, 12/20/22(b) |
|
|
2,139,700 |
|
|
2,146,836 |
|
|
| Aspect Software, Inc. |
|
|
|
|
|
|
|
|
| First Lien Exit Term Loan, (LIBOR + 10.50%, 1.00% Floor), 12.38%, 05/25/20(b)
|
|
|
1,558,338 |
|
|
1,557,855 |
|
|
| DigiCert Holding, Inc. |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.52%, 10/31/24(b)
|
|
|
1,895,411 |
|
|
1,919,303 |
|
|
| Second Lien Term Loan, (LIBOR + 8.00%, 1.00% Floor), 9.77%, 10/31/25(b)
|
|
|
1,514,727 |
|
|
1,532,002 |
|
|
| Flexera Software, LLC |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 5.13%, 02/26/25(b)
|
|
|
1,562,701 |
|
|
1,574,101 |
|
|
| Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 9.13%, 02/26/26(b)
|
|
|
692,308 |
|
|
699,231 |
|
|
| Gigamon, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.80%, 12/27/24(b)
|
|
|
1,709,999 |
|
|
1,727,099 |
|
|
| HS Purchaser, LLC |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 3.75%, 0.00% Floor), 6.05%, 03/29/25(b)(d)
|
|
|
1,506,928 |
|
|
1,510,695 |
|
|
| Ivanti Software, Inc. |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 6.13%, 01/20/24(b)(d)
|
|
|
4,988,095 |
|
|
4,916,391 |
|
|
|
|
|
| See accompanying Notes to Schedule of Investments. | 3 |
Apollo Tactical Income Fund Inc.
Schedule of Investments (continued)
March 31, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
| |
|
|
|
|
|
| Senior Loans(a) (continued) |
|
|
| HIGH TECH INDUSTRIES (continued) |
|
|
|
|
| MA FinanceCo., LLC |
|
|
|
|
|
|
|
|
| Tranche B-3 Term Loan, (LIBOR + 2.75%, 0.00% Floor), 4.63%, 06/21/24(b)(d) |
|
|
257,956 |
|
|
|
255,659 |
|
| Ocean Bidco, Inc. |
|
|
|
|
|
|
|
|
| First Lien Term Loan B, (LIBOR + 5.00%, 1.00% Floor), 7.22%, 03/21/25(b)(d)
|
|
|
1,101,311 |
|
|
|
1,106,361 |
|
| Riverbed Technology, Inc. |
|
|
|
|
|
|
|
|
| First Amendment Term Loan, (LIBOR + 3.25%, 1.00% Floor), 5.13%, 04/24/22(b)
|
|
|
3,979,953 |
|
|
|
3,971,018 |
|
| Seattle SpinCo, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 2.75%, 0.00% Floor), 4.63%, 06/21/24(b)(d)
|
|
|
1,742,044 |
|
|
|
1,726,531 |
|
| SolarWinds Holdings, Inc. |
|
|
|
|
|
|
|
|
| 2018 Refinancing Term Loan, (LIBOR + 3.00%, 0.00% Floor), 4.88%, 02/05/24(b)(d)
|
|
|
4,273,901 |
|
|
|
4,297,942 |
|
| Syncsort, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 7.30%, 08/16/24(b)
|
|
|
2,992,481 |
|
|
|
3,005,573 |
|
| Second Lien Initial Term Loan, |
|
|
|
|
|
|
|
|
| (LIBOR + 9.00%, 1.00% Floor), 11.30%, 08/18/25(b) |
|
|
2,000,000 |
|
|
|
1,969,380 |
|
| Triple Point Group Holdings, Inc. |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 6.55%, 07/10/20(b)
|
|
|
3,958,163 |
|
|
|
3,593,279 |
|
|
|
|
|
|
|
|
37,509,256 |
|
|
| HOTEL, GAMING & LEISURE - 1.5% |
|
|
|
|
| Mohegan Tribal Gaming Authority |
|
|
|
|
|
|
|
|
| Term Loan A, (LIBOR + 3.75%, 0.00% Floor), 5.63%, 10/13/21(b) |
|
|
1,893,366 |
|
|
|
1,895,733 |
|
| Seaworld Parks & Entertainment, Inc. |
|
|
|
|
|
|
|
|
| Term Loan B-2, (LIBOR + 2.25%, 0.75% Floor), 4.55%,
05/14/20(b)(d) |
|
|
1,987,619 |
|
|
|
1,983,684 |
|
|
|
|
|
|
|
|
3,879,417 |
|
|
| MEDIA: ADVERTISING, PRINTING & PUBLISHING - 3.0% |
|
|
|
|
| Acosta, Inc. |
|
|
|
|
|
|
|
|
| Tranche B-1 Loan, (LIBOR + 3.25%, 1.00% Floor), 5.13%, 09/26/21(b) |
|
|
3,000,000 |
|
|
|
2,524,035 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
|
| |
|
|
|
|
|
|
|
|
| MEDIA: ADVERTISING, PRINTING & PUBLISHING (continued) |
|
|
|
|
|
|
| Advantage Sales & Marketing, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 5.02%, 07/23/21(b)
|
|
|
2,989,677 |
|
|
2,935,220 |
|
|
| Incremental Term Loan B-2, (LIBOR + 3.25%, 1.00% Floor), 5.02%, 07/23/21(b)(d) |
|
|
515,708 |
|
|
506,314 |
|
|
| Second Lien Term Loan, (LIBOR + 6.50%, 1.00% Floor), 8.27%, 07/25/22(b)
|
|
|
1,000,000 |
|
|
963,215 |
|
|
| F & W Media, Inc. |
|
|
|
|
|
|
|
|
| Term Loan B-1 (8.38% PIK), (LIBOR + 6.50%, 1.50% Floor), 8.38%, 05/24/22(b)(e)(j) |
|
|
348,572 |
|
|
348,572 |
|
|
| Term Loan B-2 (11.88% PIK), (LIBOR + 10.00%, 1.50% Floor), 11.88%, 05/24/22(b)(e)(j) |
|
|
858,143 |
|
|
321,191 |
|
|
|
|
|
|
|
|
7,598,547 |
|
|
|
|
| MEDIA: BROADCASTING & SUBSCRIPTION - 2.8% |
|
|
|
|
|
|
| Emmis Operating Co. |
|
|
|
|
|
|
|
|
| Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.88%, 04/18/19(b) |
|
|
565,410 |
|
|
551,275 |
|
|
| Global Eagle Entertainment, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 9.36%, 01/06/23(b) |
|
|
4,950,678 |
|
|
5,183,781 |
|
|
| Urban One, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.88%, 04/18/23(b) |
|
|
1,439,080 |
|
|
1,430,993 |
|
|
|
|
|
|
|
|
7,166,049 |
|
|
|
|
| MEDIA: DIVERSIFIED & PRODUCTION - 0.2% |
|
|
|
|
|
|
| A-L Parent, LLC |
|
|
|
|
|
|
|
|
| Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 9.13%, 12/02/24(b)(e)
|
|
|
375,000 |
|
|
378,750 |
|
|
|
|
|
| METALS & MINING - 0.0% |
|
|
|
|
|
|
|
|
|
| Magnetation, LLC / Mag Finance Corp. |
|
|
|
|
|
|
|
|
| DIP Term Loan, 12.00%,
10/14/16(e)(g)(i) |
|
|
1,127,504 |
|
|
— |
|
|
|
|
|
| RETAIL - 9.5% |
|
|
|
|
|
|
|
|
|
| Academy, Ltd. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.78%, 07/01/22(b) |
|
|
1,950,781 |
|
|
1,561,600 |
|
|
| Albertson’s, LLC |
|
|
|
|
|
|
|
|
| Replacement 2017-1 Term Loan B-4, (LIBOR + 2.75%,
0.75% Floor), 4.63%, 08/25/21(b)(d) |
|
|
2,992,462 |
|
|
2,959,994 |
|
|
|
|
|
| 4 |
|
See accompanying Notes to Schedule of Investments. |
Apollo Tactical Income Fund Inc.
