Ares Capital Corporation announced that it has completed all necessary amendments to its secured revolving facilities to allow it to use the flexibility and incremental leverage provided by the Small Business Credit Availability Act (SBCAA).

Ares Capital has amended its $2.1 billion Revolving Credit Facility, led by arrangers JP Morgan, SunTrust Robinson Humphrey and Bank of America Merrill Lynch, to reduce the asset coverage covenant from 200% to 150% and to make certain related changes to the borrowing base calculations. Pricing and other significant terms in this facility remained unchanged.

In addition, Ares Capital amended the documents governing its $1 billion Revolving Funding Facility led by Wells Fargo to allow it to operate under the 150% asset coverage requirement. Pricing and other significant terms in this facility remain unchanged. Amendments to adopt the new 150% asset coverage requirement were not necessary for any of Ares Capital’s other debt agreements.

“We have now completed all of the necessary amendments within our capital structure to execute our previously communicated plan to obtain the benefits of the flexibility provided by the SBCAA, which we believe will result in enhanced profitability while maintaining our conservative investment grade profile,” said Kipp deVeer, Chief Executive Officer of Ares Capital.

“We appreciate the support from our banking partners to complete these amendments now so that we are positioned to begin to operate under the new SBCAA framework next June,” said Penni Roll, Chief Financial Officer of Ares Capital. “Their support highlights the confidence that they have placed in Ares Capital’s strong investment track record and prudent balance sheet management.”