Ares Capital Corporation 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Ares Capital Corporation on May 28, 2021. The filing reports the creation of a direct financial obligation through the issuance of new senior notes.
Key Financial Metrics
- Debt Issuance: $500 million aggregate principal amount of 3.250% Notes due 2025.
- Issuance Price: 104.745% of principal amount.
- Net Proceeds: Approximately $519.8 million after estimated offering expenses.
- Offering Expenses: Approximately $3.9 million, including a $2.5 million underwriting discount.
- Interest Rate: 3.250% per annum, payable semiannually.
- Maturity Date: July 15, 2025.
Material Changes
The Company increased its outstanding debt under the existing 3.250% Notes due 2025 series. The new notes are fungible with the $750 million of existing notes issued in January 2020, creating a combined series with identical terms and CUSIP numbers.
Use of Proceeds and Outlook
The Company expects to use the net proceeds to repay certain outstanding indebtedness under its credit facilities. The Company may subsequently reborrow under these facilities for general corporate purposes, including investing in portfolio companies in accordance with its investment objective. The notes are direct senior unsecured obligations and may be redeemed at the Company's option at specified redemption prices.
Investor Verification Checklist
- Verify the total outstanding principal of the 3.250% Notes due 2025 series following this issuance ($1.25 billion).
- Confirm the specific credit facilities being repaid with the net proceeds.
- Review the redemption schedule and prices detailed in the Eleventh Supplemental Indenture.
- Check for any subsequent reborrowing activity under the credit facilities.