Ares Capital Corporation Closes $750M Offering of 6.250% Notes Due 2033
ARES CAPITAL CORP
Subscribe to track ARCC
Premium users can add ticker alerts and receive realtime notification updates.
Filing Summary
Ares Capital Corp ($ARCC) - Form 8-K Filing Event: Issuance of $750M 6.250% Senior Notes Due 2033 & Interest Rate Swap • Principal Amount: $750,000,000 • Coupon / Maturity: 6.250% / September 15, 2033 • Interest Payment Dates: Semi-annually on March 15 and September 15, starting March 15, 2027 • Use of Proceeds: Repay outstanding borrowings under credit facilities • Derivative Hedge: Fixed-to-floating interest rate swap with JPMorgan (receives 6.250% fixed, pays 3M SOFR + 1.85250%)
Comprehensive Analysis
Executive Summary
On September 15, 2026, Ares Capital Corporation (NASDAQ: ARCC) completed the issuance and sale of $750 million aggregate principal amount of 6.250% unsecured notes due September 15, 2033. Concurrently, ARCC entered into an interest rate swap agreement with JPMorgan Chase Bank, N.A. to convert the fixed coupon into a floating-rate obligation.
Key Terms of the Notes
- Issuer: Ares Capital Corporation
- Aggregate Principal Amount: $750,000,000
- Maturity Date: September 15, 2033
- Interest Rate: 6.250% per annum, payable semi-annually on March 15 and September 15, commencing March 15, 2027
- Ranking: Direct unsecured obligations of the Company
- Trustee: U.S. Bank Trust Company, National Association (under the Seventh Supplemental Indenture to the Base Indenture dated May 13, 2024)
- Change of Control: Mandatory repurchase offer at 100% of principal plus accrued interest upon a change of control repurchase event (involving a downgrade below investment grade by Fitch, Moody's, and S&P)
Interest Rate Swap Agreement
In conjunction with the debt offering, ARCC executed a fixed-to-floating interest rate swap with JPMorgan Chase Bank, N.A.:
- Notional Amount: $750,000,000
- Company Receives: Fixed rate of 6.250%
- Company Pays: Floating rate of Three-Month SOFR + 1.85250%
- Maturity: September 15, 2033
Use of Proceeds & Balance Sheet Impact
Net proceeds from the offering will be used to pay down existing borrowings under ARCC's revolving credit facilities, restoring borrowing capacity for general corporate purposes, including investments in middle-market portfolio companies in accordance with the Company's BDC investment strategy.
Get Real-Time Alerts
Join our community to receive instant notifications when high-significance filings are published
Important Disclaimer
This content is drawn from public SEC filings and may contain errors. It is for informational purposes only and is not investment, legal, or tax advice.
Nothing here is a recommendation to buy, sell, or hold any security. Do your own due diligence.