Apollo Debt Solutions BDC 8-K

What Happened
Apollo Debt Solutions BDC (the Company) announced on March 9, 2026 that its newly formed, wholly owned subsidiary Bald Eagle Funding LLC entered into a credit agreement providing up to $500 million of revolving borrowing capacity. Bald Eagle Funding will use borrowings to acquire eligible assets from the Company (primarily first‑priority corporate loans) under a loan sale agreement; those assets may be pledged as collateral for future collateralized loan obligation transactions. The facility bears interest at Daily SOFR plus a 1.35% spread and matures three years after the closing date.

Key Details

• Closing Date: March 9, 2026. Facility maximum principal available: $500 million (revolving, U.S. dollar borrowings).
• Interest: Daily SOFR + 1.35% spread. Revolving borrowings and redraws permitted until commitments terminate.
• Maturity: Three years after the Closing Date (the Bald Eagle Funding Warehouse Final Maturity Date). Prior to final maturity, proceeds must first pay fees, expenses and interest on outstanding borrowings; at final maturity all outstanding principal, interest, fees and expenses must be repaid.
• Security & structure: Lenders have a perfected first‑priority security interest in Bald Eagle Funding’s assets and receipts; those pledged assets are not available to pay the Company's creditors. The Company retains a residual economic interest via its ownership of Bald Eagle Funding LLC and was appointed collateral manager (no fee) under a collateral management agreement. The Company sold a portion of loans to Bald Eagle Funding under a loan sale agreement and made customary representations and covenants.

Why It Matters
This transaction establishes a warehouse credit facility that provides Bald Eagle Funding (and indirectly the Company) with significant short‑term financing capacity to buy loans and package assets for future CLO or similar transactions. For investors, key takeaways are the $500M capacity, the SOFR‑based cost of borrowing, the three‑year maturity, and that the pledged assets secure the lenders (not the parent Company) while Apollo retains a residual interest and manages the collateral. These contractual terms affect liquidity, leverage in the affiliates and how future asset sales and securitizations may be funded, but do not create direct recourse to the Company on the pledged assets.