Edgar Filing: Apollo Tactical Income Fund Inc.

Apollo Tactical Income Fund Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22591

Apollo Tactical Income Fund Inc.

(Exact name of registrant as specified in charter)

9 West 57th Street

New York, New York 10019

(Address of principal executive offices) (Zip code)

Joseph Moroney, President

9 West 57th Street

New York, New York 10019

(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 515-3200

Date of fiscal year end: December 31

Date of reporting period: September 30, 2017

Item 1. Schedule of Investments.

The Schedule(s) of Investments is attached herewith.

Apollo Tactical Income Fund Inc.

Schedule of Investments

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)


Senior Loans - 121.1%^(a)

AEROSPACE & DEFENSE - 3.2%

PAE Holding Corp.
First Lien Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 6.74%, 10/20/22^(b)		1,968,059		1,981,589
Second Lien Initial Term Loan, (LIBOR + 9.50%, 1.00% Floor), 10.74%, 10/20/23^(b)		1,404,834		1,413,614
Photonis Technologies SAS (France)
First Lien Initial Dollar Term Loan, (LIBOR + 7.50%, 1.00% Floor), 8.80%, 09/18/19^(b)(c)		1,887,413		1,651,486
Sequa Mezzanine Holdings, LLC
First Lien Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 6.81%, 11/28/21^(b)		1,400,161		1,412,636
StandardAero Aviation Holdings, Inc.
First Lien Term Loan, (LIBOR + 3.75%, 1.00% Floor), 4.75%, 07/07/22^(b)(d)		635,723		641,486
Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 4.99%, 07/07/22^(b)		994,924		1,004,042

				8,104,853


AUTOMOTIVE - 2.6%

American Tire Distributors, Inc.
Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.49%, 09/01/21^(b)		2,605,717		2,633,403
AP Exhaust Acquisition, LLC
First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.31%, 05/10/24^(b)		2,051,197		2,007,609
CH Hold Corp.
Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.49%, 02/03/25^(b)		500,000		512,500
Innovative XCessories & Services, LLC
Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.08%, 11/29/22^(b)(e)		1,290,337		1,308,079

				6,461,591


BANKING, FINANCE, INSURANCE & REAL ESTATE - 6.5%

Amwins Group, LLC
Second Lien Term Loan, (LIBOR + 6.75%, 1.00% Floor), 7.99%, 01/25/25^(b)		342,857		351,002
AqGen Ascensus, Inc.
Replacement Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.33%, 12/05/22^(b)		2,712,812		2,738,258


	Principal Amount ($)		Value ($)


BANKING, FINANCE, INSURANCE & REAL ESTATE (continued)

Asurion, LLC
Replacement B-5 Term Loan, (LIBOR + 3.00%, 0.00% Floor), 4.24%, 11/03/23^(b)		1,324,279		1,331,728
Second Lien Replacement B-2
Term Loan, (LIBOR + 6.00%, 0.00% Floor), 7.24%, 08/04/25^(b)		2,117,647		2,169,487
CRCI Holdings, Inc.
Initial Term Loan, (LIBOR + 5.50%, 1.00% Floor), 6.83%, 09/30/23^(b)		2,086,480		2,100,825
Donnelley Financial Solutions, Inc.
Term Loan B, (Prime + 3.00%, 1.00% Floor), 7.25%, 09/29/23^(b)		571,429		575,360
Medical Card System, Inc.
Term Loan, (LIBOR + 0.50%, 1.00% Floor), 1.50%, 05/31/19^(b)(e)		4,913,829		3,968,747
MMM Holdings, Inc.
MMM Term Loan, (LIBOR + 8.75%, 1.50% Floor), 10.25%, 06/30/19^(b)		890,532		886,080
MSO of Puerto Rico, Inc.
MSO Term Loan, (LIBOR + 8.75%, 1.50% Floor), 10.25%, 06/30/19^(b)		647,412		644,175
SG Acquisition, Inc.
Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.33%, 03/29/24^(b)		1,400,455		1,391,702
SquareTwo Financial Corp.
Term Loan, (LIBOR +10.00%, 1.00% Floor), 11.00%, 05/01/19^(b)(e)(f)(g)		1,210,700		164,271

				16,321,635


BEVERAGE, FOOD & TOBACCO - 3.2%

Arctic Glacier Group Holdings, Inc.
Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.49%, 03/20/24^(b)		497,500		501,231
The Chef’s Warehouse, Inc.
Term Loan, (LIBOR + 4.75%, 1.00% Floor), 5.99%, 06/22/22^(b)		1,079,482		1,094,325
JBS USA, LLC
Initial Term Loan, (LIBOR + 2.50%, 0.75% Floor), 3.25%, 10/30/22^(b)(d)		997,494		987,105
PFS Holding Corp.
First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.74%, 01/31/21^(b)		2,295,001		2,128,624

See accompanying Notes to Schedule of Investments. | 1

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)


Senior Loans^(a)(continued)

BEVERAGE, FOOD & TOBACCO (continued)

Winebow Holdings, Inc. (The Vintner Group, Inc.)
First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 4.99%, 07/01/21^(b)		1,068,865		1,053,500
Second Lien Initial Term Loan, (LIBOR + 7.50%, 1.00% Floor), 8.74%, 01/02/22^(b)		2,505,795		2,342,918

				8,107,703


CAPITAL EQUIPMENT - 1.5%

MTS Systems Corporation
New Tranche B Term Loan, (LIBOR + 3.25%, 0.75% Floor), 4.49%, 07/05/23^(b)		2,209,727		2,229,062
Robertshaw US Holding Corp.
First Lien Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.75%, 08/10/24^(b)(d)		1,500,000		1,516,875

				3,745,937


CHEMICALS, PLASTICS & RUBBER - 3.2%

ASP Chromaflo Intermediate Holdings, Inc.
Initial Tranche B-1 Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.24%, 11/20/23^(b)		327,003		329,150
Initial Tranche B-2 Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.24%, 11/20/23^(b)		425,208		428,000
Avantor Performance Materials Holdings, LLC
First Lien Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.24%, 03/11/24^(b)		1,441,812		1,447,824
Avantor, Inc.
First Lien Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.00%, 09/20/24^(b)(d)		1,363,636		1,369,323
KMG Chemicals, Inc.
Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.25%, 06/15/24^(b)(d)		553,315		562,074
Niacet Corporation
First Lien Initial Dollar Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.83%, 02/01/24^(b)(e)		710,714		712,490
PetroChoice Holdings, Inc.
First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.28%, 08/19/22^(b)		994,737		1,004,685
SK Spice S.A.R.L (Luxembourg)
Facility B-2, (LIBOR + 4.25%, 0.00% Floor), 5.49%, 08/12/24^(b)(c)		2,127,224		2,137,860

				7,991,406


	Principal Amount ($)		Value ($)


