ARCC · Ares Capital Corporation

Ares Capital Corporation (ARCC) completed a public offering of $800 million aggregate principal amount of 5.550% Notes due 2030, issued under a Sixth Supplemental Indenture to its base indenture dated May 13, 2024. The notes are direct unsecured obligations and rank equally with other unsecured indebtedness. Proceeds are intended to repay outstanding borrowings under the company's credit facilities, with the ability to reborrow for general corporate purposes, including investments in portfolio companies in line with its business development company (BDC) investment objective. Concurrently, ARCC entered into an interest rate swap with JPMorgan Chase Bank, N.A. with a notional amount of $800 million, under which the company receives fixed interest at 5.550% and pays floating interest based on one-month SOFR plus 1.69950%, effectively converting the fixed-rate exposure to floating. The swap matures on January 15, 2030, matching the notes' maturity. The notes include customary covenants, including compliance with the Investment Company Act's asset coverage requirements, and a change of control repurchase provision. The offering closed on May 11, 2026, and the notes are listed on a national exchange. This debt issuance increases ARCC's leverage but provides low-cost, long-term funding to support its investment activities, while the swap hedges interest rate risk.