Schedule of Investments (continued)
March 31, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
| |
|
|
|
|
|
| Senior Loans(a) (continued) |
|
|
|
|
| RETAIL (continued) |
|
|
|
|
|
|
|
|
|
|
|
| Charming Charlie, LLC |
|
|
|
|
|
|
|
|
| Senior Secured Super-Priority DIP Delayed Draw Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.37%, 06/08/18(b)(e) |
|
|
74,702 |
|
|
|
74,702 |
|
| Senior Secured Super-Priority DIP Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.37%,
06/08/18(b)(e) |
|
|
93,419 |
|
|
|
93,419 |
|
| Senior Secured Super-Priority DIP Roll-up Loan, (LIBOR + 1.00%, 1.00% Floor),
2.87%,
06/08/18(b)(e) |
|
|
373,593 |
|
|
|
17,642 |
|
| Term Loan, (LIBOR + 8.00%, 1.00% Floor), 12.33%,
12/24/19(b)(e)(g)(k)
|
|
|
706,488 |
|
|
|
— |
|
| David’s Bridal, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 4.00%, 1.25% Floor), 6.31%, 10/11/19(b) |
|
|
2,121,809 |
|
|
|
1,822,984 |
|
| EG America, LLC |
|
|
|
|
|
|
|
|
| Term Loan B, (LIBOR + 4.00%, 0.00% Floor), 4.00%,
02/07/25(b)(d) |
|
|
2,514,970 |
|
|
|
2,512,455 |
|
| EG Finco, Ltd. (United Kingdom)
Term Loan B, (LIBOR + 4.00%, 0.00% Floor), 4.00%,
02/07/25(b)(c)(d) |
|
|
500,000 |
|
|
|
499,500 |
|
| General Nutrition Centers, Inc. |
|
|
|
|
|
|
|
|
| Extended Term Loan B, (LIBOR + 8.75%, 0.00% Floor), 10.59%, 03/04/21(b)
|
|
|
1,405,962 |
|
|
|
1,328,634 |
|
| First In Last Out Term Loan, (LIBOR + 7.00%, 0.00% Floor), 8.88%, 12/31/22(b)
|
|
|
572,350 |
|
|
|
588,233 |
|
| JC Penney Corp., Inc. |
|
|
|
|
|
|
|
|
| Term Loan B, (LIBOR + 4.25%, 1.00% Floor), 6.23%,
06/23/23(b)(d) |
|
|
4,155,357 |
|
|
|
4,078,753 |
|
| Petco Animal Supplies, Inc. |
|
|
|
|
|
|
|
|
| Second Amendment Term Loan, (LIBOR + 3.00%, 1.00% Floor), 4.77%, 01/26/23(b)(d)
|
|
|
5,829,922 |
|
|
|
4,296,332 |
|
| PetSmart, Inc. |
|
|
|
|
|
|
|
|
| Tranche B-2 Loan, (LIBOR + 3.00%, 1.00% Floor), 4.68%, 03/11/22(b)(d) |
|
|
1,900,389 |
|
|
|
1,530,032 |
|
| Sears Roebuck Acceptance Corp. |
|
|
|
|
|
|
|
|
| 2017 Extended Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.20%, 01/20/19(b)
|
|
|
1,249,911 |
|
|
|
1,247,824 |
|
| Vince, LLC |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.66%, 11/27/19(b) |
|
|
1,542,799 |
|
|
|
1,415,518 |
|
|
|
|
|
|
|
|
24,027,622 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
|
| |
|
|
|
|
|
|
|
|
| SERVICES: BUSINESS - 19.0% |
|
|
|
|
|
|
| Access CIG, LLC |
|
|
|
|
|
|
|
|
| First Lien Term Loan B, (LIBOR + 3.75%, 0.00% Floor), 5.63%, 02/27/25(b)(d)
|
|
|
1,006,775 |
|
|
1,019,359 |
|
|
| Air Medical Group Holdings, Inc. |
|
|
|
|
|
|
|
|
| 2017-2 New Term Loan, (LIBOR + 4.25%, 1.00% Floor), 6.01%, 03/14/25(b) |
|
|
2,262,778 |
|
|
2,285,055 |
|
|
| 2018 Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.94%, 04/28/22(b) |
|
|
3,279,734 |
|
|
3,297,723 |
|
|
| Boing US Holdco, Inc. |
|
|
|
|
|
|
|
|
| First Lien Term Loan B, (LIBOR + 3.50%, 1.00% Floor), 5.29%, 10/03/24(b)
|
|
|
708,084 |
|
|
710,963 |
|
|
| Second Lien Term Loan B, (LIBOR + 7.50%, 1.00% Floor), 9.29%, 10/03/25(b)(e)
|
|
|
545,455 |
|
|
548,182 |
|
|
| EIG Investors Corp. |
|
|
|
|
|
|
|
|
| Refinancing Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.96%, 02/09/23(b)
|
|
|
3,945,555 |
|
|
3,979,014 |
|
|
| Electro Rent Corp. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.98%, 01/31/24(b)
|
|
|
2,092,560 |
|
|
2,105,638 |
|
|
| Evergreen Skills Lux S.A.R.L.
