Ares Capital gets $690 million three-year revolving credit facility

By Sara Rosenberg

New York, Jan. 25 - Ares Capital Corp. closed on a new $690 million three-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

JPMorgan, Bank of America and SunTrust acted as the joint bookrunners and joint lead arrangers on the deal, with JPMorgan the administrative agent.

Pricing on the revolver is Libor plus 300 bps. The spread can range from Libor plus 250 bps to 400 bps based on credit ratings.

The revolver is comprised of $615 million in commitments on a stand-alone basis and an additional $75 million in commitments contingent upon the closing of the company's pending acquisition of Allied Capital Corp.

There is an accordion feature that allows the revolver to be increased to $897.5 million on a stand-alone basis, and $1.05 billion upon the closing of the acquisition of Allied Capital.

Proceeds were used to replace the company's existing $525 million revolver that was priced at Libor plus 100 bps.

In addition, the company announced that it formed a new $400 million three-year CP funding revolver by combining its existing $225 million CP funding term loan priced at Libor plus 350 bps and $200 million CP funding II revolver priced at Libor plus 400 bps into a single facility.

Wachovia is the lead bank on the new CP revolver that is priced at Libor plus 275 bps.

The new debt transactions were completed on Jan. 22.

Ares Capital is a New York-based specialty finance company that provides integrated debt and equity financing services to middle-market companies.

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