CONSTRUCTION & BUILDING - 3.3%

Associated Asphalt Partners, LLC
Tranche B Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.49%, 04/05/24^(b)		308,446		303,947
Henry Company, LLC
Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.73%, 10/05/23^(b)		869,108		877,800
Infiltrator Water Technologies, LLC
First Lien Term Loan B-1, (LIBOR + 3.50%, 1.00% Floor), 4.83%, 05/27/22^(b)		1,987,445		2,017,257
IPS Structural Adhesives Holdings, Inc.
First Lien Initial Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.49%, 12/20/23^(b)(d)(e)		2,180,584		2,210,567
Morsco, Inc.
Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.24%, 10/31/23^(b)		993,671		1,004,020
Terra Millenium Corp.
First Out Term Loan, (LIBOR + 6.25%, 1.00% Floor), 7.50%, 10/31/22^(b)(e)		1,962,500		1,972,313

				8,385,904


CONSUMER GOODS: DURABLE - 1.7%

Hayward Acquisition Corp.
Initial Term Loan, (LIBOR + 3.50%, 0.00% Floor), 4.74%, 08/05/24^(b)		2,426,309		2,445,004
Serta Simmons Holdings, LLC
First Lien Initial Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.80%, 11/08/23^(b)		2,000,000		1,946,430

				4,391,434


CONSUMER GOODS: NON-DURABLE - 4.6%

ABG Intermediate Holdings 2, LLC
First Lien Revolver, (LIBOR + 3.50%, 1.00% Floor), 4.50%, 09/27/24^(b)(d)		2,466,495		2,461,266
Second Lien Term Loan, (LIBOR + 7.75%, 1.00% Floor), 8.75%, 09/29/25^(b)(d)		507,286		512,359
LTI Holdings, Inc.
First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 5.99%, 05/16/24^(b)		4,047,809		4,083,228
Parfums Holding Co., Inc.
First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 6.08%, 06/30/24^(b)		1,670,396		1,687,100
Second Lien Initial Term Loan, (LIBOR + 8.75%, 1.00% Floor), 10.09%, 06/30/25^(b)		1,000,000		981,670

2 | See accompanying Notes to Schedule of Investments.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)


Senior Loans^(a)(continued)

CONSUMER GOODS: NON-DURABLE (continued)

Revlon Consumer Products Corp.
Initial Term Loan B, (LIBOR + 3.50%, 0.75% Floor), 4.74%, 09/07/23^(b)		2,089,767		1,877,749

				11,603,372


CONTAINERS, PACKAGING & GLASS - 2.4%

Anchor Glass Container Corp.
Second Lien Term Loan, (LIBOR + 7.75%, 1.00% Floor), 9.07%, 12/07/24^(b)		1,083,333		1,098,229
Hoover Group, Inc.
First Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.56%, 01/28/21^(b)(e)		757,826		697,200
Sprint Industrial Holdings, LLC
First Lien Term Loan, (LIBOR + 5.75%, 1.25% Floor), 7.08%, 05/14/19^(b)		3,368,821		3,082,471
TCB Holdings III Corp.
First Lien Closing Date Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.08%, 11/30/23^(b)		1,157,263		1,167,146

				6,045,046


ENERGY: OIL & GAS - 3.2%

American Energy - Marcellus, LLC
First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.47%, 08/04/20^(b)(g)(h)		1,306,817		977,375
Azure Midstream Energy, LLC
Term Loan, (LIBOR + 6.50%, 1.00% Floor), 7.74%, 11/15/18^(b)		448,205		401,144
HGIM Corp.
Senior Secured Term Loan A, (Prime + 3.25%, 1.00% Floor), 7.50%, 06/18/18^(b)		398,725		172,781
Moss Creek Resources, LLC
Initial Term Loan, (LIBOR + 8.00%, 1.50% Floor), 9.50%, 04/07/22^(b)(e)		5,000,000		4,912,500
Sheridan Investment Partners I, LLC
Deferred Principal Facility I, 10/01/19^(e)(g)		4,749		2,850
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 4.82%, 10/01/19^(b)(e)		444,211		377,135
Sheridan Production Partners I-A, L.P.
Deferred Principal Facility I-A, 10/01/19^(e)(g)		629		378
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 4.82%, 10/01/19^(b)(e)		58,862		49,974


	Principal Amount ($)		Value ($)


ENERGY: OIL & GAS (continued)

Sheridan Production Partners I-M, L.P.
Deferred Principal Facility I-M, 10/01/19^(e)(g)		384		231
Tranche B-2 Term Loan, (LIBOR + 3.50%, 0.75% Floor), 4.82%, 10/01/19^(b)(e)		35,953		30,524
Southcross Holdings Borrower, LP
Tranche B Term Loan (5.50% PIK), 9.00%, 04/13/23^(e)(i)(j)		123,339		108,847
Traverse Midstream Partners, LLC
Advance Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.00%, 09/27/24^(b)(d)		926,471		939,210

				7,972,949


ENVIRONMENTAL INDUSTRIES - 1.2%

Emerald 2, Ltd. (United Kingdom)
Facility B-1, (LIBOR + 4.00%, 1.00% Floor), 5.33%, 05/14/21^(b)(c)(d)		3,091,110		3,070,492


HEALTHCARE & PHARMACEUTICALS - 15.2%

ATI Holdings, Inc.
First Lien Initial Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.80%, 05/10/23^(b)		711,377		719,825
Bioclinica, Inc.
First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.56%, 10/20/23^(b)		2,223,424		2,191,462
CT Technologies Intermediate Hldgs, Inc.
Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.49%, 12/01/21^(b)		3,246,543		3,254,659
Endo Luxembourg Finance I Co. S.A.R.L
Initial Term Loan, (LIBOR + 4.25%, 0.75% Floor), 5.50%, 04/29/24^(b)		3,589,805		3,630,190
Equian, LLC
Delayed Draw Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.06%, 05/20/24^(b)(e)		204,834		207,907
Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.07%, 05/20/24^(b)(e)		665,711		675,697
Lanai Holdings II, Inc.
First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 5.99%, 08/29/22^(b)		2,231,706		2,168,939
Lanai Holdings III, Inc.
Second Lien Initial Term Loan, (LIBOR + 8.50%, 1.00% Floor), 10.00%, 08/28/23^(b)		869,565		854,348

See accompanying Notes to Schedule of Investments. | 3

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)

Senior Loans^(a)(continued)

HEALTHCARE & PHARMACEUTICALS (continued)

