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

+0.97% close to close Open Argus

Details

News Market Reaction – ARES

On Jun 8, the day this news came out, ARES closed 0.97% above the previous close.

Data tracked by StockTitan Argus for the Jun 8 session.

Market Context

This announcement introduces an inaugural commercial paper program allowing issuance of up to $1 bil...

Analysis

This announcement introduces an inaugural commercial paper program allowing issuance of up to $1 billion in short‑term, unsecured notes, backed by available capacity on a $5.5 billion revolving credit facility. It follows recent steps to expand and extend bank-led credit lines. Investors may focus on how actively the program is used, its impact on overall funding costs relative to other debt, and subsequent disclosures under the existing Form S-3ASR shelf that could further clarify the firm’s capital structure evolution.

Key Figures

Commercial paper capacity: $1 billion Revolving Credit Facility: $5.5 billion Securities Act year: 1933

Commercial paper capacity

$1 billion

Maximum aggregate amount of short-term unsecured commercial paper notes

Revolving Credit Facility

$5.5 billion

Facility referenced as liquidity backstop for commercial paper program

Securities Act year

1933

Securities Act of 1933 governing registration requirements

Historical Context

5 past events · Latest: Jun 03

5 events

1. Jun 03

   Industrial platform backing

   24h Move

   -4.0%

   New shallow-bay industrial platform with $250M plus $100M founder capital.

2. May 29

   Conference presentation

   24h Move

   +0.2%

   CEO scheduled to present at Morgan Stanley US Financials Conference.

3. May 28

   Conference presentation

   24h Move

   +2.0%

   Co-President to present at Goldman Sachs European Financials Conference.

4. May 26

   Credit facilities expansion

   24h Move

   +0.7%

   Increased revolver commitments, lower borrowing costs, extended maturities.

5. May 20

   Student housing JV

   24h Move

   +1.2%

   JV formed to acquire $910M, 12-property U.S. student housing portfolio.

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

Key Terms

commercial paper program, commercial paper notes, pari passu, senior unsecured indebtedness, +2 more

6 terms

commercial paper program financial

"announced today the establishment of its inaugural commercial paper program."

A commercial paper program is a formal way a company issues very short-term IOUs to raise quick cash, typically for days to months, without using a bank loan. Investors care because it shows how the company manages short-term funding and how trustworthy it appears—like watching whether someone keeps using and repaying a credit card; frequent use or higher costs can signal cash strain, while smooth issuance suggests healthy liquidity.

commercial paper notes financial

"short-term, unsecured commercial paper notes. The notes will be sold under"

Short-term IOUs issued by companies to raise quick cash, typically for working capital or short-term obligations; they mature in days to months rather than years. Think of them like a company’s short-term promissory note to investors or money-market funds: they matter because their availability, interest rate and perceived safety signal a firm’s liquidity and credit health, and they offer investors a low-risk, short-duration place to park cash but carry some default risk.

pari passu financial

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

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.

senior unsecured indebtedness financial

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

Senior unsecured indebtedness is debt a company promises to repay that ranks near the front of the payment line but is not backed by specific collateral like property or equipment. For investors, it matters because these creditors get paid before most others if a company fails, yet they face higher risk than holders of secured debt, so the interest rate and expected recovery reflect that middle-ground protection. Think of it as a high-priority IOU without a mortgage.

Revolving Credit Facility financial

"from 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.

liquidity backstop financial

"Revolving Credit Facility as a liquidity backstop for the repayment of"

A liquidity backstop is a guaranteed, pre-arranged source of cash that a company can draw on if it runs short of money, like a committed loan, credit line, or investor promise to provide funds. For investors, it matters because it acts like an emergency fuel tank or safety net that reduces the risk of missed payments or forced asset sales in the short term, while also signaling how confident lenders or backers are in the company's financial stability.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

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.