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Buyer, Inc., First lien senior secured loan2024-06-300001287750Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP, First lien senior secured loan2024-06-300001287750Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP, Limited partnership interest2024-06-300001287750arcc:ActivateHoldingsUSCorp.AndCrossPointCapitalASSPVLPMember2024-06-300001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC, First lien senior secured loan 12024-06-300001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC, First lien senior secured loan 22024-06-300001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC, First lien senior secured loan 32024-06-300001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC, Senior subordinated loan2024-06-300001287750arcc:AffiniPayMidcoLLCAndAffiniPayIntermediateHoldingsLLCMember2024-06-300001287750Anaplan, Inc., First lien senior secured loan 12024-06-300001287750Anaplan, Inc., First lien senior secured loan 22024-06-300001287750arcc:AnaplanIncMember2024-06-300001287750Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua, First lien senior secured loan 12024-06-300001287750Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua, First lien senior secured loan 22024-06-300001287750Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua, Limited partnership units2024-06-300001287750arcc:AnaquaParentHoldingsIncAstorgVIICoInvestAnaquaMember2024-06-300001287750APG Intermediate Holdings Corporation and APG Holdings, LLC, First lien senior secured loan2024-06-300001287750APG Intermediate Holdings Corporation and APG Holdings, LLC, Class A membership units2024-06-300001287750arcc:APGIntermediateHoldingsCorporationAndAPGHoldingsLLCMember2024-06-300001287750Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc., First lien senior secured loan2024-06-300001287750Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc., Series A preferred shares2024-06-300001287750arcc:ApprissHealthLLCAndApprissHealthIntermediateHoldingsIncMember2024-06-300001287750Aptean, Inc. and Aptean Acquiror Inc., First lien senior secured loan2024-06-300001287750Artifact Bidco, Inc. (fka Avetta, LLC), First lien senior secured loan2024-06-300001287750Auctane, Inc., First lien senior secured loan2024-06-300001287750Avalara, Inc., First lien senior secured loan2024-06-300001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured revolving loan2024-06-300001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured loan 12024-06-300001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured loan 22024-06-300001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured loan 32024-06-300001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured loan 42024-06-300001287750Banyan Software Holdings, LLC and Banyan Software, LP, Preferred units2024-06-300001287750arcc:BanyanSoftwareHoldingsLLCAndBanyanSoftwareLPMember2024-06-300001287750BCTO Ignition Purchaser, Inc., First lien senior secured loan2024-06-300001287750Bobcat Purchaser, LLC and Bobcat Topco, L.P., First lien senior secured loan2024-06-300001287750Bobcat Purchaser, LLC and Bobcat Topco, L.P., Class A-1 units2024-06-300001287750arcc:BobcatPurchaserLLCAndBobcatTopcoLPMember2024-06-300001287750Borrower R365 Holdings LLC, First lien senior secured loan 12024-06-300001287750Borrower R365 Holdings LLC, First lien senior secured loan 22024-06-300001287750arcc:BorrowerR365HoldingsLLCMember2024-06-300001287750Bottomline Technologies, Inc. and Legal Spend Holdings, LLC, First lien senior secured loan 12024-06-300001287750Bottomline Technologies, Inc. and Legal Spend Holdings, LLC, First lien senior secured loan 22024-06-300001287750arcc:BottomlineTechnologiesIncAndLegalSpendHoldingsLLCMember2024-06-300001287750Businessolver.com, Inc., First lien senior secured loan2024-06-300001287750CallMiner, Inc., Warrant to purchase shares of Series 1 preferred stock2024-06-300001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., First lien senior secured loan2024-06-300001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., Second lien senior secured loan2024-06-300001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., Series A preferred shares2024-06-300001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., Series A-2 preferred shares2024-06-300001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., Series A-3 preferred shares2024-06-300001287750arcc:CardinalParentIncAndPackersSoftwareIntermediateHoldingsIncMember2024-06-300001287750Centralsquare