What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2022-05-19 compared with 2021-05-20 · 14 added, 70 removed, 354 unchanged (19% of the section changed)

118 unchanged sentences

ChyronHego Corporation 4.3% High Tech Industries 15.7%

LashCo 1.7% Aviation and Consumer Transport 12.5%

Carbonfree Chemicals SPE I LLC (f/k/a Maxus Capital Carbon SPE I LLC) 1.7% Business Services 10.7%

NFA Group 1.5% Consumer Services 6.9%

PSI Services, LLC 1.4% Beverage, Food & Tobacco 5.2%

MSEA Tankers LLC 1.4% Transportation – Cargo, Distribution 3.3%

Electro Rent Corporation 1.4% Insurance 3.2%

MAKS 1.3% Consumer Goods – Non-durable 3.0%

New Wave Entertainment 1.3% Automotive 2.9%

Total 27.8% Total 79.5%

The following table summarizes our top ten portfolio companies and industries based on fair value as of March 31, 2021:

Portfolio Company % of

Portfolio Industry % of

Merx Aviation Finance, LLC 12.9% Healthcare & Pharmaceuticals 16.1%

ChyronHego Corporation 3.7% High Tech Industries 13.9%

MSEA Tankers LLC 2.3% Aviation and Consumer Transport 13.6%

8 unchanged sentences

Total 29.8% Total 79.7%

The following table summarizes our top ten portfolio companies and industries based on fair value as of March 31, 2020:

Portfolio Company % of

Portfolio Industry % of

Merx Aviation Finance, LLC 12.0% Healthcare & Pharmaceuticals 16.7%

Dynamic Product Tankers (Prime), LLC 2.8% Business Services 12.9%

ChyronHego Corporation 2.5% Aviation and Consumer Transport 12.5%

MSEA Tankers LLC 2.1% High Tech Industries 12.3%

Spotted Hawk 1.7% Transportation – Cargo, Distribution 6.1%

Genesis Healthcare, Inc.

1.6% Consumer Services 4.4%

Simplifi Holdings, Inc.

1.4% Beverage, Food & Tobacco 3.5%

Telestream Holdings Corporation 1.3% Consumer Goods – Non-durable 3.2%

RA Outdoors, LLC (Active Outdoors) 1.3% Consumer Goods – Durable 2.7%

NFA Group 1.2% Diversified Investment Vehicles, Banking, Finance, Real Estate 2.6%

Total 27.9% Total 76.9%

Investment Selection and Due Diligence

223 unchanged sentences

Information contained on our website is not incorporated by reference into this annual report on Form 10-K, and you should not consider information contained on our website to be part of this annual report on Form 10-K.

Risk Factor Summary

The following is only a summary of the principal risks that may materially adversely affect our business, financial condition, results of operations and cash flows.

The following should be read in conjunction with the more complete discussion of the risk factors we face, which are set forth in the section titled “Item 1A.

Risk Factors” in this report.

Risk Relating to the Current Environment

• Major public health issues, and specifically the novel coronavirus (COVID-19), could have an adverse impact on our financial condition and results of operations and other aspects of our business.

• Changes in interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations.

• Capital markets may experience periods of disruption and instability.

Such market conditions may materially and adversely affect debt and equity capital markets in the United States and abroad, which may have a negative impact on our business and operations.

• The interest rates of some of our floating-rate loans to our portfolio companies may be priced using a spread over LIBOR, which may be phased out in the future.

• Changes in existing laws or regulations, the interpretations thereof or newly enacted laws or regulations may negatively impact our business.

• The continued uncertainty relating to the U.S.

and global economy could have a negative impact on our business.

• Changes to U.S.

federal income tax laws could materially and adversely affect us and our stockholders.

Risks Relating to our Business and Structure

• We may suffer credit losses.

• We are dependent upon Apollo Investment Management’s key personnel for our future success and upon their access to AGM’s investment professionals and partners.

• We operate in a highly competitive market for investment opportunities.

• We will be subject to corporate-level income tax if we are unable to maintain our status as a RIC.

• We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.

• Regulations governing our operation as a BDC affect our ability to raise, and the way in which we raise, additional capital.

• Our business requires a substantial amount of capital to grow because we must distribute most of our income.

• Many of our portfolio investments are recorded at fair value as determined in good faith by or under the direction of our Board of Directors and, as a result, there is uncertainty as to the value of our portfolio investments.

• The lack of liquidity in our investments may adversely affect our business.

• Our ability to enter into transactions with our affiliates is restricted.

• There are significant potential conflicts of interest which could adversely affect our investment returns.

• Changes in the laws or regulations governing our business or the businesses of our portfolio companies and any failure by us or our portfolio companies to comply with these laws or regulations, could negatively affect the profitability of our operations or of our portfolio companies.

• We may choose to pay dividends in our own common stock, in which case you may be required to pay federal income taxes in excess of the cash dividends you receive.

• If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud.

• The failure in cyber security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.

Risks Relating to our Investments

• Our investments in portfolio companies are risky, and we could lose all or part of our investment.

• Economic recessions or downturns could impair our portfolio companies and harm our operating results.

• Our portfolio companies may be highly leveraged and a covenant breach by our portfolio companies may harm our operating results.

• There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to, among other things, lender liability or fraudulent conveyance claims.

• If we do not invest a sufficient portion of our assets in qualifying assets, we could fail to qualify as a BDC or be precluded from investing according to our current business strategy.

• Our portfolio contains a limited number of portfolio companies, which subjects us to a greater risk of significant loss if any of these companies defaults on its obligations under any of its debt securities.

• An investment strategy focused primarily on privately-held companies presents certain challenges, including the lack of available information about these companies, a dependence on the talents and efforts of only a few key portfolio company personnel and a greater vulnerability to economic downturns.

• Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.

• Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S.

• Proposed position aggregation requirements may restrict the swap positions that AIM may enter into.

• Our ability to enter into transactions involving derivatives and financial commitment transactions may be limited.

Risks Relating to our Debt Instruments

• The trading market or market value of our debt securities may fluctuate.

• Terms relating to redemption may materially adversely affect your return on any debt securities that we may issue.

• Our credit ratings may not reflect all risks of an investment in our debt securities.

• Uncertainty related to alternative reference rates due to the phase out of London Interbank Offered Rates (“LIBOR”)

Risks Relating to an Investment in our Common Stock

• Investing in our securities involves a high degree of risk and is highly speculative.

• There is a risk that investors in our equity securities may not receive distributions or that our distributions may not grow over time and that investors in our debt securities may not receive all of the interest income to which they are entitled.

• We may be unable to invest the net proceeds raised from offerings on acceptable terms, which would harm our financial condition and operating results.

• Sales of substantial amounts of our securities may have an adverse effect on the market price of our securities.

• Stockholders may experience dilution in their ownership percentage.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business