Ares Capital Corp Issues $750M 6.250% Notes Due 2033

What Happened

• Ares Capital Corporation announced on Sept 15, 2026 that it closed an offering of $750,000,000 aggregate principal amount of its 6.250% notes due Sept 15, 2033. The company and U.S. Bank Trust Company, N.A. entered into a Seventh Supplemental Indenture to the May 13, 2024 Indenture governing the Notes. Interest is 6.250% per year, payable semiannually on March 15 and Sept 15, beginning March 15, 2027. The transaction closed Sept 15, 2026; the purchase agreement was dated Sept 8, 2026.

Key Details

• Principal: $750,000,000 of 6.250% notes due Sept 15, 2033.
• Interest/payments: 6.250% annual rate, semiannual payments on Mar 15 and Sep 15, first payment Mar 15, 2027.
• Use of proceeds: expected to repay certain outstanding indebtedness under the company’s credit facilities; company may reborrow for general corporate purposes, including investing in portfolio companies.
• Hedging: Ares entered an interest rate swap with JPMorgan Chase Bank, N.A. (notional $750M) to receive fixed 6.250% and pay floating three‑month SOFR + 1.85250%, maturing Sept 15, 2033.
• Security and covenants: Notes are direct unsecured obligations. Indenture includes covenants tied to the Investment Company Act reporting and requires certain financial disclosures if reporting status changes. A change-of-control repurchase is triggered if a change of control occurs and the Notes are rated below investment grade by Fitch, Moody’s and S&P.

Why It Matters

• The issuance raises $750M of long‑term debt to refinance credit‑facility borrowings, which can lower near‑term liquidity pressure and extend debt maturities. The interest rate swap fixes the company’s net interest exposure on these notes (effectively converting fixed-rate notes to floating under the swap structure), which affects future interest expense dynamics tied to SOFR. The Notes are unsecured, so they rank alongside other unsecured creditors, and the covenants and change‑of‑control repurchase right are key protections and potential liquidity considerations for investors.