Business Context and Reporting Period
Company: Ares Capital Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: April 8, 2005
Event Date: April 8, 2005
Ares Capital Corporation entered into a material definitive agreement to amend its existing credit facility. The filing details an expansion of borrowing capacity through Amendment No. 2 to the Sale and Servicing Agreement between the Issuer and Ares Capital CP Funding LLC.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or general liquidity metrics. The primary financial data point disclosed is the adjustment to the company's credit facility:
- Previous Credit Facility Limit: $150,000,000
- New Credit Facility Limit: $225,000,000
- Increase in Borrowing Capacity: $75,000,000
Material Changes
The material change reported is the increase in the amount available for borrowing under the Issuer's credit facility. This amendment was executed on April 8, 2005, involving Ares Capital CP Funding LLC, a wholly-owned special purpose limited liability company. The filing incorporates the full text of Amendment No. 2 by reference as Exhibit 10.1.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard incorporation of the amendment document. The filing focuses strictly on the execution of the agreement to increase debt capacity.
Investor Verification Checklist
- Verify the terms of Amendment No. 2 to the Sale and Servicing Agreement filed as Exhibit 10.1.
- Confirm the identity of the administrative agent (Wachovia Capital Markets, LLC) and trustee (U.S. Bank National Association).
- Review the impact of the increased $225 million facility on the company's leverage ratios in subsequent quarterly reports.
- Check for any covenants or conditions attached to the new borrowing limit in the full agreement text.