Ares Capital Corporation Expands Credit Facilities in Conjunction with Acquisition of American Capital, Ltd
January 04, 2017 at 04:30 pm EST
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Ares Capital Corporation announced that it has increased its total borrowing capacity in conjunction with the closing of its previously announced acquisition of American Capital Ltd. Ares Capital increased its total debt facility capacity from $2.2 billion to $3.5 billion, including commitment increases and extensions on two of its three facilities. Ares Capital increased and extended the maturity of its senior secured credit facility with a syndicate of banks led by JP Morgan, SunTrust, Bank of America Merrill Lynch, Bank of Montreal and Sumitomo Mitsui Banking Corporation, increasing total commitments from $1.265 billion to $2.095 billion, and extending the final maturity from May 2021 to January 2022 on $2.0 billion of the commitments. The total commitments include revolving capacity of $1.713 billion and a term loan of $382 million. The stated interest rate on the facility remains unchanged at LIBOR plus 1.75%. In addition, Ares Capital expanded and extended the maturity of its revolving funding facility with Wells Fargo and Bank of America Merrill Lynch. Total commitments to the facility increased from $540 million to $1.0 billion, and the final maturity of the facility was extended from May 2019 to January 2022. The stated interest rate on the facility was changed to LIBOR plus 2.30% from LIBOR plus an applicable spread ranging from 2.25% to 2.50%. Including these debt facilities, Ares Capital now has $3.5 billion in total senior secured debt capacity with a blended stated interest rate of LIBOR plus 1.90%. In addition to growing these debt facilities, in September 2016, Ares Capital issued $600 million in senior unsecured notes due 2022 with a stated interest rate of 3.625%.
Ares Capital Corporation is a specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. The Company invests primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position), and second lien senior secured loans. In addition to senior secured loans, it also invests in subordinated debt, which in some cases includes an equity component, and preferred equity. It also may invest up to 30% of its portfolio in non-qualifying assets. Its investment activities are focused on industries, such as software and services, health care services, commercial and professional services, financial services, commercial and professional services, insurance Services, energy, food and beverage and others. Its investment adviser is Ares Capital Management LLC.
ARES CAPITAL CORPORATION 