Lantheus Medical Imaging, Inc.
Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.74%, 06/30/22^(b)		1,046,103		1,055,691
Medical Solutions Holdings, Inc.
First Lien Closing Date Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.58%, 06/14/24^(b)(e)		5,096,397		5,140,991
Second Lien Closing Date Loan, (LIBOR + 8.25%, 1.00% Floor), 9.58%, 06/16/25^(b)(e)		2,000,000		1,990,000
Nmsc Holdings, Inc.
Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.33%, 04/19/23^(b)		561,524		570,649
Opal Acquisition, Inc.
First Lien Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.32%, 11/27/20^(b)(d)		4,515,662		4,266,172
Parexel International Corp.
Term Loan B, (LIBOR + 3.00%, 0.00% Floor), 3.00%, 09/27/24^(b)(d)		1,278,822		1,289,219
PharMerica Corporation
First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.50%, 09/26/24^(b)(d)		1,732,523		1,744,971
Premier Dental Services, Inc.
Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.49%, 06/30/23^(b)(e)		876,464		884,133
Press Ganey Holdings, Inc.
Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.49%, 10/21/24^(b)		500,000		510,000
Quorum Health Corp.
Term Loan, (LIBOR + 6.75%, 1.00% Floor), 8.06%, 04/29/22^(b)		2,718,750		2,761,230
U.S. Renal Care, Inc.
First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.58%, 12/30/22^(b)		3,986,942		3,870,324
Valeant Pharmaceuticals International, Inc. (Canada)
Tranche B Term Loan, Series F-1, (LIBOR + 4.75%, 0.75% Floor), 5.99%, 04/01/22^(b)(c)		610,246		621,813

				38,408,220


HIGH TECH INDUSTRIES - 13.6%

Aptean, Inc.
Second Lien Initial Term Loan, (LIBOR + 9.50%, 1.00% Floor), 10.84%, 12/20/23^(b)		470,000		474,113
Term Loan B, (LIBOR + 4.25%, 1.00% Floor), 5.59%, 12/20/22^(b)		2,150,507		2,165,743


	Principal Amount ($)		Value ($)

HIGH TECH INDUSTRIES (continued)

Aricent Technologies
First Lien Initial Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.74%, 04/14/21^(b)		3,473,439		3,482,122
Second Lien Initial Term Loan, (LIBOR + 8.50%, 1.00% Floor), 9.74%, 04/14/22^(b)		1,211,538		1,220,625
Aspect Software, Inc.
First Lien Exit Term Loan, (LIBOR + 10.00%, 1.00% Floor), 11.24%, 05/25/20^(b)		1,578,709		1,562,922
Cortes NP Acquisition Corp.
Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.24%, 11/30/23^(b).		3,838,362		3,873,541
DigiCert Holding, Inc.
First Lien Term Loan B, (LIBOR + 4.75%, 1.00% Floor), 5.75%, 09/20/24^(b)(d)		1,895,411		1,916,734
Second Lien Term Loan, (LIBOR + 8.00%, 1.00% Floor), 9.00%, 09/19/25^(b)(d)		1,514,727		1,531,457
Flexera Software, LLC
Second Lien Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.33%, 04/02/21^(b)		1,987,902		1,990,387
LANDesk Software Group, Inc.
First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.49%, 01/20/24^(b)		771,337		753,658
Misys, Ltd. (United Kingdom)
Second Lien Dollar Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.57%, 06/13/25^(b)(c)		500,000		510,268
Riverbed Technology, Inc.
First Amendment Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.49%, 04/24/22^(b)(d)		2,519,407		2,466,398
Synchronoss Technologies, Inc.
Initial Term Loan, (LIBOR + 4.50%, 0.00% Floor), 5.74%, 01/19/24^(b)		4,984,040		4,727,362
Syncsort, Inc.
Second Lien Initial Term Loan, (LIBOR + 9.00%, 1.00% Floor), 10.31%, 08/18/25^(b)		2,000,000		1,965,000
TIBCO Software, Inc.
Term Loan B-1, (LIBOR + 3.50%, 1.00% Floor), 4.74%, 12/04/20^(b)		2,000,464		2,010,216
Triple Point Group Holdings, Inc.
First Lien Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.58%, 07/10/20^(b)		3,986,544		3,672,603

				34,323,149


HOTEL, GAMING & LEISURE - 2.5%

Equinox Holdings, Inc.
Second Lien Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.24%, 09/06/24^(b)		272,109		277,755

4 | See accompanying Notes to Schedule of Investments.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)


Senior Loans^(a)(continued)

HOTEL, GAMING & LEISURE (continued)

Everi Payments, Inc.
Term Loan B, (LIBOR + 4.50%, 1.00% Floor), 5.74%, 05/09/24^(b).		1,673,371		1,690,523
The Intertain Group, Ltd. (Canada)
Initial Term Loan B, (LIBOR + 6.50%, 1.00% Floor), 7.74%, 04/08/22^(b)(c)		643,951		651,195
Mohegan Tribal Gaming Authority
Term Loan A, (LIBOR + 3.75%, 0.00% Floor), 4.99%, 10/13/21^(b)		2,218,750		2,235,857
Scientific Games International, Inc.
Term Loan B-4, (LIBOR + 3.25%, 0.00% Floor), 4.51%, 08/14/24^(b)		1,413,733		1,417,932

				6,273,262


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 3.6%

Acosta, Inc.
Tranche B-1 Loan, (LIBOR + 3.25%, 1.00% Floor), 4.49%, 09/26/21^(b)		992,251		881,863
Advantage Sales & Marketing, Inc.
First Lien Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.49%, 07/23/21^(b)(d)		2,992,288		2,827,727
ALM Media, LLC
First Lien Term Loan B, (LIBOR + 4.50%, 1.00% Floor), 5.83%, 07/31/20^(b)		3,014,560		2,758,322
F & W Media, Inc.
Term Loan B-1, (LIBOR + 6.50%, 1.50% Floor), 8.00%, 05/24/22^(b)(e)		337,174		337,174
Term Loan B-2 (10.00% PIK),
(LIBOR + 10.00%, 1.50% Floor), 11.50%, 05/24/22^(b)(e)(j)		811,030		811,030
Information Resources, Inc.
First Lien Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.49%, 01/18/24^(b)		1,496,278		1,513,111

				9,129,227


MEDIA: BROADCASTING & SUBSCRIPTION - 4.7%

Beasley Mezzanine Holdings, LLC
Initial Term Loan, (LIBOR + 6.00%, 1.00% Floor), 7.24%, 11/01/23^(b)		711,600		721,609
CBS Radio, Inc.
Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.74%, 10/17/23^(b).		1,392,026		1,405,084
Emmis Operating Co.
Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.24%, 04/18/19^(b)(e)		605,871		588,452
Global Eagle Entertainment, Inc.
Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.46%, 01/06/23^(b)(d)		3,490,913		3,436,385


	Principal Amount ($)		Value ($)


MEDIA: BROADCASTING & SUBSCRIPTION (continued)

