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Ares Capital Corporation and Ares Strategic Income Fund Announce Increases in Size, Enhanced Terms and Extended Maturities for Bank-Led Revolving Credit Facilities
Ares Capital Corporation and Ares Strategic Income Fund Announce Increases in Size, Enhanced Terms and Extended Maturities for Bank-Led Revolving Credit
About this update from Ares Capital Corporation
[{"type":"text","content":"\nAres Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) and Ares Strategic Income Fund (“ASIF”) announced today renewals, commitment increases and enhanced terms for each of their respective bank-led Revolving Credit Facilities.\n\n\nAres Capital increased the commitment on its existing credit facility by approximately $170 million to approximately $5.5 billion, decreased the funded borrowing costs by 0.10% per annum to reflect the elimination of the SOFR credit spread adjustment (“CSA”), and extended the final maturity date to May 2031 for substantially all of the facility. In addition, the facility’s uncommitted accordion feature was expanded to allow for an incremental increase of up to approximately $2.7 billion in commitments under certain circumstances. The Ares Capital facility is led by JPMorgan, Bank of America, RBC, SMBC, Truist and Wells Fargo and includes a total of 40 lenders.\n\n\nASIF increased the commitment on its existing credit facility by $850 million to approximately $4.1 billion, decreased the funded borrowing costs by 0.10% per annum to reflect the elimination of the SOFR CSA, and extended the final maturity date to May 2031. In addition, the facility’s uncommitted accordion feature was expanded to allow ASIF to increase the facility’s overall size to a maximum of approximately $6.15 billion under certain circumstances. The ASIF facility is led by JPMorgan, Barclays, BNP Paribas, RBC, SMBC, Truist and Wells Fargo and includes a total of 24 lenders.\n\n\nThe other terms of the facilities remained materially unchanged.\n\n\n“The successful extension of these facilities, and in particular a significant increase in new capital to the ASIF facility, underscores the depth of our relationships, the confidence that our banking partners have in Ares’ direct lending credit capabilities and our long-term differentiated performance,” said Scott Lem, Chief Financial Officer of Ares Capital and ASIF. “As we continue to build on Ares’ more than 20-year track record, the enhanced terms of these facilities further strengthen each fund’s financial flexibility to capitalize on today’s attractive investing environment and continue seeking to drive attractive returns for our shareholders.”\n\n\nAbout Ares Capital Corporation\nFounded in 2004, Ares Capital is a leading specialty finance company focused on providing direct lo...