ARES STRATEGIC INCOME FUND 8-K

What Happened
Ares Strategic Income Fund announced that on December 18, 2025 it completed a $696.4 million term debt securitization (Ares Direct Lending CLO 8 LLC, or “ADL CLO 8”). The financing is an on‑balance‑sheet collateralized loan obligation (CLO) backed by first‑lien senior secured loans the Fund contributed to ADL CLO 8 under a contribution agreement. ADL CLO 8 issued several classes of January 2039 notes and also incurred $50.0 million of Class A‑1A secured loans. The Fund retained all subordinated notes issued by ADL CLO 8.

Key Details

• Completed ADL CLO 8 Debt Securitization on December 18, 2025 for $696.4 million; collateral = first‑lien senior secured loans contributed by the Fund.
• January 2039 note issuance breakdown: Class A‑1 $356.0M (Term SOFR + 1.40%), Class A‑2 $28.0M (TS+1.60%), Class B $42.0M (TS+1.75%), Class C $56.0M (TS+2.00%); plus $164.4M of subordinated notes (no interest) retained by the Fund.
• ADL CLO 8 also incurred $50.0M of Class A‑1A Secured Loans (Term SOFR +1.40%); the Asset Manager (Ares Capital Management LLC) waived any management fees, and principal collections may be reinvested into new collateral through January 20, 2031 under the agreements.
• Separately, the Fund sold 5,175,724 Class I common shares in December 2025 for total consideration of $142.2 million (shares finalized Dec 22, 2025). As of Nov 30, 2025 the Fund reported aggregate NAV ≈ $10.8B, portfolio fair value ≈ $21.5B, debt outstanding ≈ $10.7B and a debt‑to‑equity ratio of 1.01x.

Why It Matters
This transaction provides the Fund with structured financing and liquidity while keeping the CLO on its balance sheet (so liabilities remain consolidated). By retaining the subordinated notes, the Fund holds the first‑loss piece of the CLO, which aligns economic exposure with its existing portfolio but reduces net cash proceeds available for other uses. The filing states the Fund expects to use net proceeds to repay certain outstanding indebtedness under its debt facilities and/or to invest in portfolio companies. Also relevant to investors: the Fund declared monthly distributions of $0.21430 per share for December 2025 and for January–March 2026 (with payment dates in January–April 2026), and it continues to raise capital through its ongoing registered offering and private placements.