Ares Capital Launches $1 Billion Commercial Paper Program to Cut Funding Costs
ARES•Ares Capital established a $1 billion commercial paper program to issue unsecured short-term notes ranking pari passu with its senior unsecured debt, backed by its $5.5 billion revolving credit facility. It aims to lower funding costs and use proceeds for general corporate purposes.
1. Program Launch and Structure
Ares Capital has established an inaugural $1 billion commercial paper program allowing the issuance of unsecured, short-term notes that rank pari passu with its existing senior unsecured indebtedness.
2. Liquidity Backstop and Cost Benefits
The company will use available borrowing capacity from its $5.5 billion revolving credit facility as a liquidity backstop for note repayment, anticipating cost benefits relative to other funding sources.
3. Proceeds and Corporate Purposes
Net proceeds from any notes issued under the program are expected to be used for general corporate purposes, enhancing Ares Capital’s financing flexibility and liquidity management.
