Apollo Debt Solutions Closes $702M CLO

The structured deal includes a mix of rated and unrated debt maturing as far out as the year 2125.

October 31, 2025

Transaction Overview

Apollo Debt Solutions BDC has completed a $702.2 million term debt securitization—executed through ADL CLO 2 LLC, a fully consolidated subsidiary. This transaction adds to the company’s secured financing activity and allows it to convert a pool of first-lien commercial loans into long-dated debt capital.

The deal combines multiple layers of debt, all scheduled to mature in October 2037, with one exception: over $128 million in subordinated notes that extend out to 2125. These subordinated notes don’t pay interest and are entirely retained by Apollo through its affiliated entity, ADL CLO 2 Depositor LLC. That same entity also holds the Class B and Class C tranches, fulfilling U.S. risk retention requirements and keeping Apollo aligned with the credit performance of the underlying assets.

Breakdown of Issued Debt

The secured portion of the deal is split between notes and loans:

• Notes: A mix of floating-rate securities, rated from AAA to BBB-, with interest tied to the three-month SOFR benchmark plus a spread.


• Loans: Several tranches, including over $398 million in AAA-rated Class A-1a-L1 Loans. These are governed by credit agreements with U.S. Bank Trust Company acting as both trustee and loan agent.

This capital structure gives Apollo access to a wide investor base while maintaining control of the more junior portions of the capital stack.

Use of Proceeds and Loan Transfers

Capital raised through the CLO will be used to purchase commercial loans from Apollo’s own balance sheet. Those transfers will occur over time under a master sale agreement involving Apollo Debt Solutions, the retention entity, and the CLO issuer. Once those transactions are complete, the CLO will hold full ownership of the loan assets—neither Apollo nor the retention holder will retain any claim.

The sale process is governed by customary terms, including standard representations and transfer conditions.

Collateral Management and Regulatory Notes

Apollo will serve as collateral manager under an agreement entered into at closing. That role comes with no collateral management fee, ensuring alignment with asset performance and regulatory coverage standards.

This securitization has not been registered under U.S. securities laws. As such, it cannot be offered publicly without meeting an applicable exemption. The transaction’s documents include standard covenants and default triggers designed to maintain investor protections throughout the life of the deal.

Strategic Implications

The CLO structure provides Apollo with long-term capital while allowing it to manage balance sheet exposure and retain oversight of its core loan portfolio. Redemption flexibility starting in October 2027 gives Apollo additional options for refinancing or restructuring if market conditions change.