Ares Capital completed all necessary amendments to its secured revolving facilities to allow it to use the flexibility and incremental leverage provided by the Small Business Credit Availability Act

Ares Capital has amended its $2.1 billion revolving credit facility, led by arrangers J.P. Morgan, SunTrust Robinson Humphrey and Bank of America Merrill Lynch, to reduce the asset coverage covenant from 200% to 150% and to make certain related changes to the borrowing base calculations. Pricing and other significant terms in this facility remained unchanged.

In addition, Ares Capital amended the documents governing its $1 billion revolving funding facility led by Wells Fargo to allow it to operate under the 150% asset coverage requirement. Pricing and other significant terms in this facility remain unchanged. Amendments to adopt the new 150% asset coverage requirement were not necessary for any of Ares Capital’s other debt agreements.

“We have now completed all of the necessary amendments within our capital structure to execute our previously communicated plan to obtain the benefits of the flexibility provided by the SBCAA, which we believe will result in enhanced profitability while maintaining our conservative investment grade profile,” said Kipp deVeer, CEO of Ares Capital.