(Luxembourg) |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.63%, 04/28/21(b)(c)
|
|
|
6,500,000 |
|
|
6,294,177 |
|
|
| Explorer Holdings, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.52%, 05/02/23(b) |
|
|
4,059,110 |
|
|
4,097,185 |
|
|
| IBC Capital, Ltd. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.82%, 09/09/21(b)
|
|
|
2,969,388 |
|
|
2,979,038 |
|
|
| Michael Baker International, LLC |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.34%, 11/21/22(b) |
|
|
2,870,813 |
|
|
2,877,990 |
|
|
| Navicure, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.63%, 11/01/24(b)
|
|
|
789,898 |
|
|
794,835 |
|
|
| Second Lien Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 9.38%, 10/31/25(b)
|
|
|
500,000 |
|
|
502,500 |
|
|
| Onex Carestream Finance, L.P. |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.88%, 06/07/19(b)
|
|
|
1,928,927 |
|
|
1,942,641 |
|
|
| Second Lien Term Loan, (LIBOR + 8.50%, 1.00% Floor), 10.38%, 12/07/19(b)
|
|
|
2,143,089 |
|
|
2,143,089 |
|
|
|
|
|
| See accompanying Notes to Schedule of Investments. |
|
5 |
Apollo Tactical Income Fund Inc.
Schedule of Investments (continued)
March 31, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
| |
|
|
|
|
|
| Senior Loans(a) (continued) |
|
|
| SERVICES: BUSINESS (continued) |
|
|
|
|
| Paysafe Group PLC |
|
|
|
|
|
|
|
|
| Facility B-1, (LIBOR + 3.50%, 1.00% Floor), 5.36%, 01/03/25(b) |
|
|
2,909,090 |
|
|
|
2,926,065 |
|
| SGS Cayman, L.P. |
|
|
|
|
|
|
|
|
| Initial Cayman Term Loan, (LIBOR + 5.38%, 1.00% Floor), 7.68%, 04/23/21(b)
|
|
|
782,322 |
|
|
|
748,095 |
|
| STG-Fairway Acquisitions, Inc. |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 5.25%, 1.00% Floor), 7.13%, 06/30/22(b)
|
|
|
2,514,689 |
|
|
|
2,513,118 |
|
| Sutherland Global Services, Inc. |
|
|
|
|
|
|
|
|
| Initial U.S. Term Loan, (LIBOR + 5.38%, 1.00% Floor), 7.68%, 04/23/21(b)
|
|
|
3,360,816 |
|
|
|
3,213,780 |
|
| U.S. Security Associates Holdings, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.80%, 07/14/23(b)(d)
|
|
|
3,048,495 |
|
|
|
3,060,872 |
|
|
|
|
|
|
|
|
48,039,319 |
|
|
| SERVICES: CONSUMER - 1.9% |
|
|
|
|
| Laureate Education, Inc. |
|
|
|
|
|
|
|
|
| Series 2024 Term Loan, (LIBOR + 3.50%, 1.00% Floor), 5.38%, 04/26/24(b)
|
|
|
2,219,334 |
|
|
|
2,233,981 |
|
| USS Ultimate Holdings, Inc. |
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.63%, 08/25/24(b)
|
|
|
682,781 |
|
|
|
687,475 |
|
| Second Lien Initial Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.63%, 08/25/25(b)
|
|
|
1,884,615 |
|
|
|
1,910,915 |
|
|
|
|
|
|
|
|
4,832,371 |
|
|
| TELECOMMUNICATIONS - 11.1% |
|
|
|
|
| CenturyLink, Inc. |
|
|
|
|
|
|
|
|
| Initial Term Loan A, (LIBOR + 2.75%, 0.00% Floor), 4.63%, 11/01/22(b)(d)
|
|
|
1,975,000 |
|
|
|
1,971,297 |
|
| Initial Term Loan B, (LIBOR + 2.75%, 0.00% Floor), 4.63%, 01/31/25(b)(d)
|
|
|
997,500 |
|
|
|
982,852 |
|
| Frontier Communications Corp. |
|
|
|
|
|
|
|
|
| Initial Term Loan, (LIBOR + 2.75%, 0.00% Floor), 4.63%, 03/31/21(b)(d)
|
|
|
1,972,603 |
|
|
|
1,960,284 |
|
| Term Loan B-1, (LIBOR + 3.75%, 0.75% Floor), 5.63%,
06/15/24(b)(d) |
|
|
3,352,784 |
|
|
|
3,316,473 |
|
| Global Tel*Link Corp. |
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 4.00%, 1.25% Floor), 6.30%, 05/23/20(b)
|
|
|
3,977,645 |
|
|
|
4,007,478 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| TELECOMMUNICATIONS (continued) |
|
|
|
|
|
|
|
| Intelsat Jackson Holdings S.A. (Luxembourg) |
|
|
|
|
|
|
|
|
|
|
| Tranche B-4 Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.46%, 01/02/24(b)(c)(d) |
|
|
3,406,019 |
|
|
|
3,510,617 |
|
|
|
| Tranche B-5 Term Loan, 6.63%,
01/02/24(c)(d)(i) |
|
|
3,820,586 |
|
|
|
3,876,309 |
|
|
|
| Securus Technologies
Holdings, Inc. |
|
|
|
|
|
|
|
|
|
|
| First Lien Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 6.38%, 11/01/24(b)
|
|
|
2,118,327 |
|
|
|
2,146,797 |
|
|
|
| TierPoint, LLC |
|
|
|
|
|
|
|
|
|
|
| First Lien Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.63%, 05/06/24(b)(d)
|
|
|
2,789,715 |
|
|
|
2,761,818 |
|
|
|
| TVC Albany, Inc. |
|
|
|
|
|
|
|
|
|
|
| Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 6.30%,
09/18/24(b)(d) |
|
|
583,212 |
|
|
|
587,586 |
|
|
|
| U.S. TelePacific Corp. |
|
|
|
|
|
|
|
|
|
|
| Advance Term Loan, (LIBOR + 5.00%, 1.00% Floor), 7.30%, 05/02/23(b)(d)
|
|
|
3,141,820 |
|
|
|
3,058,562 |
|
|
|
|
|
|
|
|
|
|
28,180,073 |
|
|
|
|
|
| TRANSPORTATION: CARGO - 2.5% |
|
|
|
|
|
|
|
| Avolon Holdings, Ltd. |
|
|
|
|
|
|
|
|
|
|
| Initial Term Loan B-2, (LIBOR + 2.25%, 0.75% Floor), 4.07%, 03/21/22(b) |
|
|
3,484,956 |
|
|
|
3,490,584 |
|
|
|
| Transplace Holdings, Inc. |
|
|
|
|
|
|
|
|
|
|
| First Lien Closing Date Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.96%, 10/07/24(b)
|
|
|
2,739,439 |
|
|
|
2,758,615 |
|
|
|
|
|
|
|
|
|
|
6,249,199 |
|
|
|
|
|
| TRANSPORTATION: CONSUMER - 0.6% |
|
|
|
|
|
|
|
| Travel Leaders Group, LLC |
|
|
|
|
|
|
|
|
|
|
| New Incremental Term Loan, (LIBOR + 4.50%, 0.00% Floor), 6.35%, 01/25/24(b)
|
|
|
1,475,877 |
|
|
|
1,497,396 |
|
|
|
|
|
| UTILITIES: ELECTRIC - 3.3% |
|
|
|
|
|
|
|
| Green Energy Partners |
|
|
|
|
|
|
|
|
|
|
| Advance Conversion Term Loan B-1, (LIBOR + 5.50%, 1.00% Floor), 7.80%, 11/13/21(b) |
|
|
849,470 |
|
|
|
836,728 |
|
|
|
| Construction B-2 Facility, (LIBOR + 5.50%, 1.00% Floor), 7.80%, 11/13/21(b) |
|
|
339,205 |
|
|
|
334,116 |
|
|
|
| Moxie Patriot, LLC |
|
|
|
|
|
|
|
|
|
|
| Construction B-1 Facility, (LIBOR + 5.75%, 1.00% Floor), 8.05%, 12/19/20(b) |
|
|
1,660,681 |
|
|
|
1,642,521 |
|
|
|
| Construction B-2 Facility, (LIBOR + 5.75%, 1.00% Floor), 8.05%, 12/19/20(b)(d) |
|
|
1,942,016 |
|
|
|
1,920,780 |
|
|
|
|
|
|
| 6 |
|
See accompanying Notes to Schedule of Investments. |
Apollo Tactical Income Fund Inc.