Technologies, LLC and Supermoose Newco, Inc., First lien senior secured loan2024-06-300001287750Centralsquare Technologies, LLC and Supermoose Newco, Inc., Series A preferred stock2024-06-300001287750arcc:CentralsquareTechnologiesLLCAndSupermooseNewcoInc.Member2024-06-300001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., First lien senior secured loan 12024-06-300001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., First lien senior secured loan 22024-06-300001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., First lien senior secured notes2024-06-300001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., Second lien senior secured notes2024-06-300001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., Series A preferred stock2024-06-300001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., Limited partnership interests2024-06-300001287750arcc:CloudSoftwareGroupIncPicardParentIncCloudSoftwareGroupHoldingsIncPicardHoldCoLLCAndElliottAltoCoInvestorAggregatorLPMember2024-06-300001287750Community Brands ParentCo, LLC, First lien senior secured loan2024-06-300001287750Community Brands ParentCo, LLC, Class A units2024-06-300001287750arcc:CommunityBrandsParentCoLLCMember2024-06-300001287750Computer Services, Inc., First lien senior secured loan 12024-06-300001287750Computer Services, Inc., First lien senior secured loan 22024-06-300001287750arcc:ComputerServicesInc.Member2024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured revolving loan 12024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured revolving loan 22024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured revolving loan 32024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured loan 12024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured loan 22024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured loan 32024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured loan 42024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., Common units2024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., Series A common units2024-06-300001287750arcc:ConsilioMidcoLimitedCompusoftUSLLCAndConsilioInvestmentHoldingsLPMember2024-06-300001287750CoreLogic, Inc. and T-VIII Celestial Co-Invest LP, Second lien senior secured loan2024-06-300001287750CoreLogic, Inc. and T-VIII Celestial Co-Invest LP, Limited partnership units2024-06-300001287750arcc:CoreLogicIncAndTVIIICelestialCoInvestLPMember2024-06-300001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 12024-06-300001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 22024-06-300001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 32024-06-300001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 42024-06-300001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 52024-06-300001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., Preferred equity2024-06-300001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., Common equity2024-06-300001287750arcc:CoritySoftwareIncCoritySoftwareUSAIncAndCorityParentIncMember2024-06-300001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., First lien senior secured revolving loan2024-06-300001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., First lien senior secured loan2024-06-300001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., Second lien senior secured loan2024-06-300001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., Series A preferred shares2024-06-300001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., Class A-1 common stock2024-06-300001287750arcc:CornerstoneOnDemandIncAndSunshineSoftwareHoldingsIncMember2024-06-300001287750Coupa Holdings, LLC and Coupa Software Incorporated, First lien senior secured loan2024-06-300001287750Datix Bidco Limited and RL Datix Holdings (USA), Inc., First lien senior secured loan 12024-06-300001287750Datix Bidco Limited and RL Datix Holdings (USA), Inc., First lien senior secured loan 22024-06-300001287750arcc:DatixBidcoLimitedMember2024-06-300001287750Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P., Second lien senior secured loan2024-06-300001287750Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P., Series A preferred shares2024-06-300001287750Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P., Series A units2024-06-300001287750arcc:DcertBuyerIncDCertPreferredHoldingsIncAndDestinyDigitalHoldingsLPMember2024-06-300001287750Denali