Hemisphere Media Holdings, LLC
Term Loan B-1, (LIBOR + 3.50%, 0.00% Floor), 4.74%, 02/14/24^(b)		1,424,062		1,429,402
SESAC Holdco II, LLC
Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.49%, 02/24/25^(b)		648,285		646,664
Univision Communications, Inc. 2017 Replacement Term Loan, (LIBOR + 2.75%, 1.00% Floor), 3.99%, 03/15/24^(b)(d)		997,304		989,704
Urban One, Inc.
Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.34%, 04/18/23^(b)		2,646,093		2,604,748

				11,822,048


MEDIA: DIVERSIFIED & PRODUCTION - 0.6%

A-L Parent, LLC
Second Lien Initial Term Loan, (LIBOR + 7.25%, 1.00% Floor), 8.49%, 12/02/24^(b)(e)		500,000		502,500
DHX Media Ltd. (Canada)
Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 4.99%, 12/29/23^(b)(c)		997,500		998,747

				1,501,247


METALS & MINING - 0.0%

Magnetation, LLC / Mag
Finance Corp.
DIP Term Loan, 12.00%, 10/14/16^(e)(g)(i)		1,127,504		—


RETAIL - 8.7%

Academy, Ltd.
Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.27%, 07/01/22^(b)		3,964,265		2,706,998
Charming Charlie, LLC
Term Loan (3.00% PIK), (LIBOR + 11.00%, 1.00% Floor), 12.33%, 12/24/19^(b)(j)		1,082,835		514,347
David’s Bridal, Inc.
Initial Term Loan, (LIBOR + 4.00%, 1.25% Floor), 5.34%, 10/11/19^(b)(d)		3,707,213		2,930,552
J Crew Group, Inc.
Consenting Amended Initial Loan, (LIBOR + 3.22%, 1.00% Floor), 4.51%, 03/05/21^(b)		433,559		265,063
JC Penney Corp., Inc.
Initial Term Loan, (LIBOR + 4.25%, 1.00% Floor), 5.57%, 06/23/23^(b)		3,706,429		3,613,768
Mister Car Wash Holdings, Inc.
Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.03%, 08/20/21^(b)		1,267,630		1,274,494

See accompanying Notes to Schedule of Investments. | 5

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)


Senior Loans^(a) (continued)

RETAIL (continued)

The Neiman Marcus Group, Inc.
Other Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.48%, 10/25/20^(b)		1,569,785		1,174,325
Petco Animal Supplies, Inc.
Second Amendment Term Loan, (LIBOR + 3.00%, 1.00% Floor), 4.31%, 01/26/23^(b)		5,000,000		4,141,675
Sears Roebuck Acceptance Corp.
(KMART Corp.) Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.74%, 06/30/18^(b)(d)		3,879,541		3,840,745
Vince, LLC (Vince Intermediate
Holding, LLC) Initial Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.31%, 11/27/19^(b)		1,683,053		1,472,672

				21,934,639


SERVICES: BUSINESS - 20.7%

Air Medical Group Holdings, Inc.
2016 New Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.24%, 04/28/22^(b)(d)		2,493,256		2,494,502
First Lien Term Loan B, (LIBOR + 4.25%, 1.00% Floor), 5.25%, 09/26/24^(b)(d)		2,268,449		2,270,581
Initial Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.25%, 04/28/22^(b)(d)		803,026		798,409
Albany Molecular Research, Inc.
Second Lien Initial Loan, (LIBOR + 7.00%, 1.00% Floor), 8.33%, 08/30/25^(b)		376,068		382,179
Americold Realty Operating
Partnership, L.P. Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 4.99%, 12/01/22^(b)		3,587,919		3,632,768
Carecore National, LLC
Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.24%, 03/05/21^(b)		1,347,458		1,364,301
EIG Investors Corp.
Refinancing Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.32%, 02/09/23^(b)		4,170,190		4,221,942
Electro Rent Corp.
First Lien Initial Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.27%, 01/31/24^(b)		2,103,155		2,121,558


	Principal Amount ($)		Value ($)


SERVICES: BUSINESS (continued)

Evergreen Skills Lux S.A.R.L. (Luxembourg)
First Lien Initial Term Loan, (LIBOR + 4.75%, 1.00% Floor), 5.99%, 04/28/21^(b)(c)		4,451,023		4,219,436
Second Lien Initial Term Loan, (LIBOR + 8.25%, 1.00% Floor), 9.49%, 04/28/22^(b)(c)		999,917		822,851
Explorer Holdings, Inc.
Refinancing Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.06%, 05/02/23^(b)		4,579,767		4,614,848
Garda World Security Corp. (Canada)
Term Loan B, (Variable + 4.00%, 1.00% Floor), 5.32%, 05/24/24^(b)(c)		1,109,394		1,122,107
IBC Capital, Ltd.
First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.07%, 09/09/21^(b)		2,984,694		2,968,517
International Car Wash Group, Ltd. (United Kingdom)
First Lien Term Loan, (LIBOR + 3.50%, 1.00% Floor), 4.50%, 10/03/24^(b)(c)(d)		709,859		714,076
Second Lien Term Loan, (LIBOR + 7.50%, 1.00% Floor), 8.50%, 10/03/25^(b)(c)(d)		545,455		548,182
Onex Carestream Finance, L.P.
First Lien Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.33%, 06/07/19^(b)		2,104,246		2,109,507
Second Lien Term Loan, (LIBOR + 8.50%, 1.00% Floor), 9.83%, 12/07/19^(b)		2,814,343		2,764,501
SGS Cayman L.P.
Initial Cayman Term Loan, (LIBOR + 5.38%, 1.00% Floor), 6.71%, 04/23/21^(b)(d)		786,648		756,495
SMG
Second Lien Term Loan, (LIBOR + 8.25%, 1.00% Floor), 9.49%, 02/27/21^(b)		2,458,634		2,452,488
Solera Holdings, Inc.
Dollar Term Loan, (LIBOR + 3.25%, 1.00% Floor), 4.49%, 03/03/23^(b)		994,949		999,357
STG-Fairway Acquisitions, Inc.
First Lien Term Loan, (LIBOR + 5.25%, 1.00% Floor), 6.58%, 06/30/22^(b)(d)		2,514,689		2,448,679
Sutherland Global Services, Inc.
Initial U.S. Term Loan, (LIBOR + 5.38%, 1.00% Floor), 6.71%, 04/23/21^(b)(d)		3,379,399		3,249,867

6 | See accompanying Notes to Schedule of Investments.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)


Senior Loans^(a) (continued)

SERVICES: BUSINESS (continued)

TMK Hawk Parent, Corp.
First Lien Initial Term Loan,
(LIBOR + 3.50%, 0.00% Floor), 3.50%, 08/28/24^(b)(d)		2,183,514		2,201,593
U.S. Security Associates Holdings, Inc.
Initial Term Loan, (LIBOR + 4.00%, 1.00% Floor), 5.33%, 07/14/23^(b)		2,983,846		3,012,745