Schedule of Investments (continued)
March 31, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
| |
|
|
|
|
|
| Senior Loans(a) (continued) |
|
|
| UTILITIES: ELECTRIC (continued) |
|
|
|
|
| Panda Liberty, LLC |
|
|
|
|
|
|
|
|
| Construction B-1 Facility, (LIBOR + 6.50%, 1.00% Floor), 8.80%, 08/21/20(b) |
|
|
3,883,058 |
|
|
|
3,646,191 |
|
|
|
|
|
|
|
|
8,380,336 |
|
| Total Senior Loans
(Cost $314,647,499) |
|
|
|
|
|
|
313,027,870 |
|
|
| Corporate Notes and Bonds - 17.3%(i)
|
|
|
|
|
| AUTOMOTIVE - 1.4% |
|
|
|
|
|
|
|
|
|
|
|
| Tesla, Inc.
5.30%, 08/15/25(l) |
|
|
4,000,000 |
|
|
|
3,505,000 |
|
|
| BANKING, FINANCE, INSURANCE & REAL ESTATE - 0.6% |
|
|
|
|
| Greystar Real Estate Partners, LLC
5.75%, 12/01/25(l)
|
|
|
1,500,000 |
|
|
|
1,500,000 |
|
|
|
| CHEMICALS, PLASTICS & RUBBER - 0.8% |
|
|
|
|
|
|
|
|
| TPC Group, Inc. (Texas
Petrochemical) |
|
|
|
|
|
|
|
|
| 8.75%, 12/15/20(l) |
|
|
2,007,000 |
|
|
|
2,026,468 |
|
|
| CONTAINERS, PACKAGING & GLASS - 1.2% |
|
|
|
|
| Reynolds Group Holdings, Inc. 6.88%, 02/15/21 |
|
|
1,069,414 |
|
|
|
1,085,455 |
|
| W/S Packaging Holdings, Inc.
9.00%, 04/15/23(l)
|
|
|
2,000,000 |
|
|
|
2,035,000 |
|
|
|
|
|
|
|
|
3,120,455 |
|
|
|
|
| ENERGY: OIL & GAS - 2.1% |
|
|
|
|
|
|
|
|
|
|
|
| Moss Creek Resources Holdings, Inc. |
|
|
|
|
|
|
|
|
| 7.50%, 01/15/26(l) |
|
|
4,762,000 |
|
|
|
4,820,096 |
|
| Northern Oil and Gas, Inc.
8.00%, 06/01/20 |
|
|
599,000 |
|
|
|
563,060 |
|
|
|
|
|
|
|
|
5,383,156 |
|
|
| HEALTHCARE & PHARMACEUTICALS - 2.3% |
|
|
|
|
| Valeant Pharmaceuticals |
|
|
|
|
|
|
|
|
| International, Inc. (Canada) 5.50%, 11/01/25(c)(l) |
|
|
1,500,000 |
|
|
|
1,465,875 |
|
| 5.63%, 12/01/21(c)(l) |
|
|
1,500,000 |
|
|
|
1,438,125 |
|
| 7.50%, 07/15/21(c)(l) |
|
|
2,864,000 |
|
|
|
2,885,480 |
|
|
|
|
|
|
|
|
5,789,480 |
|
|
| HIGH TECH INDUSTRIES - 0.7% |
|
|
|
|
| Riverbed Technology, Inc.
8.88%, 03/01/23(l)
|
|
|
2,000,000 |
|
|
|
1,907,500 |
|
|
| HOTEL, GAMING & LEISURE - 1.2% |
|
|
|
|
| Churchill Downs, Inc. 4.75%, 01/15/28(l) |
|
|
2,000,000 |
|
|
|
1,895,000 |
|
| Hilton Grand Vacations Borrower, LLC |
|
|
|
|
|
|
|
|
| 6.13%, 12/01/24 |
|
|
1,100,000 |
|
|
|
1,172,875 |
|
|
|
|
|
|
|
|
3,067,875 |
|
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
|
| |
|
|
|
|
|
|
|
|
| MEDIA: BROADCASTING & SUBSCRIPTION - 3.1% |
|
|
|
|
|
|
| CSC Holdings, LLC
5.38%, 02/01/28(l) |
|
|
1,500,000 |
|
|
1,420,635 |
|
|
| 10.13%, 01/15/23(l) |
|
|
317,000 |
|
|
352,664 |
|
|
| 10.88%, 10/15/25(l) |
|
|
477,000 |
|
|
561,663 |
|
|
| Univision Communications, Inc.
5.13%, 05/15/23(l)
|
|
|
1,000,000 |
|
|
955,100 |
|
|
| 5.13%, 02/15/25(l) |
|
|
4,000,000 |
|
|
3,740,000 |
|
|
| Urban One, Inc.