Holdco LLC and Denali Apexco LP, First lien senior secured loan 12024-06-300001287750Denali Holdco LLC and Denali Apexco LP, First lien senior secured loan 22024-06-300001287750Denali Holdco LLC and Denali Apexco LP, Class A units2024-06-300001287750arcc:DenaliHoldcoLLCAndDenaliApexcoLPMember2024-06-300001287750Diligent Corporation and Diligent Preferred Issuer, Inc., First lien senior secured loan2024-06-300001287750Diligent Corporation and Diligent Preferred Issuer, Inc., Preferred stock2024-06-300001287750arcc:DiligentCorporationAndDiligentPreferredIssuerIncMember2024-06-300001287750Echo Purchaser, Inc., First lien senior secured loan2024-06-300001287750Edmunds Govtech, Inc., First lien senior secured revolving loan2024-06-300001287750Edmunds Govtech, Inc., First lien senior secured loan2024-06-300001287750arcc:EdmundsGovtechIncMember2024-06-300001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., First lien senior secured revolving loan2024-06-300001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., First lien senior secured loan 12024-06-300001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., First lien senior secured loan 22024-06-300001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., First lien senior secured loan 32024-06-300001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., Preferred equity2024-06-300001287750arcc:ElemicaParentIncEZElemicaHoldingsIncMember2024-06-300001287750Enverus Holdings, Inc. and Titan DI Preferred Holdings, Inc., First lien senior secured loan2024-06-300001287750Enverus Holdings, Inc. and Titan DI Preferred Holdings, Inc., Preferred stock2024-06-300001287750arcc:EnverusHoldingsIncAndTitanDIPreferredHoldingsIncMember2024-06-300001287750EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P., First lien senior secured loan2024-06-300001287750EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P., Second lien senior secured loan2024-06-300001287750EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P., Partnership units2024-06-300001287750arcc:EPPurchaserLLCAndTPGVIIIEPCoInvestIILPMember2024-06-300001287750EpiServer Inc. and Episerver Sweden Holdings AB, First lien senior secured loan 12024-06-300001287750EpiServer Inc. and Episerver Sweden Holdings AB, First lien senior secured loan 22024-06-300001287750EpiServer Inc. and Episerver Sweden Holdings AB, First lien senior secured loan 32024-06-300001287750arcc:EpiServerIncAndEpiserverSwedenHoldingsABMember2024-06-300001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, First lien senior secured revolving loan 12024-06-300001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, First lien senior secured revolving loan 22024-06-300001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, First lien senior secured loan2024-06-300001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, Second lien senior secured loan 12024-06-300001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, Second lien senior secured loan 22024-06-300001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, Second lien senior secured loan 32024-06-300001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, Limited partnership interest2024-06-300001287750arcc:EResearchTechnologyIncAndAstorgVIICoInvestERTMember2024-06-300001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P., First lien senior secured revolving loan 12024-06-300001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P., First lien senior secured revolving loan 22024-06-300001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P., First lien senior secured loan2024-06-300001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P., Limited partner interests2024-06-300001287750arcc:ESHAResearchLLCAndRMCFVICIVXLVIIILPMember2024-06-300001287750Extrahop Networks, Inc., First lien senior secured loan 12024-06-300001287750Extrahop Networks, Inc., First lien senior secured loan 22024-06-300001287750arcc:ExtraHopNetworksIncMember2024-06-300001287750Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L., First lien senior secured loan2024-06-300001287750Forescout Technologies, Inc., First lien senior secured loan2024-06-300001287750GI Ranger Intermediate LLC, First lien senior secured loan 12024-06-300001287750GI Ranger Intermediate LLC, First lien senior secured loan 22024-06-300001287750arcc:GIRangerIntermediateLLCMember2024-06-300001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, First lien senior secured