				52,291,489


SERVICES: CONSUMER - 3.3%

Laureate Education, Inc.
Series 2024 Term Loan, (LIBOR + 4.50%, 1.00% Floor), 5.74%, 04/26/24^(b)		3,595,604		3,619,191
NVA Holdings, Inc.
Second Lien Term Loan, (LIBOR + 7.00%, 1.00% Floor), 8.33%, 08/14/22^(b)		2,637,888		2,660,969
USS Ultimate Holdings, Inc.
First Lien Initial Term Loan, (LIBOR + 3.75%, 1.00% Floor), 4.99%, 08/25/24^(b)(d)		500,000		506,043
Second Lien Initial Term Loan, (LIBOR + 7.75%, 1.00% Floor), 8.99%, 08/25/25^(b)		1,384,615		1,396,156

				8,182,359


TELECOMMUNICATIONS - 7.2%

CenturyLink, Inc.
First Lien Term Loan A, (LIBOR + 2.75%, 0.00% Floor), 2.75%, 06/20/22^(b)(d)		2,000,000		2,000,000
Digicel International Finance Ltd. (Saint Lucia)
First Lien Initial Term Loan B, (LIBOR + 3.75%, 1.00% Floor), 5.07%, 05/27/24^(b)(c)		272,774		274,266
Frontier Communications Corp.
Initial Term Loan, (LIBOR + 2.75%, 0.00% Floor), 3.99%, 03/31/21^(b)		986,667		945,350
Term Loan B-1, (LIBOR + 3.75%, 0.75% Floor), 4.99%, 06/15/24^(b)(d)		1,995,000		1,900,247
Global Tel*Link Corp.
First Lien Term Loan, (LIBOR + 4.00%, 1.25% Floor), 5.33%, 05/23/20^(b)		3,192,150		3,229,258
Intelsat Jackson Holdings S.A. (Luxembourg)
Tranche B-2 Term Loan, (LIBOR + 2.75%, 1.00% Floor), 4.07%, 06/30/19^(b)(c)		1,000,000		998,225


	Principal Amount ($)		Value ($)


TELECOMMUNICATIONS (continued)

Securus Technologies
Holdings, Inc. First Lien, (LIBOR + 4.50%, 1.00% Floor), 5.50%, 06/20/24^(b)(d)		2,123,636		2,147,962
Second Lien Initial Term Loan, (LIBOR + 7.75%, 1.25% Floor), 9.00%, 04/30/21^(b)		3,000,000		3,017,490
TierPoint, LLC
First Lien Term Loan, (LIBOR + 3.75%, 1.00% Floor), 4.99%, 05/06/24^(b)		830,603		835,445
TVC Albany, Inc.
Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.00%, 08/23/24^(b)(d)(e)		500,000		501,250
U.S. TelePacific Corp.
Advance Term Loan, (LIBOR + 5.00%, 1.00% Floor), 6.32%, 05/02/23^(b)		2,432,926		2,375,753

				18,225,246


TRANSPORTATION: CONSUMER - 0.6%

Travel Leaders Group, LLC
Term Loan B, (LIBOR + 4.50%, 0.00% Floor), 5.81%, 01/25/24^(b⁾		1,483,313		1,505,570


UTILITIES: ELECTRIC - 3.8%

EFS Cogen Holdings I, LLC
Advance Term Loan B, (LIBOR + 3.50%, 1.00% Floor), 4.84%, 06/28/23^(b)		1,279,093		1,296,681
Green Energy Partners
Advance Conversion Term Loan B-1, (LIBOR + 5.50%, 1.00% Floor), 6.83%, 11/13/21^(b)(e)		1,177,136		1,118,279
Construction B-2 Facility, (LIBOR + 5.50%, 1.00% Floor), 6.83%, 11/13/21^(b)(e)		340,909		323,864
Helix Gen Funding, LLC
Term Loan, (LIBOR + 3.75%, 1.00% Floor), 5.08%, 06/03/24^(b⁾		1,218,957		1,233,840
Moxie Patriot, LLC
Construction B-1 Facility, (LIBOR + 5.75%, 1.00% Floor), 7.08%, 12/19/20^(b)		2,761,949		2,582,422
Panda Liberty, LLC
Construction B-1 Facility, (LIBOR + 6.50%, 1.00% Floor), 7.83%, 08/21/20^(b)		1,399,646		1,251,816
Pike Corporation
Initial Term Loan 2017, (LIBOR + 3.50%, 1.00% Floor), 4.74%, 09/20/24^(b)(d)		861,920		874,043

See accompanying Notes to Schedule of Investments. | 7

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)


Senior Loans^(a) (continued)

UTILITIES: ELECTRIC (continued)

WG Partners Acquisition, LLC
Term Loan B, (LIBOR + 4.00%, 1.00% Floor), 5.33%, 11/15/23^(b)(e)		857,423		860,638

				9,541,583

Total Senior Loans
(Cost $308,845,388)				305,340,361


Corporate Notes and Bonds - 16.7%⁽ⁱ⁾

AUTOMOTIVE - 1.5%

Tesla, Inc. 5.30%, 08/15/25^(k)		4,000,000		3,905,000


BANKING, FINANCE, INSURANCE & REAL ESTATE - 1.1%

Donnelley Financial Solutions, Inc. 8.25%, 10/15/24		2,476,000		2,655,510


BEVERAGE, FOOD & TOBACCO - 1.2%

Land O’Lakes Capital Trust I 7.45%, 03/15/28^(k)		2,719,000		3,106,457


CAPITAL EQUIPMENT - 0.4%

Optimas OE Solutions
Holding, LLC 8.63%, 06/01/21^(k)		1,000,000		980,000


CHEMICALS, PLASTICS & RUBBER - 0.8%

TPC Group, Inc. (Texas Petrochemical) 8.75%, 12/15/20^(k)		2,007,000		1,956,825


CONSUMER GOODS: NON-DURABLE - 0.2%

Revlon Consumer Products Corp. 5.75%, 02/15/21		500,000		438,750


CONTAINERS, PACKAGING & GLASS - 0.8%

Reynolds Group Holdings, Inc. 6.88%, 02/15/21		2,000,146		2,052,650


ENERGY: OIL & GAS - 0.2%

Northern Oil and Gas, Inc. 8.00%, 06/01/20		729,000		455,625


HEALTHCARE & PHARMACEUTICALS - 0.8%

Valeant Pharmaceuticals
International, Inc. (Canada) 7.50%, 07/15/21^(c)(k)		2,000,000		2,000,000


HIGH TECH INDUSTRIES - 0.8%

Riverbed Technology, Inc. 8.88%, 03/01/23^(k)		1,000,000		956,250
RP Crown Parent, LLC
7.38%, 10/15/24^(k)		1,000,000		1,026,250

				1,982,500


HOTEL, GAMING & LEISURE - 0.9%

Hilton Grand Vacations
Borrower, LLC 6.13%, 12/01/24^(k)		1,100,000		1,210,275


	Principal Amount ($)		Value ($)


HOTEL, GAMING & LEISURE (continued)

Scientific Games International, Inc. 7.00%, 01/01/22^(k)		1,086,000		1,155,233

				2,365,508


MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.3%

Acosta, Inc. 7.75%, 10/01/22^(k)		1,000,000		725,000


MEDIA: BROADCASTING & SUBSCRIPTION - 2.5%

Altice Financing S.A. (Luxembourg) 7.50%, 05/15/26^(c)(k)		1,000,000		1,102,500
CSC Holdings, LLC 10.13%, 01/15/23^(k)		317,000		366,531
10.88%, 10/15/25^(k)		477,000		590,884
SiTV, Inc. 10.38%, 07/01/19^(k)		3,420,000		2,334,150
Univision Communications, Inc. 5.13%, 02/15/25^(k)		1,000,000		1,011,250
Urban One, Inc. 7.38%, 04/15/22^(k)		882,000		886,410

				6,291,725


METALS & MINING - 0.0%

ERP Iron Ore, LLC
LIBOR +, 8.00%, 12/31/19^(e)		170,855		57,017
Magnetation, LLC / Mag
Finance Corp. 11.00%, 05/15/18^(e)(g)(k)(l)		2,937,000		—

				57,017


RETAIL - 0.7%

PetSmart, Inc. 5.88%, 06/01/25^(k)		1,000,000		877,500
8.88%, 06/01/25^(k)		1,000,000		798,000

				1,675,500


SERVICES: BUSINESS - 1.3%

Camelot Finance S.A. (Luxembourg) 7.88%, 10/15/24^(c)(k)		1,080,000		1,166,400
EIG Investors Corp. 10.88%, 02/01/24		2,000,000		2,210,000

				3,376,400


TELECOMMUNICATIONS - 3.2%

GTT Communications, Inc. 7.88%, 12/31/24^(k)		1,788,000		1,904,220
Intelsat Jackson Holdings S.A. (Luxembourg) 8.00%, 02/15/24^(c)(k)		2,000,000		2,155,000
Orbcomm, Inc. 8.00%, 04/01/24^(k)		3,694,000		3,980,285

				8,039,505

Total Corporate Notes and Bonds
(Cost $42,267,057)				42,063,972

8 | See accompanying Notes to Schedule of Investments.

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)


	Principal Amount ($)		Value ($)


Structured Products - 13.8%^(m)
Anchorage Capital CLO, Ltd. (Cayman Islands)
Series 2015-6A, Class ER, 7.65%, 07/15/30^(c)(k)(n)		4,400,000		4,179,569
Series 2015-7A, Class E2, 8.40%, 10/15/27^(c)(k)(n)		3,000,000		3,001,896
Babson CLO Ltd. (Cayman Islands)
Series 2014-IA, Class E, 6.96%, 07/20/25^(c)(k)(n)		1,110,000		1,000,899
Guggenheim 1828 CLO, LLC (Cayman Island)
Series 2016-1A, Class D, 8.30%, 04/15/28^(c)(k)(n)		4,000,000		4,028,948
Ivy Hill Middle Market Credit Fund, Ltd. (Cayman Islands)
Series 10A, Class D2, 8.60%, 07/24/27^(c)(k)(n)		2,350,000		2,349,838
JFIN CLO, Ltd. (Cayman Islands)
Series 2013-1I, Class E, 7.31%, 01/20/25^(c)(n)		2,000,000		1,808,570
Series 2015-1A, Class E, 6.32%, 03/15/26^(c)(k)(n)		4,500,000		4,141,746
NXT Capital CLO, LLC
Series 2014-1A, Class E, 6.81%, 04/23/26^(k)(n)		5,000,000		4,501,835
NZCG Funding, Ltd. (Cayman Islands)
Series 2015-2A, Class D, 7.62%, 04/27/27^(c)(k)(n)		1,500,000		1,493,970
Teachers Insurance and Annuity Association of America CLO, Ltd. (Cayman Islands)
Series 2016-1A, Class E2, 11.31%, 07/20/28^(c)(k)(n)		2,500,000		2,550,000
TIAA Churchill Middle Market CLO I (Cayman Islands)
Series 2016-1A, Class E2, 9.31%, 10/20/28^(c)(k)(n)		2,000,000		1,994,778
Voya CLO Ltd. (Cayman Islands)
Series 2015-3A, Series E, 7.81%, 10/20/27^(c)(k)(n)		1,000,000		919,489
Zais CLO Ltd. (Cayman Islands)
Series 2016-2A, Series D, 8.30%, 10/15/28^(c)(k)(n)		1,000,000		997,728
Series 2017-2A, Series E, 7.15%, 04/15/30^(c)(d)(k)(n)		1,750,000		1,706,250

Total Structured Products (Cost $34,448,806)				34,675,516

Share
Quantity

Value ($)

Common Stocks - 0.0%

BANKING, FINANCE, INSURANCE & REAL ESTATE - 0.0%

Medical Card System, Inc.^(e)(g)

914,981

39,792

ENERGY: OIL & GAS - 0.0%

Southcross Holdings Borrower,

GP LLC^(e)(g)

129

—

Southcross Holdings Borrower, LP, Class A-II^(e)(g)

129

87,075

MEDIA: ADVERTISING, PRINTING & PUBLISHING - 0.0%

F & W Media, Inc.^(e)(g)

9,510

—

Total Common Stock
(Cost $58,051)

126,867

Preferred Stock - 1.6%

BANKING, FINANCE, INSURANCE & REAL ESTATE - 1.6%

Watford Holdings, Ltd. (Bermuda) 8.50%,^(c)(e)(k)

160,000

3,933,244

Total Preferred Stock
(Cost $3,920,000)

3,933,244

Total Investments-153.2%
(Cost of $389,539,302)

386,139,960

Other Assets & Liabilities,
Net-1.5%

3,941,176

Loan Outstanding-(54.7)%^(o)(p)

(137,979,372

)

Net Assets -100.0%

252,101,764

See accompanying Notes to Schedule of Investments. | 9

Apollo Tactical Income Fund Inc.

