Ares Capital Corp Files 8-K: Material Agreement & Financials

TL;DR

ARCC filed an 8-K on 5/13/24 for a material agreement & financial updates.

AI Summary

On May 13, 2024, Ares Capital Corporation entered into a material definitive agreement related to a direct financial obligation. The company, incorporated in Maryland, filed this 8-K report with the SEC, detailing events that occurred on or before this date. The filing also includes information on financial statements and exhibits.

Why It Matters

This filing indicates Ares Capital Corporation has entered into a significant agreement that could impact its financial obligations and operations, requiring investor attention.

Risk Assessment

Risk Level: medium — Material definitive agreements and financial updates can introduce new risks or opportunities that may affect the company's stock price.

Key Players & Entities

• Ares Capital Corporation (company) — Registrant
• May 13, 2024 (date) — Report Date
• Maryland (jurisdiction) — State of Incorporation
• 245 Park Avenue, 44th Floor, New York, NY 10167 (address) — Principal Executive Offices
• (212) 750-7300 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common stock, $0.001 par value ARCC NASDAQ Global Select
• $850,000,000 — e Company's issuance, offer and sale of $850,000,000 aggregate principal amount of its 5.950

Filing Documents

• tm2414194d1_8k.htm (8-K) — 36KB
• tm2414194d1_ex1-1.htm (EX-1.1) — 252KB
• tm2414194d1_ex4-1.htm (EX-4.1) — 618KB
• tm2414194d1_ex4-2.htm (EX-4.2) — 104KB
• tm2414194d1_ex5-1.htm (EX-5.1) — 21KB
• tm2414194d1_ex5-2.htm (EX-5.2) — 14KB
• tm2414194d1_ex5-2img001.jpg (GRAPHIC) — 11KB
• tm2414194d1_ex5-2img002.jpg (GRAPHIC) — 7KB
• tm2414194d1_ex5-1img001.jpg (GRAPHIC) — 4KB
• 0001104659-24-060586.txt ( ) — 1447KB
• arcc-20240513.xsd (EX-101.SCH) — 3KB
• arcc-20240513_lab.xml (EX-101.LAB) — 33KB
• arcc-20240513_pre.xml (EX-101.PRE) — 22KB
• tm2414194d1_8k_htm.xml (XML) — 4KB

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. On May 13, 2024, Ares Capital Corporation (the "Company") and U.S. Bank Trust Company, National Association (the "Trustee"), entered into an Indenture, dated May 13, 2024, between the Company and the Trustee (the "Base Indenture") and a First Supplemental Indenture, dated May 13, 2024, between the Company and the Trustee (the "First Supplemental Indenture" and, together with the "Base Indenture," the "Indenture"). The First Supplemental Indenture relates to the Company's issuance, offer and sale of $850,000,000 aggregate principal amount of its 5.950% notes due 2029 (the "Notes"). The Notes will mature on July 15, 2029, and may be redeemed in whole or in part at the Company's option at any time at the redemption price set forth in the First Supplemental Indenture. The Notes bear interest at a rate of 5.950% per year payable semiannually on January 15 and July 15 of each year, commencing on July 15, 2024. The Notes are direct unsecured obligations of the Company. The Company expects to use the net proceeds of this offering to repay certain outstanding indebtedness under its debt facilities. The Company may reborrow under its debt facilities for general corporate purposes, which include investing in portfolio companies in accordance with its investment objective. The Base Indenture, as supplemented by the First Supplemental Indenture, contains certain covenants including covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act of 1940, as amended, or any successor provisions, as such obligation may be amended or superseded but giving effect to any exemptive relief granted to the Company by the Securities and Exchange Commission (the "SEC"), and to provide financial information to the holders of the Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Securities Exchange Act of 1934, as amen

03. Creation of a Direct Financial

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information required by

03 contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference

Item 2.03 contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

01. Other Events

Item 8.01. Other Events. On May 6, 2024, the Company, Ares Capital Management LLC, Ares Operations LLC and BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC, as representatives of the several underwriters named on Schedule A thereto (collectively, the "Underwriters"), entered into a Purchase Agreement (the "Purchase Agreement") with respect to the issuance and sale of the Notes. In connection with the issuance of the Notes, the Company entered into an interest rate swap with Wells Fargo Bank, N.A. to swap from a fixed rate of interest to a floating rate of interest. The notional amount of the interest rate swap is $850,000,000, pursuant to which the Company will receive fixed rate interest at 5.950% and pay floating rate interest based on one-month SOFR + 1.643%. The interest rate swap matures on July 15, 2029.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits: Exhibit Number Description 1.1 Purchase Agreement, dated as of May 6, 2024, among Ares Capital Corporation, Ares Capital Management LLC, Ares Operations LLC and BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC, as representatives of the several underwriters named on Schedule A thereto 4.1 Indenture, dated as of May 13, 2024, by and between the Company and U.S. Bank Trust Company, National Association, as trustee 4.2 First Supplemental Indenture, dated as of May 13, 2024, relating to the 5.950% Notes due 2029, between the Company and U.S. Bank Trust Company, National Association, as trustee 4.3 Form of 5.950% Notes due 2029 (contained in the First Supplemental Indenture filed as Exhibit 4.2 hereto) 5.1 Opinion of Venable LLP 5.2 Opinion of Kirkland & Ellis LLP 23.1 Consent of Venable LLP (contained in the opinion filed as Exhibit 5.1 hereto) 23.2 Consent of Kirkland & Ellis LLP (contained in the opinion filed as Exhibit 5.2 hereto) 104 Cover Page Interactive Data File (embedded within 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: May 13, 2024 By: /s/ Scott C. Lem Name: Scott C. Lem Title: Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR