Ares Capital Corp. Enters and Terminates Material Agreements
Ticker: ARCC · Form: 8-K · Filed: Jul 30, 2024 · CIK: 1287750
| Field | Detail |
|---|---|
| Company | Ares Capital Corp (ARCC) |
| Form Type | 8-K |
| Filed Date | Jul 30, 2024 |
| Risk Level | medium |
| Pages | 4 |
| Reading Time | 5 min |
| Key Dollar Amounts | $0.001, $1,000,000,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: material-agreement, corporate-action
Related Tickers: ARCC
TL;DR
ARCC just signed a big deal and ditched another one. Big moves happening.
AI Summary
On July 30, 2024, Ares Capital Corporation (ARCC) entered into a material definitive agreement and terminated another. The filing does not provide specific details on the nature of these agreements or any associated dollar amounts, but it indicates significant corporate actions are underway.
Why It Matters
This filing signals significant changes in Ares Capital's contractual relationships, which could impact its financial operations and strategic direction.
Risk Assessment
Risk Level: medium — The entry into and termination of material definitive agreements can introduce uncertainty and potential financial risks until the specifics are disclosed.
Key Players & Entities
- Ares Capital Corporation (company) — Registrant
- ARCC (company) — Ticker Symbol
FAQ
What was the nature of the material definitive agreement entered into by Ares Capital Corporation on July 30, 2024?
The filing states that Ares Capital Corporation entered into a material definitive agreement on July 30, 2024, but does not specify its nature.
What was the material definitive agreement that Ares Capital Corporation terminated on July 30, 2024?
The filing indicates the termination of a material definitive agreement by Ares Capital Corporation on July 30, 2024, without providing further details.
Are there any financial implications mentioned in this filing regarding the new agreement or the terminated agreement?
This specific filing does not disclose any dollar amounts or financial implications related to the agreements entered into or terminated.
What is the primary business of Ares Capital Corporation?
Ares Capital Corporation is a business development company that primarily invests in the debt and equity of private U.S. companies.
When was this Form 8-K filed with the SEC?
This Form 8-K was filed with the SEC on July 30, 2024.
Filing Stats: 1,250 words · 5 min read · ~4 pages · Grade level 15 · Accepted 2024-07-30 16:31:59
Key Financial Figures
- $0.001 — nge on which registered Common stock, $0.001 par value ARCC NASDAQ Global Select
- $1,000,000,000 — ng an aggregate offering price of up to $1,000,000,000, through the Sales Agents, or to them a
Filing Documents
- tm2420139d2_8k.htm (8-K) — 35KB
- tm2420139d2_ex5-1.htm (EX-5.1) — 26KB
- tm2420139d2_ex10-1.htm (EX-10.1) — 252KB
- tm2420139d2_ex10-2.htm (EX-10.2) — 246KB
- tm2420139d2_ex10-3.htm (EX-10.3) — 249KB
- tm2420139d2_ex10-4.htm (EX-10.4) — 247KB
- tm2420139d2_ex10-5.htm (EX-10.5) — 247KB
- tm2420139d2_ex5-1img008.jpg (GRAPHIC) — 11KB
- 0001104659-24-083992.txt ( ) — 1769KB
- arcc-20240730.xsd (EX-101.SCH) — 3KB
- arcc-20240730_lab.xml (EX-101.LAB) — 33KB
- arcc-20240730_pre.xml (EX-101.PRE) — 22KB
- tm2420139d2_8k_htm.xml (XML) — 4KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. On July 30, 2024, Ares Capital Corporation (the "Company"), its investment adviser, Ares Capital Management LLC ("Ares Capital Management") and its administrator, Ares Operations LLC ("Ares Operations") entered into separate equity distribution agreements, with each of Truist Securities, Inc. ("Truist"), Jefferies LLC ("Jefferies"), Mizuho Securities USA LLC ("Mizuho"), RBC Capital Markets, LLC ("RBC") and Regions Securities LLC ("Regions," and together with Truist, Jefferies, Mizuho and RBC, the "Sales Agents"). The equity distribution agreements with the Sales Agents described in the preceding sentences are collectively referred to herein as the "Equity Distribution Agreements." The Equity Distribution Agreements provide that the Company may from time to time issue and sell shares of its common stock, par value $0.001 per share ("Shares"), having an aggregate offering price of up to $1,000,000,000, through the Sales Agents, or to them as principal for their own respective accounts. The sales of Shares, if any, may be made in negotiated transactions or transactions that are deemed to be "at the market," as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended, including sales made directly on The NASDAQ Global Select Market or similar securities exchange or sales made to or through a market maker other than on an exchange, at prices related to the prevailing market prices or at negotiated prices. The Sales Agents will receive a commission from the Company of up to 1.5% of the gross sales price of any Shares sold through the Sales Agents under the Equity Distribution Agreements. Although the Company has filed with the Securities and Exchange Commission a Registration Statement on Form N-2 (File No. 333-279023) on May 1, 2024 (the "Registration Statement") and a prospectus supplement, dated as of July 30, 2024, pursuant to which the Company may issue and sell Shares having an aggregate offerin
02 Termination of a Material Definitive Agreement
Item 1.02 Termination of a Material Definitive Agreement. Effective as of July 30, 2024, the Company and each of Truist, Jefferies, Mizuho, RBC and Regions terminated the following agreements, which have been superseded by the Equity Distribution Agreements: (i) the Equity Distribution Agreement, dated as of February 7, 2024, by and among the Company, Ares Capital Management, Ares Operations and Truist, (ii) the Equity Distribution Agreement, dated as of February 7, 2024, by and among the Company, Ares Capital Management, Ares Operations and Regions, (iii) the Equity Distribution Agreement, dated as of February 7, 2024, by and among the Company, Ares Capital Management, Ares Operations and Jefferies, (iv) the Equity Distribution Agreement, dated as of February 7, 2024, by and among the Company, Ares Capital Management, Ares Operations and RBC, and (v) the Equity Distribution Agreement, dated as of February 7, 2024, by and among the Company, Ares Capital Management, Ares Operations and Mizuho in accordance with their respective terms.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits 5.1 Opinion of Venable LLP, dated July 30, 2024 10.1 Equity Distribution Agreement, dated as of July 30, 2024, among Ares Capital Corporation, Ares Capital Management LLC, Ares Operations LLC and Truist Securities, Inc. 10.2 Equity Distribution Agreement, dated as of July 30, 2024, among Ares Capital Corporation, Ares Capital Management LLC, Ares Operations LLC and Jefferies LLC 10.3 Equity Distribution Agreement, dated as of July 30, 2024, among Ares Capital Corporation, Ares Capital Management LLC, Ares Operations LLC and Mizuho Securities USA LLC 10.4 Equity Distribution Agreement, dated as of July 30, 2024, among Ares Capital Corporation, Ares Capital Management LLC, Ares Operations LLC and RBC Capital Markets, LLC 10.5 Equity Distribution Agreement, dated as of July 30, 2024, among Ares Capital Corporation, Ares Capital Management LLC, Ares Operations LLC and Regions Securities LLC 23.1 Consent of Venable LLP (included in Exhibit 5.1) 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: July 30, 2024 By: /s/ Scott C. Lem Name: Scott C. Lem Title: Chief Financial Officer and Treasurer