Ares Capital Corporation priced a $750 million offering of 5.250% unsecured notes due 2031 on January 5, 2026. The notes mature on April 12, 2031 and may be redeemed at the company’s option at par plus a make‑whole premium if applicable. The offering is expected to close on January 12, 2026.
The proceeds will be used to repay existing debt and fund general corporate purposes, including investments in portfolio companies. This aligns with Ares Capital’s strategy to maintain a low leverage ratio and support its core lending activities.
The coupon rate reflects current market conditions for unsecured senior debt, indicating that Ares Capital can secure favorable terms due to its strong credit profile as a business development company. The issuance follows a similar $650 million offering in September 2025, underscoring a consistent capital‑structure strategy.
The transaction enhances liquidity and balance‑sheet flexibility, allowing the company to refinance maturing debt, invest in new opportunities, and preserve its capital position. By maintaining a low leverage profile, Ares Capital supports its ability to generate income for investors through dividends and portfolio growth.
The event demonstrates Ares Capital’s continued access to capital markets and its disciplined approach to capital management, reinforcing its position as a leading BDC in the middle‑market lending space.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.