loan2024-06-300001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, Senior subordinated loan2024-06-300001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, Preferred units2024-06-300001287750arcc:GraphPADSoftwareLLCInsightfulScienceIntermediateILLCAndInsightfulScienceHoldingsLLCMember2024-06-300001287750Guidepoint Security Holdings, LLC, First lien senior secured loan2024-06-300001287750Heavy Construction Systems Specialists, LLC, First lien senior secured loan 12024-06-300001287750Heavy Construction Systems Specialists, LLC, First lien senior secured loan 22024-06-300001287750arcc:HeavyConstructionSystemsSpecialistsLLCMember2024-06-300001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP, First lien senior secured revolving loan2024-06-300001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP, First lien senior secured loan2024-06-300001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP, Senior subordinated loan2024-06-300001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP, Company units2024-06-300001287750arcc:HuskiesParentIncGIInsurityParentLLCAndGIInsurityTopcoLPMember2024-06-300001287750Hyland Software, Inc., First lien senior secured loan2024-06-300001287750Icefall Parent, Inc., First lien senior secured loan2024-06-300001287750Imprivata, Inc., Second lien senior secured loan2024-06-300001287750Inmar, Inc., First lien senior secured loan2024-06-300001287750Internet Truckstop Group LLC, First lien senior secured loan2024-06-300001287750IQN Holding Corp., First lien senior secured revolving loan2024-06-300001287750IQN Holding Corp., First lien senior secured loan2024-06-300001287750arcc:IQNHoldingCorp.Member2024-06-300001287750IV Rollover Holdings, LLC, Class B units2024-06-300001287750IV Rollover Holdings, LLC, Class X units2024-06-300001287750arcc:IVRolloverHoldingsLLCMember2024-06-300001287750Kaseya Inc. and Knockout Intermediate Holdings I Inc., First lien senior secured revolving loan2024-06-300001287750Kaseya Inc. and Knockout Intermediate Holdings I Inc., First lien senior secured loan2024-06-300001287750Kaseya Inc. and Knockout Intermediate Holdings I Inc., Preferred stock2024-06-300001287750arcc:KaseyaIncAndKnockoutIntermediateHoldingsIIncMember2024-06-300001287750LeanTaaS Holdings, Inc., First lien senior secured loan2024-06-300001287750Majesco and Magic Topco, L.P., First lien senior secured loan2024-06-300001287750Majesco and Magic Topco, L.P., Class A units2024-06-300001287750Majesco and Magic Topco, L.P., Class B units2024-06-300001287750arcc:MajescoAndMagicTopcoLPMember2024-06-300001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp, First lien senior secured loan 12024-06-300001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp, First lien senior secured loan 22024-06-300001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp, Limited partnership interest2024-06-300001287750arcc:MimecastBorrowercoIncAndMagnesiumCoInvestSCSpMember2024-06-300001287750Ministry Brands Holdings, LLC and RCP MB Investments B, L.P., First lien senior secured loan2024-06-300001287750Ministry Brands Holdings, LLC and RCP MB Investments B, L.P., Limited partner interests2024-06-300001287750arcc:MinistryBrandsHoldingsLLCAndRCPMBInvestmentsBLPMember2024-06-300001287750Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC, First lien senior secured revolving loan2024-06-300001287750Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC, First lien senior secured loan2024-06-300001287750Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC, Class A units2024-06-300001287750arcc:MoonrakerAcquisitionCoLLCAndMoonrakerHoldCoLLCMember2024-06-300001287750MRI Software LLC, First lien senior secured loan 12024-06-300001287750MRI Software LLC, First lien senior secured loan 22024-06-300001287750MRI Software LLC, First lien senior secured loan 32024-06-300001287750arcc:MRISoftwareLLCMember2024-06-300001287750Netsmart, Inc. and Netsmart Technologies, Inc., First lien senior secured loan2024-06-300001287750North Star Acquisitionco, LLC and Toucan Bidco Limited, First lien senior secured revolving loan2024-06-300001287750North Star Acquisitionco, LLC and Toucan Bidco Limited, First lien senior secured loan 12024-06-300001287750North Star Acquisitionco, LLC and Toucan Bidco Limited, First lien senior secured loan 22024-06-300001287750North Star Acquisitionco, LLC and Toucan Bidco Limited, First lien senior secured loan 32024-06-300001287750arcc:NorthStarAcquisitioncoLLCAndToucanBidcoLimitedMember2024-06-300001287750OpenMarket