7.38%, 04/15/22(l) |
|
|
787,000 |
|
|
783,065 |
|
|
|
|
|
|
|
|
7,813,127 |
|
|
|
|
|
|
| METALS & MINING - 0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
| ERP Iron Ore, LLC |
|
|
|
|
|
|
|
|
| LIBOR +, 8.00%, 12/31/19(e) |
|
|
121,662 |
|
|
38,629 |
|
|
| Magnetation, LLC / Mag
Finance Corp. |
|
|
|
|
|
|
|
|
| 11.00%, 05/15/18(e)(g)(l)(m) |
|
|
2,937,000 |
|
|
— |
|
|
|
|
|
|
|
|
38,629 |
|
|
|
|
|
|
| RETAIL - 0.3% |
|
|
|
|
|
|
|
|
|
|
|
|
| PetSmart, Inc.
5.88%, 06/01/25(l) |
|
|
112,000 |
|
|
81,480 |
|
|
| 8.88%, 06/01/25(l) |
|
|
1,000,000 |
|
|
575,000 |
|
|
|
|
|
|
|
|
656,480 |
|
|
|
|
|
|
| SERVICES: BUSINESS - 0.9% |
|
|
|
|
|
|
|
|
|
|
|
|
| Camelot Finance S.A.
(Luxembourg) |
|
|
|
|
|
|
|
|
| 7.88%, 10/15/24(c)(l) |
|
|
1,080,000 |
|
|
1,129,950 |
|
|
| EIG Investors Corp.
10.88%, 02/01/24 |
|
|
1,000,000 |
|
|
1,095,830 |
|
|
|
|
|
|
|
|
2,225,780 |
|
|
|
|
|
|
| SERVICES: CONSUMER - 1.2% |
|
|
|
|
|
|
|
|
|
|
|
|
| NVA Holdings, Inc.
6.88%, 04/01/26(l) |
|
|
3,000,000 |
|
|
3,030,000 |
|
|
|
|
|
|
| TELECOMMUNICATIONS - 1.5% |
|
|
|
|
|
|
|
|
|
|
|
|
| Orbcomm, Inc.
8.00%, 04/01/24(l) |
|
|
3,694,000 |
|
|
3,850,995 |
|
|
| Total Corporate Notes and Bonds
(Cost $44,395,630) |
|
|
|
|
|
43,914,945 |
|
|
|
|
|
|
| Structured Products - 14.6%(n) |
|
|
|
|
|
|
|
|
| Anchorage Capital CLO, Ltd.
(Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 2015-6A, Class ER, 8.07%, 07/15/30(c)(l)(o) |
|
|
4,400,000 |
|
|
4,450,798 |
|
|
| Babson CLO Ltd. (Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 2014-IA, Class E, 7.39%, 07/20/25(c)(l)(o) |
|
|
1,110,000 |
|
|
1,075,909 |
|
|
| Fortress Credit Opportunities CLO,
Ltd. (Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 2018-11A, Class E, 7.15%, 04/15/31(c)(l) |
|
|
4,000,000 |
|
|
4,000,000 |
|
|
| Guggenheim 1828 CLO, LLC
(Cayman Island) |
|
|
|
|
|
|
|
|
| Series 2016-1A, Class D, 8.72%, 04/15/28(c)(l)(o) |
|
|
4,000,000 |
|
|
4,024,216 |
|
|
|
|
|
| See accompanying Notes to Schedule of Investments. |
|
7 |
Apollo Tactical Income Fund Inc.
Schedule of Investments (continued)
March 31, 2018 (unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Principal
Amount
($) |
|
Value ($) |
|
| |
|
|
|
|
|
| Structured Products(n)
(continued) |
|
| Ivy Hill Middle Market Credit Fund,
Ltd. (Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 10A, Class D2, 9.03%, 07/24/27(c)(l)(o)
|
|
|
2,350,000 |
|
|
|
2,349,932 |
|
| JFIN CLO, Ltd. (Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 2015-1A, Class E, 7.12%, 03/15/26(c)(l)(o) |
|
|
4,500,000 |
|
|
|
4,422,942 |
|
| NXT Capital CLO, LLC |
|
|
|
|
|
|
|
|
| Series 2014-1A, Class E, 7.24%, 04/23/26(l)(o) |
|
|
5,000,000 |
|
|
|
4,594,115 |
|
| Teachers Insurance and Annuity |
|
|
|
|
|
|
|
|
| Association of America CLO, Ltd. (Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 2016-1A, Class E2, 11.74%, 07/20/28(c)(l)(o) |
|
|
2,500,000 |
|
|
|
2,543,015 |
|
| TIAA Churchill Middle Market CLO
(Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 2016-1A, Class E2, 9.74%, 10/20/28(c)(l)(o) |
|
|
2,000,000 |
|
|
|
2,013,446 |
|
| Series 2017-1A, Class E, 8.73%, 01/24/30(c)(l)(o) |
|
|
4,000,000 |
|
|
|
3,757,388 |
|
| Voya CLO, Ltd. (Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 2015-3A, Series E, 8.24%, 10/20/27(c)(l)(o) |
|
|
1,000,000 |
|
|
|
981,008 |
|
| Zais CLO, Ltd. (Cayman Islands) |
|
|
|
|
|
|
|
|
| Series 2016-2A, Series D, 8.72%, 10/15/28(c)(l)(o) |
|
|
1,000,000 |
|
|
|
1,013,217 |
|
| Series 2017-2A, Series E, 8.87%, 04/15/30(c)(l)(o) |
|
|
1,750,000 |
|
|
|
1,798,274 |
|
| Total Structured Products
(Cost $35,984,749) |
|
|
|
|
|
|
37,024,260 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Quantity |
|
Value ($) |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| Common Stocks - 0.2% |
|
|
|
|
|
| BANKING, FINANCE, INSURANCE & REAL ESTATE - 0.0% |
|
|
|
| Medical Card System,
Inc.(e)(g) |
|
|
914,981 |
|
|
|
26,743 |
|
|
|
|
|
|
|
| ENERGY: OIL & GAS - 0.2% |
|
|
|
|
|
|
|
|
|
|
| Ascent Resources Marcellus Holdings, Inc.(g) |
|
|
165,654 |
|
|
|
532,163 |
|
|
|
| Southcross Holdings Borrower, GP LLC(e)(g) |
|
|
129 |
|
|
|
— |
|
|
|
| Southcross Holdings Borrower, LP, Class A-II(e)(g) |
|
|
129 |
|
|
|
43,538 |
|
|
|
|
|
|
|
|
|
|
575,701 |
|
|
|
|
|
| MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.0% |
|
|
|
|
|
|
|
| F & W Media,Inc.(e)(g) |
|
|
9,510 |
|
|
|
— |
|
|
|
|
|
|
|
| Total Common Stock
(Cost $590,214) |
|
|
|
|
|
|
602,444 |
|
|
|
|
|
|
|
| Preferred Stock - 1.6% |
|
|
|
|
|
|
|
|
|
|
|
|
| BANKING, FINANCE, INSURANCE & REAL ESTATE - 1.6% |
|
|
|
|
|
|
|
| Watford Holdings, Ltd. (Bermuda)
8.50%,(c)(e)(l)
|
|
|
160,000 |
|
|
|
3,966,435 |
|
|
|
| Total Preferred Stock
(Cost $3,920,000) |
|
|
|
|
|
|
3,966,435 |
|
|
|
|
|
|
|
| Warrants - 0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ENERGY: OIL & GAS - 0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ascent Resources Marcellus |
|
|
|
|
|
|
|
|
|
|
| Holdings, Inc.(e)(g) |
|
|
42,889 |
|
|
|
4,289 |
|
|
|
| Total Warrants
(Cost $4,289) |
|
|
|
|
|
|
4,289 |
|
|
|
| Total Investments-157.3% |
|
|
|
|
|
|
398,540,243 |
|
|
|
| (Cost of $399,542,381) |
|
|
|
|
|
|
|
|
|
|
| Other Assets & Liabilities,
Net-(2.8)% |
|
|
|
|
|
|
(7,184,635 |
) |
|
|
| Loan Outstanding-(54.5)%(p)(q) |
|
|
|
|
|
|
(137,998,140 |
) |
|
|
| Net Assets -100.0% |
|
|
|
|
|
|
253,357,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 8 |
|
See accompanying Notes to Schedule of Investments. |
Apollo Tactical Income Fund Inc.
