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Ares Capital Corporation Announces June 30, 2025 Financial Results and Declares Third Quarter 2025 Dividend of $0.48 Per Share

DIVIDEND DECLARATIONS

NEW YORK--(BUSINESS WIRE)-- Ares Capital Corporation (鈥淎res Capital鈥�) (NASDAQ: ARCC) announced that its Board of Directors has declared a third quarter 2025 dividend of $0.48 per share. The third quarter 2025 dividend is payable on September 30, 2025 to stockholders of record as of September 15, 2025.

JUNE 30, 2025 FINANCIAL RESULTS

Ares Capital also announced financial results for its second quarter ended June 30, 2025.

鈥淲e reported another solid quarter with strong levels of core earnings and growth in our net asset value reflecting the positioning and performance of our investment portfolio,鈥� said Kort Schnabel, Chief Executive Officer of Ares Capital. 鈥淟ooking forward, we are seeing a pickup in market transaction activity, and we believe we are well positioned to benefit due to our deep relationships and extensive market coverage.鈥�

鈥淲e continued to further strengthen our capital and liquidity position by raising over $2 billion of new debt capital since the end of last quarter,鈥� said Scott Lem, Chief Financial Officer of Ares Capital. 鈥淲ith approximately $6.5 billion of available liquidity, pro-forma for our post-quarter end financing activities, our balance sheet continues to support the growth of our existing portfolio companies and enables us to be proactive across the direct lending market.鈥�

In the second quarter of 2025, Ares Capital made new investment commitments of approximately $2.6 billion, of which approximately $2.0 billion were funded. New investment commitments included 15 new portfolio companies and 42 existing portfolio companies. As of June 30, 2025, 247 separate private equity sponsors were represented in Ares Capital鈥檚 portfolio. Of the approximately $2.6 billion in new commitments made during the second quarter of 2025, 82% were in first lien senior secured loans, 1% were in subordinated certificates of the Senior Direct Lending Program (the 鈥淪DLP鈥�), 3% were in senior subordinated loans, 2% were in preferred equity, 6% were in Ares Capital鈥檚 subordinated loan to IHAM and 6% were in other equity. Of the approximately $2.6 billion in new commitments, 92% were in floating rate debt securities, of which 98% contained interest rate floors and 1% were in the subordinated certificates of the SDLP. The weighted average yield of debt and other income producing securities funded during the period at amortized cost was 9.9% and the weighted average yield on total investments funded during the period at amortized cost was 9.4%. Ares Capital may seek to sell all or a portion of these new investment commitments, although there can be no assurance that Ares Capital will be able to do so. Also in the second quarter of 2025, Ares Capital funded approximately $695 million related to previously existing unfunded revolving and delayed draw loan commitments.

In the second quarter of 2025, Ares Capital exited approximately $2.0 billion of investment commitments, including approximately $577 million of loans sold to IHAM or certain vehicles managed by IHAM. Of the approximately $2.0 billion of exited investment commitments, 77% were first lien senior secured loans, 4% were second lien senior secured loans, 10% were subordinated certificates of the SDLP, 1% were senior subordinated loans, 5% were preferred equity and 3% were other equity. Of the approximately $2.0 billion of exited investment commitments, 94% were floating rate, 3% were fixed rate and 3% were non-income producing.

As of June 30, 2025 and December 31, 2024, the weighted average grade of the portfolio at fair value was 3.1 and 3.1, respectively, and loans on non-accrual status represented 2.0% of the total investments at amortized cost (or 1.2% at fair value) and 1.7% at amortized cost (or 1.0% at fair value), respectively. For more information on Ares Capital鈥檚 portfolio investment grades and loans on non-accrual status, see 鈥淧art I鈥擨tem 2. Management鈥檚 Discussion and Analysis of Financial Condition and Results of Operations鈥擯ortfolio and Investment Activity鈥� in Ares Capital鈥檚 Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the Securities and Exchange Commission (鈥淪EC鈥�) on July 29, 2025.

LIQUIDITY AND CAPITAL RESOURCES

As of June 30, 2025, Ares Capital had $447 million in cash and cash equivalents and $14.1 billion in total aggregate principal amount of debt outstanding ($14.1 billion at carrying value). Subject to borrowing base and other restrictions, Ares Capital had approximately $6.8 billion available for additional borrowings under its existing credit facilities as of June 30, 2025.

