Ares Capital Corporation amended and extended its senior secured revolving credit facility with 20 banks, including 19 existing lenders and one new lender. Lenders include SunTrust Bank, Bank of America and Merrill Lynch. JPMorgan Chase agented the amendment. Total commitments to the facility grew from $1.25 billion to $1.29 billion, and the final maturity of the facility was extended by one year to May 4, 2020. Further, the stated interest rate on the facility was changed from LIBOR plus 2.00% to a formula-based calculation resulting in a stated interest rate of either LIBOR plus 1.75% or LIBOR plus 2.00%. As of today under this formula, the stated interest rate on the facility is LIBOR plus 1.75%.

“We are pleased that our banking relationships continue to show significant confidence in ARCC,” said Penni Roll, Chief Financial Officer of Ares Capital Corporation. “Reducing our cost of capital is a key area of focus for us, and we are grateful that our lenders have supported us by providing long-dated capital on attractive terms.”

In addition to this $1.29 billion credit facility, Ares Capital Corporation, through wholly owned financing subsidiaries, has two other revolving funding facilities with total commitments of $940 million, bringing total revolving credit capacity to approximately $2.2 billion (subject to borrowing base and leverage restrictions) with a blended stated interest rate on these commitments of LIBOR plus 1.92%.

Ares Capital is a leading specialty finance company that provides one-stop debt and equity financing solutions to U.S. middle market companies, venture capital backed businesses, oil and gas related businesses and power generation projects. Ares Capital originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform.