Ares Capital Corporation Expands Revolving Credit Facility
New Four Year Facility Increased to $900 million and Carries Lower Pricing
NEW YORK--(BUSINESS WIRE)-- Ares Capital Corporation (ARCC) announced today that it has entered into an amended and restated senior secured revolving credit facility (the Facility) with certain lenders, which, among other things, increased the size of the Facility from $810 million to $900 million, extended the Facilitys revolving period from January 2013 to May 2015 and extended the final maturity from January 2013 to May 2016, including a one year amortization period beginning in May 2015. In addition, the stated interest rate on the Facility was reduced from LIBOR plus 3.00% under a pricing grid to LIBOR plus 2.25% with no pricing grid and there continues to be no LIBOR floor.
The Facility also contains an accordion feature which permits, under certain conditions, the expansion of commitments under the Facility to $1.35 billion.
In addition to this $900 million credit facility, Ares Capital, through wholly owned financing subsidiaries, has two other revolving funding facilities with total commitments of $700 million, bringing total revolving credit facility capacity to $1.6 billion with a blended stated interest rate on these commitments of LIBOR plus 2.3%.
We are pleased to have upsized and extended the maturity on our revolving credit facility, said Michael Arougheti, President of Ares Capital Corporation. 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. We greatly appreciate the strong and loyal support from our existing lenders and welcome the six new lenders that have joined the facility.
J.P. Morgan Securities LLC, SunTrust Robinson Humphrey and Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as joint lead arrangers and joint bookrunners, JPMorgan Chase Bank, N.A. acted as administrative agent, SunTrust Bank acted as syndication agent and Bank of America, N.A., as documentation agent.
About Ares Capital Corporation
Ares Capital is a leading specialty finance company that provides one-stop financing solutions to U.S. middle market companies and private equity sponsors. The Company originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capitals investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company, and is externally managed by a wholly owned subsidiary of Ares Management LLC. Ares Management is a global alternative asset manager and a SEC-registered investment adviser with approximately $52 billion of committed capital under management as of April 30, 2012. For more information, visit www.arescapitalcorp.com.
Ares Capital Corporation
Carl Drake, 404-814-5204
Source: Ares Capital CorporationCopyright Business Wire 2012