Ares Capital Corporation announced today that its wholly owned subsidiary, Ares Capital JB Funding LLC, has increased the size of its revolving funding facility with Sumitomo Mitsui Banking Corporation (“SMBC”), from $200 million to $400 million.
In addition to the increase in the size of the facility, the facility’s reinvestment period was extended by approximately eight months from January 20, 2015 to September 14, 2015, and its final maturity date was also extended from January 20, 2020 to September 14, 2020. The reinvestment period and final maturity date are both subject to two one-year extensions by mutual agreement. The facility continues to be secured by first lien assets and has a stated interest rate of LIBOR (with no floor) plus 2.125%.
“We are pleased to have expanded our revolving funding facility with SMBC,” said Michael Arougheti, President of Ares Capital Corporation. “SMBC’s increased financial commitment further increases our revolving debt capacity and lowers our overall funding costs. We appreciate the strong financial support from SMBC.”
Ares Capital provides debt and equity to the U.S. middle-market companies primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. The firm has offices in Los Angeles, Chicago, New York, Atlanta, Menlo Park and Washington, DC (www.arescapitalcorp.com).
Sumitomo Mitsui Banking Corporation and its group companies offer a range of financial services centered on banking. They are also engaged in the leasing, securities, credit card, investment, mortgage securitization, venture capital and other credit related businesses. SMBC is an affiliate of Sumitomo Mitsui Financial Group (NYSE:SMFG) which has offices throughout the US (www.smbcgroup.com/americas).
© 2012 PEPD • Private Equity’s Leading News Magazine • 9-18-12