Inc., First lien senior secured loan2024-06-300001287750PDDS HoldCo, Inc., First lien senior secured revolving loan2024-06-300001287750PDDS HoldCo, Inc., First lien senior secured loan2024-06-300001287750arcc:PDDSHoldCoIncMember2024-06-300001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, First lien senior secured loan 12024-06-300001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, First lien senior secured loan 22024-06-300001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Series A preferred stock2024-06-300001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Class A units2024-06-300001287750arcc:PDITAHoldingsIncPeachtreeParentIncAndInsightPDIHoldingsLLCMember2024-06-300001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC, First lien senior secured loan 12024-06-300001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC, First lien senior secured loan 22024-06-300001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC, First lien senior secured loan 32024-06-300001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC, Class A units2024-06-300001287750arcc:PegasusGlobalEnterpriseHoldingsLLCMekoneBlockerAcquisitionIncAndMekoneParentLLCMember2024-06-300001287750Petvisor Holdings, LLC, First lien senior secured revolving loan2024-06-300001287750Petvisor Holdings, LLC, First lien senior secured loan 12024-06-300001287750Petvisor Holdings, LLC, First lien senior secured loan 22024-06-300001287750Petvisor Holdings, LLC, First lien senior secured loan 32024-06-300001287750arcc:PetvisorHoldingsLLCMember2024-06-300001287750Ping Identity Holding Corp., First lien senior secured loan2024-06-300001287750Pluralsight, Inc., First lien senior secured revolving loan2024-06-300001287750Pluralsight, Inc., First lien senior secured loan2024-06-300001287750arcc:PluralsightIncMember2024-06-300001287750Poplicus Incorporated, Warrant to purchase shares of Series C preferred stock2024-06-300001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC, First lien senior secured revolving loan2024-06-300001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC, First lien senior secured loan2024-06-300001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC, Senior subordinated loan2024-06-300001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC, Class A units2024-06-300001287750arcc:PracticeTekPurchaserLLCPracticeTekMidCoLLCAndGSVPracticeTekHoldingsLLCMember2024-06-300001287750ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P., First lien senior secured revolving loan2024-06-300001287750ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P., First lien senior secured loan 12024-06-300001287750ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P., First lien senior secured loan 22024-06-300001287750ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P., Limited partnership units2024-06-300001287750arcc:ProfitSolvPurchaserIncAndPSCoInvestLPMember2024-06-300001287750Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc., Class A common stock2024-06-300001287750Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc., Class B common stock2024-06-300001287750arcc:ProjectAlphaIntermediateHoldingIncAndQlikParentIncMember2024-06-300001287750Project Essential Bidco, Inc. and Project Essential Super Parent, Inc., First lien senior secured loan2024-06-300001287750Project Essential Bidco, Inc. and Project Essential Super Parent, Inc., Preferred shares2024-06-300001287750arcc:ProjectEssentialBidcoIncAndProjectEssentialSuperParentIncMember2024-06-300001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., First lien senior secured revolving loan2024-06-300001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., First lien senior secured loan 12024-06-300001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., First lien senior secured loan 22024-06-300001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., First lien senior secured loan 32024-06-300001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., Class B units2024-06-300001287750arcc:ProjectPotterBuyerLLCAndProjectPotterParentLPMember2024-06-300001287750Proofpoint, Inc., First lien senior secured loan2024-06-300001287750PushPay USA Inc., First lien senior secured loan2024-06-300001287750QF Holdings, Inc., First lien senior secured revolving loan2024-06-300001287750QF Holdings, Inc., First lien senior secured loan 12024-06-300001287750QF Holdings, Inc., First lien senior secured