Apollo Debt Solutions Launches $500M Credit Facility
The multi-currency facility includes a $150 million expansion option and supports asset acquisitions.
October 13, 2025
Apollo Debt Solutions Forms Warbler Funding, Establishes $500M Credit Facility
Apollo Debt Solutions BDC is adding another layer to its capital structure. On October 10, 2025, it formed a new subsidiary—Warbler Funding LLC—and locked in a $500 million revolving credit facility to support the origination and acquisition of income-generating assets.
Here’s how it works. Apollo can sell assets to Warbler Funding, with no immediate gain or loss recorded. Warbler then uses the new facility to purchase and manage these assets. Apollo still holds economic exposure through its ownership of the subsidiary, while separating the assets on paper. This approach gives Apollo the flexibility to scale its portfolio while staying aligned with regulatory requirements under the Investment Company Act.
The loan structure is flexible by design. Warbler can:
- Draw and redraw funds for up to three years
- Borrow in U.S. dollars or other approved currencies
- Expand the facility up to $650 million under certain conditions
The full facility matures five years from the closing date, giving Apollo long-term runway for strategic asset deployment. Wells Fargo acts as administrative agent, with BNY Mellon serving as collateral agent.
Interest on borrowed funds is tied to benchmark rates—such as SOFR, SONIA, or EURIBOR—plus a fixed 1.90% margin. The agreement includes standard restrictions on Warbler’s operations, such as limits on additional indebtedness and requirements for asset concentration. A first-priority lien secures the facility across all Warbler assets.
Cash flows from the Warbler portfolio follow a clear sequence:
- During the draw period : Proceeds cover fees and interest, with excess eligible for distribution back to Apollo.
- After the draw period ends : Principal repayments begin, while fees and interest continue to take priority.
- At maturity : All obligations must be paid in full, and remaining cash may return to Apollo.
The structure gives Apollo a new channel to fund asset growth—one that blends flexibility, structured controls, and access to institutional capital. It also supports balance sheet efficiency by keeping certain assets off Apollo’s direct books, while maintaining full economic alignment.
Share
Read More Articles
