Ares Capital extends $350 million facility, raises pricing

By Sara Rosenberg

New York, July 24 - Ares Capital Corp. extended the maturity date of its $350 million financing facility to July 21, 2009 from Oct. 8 and increased pricing, according to a news release.

Pricing on the facility is now Libor plus 250 basis points.

The unused fee was increased as well, moving to 50 bps from 12.5 bps.

The company paid a renewal fee of $2.75 million.

The changes were effective as of July 22.

"We are very happy to have completed the renewal of this facility, especially considering that many other capital suppliers are seeing their credit or financing facilities greatly reduced or even pulled as they mature," said Michael Arougheti, president, in the release.

"This renewal, although more expensive, was opportunistic and is in line with the current market and limits any near-term refinancing risk we may have seen later this year and into 2009. This liquidity provides us with added flexibility to pursue the very attractive investment opportunities we continue seeing as a result of the dislocation in the credit market," Arougheti added in the release.

Ares Capital is a New York-based specialty finance company that is a closed-end, non-diversified management investment company.

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