Business Context and Reporting Period
Company: Ares Capital Corporation (ARCC)
Filing Type: Form 8-K (Current Report)
Date of Report: June 6, 2019
Event: Entry into a Material Definitive Agreement regarding the Investment Advisory and Management Agreement.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity figures. The document focuses exclusively on the terms of a contractual agreement.
Material Changes
The Company entered into a Second Amended and Restated Investment Advisory and Management Agreement with Ares Capital Management LLC. The primary material change is a reduction in the Investment Adviser's annual base management fee:
- Previous Fee: 1.50% per annum on assets financed using leverage over 1.0x debt to equity.
- New Fee: 1.00% per annum on assets financed using leverage over 1.0x debt to equity.
All other provisions remain substantially the same as the prior agreement.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or discussion of risks and contingencies beyond the summary of the new agreement terms.
Investor Verification Checklist
- Verify the effective date of the reduced management fee (June 6, 2019).
- Confirm the specific leverage threshold (1.0x debt to equity) triggering the fee reduction.
- Review the full text of the Second Amended and Restated Investment Advisory and Management Agreement (Exhibit 10.1) for any non-material amendments not summarized in the 8-K.