Schedule of Investments (continued)
March 31, 2018 (unaudited)
| (a) |
“Senior Loans” are senior, secured loans made to companies whose debt is below investment grade as well as investments with similar economic characteristics. Senior Loans typically hold a first lien priority
and, unless otherwise indicated, are required to pay interest at floating rates that are periodically reset by reference to a base lending rate plus a spread. In some instances, the rates shown represent the weighted average rate as of
March 31, 2018. Senior Loans are generally not registered under the Securities Act of 1933 (the “1933 Act”) and often incorporate certain restrictions on resale and cannot be sold publicly. Senior Loans often require prepayments from
excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual maturity may be
substantially less than the stated maturity. |
| (b) |
The interest rate on this Senior Loan is subject to a base lending rate plus a spread. These base lending rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily the prime rate offered
by one or more major U.S. banks (“Prime”). The interest rate is subject to a minimum floor, which may be less than or greater than the prevailing period end LIBOR/Prime rate. As of March 31, 2018, the 1, 3 and 6 month LIBOR rates were
1.88%, 2.31% and 2.45%, respectively, and the Prime lending rate was 4.75%. Senior Loans may contain multiple contracts of the same issuer which may be subject to base lending rates of both LIBOR and Prime (“Variable”) in addition to the
stated spread. |
| (c) |
Foreign issuer traded in U.S. dollars. |
| (d) |
All or a portion of this Senior Loan position has not settled. Full contract rates do not take effect until settlement date and therefore are subject to change.
|
| (e) |
Fair Value Level 3 security. |
| (f) |
The issuer is in default of its payment obligations as of March 19, 2017, as such, income is no longer being accrued. |
| (g) |
Non-income producing asset. |
| (h) |
The issuer is in default of its payment obligations as of March 7, 2018, as such, income is no longer being accrued. |
| (j) |
Represents a payment-in-kind (“PIK”) security, which may pay interest in additional principal amount. |
| (k) |
The issuer is in default of its payment obligations as of December 11, 2017, as such, income is no longer being accrued. |
| (l) |
Securities exempt from registration pursuant to Rule 144A under the 1933 Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. At March 31, 2018, these
securities amounted to $80,949,791, or 31.95% of net assets. |
| (m) |
The issuer is in default of its payment obligations as of May 5, 2015, as such, income is no longer being accrued. |
| (n) |
Structured Products include collateralized loan obligations (“CLOs”). A CLO typically takes the form of a financing company (generally called a special purpose vehicle or “SPV”), created to
reapportion the risk and return characteristics of a pool of assets. While the assets underlying CLOs are often Senior Loans or corporate notes and bonds, the assets may also include (i) subordinated loans; (ii) debt tranches of other
CLOs; and (iii) equity securities incidental to investments in Senior Loans. The Fund may invest in lower tranches of CLOs, which typically experience a lower recovery, greater risk of loss or deferral or
non-payment of interest than more senior tranches of the CLO. A key feature of the CLO structure is the prioritization of the cash flows from a pool of debt securities among the several classes of the CLO. The
SPV is a company founded for the purpose of securitizing payment claims arising out of this asset pool. On this basis, marketable securities are issued by the SPV and the redemption of these securities typically takes place at maturity out of the
cash flow generated by the collected claims. |
| (o) |
Floating rate asset. The interest rate shown reflects the rate in effect at March 31, 2018. |
| (p) |
The Fund has granted a security interest in substantially all of its assets in the event of default under the credit facility. |
| (q) |
Principal $138,000,000 less unamortized deferred financing costs of $1,860. |
|
|
|
| See accompanying Notes to Schedule of Investments. |
|
9 |
Apollo Tactical Income Fund Inc.
Notes to Schedule of Investments
March 31, 2018 (unaudited)
Security Valuation
Apollo Tactical Income Fund Inc. (the
“Fund”) values its investments primarily using the mean of the bid and ask prices provided by a nationally recognized security pricing service or broker. Senior Loans, corporate notes and bonds, structured products, common stock and
preferred stock are priced based on valuations provided by an approved independent pricing service or broker, if available. If market or broker quotations are not available, or a price is not available from an independent pricing service or broker,
or if the price provided by the independent pricing service or broker is believed to be unreliable, the security will be fair valued pursuant to procedures adopted by the Fund’s board of directors (the “Board”). In general, the fair
value of a security is the amount that the Fund might reasonably expect to receive upon the sale of an asset or pay to transfer a liability in an orderly transaction between willing market participants at the reporting date. Fair value procedures
generally take into account any factors deemed relevant, which may include, among others, (i) the nature and pricing history of the security, (ii) the liquidity or illiquidity of the market for the particular security, (iii) recent
purchases or sales transactions for the particular security or similar securities and (iv) press releases and other information published about the issuer. In these cases, the Fund’s net asset value (“NAV”) will reflect the
affected portfolio securities’ fair value as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to value securities may result in a value that is different
from a security’s most recent sale price and from the prices used by other investment companies to calculate their NAV. Determination of fair value is uncertain because it involves subjective judgments and estimates. There can be no assurance
that the Fund’s valuation of a security will not differ from the amount that it realizes upon the sale of such security.
