ARES CAPITAL CORPORATION ANNOUNCES INAUGURAL $1 BILLION COMMERCIAL PAPER PROGRAM

Ares Capital (NASDAQ: ARCC) established its inaugural $1 billion commercial paper program, enabling issuance of short-term, unsecured notes that rank pari passu with existing senior unsecured debt.

Rhea-AI Summary

Ares Capital (NASDAQ: ARCC) established its inaugural $1 billion commercial paper program, enabling issuance of short-term, unsecured notes that rank pari passu with existing senior unsecured debt.

The company expects funding cost benefits and plans to use its $5.5 billion Revolving Credit Facility as a liquidity backstop. Net proceeds are earmarked for general corporate purposes.

Positive

• New commercial paper capacity of up to $1 billion in short-term funding
• Notes rank pari passu with existing senior unsecured indebtedness
• Expected funding cost benefits versus other financing sources
• Liquidity backstopped by $5.5 billion Revolving Credit Facility
• Proceeds available for flexible general corporate purposes

Negative

• Program permits up to $1 billion in additional short-term indebtedness
• Reliance on Revolving Credit Facility as liquidity backstop for note repayment

Argus Jun 8 session

-0.11% close to close Open Argus

Details

News Market Reaction – ARCC

On Jun 8, the day this news came out, ARCC closed 0.11% below the previous close.

Data tracked by StockTitan Argus for the Jun 8 session.

Market Context

This announcement adds a $1 billion commercial paper program, giving ARCC a new source of short-term...

Analysis

This announcement adds a $1 billion commercial paper program, giving ARCC a new source of short-term, unsecured funding backed by its $5.5 billion revolving credit facility for liquidity. It continues a broader pattern of actively managing credit facilities and unsecured debt. Investors may focus on how this flexibility is used over time, its impact on funding costs relative to other sources, and how it interacts with existing unsecured indebtedness and long-term balance sheet objectives.

Key Figures

Commercial paper capacity: $1 billion Revolving Credit Facility: $5.5 billion

Commercial paper capacity

$1 billion

Maximum aggregate amount of short-term unsecured commercial paper notes

Revolving Credit Facility

$5.5 billion

Facility to be used as a liquidity backstop for commercial paper repayment

Historical Context

5 past events · Latest: May 26

5 events

1. May 26

   Credit facility upsizing

   24h Move

   +1.2%

   Expanded and extended bank-led revolving credit facilities with lower borrowing costs.

2. May 04

   Debt offering

   24h Move

   +0.9%

   $800 million 5.550% unsecured notes due 2030 to refinance existing indebtedness.

3. Apr 28

   Earnings and dividend

   24h Move

   +1.7%

   Q1 2026 results, $0.48 Q2 dividend, $29.5B portfolio and $6.0B liquidity.

4. Apr 01

   Earnings scheduling

   24h Move

   -1.6%

   Announcement of date and webcast details for Q1 2026 earnings release.

5. Feb 04

   Earnings and dividend

   24h Move

   +2.3%

   FY 2025 results, $0.48 Q1 2026 dividend, $29.485B portfolio and $16.0B debt.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

commercial paper, pari passu, revolving credit facility, registration, +1 more

5 terms

commercial paper financial

"establishment of its inaugural commercial paper program"

Short-term IOUs issued by companies to raise cash quickly, sold to investors for a fixed, brief period (usually up to a few months) and repaid with interest at maturity. Think of it as a business borrowing from the public without putting up collateral, like a friend asking to borrow money for a few weeks with a promise to pay back a bit more. Investors watch commercial paper to gauge a company’s short-term funding health and credit risk; difficulty issuing it or rising yields can signal liquidity stress or higher perceived risk.

pari passu financial

"will rank pari passu with the Company's other senior unsecured indebtedness"

An instruction that different claims, securities, or creditors are treated equally and share rights or payments on the same priority level. For investors, it means their position will be paid or have voting power alongside others in the same class rather than being favored or subordinated—think of several people standing in one bus line who all get on together rather than some cutting ahead. That parity affects expected recovery in reorganizations, dividend order, and relative risk.

revolving credit facility financial

"its $5.5 billion Revolving Credit Facility as a liquidity backstop"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

registration regulatory

"absent registration or an applicable exemption from registration requirements"

Registration is the formal filing or listing of a company, security, product, or document with a government or regulatory agency so it may be legally offered, sold, or publicly disclosed. Think of it like registering a car before you can drive it: it creates official records, requires certain disclosures, and signals that regulators have at least reviewed basic information. Investors care because registration increases transparency, enables trading or market access, and can materially affect a company’s liquidity, fundraising options, and regulatory risk.

