Ares Capital unit extends loans via Sumitomo, upsizes to $400 million

By Susanna Moon

Chicago, Sept. 17 - Ares Capital Corp. wholly owned subsidiary Ares Capital JB Funding LLC boosted the size of its revolving funding facility with Sumitomo Mitsui Banking Corp. to $400 million from $200 million.

The facility's reinvestment period was extended by about eight months to Sept. 14, 2015 from Jan. 20, 2015, and the final maturity date was extended to Sept. 14, 2020 from Jan. 20, 2020.

The reinvestment period and final maturity date both have two one-year extension options.

The facility continues to be secured by first-lien assets, and interest on the loans is still Libor plus 212.5 basis points. There is no Libor floor.

The amendment "further increases our revolving debt capacity and lowers our overall funding costs," Michael Arougheti, president of Ares Capital, said in the release.

Ares Capital said on Jan. 24, 2012 that it closed on a new $200 million revolving credit facility due Jan. 20, 2020 with Sumitomo as the administrative agent on the deal that was completed on Jan. 20.

The facility had a three-year reinvestment period.

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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