Fair Value Measurements
The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value
determination. The levels of fair value inputs used to measure the Fund’s investments are characterized into a fair value hierarchy. The three levels of the fair value hierarchy are described below:
Level 1 — Quoted unadjusted prices for identical assets and liabilities in active markets to which the Fund has access at the date of
measurement;
Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets
and liabilities in markets that are not active, but are valued based on executed trades, broker quotations that constitute an executable price, and alternative pricing sources supported by observable inputs which, in each case, are either directly
or indirectly observable for the asset in connection with market data at the measurement date; and
Level 3 — Model derived valuations in
which one or more significant inputs or significant value drivers are unobservable. In certain cases, investments classified within Level 3 may include securities for which the Fund has obtained indicative quotes from broker-dealers that do not
necessarily represent prices the broker may be willing to trade on, as such quotes can be subject to material management judgment. Unobservable inputs are those inputs that reflect the Fund’s own assumptions that market participants would use
to price the asset or liability based on the best available information.
At the end of each reporting period, management evaluates the Level 2 and
Level 3 assets, if any, for changes in liquidity, including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from independent pricing services, and the existence of
contemporaneous, observable trades in the market.
10 |
Apollo Tactical Income Fund Inc.
Notes to Schedule of Investments (continued)
March 31, 2018 (unaudited)
The valuation techniques used by the Fund to measure fair value at March 31, 2018 maximized the
use of observable inputs and minimized the use of unobservable inputs. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Transfers into and out of the
levels are recognized at the value at the end of the period. A summary of the Fund’s investments categorized in the fair value hierarchy as of March 31, 2018 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Apollo Tactical Income Fund Inc. |
|
|
|
|
|
|
|
|
|
|
| |
|
Total Fair Value at
March 31, 2018 |
|
Level 1
Quoted Price |
|
Level 2
Significant
Observable
Inputs |
|
Level 3 Significant Unobservable
Inputs |
|
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and Cash Equivalents |
|
|
|
$ 23,950,042 |
|
|
|
|
$23,950,042 |
|
|
|
|
$ — |
|
|
$ — |
|
|
|
|
|
| Senior Loans |
|
|
|
313,027,870 |
|
|
|
|
— |
|
|
|
|
299,476,554 |
|
|
13,551,316 |
|
|
|
|
|
| Corporate Notes and Bonds |
|
|
|
43,914,945 |
|
|
|
|
— |
|
|
|
|
43,876,316 |
|
|
38,629 |
|
|
|
|
|
| Structured Products |
|
|
|
37,024,260 |
|
|
|
|
— |
|
|
|
|
37,024,260 |
|
|
— |
|
|
|
|
|
| Common Stock |
|
|
|
602,444 |
|
|
|
|
— |
|
|
|
|
532,163 |
|
|
70,281 |
|
|
|
|
|
| Preferred Stock |
|
|
|
3,966,435 |
|
|
|
|
— |
|
|
|
|
— |
|
|
3,966,435 |
|
|
|
|
|
| Warrants |
|
|
|
4,289 |
|
|
|
|
— |
|
|
|
|
— |
|
|
4,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
|
|
$422,490,285 |
|
|
|
|
$23,950,042 |
|
|
|
|
$380,909,293 |
|
|
$17,630,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation of Level 3 holdings for which significant unobservable inputs were used in
determining fair value for the period January 1, 2018 through March 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Apollo Tactical Income Fund Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Total |
|
Senior
Loans |
|
Corporate
Notes
and Bonds |
|
Common
Stock |
|
Preferred
Stock |
|
Warrant |
|
|
| Total Fair Value, beginning of the period |
|
|
$ |
23,768,803 |
|
|
|
$ |
19,745,730 |
|
|
|
$ |
40,335 |
|
|
|
$ |
67,513 |
|
|
|
$ |
3,915,225 |
|
|
|
$ |
— |
|
|
|
| Purchases, including capitalized PIK |
|
|
|
2,136,703 |
|
|
|
|
2,132,414 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
4,289 |
|
|
|
| Sales/Paydowns |
|
|
|
(6,731,767 |
) |
|
|
|
(6,698,972 |
) |
|
|
|
(32,795 |
) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
| Accretion/(amortization) of discounts/(premiums) |
|
|
|
97,115 |
|
|
|
|
97,115 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
| Net realized gain/(loss) |
|
|
|
243,647 |
|
|
|
|
221,809 |
|
|
|
|
21,838 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
| Change in net unrealized appreciation/(depreciation) |
|
|
|
(48,533 |
) |
|
|
|
(111,762 |
) |
|
|
|
9,251 |
|
|
|
|
2,768 |
|
|
|
|
51,210 |
|
|
|
|
— |
|
|
|
| Transfer into Level 3 |
|
|
|
634,375 |
|
|
|
|
634,375 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
| Transfers out of Level 3 |
|
|
|
(2,469,393 |
) |
|
|
|
(2,469,393 |
) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Fair Value, end of period |
|
|
$ |
17,630,950 |
|
|
|
$ |
13,551,316 |
|
|
|
|
$ 38,629 |
|
|
|
$ |
70,281 |
|
|
|
$ |
3,966,435 |
|
|
|
|
$4,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets were transferred from Level 2 to Level 3 or from Level 3 to Level 2 as a result of changes in
levels of liquid market observability when subject to various criteria as discussed previously. There were no transfers between Level 1 and Level 2 fair value measurement during the period shown. The net change in unrealized
appreciation/(depreciation) attributable to Level 3 investments still held at March 31, 2018 was $62,894.
| 11
Apollo Tactical Income Fund Inc.
