Item 1.01 Entry into a Material Definitive Agreement.

On June 11, 2020, Ares Capital Corporation (the "Company") entered into (i) a Purchase and Sale Agreement (the "Purchase and Sale Agreement") with ARCC FB Funding LLC, a wholly owned subsidiary of the Company ("AFB LLC"), pursuant to which the Company will sell to AFB LLC certain loans it has originated or acquired, or will originate or acquire (the "Loans") from time to time, (ii) a Revolving Credit and Security Agreement (the "Credit and Security Agreement" and, together with the Purchase and Sale Agreement, the "Agreements") with AFB LLC, as the borrower, BNP Paribas ("BNP"), as the administrative agent and lender, the Company, as the equityholder and as the servicer, and U.S. Bank National Association, as collateral agent, pursuant to which BNP has agreed to extend credit to AFB LLC in an aggregate principal amount up to $300,000,000 at any one time outstanding (the "BNP Funding Facility") and (iii) various supporting documentation, including an account control agreement.

The obligations of AFB LLC under the BNP Funding Facility are secured by all of the assets held by AFB LLC, including the Loans sold or transferred by the Company to AFB LLC. The BNP Funding Facility is a revolving funding facility with a reinvestment period ending June 11, 2023 and a final maturity date of June 11, 2025. The reinvestment period and final maturity are both subject to a one-year extension by mutual agreement. Subject to certain exceptions, the interest charged on the BNP Funding Facility is based on LIBOR, or, if LIBOR is not available, a "base rate" (which is the greater of a prime rate and the federal funds rate plus 0.50%), plus a margin that generally ranges between 2.65% and 3.15% (depending on the types of assets such advances relate to), with a weighted average margin floor for all classes of advances of (i) 2.75% during the reinvestment period and (ii) 3.25% following the reinvestment period. Under the Agreements, the Company and AFB LLC, as applicable, have made representations and warranties regarding the Loans, as well as their businesses, and are required to comply with various covenants, servicing procedures, limitations on disposition of Loans, reporting requirements and other customary requirements for similar revolving funding facilities. The Credit and Security Agreement includes usual and customary events of default for revolving funding facilities of this nature, including allowing BNP, upon a default, to accelerate and foreclose on the Loans and to pursue the rights under the Loans directly with the obligors thereof.

Borrowings under the BNP Funding Facility are subject to various covenants under the Agreements as well as the leverage restrictions contained in the Investment Company Act of 1940, as amended.

The description above is only a summary of the material provisions of the BNP Funding Facility and is qualified in its entirety by reference to copies of the Credit and Security Agreement and the Purchase and Sale Agreement, which are filed as Exhibits 10.1 and 10.2, respectively, to this current report on Form 8-K and incorporated by reference herein.

As of June 11, 2020, following the closing of the BNP Funding Facility, the Company had an aggregate total of $10.8 billion of committed debt capital, of which $7.6 billion of principal debt was outstanding. As of this same date, the Company had available liquidity of approximately $3.5 billion, including approximately $300 million in cash and cash equivalents and $3.2 billion available for additional borrowings under its credit facilities, subject to borrowing base and other restrictions.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant.

The information contained in Item 1.01 to this current report on Form 8-K is by this reference incorporated in this Item 2.03.




Item 9.01  Financial Statements and Exhibits.

(d)                Exhibits:

Exhibit Number                               Description

     10.1          Revolving Credit and Security Agreement, dated as of June 11,
                   2020, among ARCC FB Funding LLC, as borrower, the lenders from
                   time to time parties thereto, BNP Paribas, as administrative
                   agent and lender, Ares Capital Corporation, as equityholder and
                   servicer, and U.S. Bank National Association, as collateral
                   agent.
     10.2          Purchase and Sale Agreement, dated as of June 11, 2020, between
                   ARCC FB Funding LLC, as purchaser, and Ares Capital Corporation,
                   as seller.




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