In April 2025, Ares Capital amended and restated its senior secured credit facility (as amended and restated, the 鈥淎&R Credit Facility鈥�). The amendment, among other things, (a) increased the total commitment under the A&R Credit Facility from approximately $4.5 billion to approximately $5.3 billion, (b) modified certain covenant restrictions, (c) extended the expiration of the revolving period for lenders electing to extend their revolving commitments in an amount equal to approximately $3.9 billion from April 12, 2028 to April 15, 2029, (d) extended the stated maturity date for lenders electing to extend their revolving commitments in an amount equal to approximately $3.9 billion from April 12, 2029 to April 15, 2030 and (e) extended the stated maturity date for approximately $945 million of the lenders electing to extend their term loan commitments from April 12, 2029 to April 15, 2030. Lenders who elected not to extend their revolving commitments in an amount equal to approximately $246 million and $50 million will remain subject to a revolving period expiration of March 31, 2026 and April 12, 2028, respectively, and a stated maturity date of March 31, 2027 and April 12, 2029, respectively. Lenders who elected not to extend their term loan commitments in an amount equal to $24 million, $70 million and $70 million will remain subject to a maturity date of March 31, 2027, April 19, 2028 and April 12, 2029, respectively.

Subject to certain exceptions, the interest rate charged on the A&R Credit Facility is based on Secured Overnight Financing Rate (鈥淪OFR鈥�) (as defined in the documents governing the A&R Credit Facility) plus a credit spread adjustment of 0.10% plus an applicable spread of either 1.525%, 1.650%, 1.775% or an 鈥渁lternate base rate鈥� (as defined in the documents governing the A&R Credit Facility) plus an applicable spread of either 0.525%, 0.650% or 0.775%, in each case, determined monthly based on the total amount of the borrowing base.

Additionally, in June 2025, Ares Capital increased the total commitment under the A&R Credit Facility from approximately $5.3 billion to approximately $5.4 billion. The other terms of the A&R Credit Facility remained unchanged.

In June 2025, Ares Capital issued $750 million in aggregate principal amount of unsecured notes that mature on September 1, 2030 and bear interest at a rate of 5.500% per annum (the 鈥淪eptember 2030 Notes鈥�). The September 2030 Notes pay interest semi-annually and all principal is due upon maturity. The September 2030 Notes may be redeemed in whole or in part at any time at Ares Capital鈥檚 option at a redemption price equal to par plus a 鈥渕ake whole鈥� premium, if applicable, as determined pursuant to the indenture governing the September 2030 Notes, and any accrued and unpaid interest. The September 2030 Notes were issued at a discount to the principal amount. In connection with the September 2030 Notes, Ares Capital entered into an interest rate swap for a total notional amount of $750 million that matures on September 1, 2030. Under the interest rate swap, Ares Capital will receive a fixed interest rate of 5.500% and will pay a floating interest rate of one-month SOFR plus 1.7705%.

During the three months ended June 30, 2025, Ares Capital issued and sold approximately 14.8 million shares of common stock under its equity distribution agreements, with net proceeds totaling approximately $318 million, after giving effect to sales agents鈥� commissions and certain estimated offering expenses.

SECOND QUARTER 2025 DIVIDENDS PAID

On April 29, 2025, Ares Capital announced that its Board of Directors declared a second quarter 2025 dividend of $0.48 per share for a total of approximately $337 million. The second quarter 2025 dividend was paid on June 30, 2025 to stockholders of record as of June 13, 2025.

RECENT DEVELOPMENTS

In July 2025, Ares Capital increased the total commitment under the A&R Credit Facility from approximately $5.4 billion to approximately $5.5 billion. The other terms of the A&R Credit Facility remained unchanged.

In July 2025, Ares Capital and its consolidated subsidiary, Ares Capital CP Funding LLC (鈥淎res Capital CP鈥�), entered into an agreement to amend Ares Capital CP鈥檚 revolving funding facility (the 鈥淩evolving Funding Facility鈥�). The amendment, among other things, (a) increased the commitments under the Revolving Funding Facility from approximately $2.2 billion to approximately $2.3 billion, (b) extended the end of the reinvestment period from October 8, 2027 to July 28, 2028, (c) extended the stated maturity date from October 8, 2029 to July 28, 2030 and (d) adjusted the interest rate charged on the Revolving Funding Facility from an applicable SOFR or a 鈥渂ase rate鈥� plus an applicable spread of 2.00% per annum to an applicable SOFR or a 鈥渂ase rate鈥� (as defined in the documents governing the Revolving Funding Facility) plus an applicable spread of 1.80% per annum. The other terms of the Revolving Funding Facility remained materially unchanged.

In July 2025, Ares Capital and its consolidated subsidiary, Ares Capital JB Funding LLC (鈥淎CJB鈥�), entered into an agreement to amend ACJB鈥檚 revolving funding facility (the 鈥淪MBC Funding Facility鈥�). The amendment, among other things, (a) increased the commitments under the SMBC Funding Facility from $800 million to $1.1 billion, (b) extended the end of the reinvestment period from December 6, 2027 to July 25, 2028, (c) extended the stated maturity date from December 6, 2029 to July 25, 2030 and (d) adjusted the interest rate charged on the SMBC Funding Facility from an applicable spread of either (x) 2.00% over SOFR or (y) 1.00% over a 鈥渂ase rate鈥� to an applicable spread of either (x) 1.80% over SOFR or (y) 0.80% over a 鈥渂ase rate鈥� (as defined in the documents governing the SMBC Funding Facility). The SMBC Funding Facility also provides for an 鈥渁ccordion鈥� feature that allows ACJB, under certain circumstances, to increase the overall size of the SMBC Funding Facility to $1.3 billion. The other terms of the SMBC Funding Facility remained materially unchanged.

