NEW YORK - (Business Wire) Ares Capital Corporation (NASDAQ: ARCC) announced last Friday the closing of its acquisition of Allied Capital’s interests in the Senior Secured Loan Fund LLC (formerly known as the Unitranche Fund) for $165 million in cash. The Fund was formed in December 2007, with approximately $3.6 billion of committed capital to invest in senior secured debt (including unitranche loans) of middle-market companies through a partnership with GE Capital Americas. Currently, the Fund holds loans to middle market borrowers totaling approximately $900 million.
As a result of this transaction, Ares Capital and GE Capital will be able to make new commitments of up to $270 million in a single transaction for borrowers across a wide range of industry sectors to fund new transactions with the remaining $2.7 billion of capital available. The Fund expects to continue to retain all or a majority of each loan.
Borrowers benefit from the Senior Secured Loan Fund structure by virtue of its simplified documentation through a single credit agreement, greater certainty of execution and reduced decision-making complexity throughout the life of the loan.
"We are excited to be partnering with GE Capital’s Sponsor Finance business, a leading middle-market senior debt provider who consistently and reliably delivers for private equity sponsors and borrowers,” said Michael Arougheti, President of Ares Capital Corporation. “We expect that the partnership will provide a significant amount of flexible capital for new investments to our sponsor relationships and middle market clients.”
"We are pleased to re-open the Fund for new investments in partnership with Ares Capital, an experienced investor with an outstanding track record of providing senior loans, second lien loans, and subordinated debt in the middle market,” said Stuart Aronson, President of GE Capital - Sponsor Finance.
About Ares Capital Corporation
Ares Capital Corporation is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle-market companies. Ares Capital Corporation invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital Corporation also makes equity investments. Ares Capital Corporation is externally managed by Ares Capital Management LLC, an affiliate of Ares Management LLC, an SEC registered investment advisor and alternative asset investment management firm with approximately $30.0 billion of committed capital under management as of September 30, 2009. Ares Capital Corporation is a closed-end, non-diversified management investment company that has elected to be regulated as a Business Development Company under the Investment Company Act of 1940. For additional information, please visit our website at www.arescapitalcorp.com.
About GE Capital - Sponsor Finance
GE Capital – Sponsor Finance is a unit of GE Capital Americas and offers a “one-stop” source for the comprehensive range of GE’s lending and other financial services to private equity sponsors and middle market borrowers. For more information, visit the Sponsor Finance website at www.gelending.com/Gsf.
GE Capital offers consumers and businesses around the globe an array of financial products and services. GE (NYSE: GE) is Imagination at Work - a diversified technology, media and financial services company focused on solving some of the world's toughest problems. For more information, visit the company's website at www.GE.com.
FORWARD-LOOKING STATEMENTS
Statements included herein may constitute “forward-looking statements,” which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results 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 Corporation’s filings with the Securities and Exchange Commission. Ares Capital Corporation undertakes no duty to update any forward-looking statements made herein.
Ares Capital Investor Contact:
Carl G. Drake, CFA, 404-814-5204
or
GE Capital, Norwalk
Ned Reynolds, 203-229-5717
ned.reynolds@ge.com
