Ares Capital Corp Enters New Financial Obligation

TL;DR

ARCC just signed a new deal, could be debt or something else. Watch this.

AI Summary

On November 19, 2024, Ares Capital Corporation entered into a material definitive agreement related to a direct financial obligation. The filing does not specify the exact nature of the agreement or any associated dollar amounts, but it indicates a new financial commitment for the company.

Why It Matters

This filing signals a new financial commitment or agreement for Ares Capital Corp, which could impact its balance sheet and future financial flexibility.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation, which inherently carries some level of risk depending on the terms and nature of the agreement.

Key Players & Entities

• Ares Capital Corporation (company) — Registrant
• November 19, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common stock, $0.001 par value ARCC NASDAQ Global Select
• $544.0 million — ng CLO 4 LLC ("ADL CLO 4"), completed a $544.0 million term debt securitization (the "November
• $464.0 million — Securitization, ADL CLO 4 incurred (i) $464.0 million of Class A Senior Floating Rate Loans,
• $80.0 million — n agent and collateral trustee and (ii) $80.0 million of Class B Senior Floating Rate Loans,
• $0 — ed with an initial principal balance of $0 (the "Class A CLO Notes"); (ii) Class B
• $260.1 million — es, the "CLO Secured Notes"); and (iii) $260.1 million of Subordinated Notes due October 24, 2

Filing Documents

• tm2429408d1_8k.htm (8-K) — 39KB
• tm2429408d1_ex4-1.htm (EX-4.1) — 1833KB
• tm2429408d1_ex10-1.htm (EX-10.1) — 350KB
• tm2429408d1_ex10-2.htm (EX-10.2) — 350KB
• tm2429408d1_ex10-3.htm (EX-10.3) — 158KB
• tm2429408d1_ex10-4.htm (EX-10.4) — 229KB
• tm2429408d1_ex10-5.htm (EX-10.5) — 124KB
• tm2429408d1_ex10-6.htm (EX-10.6) — 135KB
• 0001104659-24-122612.txt ( ) — 4037KB
• arcc-20241119.xsd (EX-101.SCH) — 3KB
• arcc-20241119_lab.xml (EX-101.LAB) — 33KB
• arcc-20241119_pre.xml (EX-101.PRE) — 22KB
• tm2429408d1_8k_htm.xml (XML) — 4KB

01 Entry into a Material Definitive

Item 1.01 Entry into a Material Definitive Agreement. On November 19, 2024 (the "Closing Date"), Ares Capital Corporation (the "Company"), through its wholly owned, consolidated subsidiary, Ares Direct Lending CLO 4 LLC ("ADL CLO 4"), completed a $544.0 million term debt securitization (the "November 2024 Debt Securitization"). The November 2024 Debt Securitization is also known as a collateralized loan obligation and is an on-balance-sheet financing incurred by the Company. In connection with the November 2024 Debt Securitization, ADL CLO 4 incurred (i) $464.0 million of Class A Senior Floating Rate Loans, which bear interest at Term SOFR (as defined in the CLO Indenture) plus 1.54% (the "Class A CLO Loans"), under a Class A credit agreement (the "Class A Credit Agreement"), dated as of the Closing Date, by and among ADL CLO 4, as borrower, the lender party thereto, and U.S. Bank Trust Company, National Association ("U.S. Bank"), as loan agent and collateral trustee and (ii) $80.0 million of Class B Senior Floating Rate Loans, which bear interest at Term SOFR plus 1.83% (the "Class B CLO Loans" and, together with the Class A CLO Loans, the "CLO Secured Loans"), under a Class B credit agreement (the "Class B Credit Agreement" and, together with the Class A Credit Agreement, the "CLO Credit Agreements"), dated as of the Closing Date, by and among ADL CLO 4, as borrower, the lender party thereto, and U.S. Bank, as loan agent and collateral trustee. The CLO Secured Loans are scheduled to mature on October 24, 2036. In addition, in connection with the November 2024 Debt Securitization, ADL CLO 4 issued the following classes of notes pursuant to an indenture (the "CLO Indenture"), dated as of the Closing Date, between ADL CLO 4, as issuer, and U.S. Bank, as collateral trustee: (i) Class A Senior Floating Rate Notes due October 24, 2036, which bear interest at Term SOFR plus 1.54% and were issued with an initial principal balance of $0 (the "Class A CLO Notes"); (ii) C

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 Registrant. The information contained in

01 to this current report on Form 8-K is by this reference incorporated in this Item 2.03

Item 1.01 to this current report on Form 8-K is by this reference incorporated in this Item 2.03.

01 Financial Statements

Item 9.01 Financial Statements and Exhibits. (d) Exhibits: Exhibit Number Description 4.1 Indenture and Security Agreement, dated as of November 19, 2024, by and between Ares Direct Lending CLO 4 LLC, as issuer, and U.S. Bank Trust Company, National Association, as trustee 4.2 Form of Class A Senior Floating Rate Notes due 2036 (contained in the Indenture filed as Exhibit 4.1 hereto) 4.3 Form of Class B Senior Floating Rate Notes due 2036 (contained in the Indenture filed as Exhibit 4.1 hereto) 4.4 Form of Subordinated Notes due 2036 (contained in the Indenture filed as Exhibit 4.1 hereto) 10.1 Class A Credit Agreement, dated as of November 19, 2024, by and among Ares Direct Lending CLO 4 LLC, as borrower, the lenders party thereto, and U.S. Bank Trust Company, National Association, as loan agent and collateral trustee 10.2 Class B Credit Agreement, dated as of November 19, 2024, by and among Ares Direct Lending CLO 4 LLC, as borrower, the lenders party thereto, and U.S. Bank Trust Company, National Association, as loan agent and collateral trustee 10.3 Collateral Administration Agreement, dated as of November 19, 2024, by and between Ares Direct Lending CLO 4 LLC, as issuer, Ares Capital Management LLC, as asset manager, and U.S. Bank Trust Company, National Association as collateral administrator 10.4 Asset Management Agreement, dated as of November 19, 2024, by and between Ares Direct Lending CLO 4 LLC, as issuer and Ares Capital Management LLC, as asset manager 10.5 Master Purchase and Sale Agreement, dated as of November 19, 2024, by and between Ares Capital Corporation, as seller, and Ares Direct Lending CLO 4 LLC, as buyer 10.6 Contribution Agreement, dated as of November 19, 2024, by and between Ares Capital Corporation, as transferor, and Ares Direct Lending CLO 4 LLC, as transferee 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: November 25, 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