Schedule of Investments (continued)

September 30, 2017 (unaudited)

^(a)

“Senior Loans” are senior, secured loans made to companies whose debt is below investment grade as well as investments with similar economic characteristics. Senior Loans typically hold a first lien priority and, unless otherwise indicated, are required to pay interest at floating rates that are periodically reset by reference to a base lending rate plus a spread. In some instances, the rates shown represent the weighted average rate as of September 30, 2017. Senior Loans are generally not registered under the Securities Act of 1933 (the “1933 Act”) and often incorporate certain restrictions on resale and cannot be sold publicly. Senior Loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual maturity may be substantially less than the stated maturity.

^(b)

The interest rate on this Senior Loan is subject to a base lending rate plus a spread. These base lending rates are primarily the London Interbank Offered Rate (“LIBOR”) and secondarily the prime rate offered by one or more major U.S. banks (“Prime”). The interest rate is subject to a minimum floor, which may be less than or greater than the prevailing period end LIBOR/Prime rate. As of September 30, 2017, the 1, 3 and 6 month LIBOR rates were 1.23%, 1.33% and 1.51%, respectively, and the Prime lending rate was 4.25%. Senior Loans may contain multiple contracts of the same issuer which may be subject to base lending rates of both LIBOR and Prime (“Variable”) in addition to the stated spread.

^(c)	Foreign issuer traded in U.S. dollars.

^(d)	All or a portion of this Senior Loan position has not settled. Full contract rates do not take effect until settlement date and therefore are subject to change.

^(e)	Fair Value Level 3 security.

^(f)	The issuer is in default of its payment obligations as of March 19, 2017, as such, income is no longer being accrued.

^(g)	Non-income producing asset.

^(h)	The issuer is in default of its payment obligations as of June 7, 2017, as such, income is no longer being accrued.

⁽ⁱ⁾	Fixed rate asset.

^(j)	Represents a payment-in-kind (“PIK”) security, which may pay interest in additional principal amount.

^(k)	Securities exempt from registration pursuant to Rule 144A under the 1933 Act. These securities may only be resold in transactions exempt from registration to qualified institutional buyers. At September 30, 2017, these securities amounted to $70,994,610, or 28.16% of net assets.

^(l)	The issuer is in default of its payment obligations as of May 5, 2015, as such, income is no longer being accrued.

^(m)

Structured Products include collateralized loan obligations (“CLOs”). A CLO typically takes the form of a financing company (generally called a special purpose vehicle or “SPV”), created to reapportion the risk and return characteristics of a pool of assets. While the assets underlying CLOs are often Senior Loans or corporate notes and bonds, the assets may also include (i) subordinated loans; (ii) debt tranches of other CLOs; and (iii) equity securities incidental to investments in Senior Loans. The Fund may invest in lower tranches of CLOs, which typically experience a lower recovery, greater risk of loss or deferral or non-payment of interest than more senior tranches of the CLO. A key feature of the CLO structure is the prioritization of the cash flows from a pool of debt securities among the several classes of the CLO. The SPV is a company founded for the purpose of securitizing payment claims arising out of this asset pool. On this basis, marketable securities are issued by the SPV and the redemption of these securities typically takes place at maturity out of the cash flow generated by the collected claims.

⁽ⁿ⁾	Floating rate asset. The interest rate shown reflects the rate in effect at September 30, 2017.

^(o)	The Fund has granted a security interest in substantially all of its assets in the event of default under the credit facility.

^(p)	Principal $138,000,000 less unamortized deferred financing costs of $20,628.

10 | See accompanying Notes to Schedule of Investments.

Apollo Tactical Income Fund Inc.

Notes to Schedule of Investments

September 30, 2017 (unaudited)

Security Valuation

Apollo Tactical Income Fund Inc. (the “Fund”) values its investments primarily using the mean of the bid and ask prices provided by a nationally recognized security pricing service or broker. Senior Loans, corporate notes and bonds, structured products, common stock and preferred stock are priced based on valuations provided by an approved independent pricing service or broker, if available. If market or broker quotations are not available, or a price is not available from an independent pricing service or broker, or if the price provided by the independent pricing service or broker is believed to be unreliable, the security will be fair valued pursuant to procedures adopted by the Fund’s board of directors (the “Board”). In general, the fair value of a security is the amount that the Fund might reasonably expect to receive upon the sale of an asset or pay to transfer a liability in an orderly transaction between willing market participants at the reporting date. Fair value procedures generally take into account any factors deemed relevant, which may include, among others, (i) the nature and pricing history of the security, (ii) the liquidity or illiquidity of the market for the particular security, (iii) recent purchases or sales transactions for the particular security or similar securities and (iv) press releases and other information published about the issuer. In these cases, the Fund’s net asset value (“NAV”) will reflect the affected portfolio securities’ fair value as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to value securities may result in a value that is different from a security’s most recent sale price and from the prices used by other investment companies to calculate their NAV. Determination of fair value is uncertain because it involves subjective judgments and estimates. There can be no assurance that the Fund’s valuation of a security will not differ from the amount that it realizes upon the sale of such security.

Fair Value Measurements

The Fund has performed an analysis of all existing investments to determine the significance and character of all inputs to their fair value determination. The levels of fair value inputs used to measure the Fund’s investments are characterized into a fair value hierarchy. The three levels of the fair value hierarchy are described below:

Level 1 — Quoted unadjusted prices for identical assets and liabilities in active markets to which the Fund has access at the date of measurement;

Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, but are valued based on executed trades, broker quotations that constitute an executable price, and alternative pricing sources supported by observable inputs which, in each case, are either directly or indirectly observable for the asset in connection with market data at the measurement date; and

Level 3 — Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. In certain cases, investments classified within Level 3 may include securities for which the Fund has obtained indicative quotes from broker-dealers that do not necessarily represent prices the broker may be willing to trade on, as such quotes can be subject to material management judgment. Unobservable inputs are those inputs that reflect the Fund’s own assumptions that market participants would use to price the asset or liability based on the best available information.

At the end of each reporting period, management evaluates the Level 2 and Level 3 assets, if any, for changes in liquidity, including but not limited to: whether a broker is willing to execute at the quoted price, the depth and consistency of prices from independent pricing services, and the existence of contemporaneous, observable trades in the market.

| 11

Apollo Tactical Income Fund Inc.

Notes to Schedule of Investments (continued)

September 30, 2017 (unaudited)

The valuation techniques used by the Fund to measure fair value at September 30, 2017 maximized the use of observable inputs and minimized the use of unobservable inputs. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Transfers into and out of the levels are recognized at the value at the end of the period. A summary of the Fund’s investments categorized in the fair value hierarchy as of September 30, 2017 is as follows:


Apollo Tactical Income Fund Inc.

