AFT Stock Recent News

Apollo Senior Floating Rate Fund is significantly up since the last rating, with total return exceeding 20%. MidCap Financial Investment Corporation is acquiring AFT and the Apollo Tactical Income Fund, leading to changes in the management platform and collateral pool. AFT will shift towards more illiquid middle market collateral post-merger, prompting a 'Sell' rating and suggesting investors explore alternative leveraged loan CEFs.

NEW YORK, June 21, 2024 (GLOBE NEWSWIRE) -- Apollo Senior Floating Rate Fund Inc. (NYSE: AFT) and Apollo Tactical Income Fund Inc. (NYSE: AIF) (AFT and AIF, together, the “CEFs”) today announced that both CEFs received stockholder approval of the necessary proposals related to their previously announced mergers with and into MidCap Financial Investment Corporation (NASDAQ: MFIC) at the AFT and AIF special meetings of stockholders reconvened on June 21, 2024. Approximately 88% of AFT's common shares represented at its special meeting (excluding votes abstained or withheld), or approximately 53% of AFT's common shares outstanding, voted in favor of the proposal, satisfying AFT's stockholder approval requirement. Approximately 87% of AIF's common shares represented at its special meeting (excluding votes abstained or withheld), or approximately 53% of AIF's common shares outstanding, voted in favor of the proposal, satisfying AIF's stockholder approval requirement.

In the news release, “ Apollo Senior Floating Rate Fund Inc. Declares June 2024  Monthly Distribution of $0.140 Per Share,” issued 11-Jun-2024 by Apollo Senior Floating Rate Fund Inc. over GlobeNewswire, we are advised by the Fund that the third paragraph, first sentence reading “Ex-Date,” should read “June 21, 2024” rather than “June 20, 2024” as originally issued inadvertently. The complete, corrected release follows:

NEW YORK, June 11, 2024 (GLOBE NEWSWIRE) -- (NYSE: AFT) - Apollo Senior Floating Rate Fund Inc. (the “Fund”) today announced the declaration of its distribution for the month of June 2024 of $0.140 per common share, payable on the date noted below.

Stockholders of AFT and AIF Who Have Voted Thus Far Have Strongly Supported the Merger Proposals Both Leading Independent Proxy Advisors, Institutional Shareholder Services (“ISS”) and Glass Lewis & CO (“Glass Lewis”), Recommend AFT and AIF Stockholders Vote “FOR” the Merger Proposals NEW YORK, May 28, 2024 (GLOBE NEWSWIRE) -- MidCap Financial Investment Corporation (NASDAQ: MFIC) today announced that it has received stockholder approval of the proposal related to the previously announced proposed mergers with Apollo Senior Floating Rate Fund Inc. (NYSE: AFT) and Apollo Tactical Income Fund Inc. (NYSE: AIF). AFT announced today the adjournment of its Special Meeting of Stockholders (the “AFT Special Meeting”), convened on May 28, 2024, to provide stockholders with additional time to vote on the proposed merger of AFT with and into MFIC (the “AFT Merger Proposal”).

We review CEF market valuation and performance through the third week of March and highlight recent market action. Most CEF sectors saw lower NAVs due to the drop in stocks and Treasuries, but discounts tightened in all but 3 sectors. Saba is in a fight with ASA Gold & Precious Metals CEF, which has adopted a rights offering to dilute Saba.

We review CEF market valuation and performance through the first week of March and highlight recent market action. CEFs were mostly up on the week, driven by a decent PCE report. CEF investors have to contend with different levels of fund-level reporting, with semi-annual reports being particularly unhelpful.

In this article, we discuss why we recently rotated into the loan closed-end fund Apollo Senior Floating Rate Fund from its sister fund Apollo Tactical Income Fund Inc. The AFT CEF is trading at an 8.5% discount and a 12% current yield. AFT has outperformed the loan CEF sector in total NAV terms and has increased its distribution by 72% since 2022.

AFT is an income fund that offers a high yield over time for income investors. While its assets are not considered investment grade, they are backed by collateral and supported by protective covenants. Dividend history has shown the durability of its portfolio, with cuts being short-lived and yields on cost remaining attractively high.

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