Ares Capital restates credit agreement, trims to $4.5 billion

By Wendy Van Sickle

Columbus, Ohio, April 17 – Ares Capital Corp. amended and restated its senior secured credit facility with JPMorgan Chase Bank, NA as administrative agent on April 12, reducing commitments to $4.5 billion from $4.8 billion, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility comprises a $3.4 billion revolving tranche and a $1.1 billion term loan.

The expiration on each of the revolving period and the maturity date for about $3 billion of revolving commitments was extended by a year, to April 12, 2028 for the revolving period and April 12, 2029 for the maturity date. For $1 billion of term loan commitments, the maturity date was also extended a year to April 12, 2029.

Lenders who elected not to extend their revolving commitments in amounts equal to approximately $269 million and $107 million will remain subject to a revolving period expiration of March 31, 2026 and March 31, 2025, respectively, and a stated maturity date of March 31, 2027 and March 31, 2026, respectively. Lenders who elected not to extend their term loan commitments in amounts equal to $70 million, $41 million and $28 million will remain subject to a maturity date of April 19, 2028, March 31, 2027 and March 31, 2026, respectively.

An accordion feature allows the company to increase the facility size by an amount up to about $2.2 billion.

Borrowings bear interest at SOFR plus a margin of either 175 basis points or 187.5 bps, depending on the ratio of the gross borrowing base to the combined debt amount.

The company must maintain a ratio of total assets to total debt of at least 1.5x.

JPMorgan, BofA Securities, Inc., Truist Securities, Inc., Sumitomo Mitsui Banking Corp. and Wells Fargo Securities, LLC are the joint lead arrangers and bookrunners.

Truist, Sumitomo and Wells Fargo are the syndication agents.

Also on April 12, ARCC FB Funding LLC, a wholly owned subsidiary of the company, amended its revolving funding facility with BNP Paribas as administrative agent to adjust the applicable margin to 265 bps during the reinvestment period and 315 bps after the reinvestment period. This is a 15 bps reduction at both steps.

Ares is a New York specialty finance company.

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