Notes to Schedule of Investments (continued)
March 31, 2018 (unaudited)
The following table provides quantitative measures used to determine the fair values of the
Level 3 investments as of March 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
| Apollo Tactical Income Fund Inc. |
| Assets |
|
Fair Value at
March 31, 2018 |
|
Valuation Technique(s)(a) |
|
Unobservable Input(s) |
|
Range
of
Unobservable
Input(s) Utilized |
| Senior Loans |
|
|
|
$ 8,478,179 |
|
|
Independent pricing service and/or broker quotes |
|
Vendor and/or broker
quotes |
|
N/A |
|
|
|
|
|
|
|
|
|
4,181,882 |
|
|
Discounted Cash Flow(b) |
|
Discount Rate(b) |
|
17.4% |
|
|
|
|
|
|
|
|
|
185,763 |
|
|
Recoverability(c) |
|
EBITDA / EV Multiple(c) |
|
$7m / 2.9x |
|
|
|
|
|
|
|
|
|
669,763 |
|
|
Recoverability(d) |
|
Liquidation Proceeds(d) |
|
$28.1m |
|
|
|
|
|
|
|
|
|
— |
|
|
Recoverability(d) |
|
Liquidation Proceeds(d) |
|
$0 |
|
|
|
|
|
|
|
|
|
35,729 |
|
|
Recoverability(e) |
|
Estimated Transaction Value(e) |
|
N/A |
|
|
|
|
|
|
|
Discounted Cash Flow(b) |
|
Discount Rate(b) |
|
2.02% |
|
|
|
|
|
| Corporate Notes and Bonds |
|
|
|
38,629 |
|
|
Discounted Cash Flow(b) |
|
Discount Rate(b) |
|
25.0% |
|
|
|
|
|
|
|
Recoverability(d) |
|
Liquidation Proceeds(d) |
|
$7m |
|
|
|
|
|
|
|
|
|
— |
|
|
Recoverability(d) |
|
Liquidation Proceeds(d) |
|
$0 |
|
|
|
|
|
| Common Stock |
|
|
|
26,743 |
|
|
Option Model(f) |
|
Volatility(f) |
|
31.1% |
|
|
|
|
|
|
|
|
|
— |
|
|
Recoverability(d) |
|
Liquidation Proceeds(d) |
|
$28.1m |
|
|
|
|
|
|
|
|
|
43,538 |
|
|
Independent pricing service and/or broker quotes |
|
Vendor and/or broker
quotes |
|
N/A |
|
|
|
|
|
| Preferred Stock |
|
|
|
3,966,435 |
|
|
Discounted Cash Flow(b) |
|
Discount Rate(b) |
|
8.57% |
|
|
|
|
|
| Warrants |
|
|
|
4,289 |
|
|
Independent pricing service and/or broker quotes |
|
Vendor and/or broker
quotes |
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Fair Value |
|
|
|
$17,630,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
For the assets which have multiple valuation techniques, the Fund may rely on the techniques individually or in aggregate based on a weight ranging from 0-100%. |
| (b) |
The Fund utilized a discounted cash flow model to fair value this security. The significant unobservable input used in the valuation model was the discount rate, which was determined based on the market rates an
investor would expect for a similar investment with similar risks. The discount rate was applied to present value the projected cash flows in the valuation model. Significant increases in the discount rate may significantly lower the fair value of
an investment; conversely, significant decreases in the discount rate may significantly increase the fair value of an investment. |
| (c) |
The Fund utilized a recoverability approach to fair value these securities. The significant unobservable inputs used in the valuation model were EBITDA and enterprise value multiple. Significant increases or decreases
in the input in isolation may result in a significantly higher or lower fair value measurement. |
| (d) |
The Fund utilized a recoverability approach to fair value this security, specifically a liquidation analysis. There are various, company specific inputs used in the valuation analysis that relate to the liquidation
value of a company’s assets. The significant unobservable inputs used in the valuation model were liquidation proceeds. Significant increases or decreases in the input in isolation may result in a significantly higher or lower fair value
measurement. |
| (e) |
The Fund utilized a recoverability approach to fair value this security. The significant unobservable input used in the valuation model was an estimated transaction value. Significant increases or decreases in the input
in isolation may result in a significantly higher or lower fair value measurement. |
| (f) |
The Fund utilized a Black-Scholes options pricing model to fair value this security. The significant unobservable input used in the valuation model was volatility. Significant increases or decreases in the input in
isolation may result in a significantly higher or lower fair value measurement. |
12 |
Apollo Tactical Income Fund Inc.
Notes to Schedule of Investments (continued)
March 31, 2018 (unaudited)
Federal Tax Information
Cost for U.S federal income tax purposes differs from book basis primarily due to the deferral of losses from wash sales. Unrealized appreciation and
depreciation on investments as of March 31, 2018 were as follows:
|
|
|
|
|
| |
|
Apollo
Tactical Income Fund Inc. |
|
| Federal tax basis, cost |
|
$ |
399,850,636 |
|
|
|
|
|
|
| Unrealized appreciation |
|
$ |
5,326,260 |
|
| Unrealized depreciation |
|
|
(6,636,653 |
) |
|
|
|
|
|
| Net unrealized appreciation/(depreciation) |
|
$ |
(1,310,393 |
) |
|
|
|
|
|
General Commitments and Contingencies
As of March 31, 2018, the Fund had unfunded loan commitments outstanding, which could be extended at the option of the borrower, as detailed below:
|
|
|
|
|
|
|
|
|
|
|
| |
|
Borrower |
|
Unfunded Loan
Commitments |
|
|
|
Access CIG, LLC |
|
|
|
|
|
|
$ 210,110 |
|
| |
|
Centene Corp.* |
|
|
|
|
|
|
4,378,671 |
|
|
|
Charming Charlie, LLC** |
|
|
|
|
|
|
18,676 |
|
|
|
Total unfunded loan commitments |
|
|
|
|
|
|
$4,607,457 |
|
| * |
On May 9, 2018, the loan commitment was cancelled in its entirety. |
| ** |
On April 19, 2018, the loan commitment was fully funded. |
For more information with regard to
significant accounting policies, see the Fund’s most recent annual report filed with the Securities and Exchange Commission.
| 13
Item 2. Controls and Procedures.
| |
(a) |
The Fund’s principal executive and principal financial officers, or persons performing similar functions,
have concluded that the Fund’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date
within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules
13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended. |
| |
(b) |
There were no changes in the Fund’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Fund’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial
reporting. |
Item 3. Exhibits.
| |
(a) |
Certifications pursuant to Rule 30a-2(a) under the 1940 Act are
attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
|
| (Registrant) |
|
Apollo Tactical Income Fund Inc. |
|
|
|
| By (Signature and Title) |
|
/s/ Joseph Moroney |
|
|
Joseph Moroney, President
(principal executive officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
| By (Signature and Title) |
|
/s/ Joseph Moroney |
|
|
Joseph Moroney, President
(principal executive officer) |
|
|
|
| By (Signature and Title) |
|
/s/ Frank Marra |
|
|
Frank Marra, Treasurer and Chief Financial Officer
(principal financial officer) |