Ares Capital Corp Enters Material Definitive Agreement

TL;DR

ARCC just signed a big deal, new financial obligation incoming.

AI Summary

On March 28, 2024, Ares Capital Corporation entered into a material definitive agreement related to a direct financial obligation. The filing details the creation of this obligation under an off-balance sheet arrangement, with further information provided in the accompanying exhibits.

Why It Matters

This filing indicates a significant new financial commitment or obligation for Ares Capital Corporation, which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — Material definitive agreements and new financial obligations can introduce new risks or alter existing ones for a company.

Key Players & Entities

• Ares Capital Corporation (company) — Registrant
• March 28, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common stock, $0.001 par value ARCC NASDAQ Global Select Mar

Filing Documents

• arcc-20240328.htm (8-K) — 34KB
• arcc03282024-ex101.htm (EX-10.1) — 363KB
• 0001287750-24-000018.txt ( ) — 564KB
• arcc-20240328.xsd (EX-101.SCH) — 2KB
• arcc-20240328_lab.xml (EX-101.LAB) — 22KB
• arcc-20240328_pre.xml (EX-101.PRE) — 13KB
• arcc-20240328_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On March 28, 2024, Ares Capital Corporation (the "Registrant") and Ares Capital JB Funding LLC, a wholly owned subsidiary of the Registrant ("ACJB LLC"), entered into an amendment (the "SMBC Amendment") to the documents governing ACJB LLC's revolving funding facility (the "SMBC Funding Facility") with Sumitomo Mitsui Banking Corporation and each of the other parties thereto. The SMBC Amendment, among other things, (a) extended the reinvestment period from May 28, 2024 to March 28, 2027; (b) extended the stated maturity date from May 28, 2026 to March 28, 2029; and (c) adjusted the interest rate charged on the SMBC Funding Facility from an applicable spread of either (i) 1.75% or 2.00% over one month SOFR plus a credit spread adjustment of 0.10% or (ii) 0.75% or 1.00% over a "base rate" (as defined in the agreements governing the SMBC Funding Facility) to an applicable spread of either (x) 2.50% over one month SOFR or (y) 1.50% over a "base rate" (as defined in the agreements governing the SMBC Funding Facility). Borrowings under the SMBC Funding Facility are subject to the facility's various covenants and the leverage restrictions contained in the Investment Company Act of 1940, as amended. The description above is only a summary of the material provisions of the SMBC Amendment and is qualified in its entirety by reference to a copy of the SMBC Amendment, which is filed as Exhibit 10.1 to this current report on Form 8-K and incorporated by reference herein. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant. The information contained in Item 1.01 to this current report on Form 8-K is by this reference incorporated in this Item 2.03.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits: Exhibit Number Description 10.1 Amendment No. 10, dated as of March 28, 2024, among Ares Capital JB Funding LLC, as borrower, Ares Capital Corporation, as servicer and transferor, Sumitomo Mitsui Banking Corporation, as administrative agent, lender and collateral agent, and U.S. Bank National Association, as collateral custodian and bank (amending the Loan and Servicing Agreement, dated as of January 20, 2012). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARES CAPITAL CORPORATION Date: April 3, 2024 By: /s/ SCOTT C. LEM Name: Scott C. Lem Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR