Ares Capital to repay revolvers, funding facility with note proceeds

By Sarah Lizee

Olympia, Wash., Jan. 8 – Ares Capital Corp. plans to repay debt under its revolving credit facility, its revolving funding facility and its SMBC funding facility using proceeds from a new issue of dollar-denominated fixed-rate notes, according to filing with the Securities and Exchange Commission.

As of Dec. 28, there was $395 million outstanding under the revolving credit facility, $600 million outstanding under the revolving funding facility and $60 million under the SMBC funding facility.

The revolving credit facility bears interest at Libor plus an applicable spread of either 175 basis points or 200 bps. As of Dec. 28, the one-, two-, three- and six-month Libor was 157 bps, 162 bps, 169 bps and 184 bps, respectively.

For $2 billion of the total capacity, the expiration date is Jan. 4, 2022; for $38 million of the capacity, the expiration date is May 4, 2021; and for the remaining $45 million, the expiration date is May 4, 2020.

The revolving funding facility, which is scheduled to expire on Jan. 3, 2022, bears interest at Libor plus 215 bps.

The SMBC funding facility is based on an applicable spread of either 175 bps or 200 bps over Libor and is scheduled to expire on Sept. 14, 2023. There are two one-year extension options.

The company may reborrow under the facilities for general corporate purposes, which include investing in portfolio companies.

Ares is a New York-based specialty finance company.

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