Ares Capital Launches $1 Billion Commercial Paper Program Backed by $5.5B Facility
ARCC•Ares Capital launched a $1B commercial paper program allowing issuance of unsecured short-term notes ranking pari passu with other senior debt. The company plans to back the program with its $5.5B revolving credit facility and expects lower funding costs, with proceeds funding general corporate purposes.
1. Program Establishment
Ares Capital established a commercial paper program allowing issuance of up to $1 billion of unsecured short-term notes that will rank pari passu with its other senior unsecured debt.
2. Funding Strategy
The program will be supported by Ares Capital’s $5.5 billion revolving credit facility, which will serve as a liquidity backstop for note repayments and is expected to reduce its overall funding costs relative to other borrowing sources.
3. Use of Proceeds
Net proceeds from any issued notes under the commercial paper program will be allocated to general corporate purposes, providing additional flexibility for working capital and strategic initiatives.
