Ares Capital Corporation (NASDAQ: ARCC), a $14.8 billion market cap business development company, has disclosed amendments to its credit facility with BNP Paribas (OTC: BNPQY) in a recent Securities and Exchange Commission filing.
According to the 8-K filing, the amendments, effective as of March 20, 2025, include an extension of the reinvestment period end date from July 26, 2027, to March 20, 2028, and a push of the stated maturity date from July 26, 2029, to March 20, 2030.
The interest rate on the facility has been modified from an applicable Secured Overnight Financing Rate (SOFR) or a “base rate” plus a margin, to a lower margin during both the reinvestment period (from 2.10% to 1.90%) and the period following it (from 2.60% to 2.40%). This adjustment is particularly significant given the company’s total debt of $13.79 billion as of the latest quarter.
In other recent news, Ares Capital Corporation has issued $1 billion in senior notes due in 2032, with an interest rate of 5.800%. Proceeds from this issuance are intended to repay existing debt under Ares Capital’s credit facilities, potentially allowing for reborrowing for general corporate purposes, including further investments.
Additionally, Raymond James recently downgraded Ares Capital’s stock rating from Outperform to Market Perform, citing the stock’s current valuation rather than concerns over credit or portfolio performance.