In July 2025, Ares Capital repaid in full the $1,250 million aggregate principal amount outstanding of its unsecured notes upon their maturity, which bore interest at a rate of 3.250% per annum.

From July 1, 2025 through July 24, 2025, Ares Capital made new investment commitments of approximately $1.1 billion, of which approximately $614 million were funded. Of the approximately $1.1 billion in new investment commitments, 88% were in first lien senior secured loans, 5% were in subordinated certificates of the SDLP, 1% were in senior subordinated loans, 3% were in Ares Capital鈥檚 subordinated loan to IHAM and 3% were in other equity. Of the approximately $1.1 billion in new investment commitments, 96% were floating rate, 1% were fixed rate and 3% were non-income producing. The weighted average yield of debt and other income producing securities funded during the period at amortized cost was 9.6% and the weighted average yield on total investments funded during the period at amortized cost was 9.2%. Ares Capital may seek to sell all or a portion of these new investment commitments, although there can be no assurance that it will be able to do so.

From July 1, 2025 through July 24, 2025, Ares Capital exited approximately $365 million of investment commitments. Of the approximately $365 million of exited investment commitments, 62% were first lien senior secured loans, 1% were subordinated certificates of the SDLP, 15% were senior subordinated loans, 21% were Ares Capital鈥檚 subordinated loan to IHAM and 1% were preferred equity. Of the approximately $365 million of exited investment commitments, 79% were floating rate, 16% were fixed rate and 5% were on non-accrual status. The weighted average yield of debt and other income producing securities exited or repaid during the period at amortized cost was 10.6% and the weighted average yield on total investments exited or repaid during the period at amortized cost was 10.6%. Of the approximately $365 million of investment commitments exited from July 1, 2025 through July 24, 2025, Ares Capital recognized total net realized losses of approximately $9 million.

In addition, as of July 24, 2025, Ares Capital had an investment backlog of approximately $2.6 billion. Investment backlog includes transactions approved by Ares Capital鈥檚 investment adviser鈥檚 investment committee and/or for which a formal mandate, letter of intent or a signed commitment have been issued, and therefore Ares Capital believes are likely to close. The consummation of any of the investments in this backlog depends upon, among other things, one or more of the following: Ares Capital鈥檚 acceptance of the terms and structure of such investment and the execution and delivery of satisfactory transaction documentation. In addition, Ares Capital may sell all or a portion of these investments and certain of these investments may result in the repayment of existing investments. Ares Capital cannot assure you that it will make any of these investments or that Ares Capital will sell all or any portion of these investments.

WEBCAST / CONFERENCE CALL

Ares Capital will host a webcast/conference call on Tuesday, July 29, 2025 at 12:00 p.m. (Eastern Time) to discuss its quarter ended June 30, 2025 financial results. PLEASE VISIT ARES CAPITAL鈥橲 WEBCAST LINK LOCATED ON THE HOME PAGE OF THE INVESTOR RESOURCES SECTION OF ARES CAPITAL鈥橲 WEBSITE FOR A SLIDE PRESENTATION THAT COMPLEMENTS THE EARNINGS CONFERENCE CALL.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of Ares Capital鈥檚 website at . Please visit the website to test your connection before the webcast. Domestic callers can access the conference call toll free by dialing +1 (800) 225-9448. International callers can access the conference call by dialing +1 (203) 518-9708. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected and to reference the conference ID ARCCQ225. For interested parties, an archived replay of the call will be available approximately one hour after the end of the call through August 29, 2025 at 5:00 p.m. (Eastern Time) to domestic callers by dialing toll free +1 (800) 695-1624 and to international callers by dialing +1 (402) 530-9026. An archived replay will also be available through August 29, 2025 on a webcast link located on the Home page of the Investor Resources section of Ares Capital鈥檚 website.

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鈥檚 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 (鈥淏DC鈥�) and was the largest publicly traded BDC by market capitalization as of June 30, 2025. 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 .

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast/conference call may constitute 鈥渇orward-looking statements,鈥� which relate to future events or Ares Capital鈥檚 future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. 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鈥檚 filings with the SEC. Ares Capital undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call.

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INVESTOR RELATIONS CONTACTS

Ares Capital Corporation

John Stilmar or Carl Drake

(888) 818-5298

[email protected]

Source: Ares Capital Corporation