This is a routine refinancing for ARCC — no material change to credit profile or earnings power. Monitor upcoming quarterly earnings for net investment income trends and portfolio credit quality. The interest rate swap effectively converts the fixed-rate exposure to floating, reducing interest rate risk but introducing SOFR benchmark exposure.
Price Chart
Executive Summary
Ares Capital Corporation issued $800M of 5.550% senior unsecured notes due 2030, using proceeds to repay credit facility debt. The company simultaneously entered an $800M notional interest rate swap to convert the fixed rate to floating (1-month SOFR + 1.69950%). This is a routine refinancing and liability management transaction for a large BDC with no material change to its financial position.
Key Financial Metrics
Key Facts
- $800,000,000 aggregate principal amount of 5.550% Notes due 2030 issued
- Notes mature January 15, 2030; interest payable semi-annually on Jan 15 and Jul 15 starting Jan 15, 2027
- Net proceeds used to repay outstanding indebtedness under credit facilities; may reborrow for general corporate purposes
- Interest rate swap with JPMorgan Chase Bank, N.A. swaps fixed 5.550% for floating 1-month SOFR + 1.69950% on $800M notional, maturing Jan 15, 2030
- Notes are direct unsecured obligations; rated at least BBB- by S&P and BBB by Fitch at closing
- Change of control repurchase event triggers offer to repurchase at 100% of principal plus accrued interest
Financial Impact
$800M debt issuance with 5.550% fixed coupon, swapped to floating SOFR + 1.69950%
Risk Factors
- Higher floating-rate costs if SOFR rises significantly above current levels
- Leverage increases by $800M until credit facility debt is repaid
- Change of control/below-investment-grade rating event could trigger accelerated repurchase obligations
Market Snapshot
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-058639 |
| Document: tm2614090d1_ex4-2.htm | 0001104659-26-058639 |
| Document: tm2614090d1_8k.htm | 0001104659-26-058639 |
| Document: tm2614090d1_ex5-1.htm | 0001104659-26-058639 |
| Document: tm2614090d1_ex5-2.htm | 0001104659-26-058639 |
| Document: 0001104659-26-058639-index-headers.html | 0001104659-26-058639 |
| Document: 0001104659-26-058639-index.html | 0001104659-26-058639 |
| Document: 0001104659-26-058639.txt | 0001104659-26-058639 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 9, 2026 7w ago | Institutional Cluster | $19.98 $19.74 | ▼ −1.23% | ▼ −0.31% | $18.86 (−5.61%) |
Jul 22, 2026 10w ago | 8-K | $18.61 $19.78 | ▲ +6.29% | ▲ +2.98% | $18.86 (+1.34%) |
Jun 22, 2026 14w ago | 8-K | $17.89 $18.98 | ▲ +6.09% | ▲ +4.93% | $18.86 (+5.42%) |
Jun 6, 2026 16w ago | 8-K | $18.77 $18.56 | ▼ −1.12% | ▼ −2.75% | $18.86 (+0.48%) |
May 26, 2026 18w ago | 8-K | $18.82 $18.05 | ▼ −4.09% | ▼ −2.14% | $18.86 (+0.21%) |
May 15, 2026 20w ago | DEFA14A | $18.72 $18.62 | ▼ −0.53% | ▼ −2.12% | $18.86 (+0.75%) |
May 15, 2026 20w ago | DEFA14A | $18.72 $18.62 | ▼ −0.53% | ▼ −2.12% | $18.86 (+0.75%) |
May 11, 2026 20w ago | 8-K | $18.77 $18.57 | ▼ −1.09% | ▲ +0.64% | $18.86 (+0.48%) |
Apr 28, 2026 22w ago | 8-K | $18.67 $18.86 | ▲ +1.02% | ▼ −4.44% | $18.86 (+1.02%) |
Apr 28, 2026 22w ago | 8-K | $18.92 $18.86 | ▼ −0.32% | ▼ −5.77% | $18.86 (−0.32%) |
US Market Status
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