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Ares Capital increases facility to $4.8 billion, extends maturity date
By Rebecca Melvin
Concord, N.H., April 5 – Ares Capital Corp. increased commitments under its senior secured credit facility to $4.8 billion from $4.2 billion, according to a company release and an 8-K filing with the Securities and Exchange Commission.
The amendment and restatement took effect on March 31.
The total facility breaks down into $3.7 billion for the revolver and $1.1 billion for the term loan.
For $3.5 billion of revolver borrowings, the maturity date has been extended to March 31, 2027.
Certain revolver lenders opted to keep the maturity date at March 30, 2025 for $150 million of the loan and March 31, 2026 for $114 million.
For the term loan, $995 million of the loan has been extended to March 31, 2027. However, $50 million is still due March 30, 2025 and $34 million is due March 31, 2026.
The facility is led by JPMorgan Chase Bank, NA as administrative agent and Truist Bank, MUFG Union Bank NA, Sumitomo Mitsui Banking Corp. and Wells Fargo Bank NA as syndication agents.
JPMorgan Chase Bank, NA, BofA Securities, Inc., Truist Securities, Inc., MUFG Union Bank, NA, Sumitomo Mitsui Banking Corp. and Wells Fargo Securities, LLC are the joint bookrunners and joint lead arrangers.
As part of this amendment, certain currency reference rates used to determine the borrowing interest rate were updated, including replacing the Libor rate with term SOFR plus an applicable credit spread adjustment.
The applicable margin is based on the gross borrowing base and shifts between 175 basis points if it is greater than 1.6 times the combined debt amount or, if less, is 187.5 bps. The commitment fee is 37.5 bps.
Ares is a New York-based investment company.
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