offering documentation regulatory

"offer to buy the notes under the Company's commercial paper program, the offer or sale of which can only be made by definitive offering documentation"

Offering documentation is the set of papers that explains the details of a company’s planned sale of securities (stocks, bonds, or other investment units), including what is being offered, the price, risks, use of proceeds and legal terms. Think of it as the deal’s blueprint or menu: it lets investors compare opportunities, verify facts, and assess potential rewards and risks before committing money. Clear, complete documentation matters because gaps or surprises there can affect the investment’s value and legal protections.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, June 8, 2026 /PRNewswire/ -- Ares Capital Corporation ("Ares Capital" or the "Company") (NASDAQ: ARCC) announced today the establishment of its inaugural commercial paper program. The program allows the Company to issue up to a maximum aggregate amount outstanding at any time of $1 billion of short-term, unsecured commercial paper notes. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with the Company's other senior unsecured indebtedness. The Company expects to realize cost benefits in the commercial paper market relative to other funding sources, and it expects to use available borrowing capacity from its $5.5 billion Revolving Credit Facility as a liquidity backstop for the repayment of the notes issued under the commercial paper program. Net proceeds from the issuance of any notes pursuant to the commercial paper program are expected to be used for general corporate purposes.

The notes to be offered under the commercial paper program have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes under the Company's commercial paper program, the offer or sale of which can only be made by definitive offering documentation.

ABOUT ARES CAPITAL CORPORATION

Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. Ares Capital's objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which oftentimes can lead to economic growth and employment. Ares Capital believes its loans and other investments in these companies can help generate attractive levels of current income and potential capital appreciation for investors. Ares Capital, through its investment manager, utilizes its extensive, direct origination capabilities and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company ("BDC") and was the largest publicly traded BDC by market capitalization as of March 31, 2026. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a publicly traded, leading global alternative investment manager. For more information about Ares Capital, visit www.arescapitalcorp.com.

FORWARD-LOOKING STATEMENTS

Statements included herein may constitute "forward-looking statements," which relate to future events or Ares Capital's future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties that are likely to be affected by unknowable future events and conditions, including elements of the future that are or are not under the control of Ares Capital. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital's filings with the Securities and Exchange Commission. Undue reliance should not be placed on such forward-looking statements as such statements speak only as of the time when made and are based on information available to Ares Capital as of the date hereof and are qualified entirely by this cautionary statement. Ares Capital undertakes no duty to update any forward-looking statements made herein now or in the future. 

INVESTOR RELATIONS CONTACTS

Ares Capital Corporation
John Stilmar or Carl Drake
(888) 818-5298
irarcc@aresmgmt.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/ares-capital-corporation-announces-inaugural-1-billion-commercial-paper-program-302793168.html

SOURCE Ares Capital Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Ares Capital (NASDAQ: ARCC) announce on June 8, 2026 about a $1 billion commercial paper program?

Ares Capital announced its first commercial paper program, allowing up to $1 billion of short-term unsecured notes. According to Ares Capital, these notes will be issued in the U.S. commercial paper market and rank pari passu with existing senior unsecured debt.

How will Ares Capital (ARCC) use the proceeds from its new commercial paper program?

Ares Capital expects to use net proceeds for general corporate purposes. According to Ares Capital, the notes provide flexible short-term funding, supported by borrowing capacity under its $5.5 billion Revolving Credit Facility as a liquidity backstop for repayment.

What is the size and structure of Ares Capital’s (ARCC) inaugural commercial paper program?

The program permits up to $1 billion of short-term, unsecured commercial paper notes outstanding at any time. According to Ares Capital, the notes will be sold under customary U.S. commercial paper market terms and rank pari passu with its senior unsecured indebtedness.

How does the new commercial paper program affect Ares Capital’s (ARCC) funding costs?

Ares Capital expects cost benefits from issuing commercial paper compared with other funding sources. According to Ares Capital, the program offers a potentially cheaper short-term financing option, supported by its existing $5.5 billion Revolving Credit Facility for liquidity.

Is Ares Capital’s (ARCC) commercial paper registered under the Securities Act of 1933?

The commercial paper notes have not been and will not be registered under the Securities Act of 1933. According to Ares Capital, the notes may only be offered or sold in the United States under an applicable registration exemption and definitive offering documentation.

What does it mean that Ares Capital’s (ARCC) commercial paper ranks pari passu with other debt?

Ranking pari passu means the commercial paper has equal seniority with Ares Capital’s other senior unsecured indebtedness. According to Ares Capital, holders of these notes share the same payment priority as other senior unsecured lenders in the capital structure.