	Total Fair Value at September 30, 2017		Level 1 Quoted Price		Level 2 Significant Observable Inputs		Level 3 Significant Unobservable Inputs

Assets:
Cash and Cash Equivalents	$	24,798,262		$24,798,262	$	—	$	—
Senior Loans		305,340,361		—		274,882,340		30,458,021
Corporate Notes and Bonds		42,063,972		—		42,006,955		57,017
Structured Products		34,675,516		—		34,675,516		—
Common Stock		126,867		—		—		126,867
Preferred Stock		3,933,244		—		—		3,933,244
Unrealized appreciation on Unfunded Loan Commitments		3,213		—		3,213		—

Total Assets	$	410,941,435	$	24,798,262	$	351,568,024	$	34,575,149

The following is a reconciliation of Level 3 holdings for which significant unobservable inputs were used in determining fair value for the period January 1, 2017 through September 30, 2017:


Apollo Tactical Income Fund Inc.

	Total			Senior Loans			Corporate Notes and Bonds			Structured Products			Common Stock		Preferred Stock			Unfunded Loan Committments

Total Fair Value, beginning of the period	$	35,486,453		$	30,089,922		$	—		$	1,490,200		$	48,375	$	3,854,496		$	3,460
Purchases, including capitalized PIK		22,454,746			22,267,493			187,253			—			—		—			—
Sales/Paydowns		(17,368,042	)		(17,348,185	)		(16,397	)		—			—		—			(3,460	)
Accretion/(amortization) of discounts/
(premiums)		501,347			472,052			—			29,295			—		—			—
Net realized gain/(loss)		(4,855,607	)		(804,010	)		(3,068,388	)		—			—		(986,669	)		3,460
Change in net unrealized appreciation/
(depreciation)		5,953,610			1,569,537			2,954,549			289,075			78,492		1,065,417			(3,460	)
Transfer into Level 3		3,776,541			3,776,541			—			—			—		—			—
Transfers out of Level 3		(11,373,899	)		(9,565,329	)		—			(1,808,570	)		—		—			—

Total Fair Value, end of period	$	34,575,149		$	30,458,021		$	57,017		$	—		$	126,867	$	3,933,244		$	—

Assets were transferred from Level 2 to Level 3 or from Level 3 to Level 2 as a result of changes in levels of liquid market observability when subject to various criteria as discussed previously. There were no transfers between Level 1 and Level 2 fair value measurement during the period shown. The net change in unrealized appreciation/(depreciation) attributable to Level 3 investments still held at September 30, 2017 was $4,484,137.

12 |

Apollo Tactical Income Fund Inc.

Notes to Schedule of Investments (continued)

September 30, 2017 (unaudited)

The following table provides quantitative measures used to determine the fair values of the Level 3 investments as of September 30, 2017:

Apollo Tactical Income Fund Inc.

Assets

Fair Value at
September 30, 2017

Valuation Technique(s)^(a)

Unobservable Input(s)

Range of

Unobservable

Input(s) Utilized

Senior Loans

$20,264,299

Independent pricing service and/or broker quotes

Vendor and/or broker quotes

N/A

4,912,500

Discounted Cash Flow^(b)

Discount Rate^(b)

10.1%-12.1%

3,968,747

Discounted Cash Flow^(b)

Discount Rate^(b)

15.6%

1,148,204

Transaction Value^(c)

Cost^(c)

N/A

—

Recoverability^(d)

Liquidation

$0m-$7m

Proceeds^(d)

164,271

Discounted Cash Flow^(b)

Discount Rate^(b)

1.18%

Corporate Notes and Bonds

57,017

Discounted Cash Flow^(b)

Discount Rate^(b)

22.5%

—

Recoverability^(d)

Liquidation

$0m-$7m

Proceeds^(d)

Common Stock

39,792

Black-Scholes Option Pricing Model^(e)

Volatility^(e)

25%

—

Transaction Value^(c)

Cost^(c)

N/A

87,075

Independent pricing service and/or broker quotes

Vendor and/or broker quotes

N/A

Preferred Stock

3,933,244

Discounted Cash Flow^(b)

Discount Rate^(b)

8.62%

Total Fair Value

$34,575,149

^(a)	For the assets which have multiple valuation techniques, the Fund may rely on the techniques individually or in aggregate based on a weight ranging from 0-100%.

^(b)

The Fund utilized a discounted cash flow model to fair value this security. The significant unobservable input used in the valuation model was the discount rate, which was determined based on the market rates an investor would expect for a similar investment with similar risks. The discount rate was applied to present value the projected cash flows in the valuation model. Significant increases in the discount rate may significantly lower the fair value of an investment; conversely, significant decreases in the discount rate may significantly increase the fair value of an investment.

^(c)	The Fund utilized a recent restructuring transaction to fair value this security, specifically the implied fair value of the restructured capital.

^(d)

The Fund utilized a recoverability approach to fair value this security, specifically a liquidation analysis. There are various, company specific inputs used in the valuation analysis that relate to the liquidation value of the company’s assets, which were estimated by a third-party financial advisor as part of restructuring proceedings. The significant unobservable inputs used in the valuation model were liquidation proceeds. Significant increases and decreases in the inputs in isolation may result in a significantly higher or lower fair value measurement.

^(e)	The Fund utilized a Black-Scholes options pricing model to fair value this security. The significant unobservable input used in the valuation model was volatility. Significant increases or decreases in the input in isolation may result in a significantly higher or lower fair value measurement.

| 13

Apollo Tactical Income Fund Inc.

Notes to Schedule of Investments (continued)

September 30, 2017 (unaudited)

Federal Tax Information

Cost for U.S federal income tax purposes differs from book basis primarily due to the deferral of losses from wash sales. Unrealized appreciation and depreciation on investments as of September 30, 2017 were as follows:


	Apollo Tactical Income Fund Inc.

Federal tax basis, cost	$	389,894,993

Unrealized appreciation	$	5,587,631
Unrealized depreciation		(9,342,664	)

Net unrealized appreciation/(depreciation)	$	(3,755,033	)

General Commitments and Contingencies

As of September 30, 2017, the Fund had unfunded loan commitments outstanding, which could be extended at the option of the borrower, as detailed below:



Borrower	Unfunded Loan Commitments

TCB Holdings III Corp.		$116,601
Trimark USA, LLC		97,478
Total unfunded loan commitments		$214,079

For more information with regard to significant accounting policies, see the Fund’s most recent semi-annual report filed with the Securities and Exchange Commission.

14 |

Item 2. Controls and Procedures.

(a)

The Fund’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Fund’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b)

There were no changes in the Fund’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the Fund’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Fund’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)		Apollo Tactical Income Fund Inc.



By (Signature and Title)		/s/ Joseph Moroney
		Joseph Moroney, President (principal executive officer)



Date		11/16/2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)		/s/ Joseph Moroney
		Joseph Moroney, President
		(principal executive officer)



Date		11/16/2017



By (Signature and Title)		/s/ Frank Marra
		Frank Marra, Treasurer and Chief Financial Officer
		(principal financial officer)



Date		11/16/2017