Ares Capital Corporation Reports $650M Notes Issuance and Interest Rate Swap
Summary
Ares Capital Corporation, on September 9, 2025, entered into a Fourth Supplemental Indenture for the issuance of $650,000,000 aggregate principal amount of 5.100% notes due 2031. The net proceeds are intended to repay outstanding indebtedness under its debt facilities. Concurrently, on September 2, 2025, the Company executed a Purchase Agreement with underwriters for the sale of these Notes and entered into a forward-starting interest rate swap. - The Notes bear interest at 5.100% annually, payable semiannually commencing January 15, 2026, and mature on January 15, 2031. - The interest rate swap, with a notional amount of $650,000,000, involves receiving fixed rate interest at 5.100% and paying floating rate interest based on one-month SOFR + 1.7270%. - The swap is effective July 15, 2026, and matures on January 15, 2031.
Why It Matters
Investors should note the $650,000,000 issuance of 5.100% notes due 2031, which will be used to repay existing debt, and the associated interest rate swap. This transaction materially impacts the Company's capital structure and interest rate risk management.
Key Quote
“the net proceeds of this offering to repay certain outstanding indebtedness under its debt facilities. The Company may reborrow under.”
— From Item 1.01
Filing Details
Reported Items
Additional Information
- CIK Number
- 0001287750
- Filing Date
- Tuesday, September 9, 2025
- Filing Time
- 12:00 AM UTC
- Form Type
- 8-K
- Materiality Level
- high
- Sentiment
- neutral