Business
Ares Capital Corporation Issues Letter to Stakeholders
NEW YORK--(BUSINESS WIRE)-- Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced today that it issued an open letter to its stakeholders
About this update from Ares Capital Corporation
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nAres Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced today that it issued an open letter to its stakeholders regarding a business update amid the coronavirus (“COVID-19”) pandemic.\n\n\nThe full text of the letter follows:\n\n\nMarch 23, 2020\n\n\nDear Stakeholder,\n\n\nWith the global outbreak of COVID-19, we are making sure to provide for the needs of our teams, our business partners, our portfolio companies and our stakeholders. We understand that these are challenging times for everyone and want to assure our stakeholders that our investment adviser’s highly experienced management team and dedicated employees are fully operational and working hard during the current disruptions in our lives and our business. Since the outbreak occurred and escalated, we have been in constant dialogue with our portfolio companies and their owners to evaluate each situation independently and to identify how we can be supportive. Due to our direct sourcing approach and our investment adviser’s tenure in the market, we have strong, trusted relationships with the management teams and the private equity sponsors that own the companies in our portfolio. Our initial conversations with these constituents have been constructive. While it is too early to quantify the impacts of COVID-19 on Ares Capital, we want to highlight our positioning, provide an update on our liquidity and financing structure and emphasize many of the competitive advantages that have set us apart and which are more important than ever.\n\n\nHighly Diversified, Less Cyclically Positioned Investment Portfolio Focused on Upper Middle Market \n\n\nAs of December 31, 2019, our portfolio is focused on senior secured loans and is highly diversified across 354 different portfolio companies. No single borrower accounts for more than 3% of the portfolio at fair value, excluding the Senior Direct Lending Program, LLC and Ivy Hill Asset Management, L.P., which have broad diversity at the portfolio level. We believe that this underscores that no single name will have a material impact on the aggregate performance of our company. Additionally, our largest industry concentrations are in defensive sectors, including healthcare services, software & services and commercial & professional services. We are underweight sectors that have been traditionally c...