Daily News: March 31, 2015

Ares Upsizes Facility

Ares Capital amended and extended its senior revolver with 20 banks, including 19 existing lenders and one new lender. Total commitments to the facility grew from $1.25 billion to $1.29 billion, and the final maturity of the facility was extended by one year to May 4, 2020.

Further, the stated interest rate on the facility was changed from LIBOR plus 2.00% to a formula-based calculation resulting in a stated interest rate of either LIBOR plus 1.75% or LIBOR plus 2.00%. As of today under this formula, the stated interest rate on the facility is LIBOR plus 1.75%.

In addition to this $1.29 billion credit facility, Ares Capital, through wholly owned financing subsidiaries, has two other revolving funding facilities with total commitments of $940 million, bringing total revolving credit capacity to approximately $2.2 billion (subject to borrowing base and leverage restrictions) with a blended stated interest rate on these commitments of LIBOR plus 1.92%.

“We are pleased that our banking relationships continue to show significant confidence in ARCC,” said Penni Roll, CFO of Ares Capital. “Reducing our cost of capital is a key area of focus for us, and we are grateful that our lenders have supported us by providing long-dated capital on attractive terms.”