Ares Capital Corporation and Ares Strategic Income Fund announced renewals, commitment increases, and enhanced terms for their respective bank-led revolving credit facilities, including extended maturities through May 2031 and reduced funded borrowing costs.
Ares Capital Corporation increased the size of its revolving credit facility by approximately $170 million, bringing total commitments to approximately $5.5 billion. The company also reduced funded borrowing costs by 0.10% annually following the elimination of the SOFR credit spread adjustment. Substantially all of the facility’s maturity was extended to May 2031.
In addition, Ares Capital expanded the facility’s uncommitted accordion feature, allowing for a potential increase of up to approximately $2.7 billion in commitments under certain circumstances. The facility is led by JPMorgan, Bank of America, RBC, SMBC, Truist, and Wells Fargo, and includes 40 lenders.
Ares Strategic Income Fund (ASIF) also announced significant enhancements to its revolving credit facility. ASIF increased commitments by $850 million, raising the total facility size to approximately $4.1 billion. Similar to Ares Capital, ASIF reduced funded borrowing costs by 0.10% annually through the elimination of the SOFR credit spread adjustment and extended the facility maturity to May 2031.
ASIF’s accordion feature was also expanded, enabling the fund to potentially increase the facility size to approximately $6.15 billion under certain conditions. The ASIF facility is led by JPMorgan, Barclays, BNP Paribas, RBC, SMBC, Truist, and Wells Fargo, and includes 24 lenders.
The companies noted that the remaining terms of the facilities were materially unchanged.
Ares said the improved terms and larger commitments are expected to strengthen the financial flexibility of both funds as they continue pursuing opportunities in the direct lending market. The expanded facilities come as private credit firms continue benefiting from strong demand for flexible financing solutions among middle-market companies.
Founded in 2004, Ares Capital Corporation is a specialty finance company focused on providing direct loans and other investments to private middle-market businesses in the United States. The company primarily invests in senior secured loans, while also pursuing subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company 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.
KEY QUOTE:
“The successful extension of these facilities, and in particular a significant increase in new capital to the ASIF facility, underscores the depth of our relationships, the confidence that our banking partners have in Ares’ direct lending credit capabilities and our long-term differentiated performance.”
“As we continue to build on Ares’ more than 20-year track record, the enhanced terms of these facilities further strengthen each fund’s financial flexibility to capitalize on today’s attractive investing environment and continue seeking to drive attractive returns for our shareholders.”
Scott Lem, Chief Financial Officer, Ares Capital And ASIF
