Apollo Global Management LLC (APO:US), the buyout firm led by billionaire Leon Black, made its bond-market debut today by selling $500 million of 10-year notes after boosting the offering from $300 million initially marketed.
The third-biggest U.S. private-equity firm sold 4 percent securities that pay 152 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg.
Apollo joins competitors KKR & Co. and Blackstone Group LP (BX:US) in issuing bonds as borrowing costs reach about the lowest level in a year and investors seek longer-maturity debt that’s outperformed securities due sooner. KKR raised $500 million of 30-year debt last week, also increasing the sale from $300 million. Blackstone sold $500 million of 30-year debentures in April.
The debt was issued by the firm’s Apollo Management Holdings LP unit, and will be used to repay a portion of loans outstanding, Bloomberg data show. Apollo has a $1 billion term loan due 2019 and hasn’t previously sold bonds, according to data compiled by Bloomberg.
Charles Zehren, a spokesman for Apollo at Rubenstein Associates Inc. in New York, declined to comment on the offering.
A basis point is 0.01 percentage point.
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