Ares Capital gets $900 million amended and restated revolver

By Sara Rosenberg

New York, May 8 - Ares Capital Corp. closed on a $900 million amended and restated senior secured revolving credit facility due May 2016, according to a news release.

J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Bank of America Merrill Lynch acted as the joint lead arrangers and bookrunners on the deal, with JPMorgan the administrative agent.

Pricing on the revolver is Libor plus 225 basis points with no Libor floor and no pricing grid.

The revolver has a one-year amortization period beginning in May 2015 and a $450 million accordion feature.

Proceeds were used to replace an $810 million revolver that was set to mature in January 2013 and was priced at Libor plus 300 bps, subject to a grid.

"We are pleased to have upsized and extended the maturity on our revolving credit facility," said Michael Arougheti, president, in the release.

"We now have significantly more financial flexibility to support our growth and no debt maturities until 2016. The reduced pricing should enable us to lower our blended borrowing cost as we use this facility," Arougheti added.

Ares Capital is a New York-based specialty finance company that provides one-stop financing solutions to U.S. middle market companies and private equity sponsors.

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