loan 22024-06-300001287750QF Holdings, Inc., First lien senior secured loan 32024-06-300001287750QF Holdings, Inc., First lien senior secured loan 42024-06-300001287750arcc:QFHoldingsIncMember2024-06-300001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC, First lien senior secured loan 12024-06-300001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC, First lien senior secured loan 22024-06-300001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC, First lien senior secured loan 32024-06-300001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC, Class A common units2024-06-300001287750arcc:RaptorTechnologiesLLCSycamoreBidcoLTDAndRocketParentLLCMember2024-06-300001287750RealPage, Inc., Second lien senior secured loan2024-06-300001287750Regent Education, Inc., Warrant to purchase shares of common stock2024-06-300001287750Relativity ODA LLC, First lien senior secured loan2024-06-300001287750Revalize, Inc., First lien senior secured revolving loan2024-06-300001287750Revalize, Inc., First lien senior secured loan2024-06-300001287750arcc:RevalizeIncMember2024-06-300001287750RMS HoldCo II, LLC & RMS Group Holdings, Inc., First lien senior secured loan 12024-06-300001287750RMS HoldCo II, LLC & RMS Group Holdings, Inc., First lien senior secured loan 22024-06-300001287750RMS HoldCo II, LLC & RMS Group Holdings, Inc., Class A common stock2024-06-300001287750arcc:RMSHoldcoIILLCRMSGroupHoldingsIncMember2024-06-300001287750Smarsh Inc. and Skywalker TopCo, LLC, First lien senior secured revolving loan2024-06-300001287750Smarsh Inc. and Skywalker TopCo, LLC, First lien senior secured loan2024-06-300001287750Smarsh Inc. and Skywalker TopCo, LLC, Common units2024-06-300001287750arcc:SmarshIncAndSkywalkerTopCoLLCMember2024-06-300001287750SocialFlow, Inc., Warrant to purchase shares of Series C preferred stock2024-06-300001287750Sophia, L.P., Second lien senior secured loan2024-06-300001287750SoundCloud Limited, Common stock2024-06-300001287750Spark Purchaser, Inc., First lien senior secured loan2024-06-300001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp, First lien senior secured revolving loan2024-06-300001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp, First lien senior secured loan 12024-06-300001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp, First lien senior secured loan 22024-06-300001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp, Limited partner interests2024-06-300001287750arcc:SpiritRRHoldingsIncAndWinterfellCoInvestSCSpMember2024-06-300001287750Storable, Inc. and EQT IX Co-Investment (E) SCSP, Second lien senior secured loan 12024-06-300001287750Storable, Inc. and EQT IX Co-Investment (E) SCSP, Second lien senior secured loan 22024-06-300001287750Storable, Inc. and EQT IX Co-Investment (E) SCSP, Limited partnership interests2024-06-300001287750arcc:StorableIncAndEQTIXCoInvestmentESCSPMember2024-06-300001287750Sundance Group Holdings, Inc., First lien senior secured revolving loan2024-06-300001287750Sundance Group Holdings, Inc., First lien senior secured loan 12024-06-300001287750Sundance Group Holdings, Inc., First lien senior secured loan 22024-06-300001287750arcc:SundanceGroupHoldingsIncMember2024-06-300001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., First lien senior secured loan 12024-06-300001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., First lien senior secured loan 22024-06-300001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., First lien senior secured loan 32024-06-300001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., First lien senior secured loan 42024-06-300001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., First lien senior secured loan 52024-06-300001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., Class A-2 units2024-06-300001287750arcc:TamarackIntermediateLLCAndTamarackParentLLCMember2024-06-300001287750TCP Hawker Intermediate LLC, First lien senior secured revolving loan2024-06-300001287750TCP Hawker Intermediate LLC, First lien senior secured loan 12024-06-300001287750TCP Hawker Intermediate LLC, First lien senior secured loan 22024-06-300001287750TCP Hawker Intermediate LLC, First lien senior secured loan 32024-06-300001287750TCP Hawker Intermediate LLC, First lien senior secured loan 42024-06-300001287750arcc:TCPHawkerIntermediateLLCMember2024-06-300001287750UKG Inc. and H&F Unite Partners, L.P., Limited partnership interests2024-06-300001287750UserZoom Technologies, Inc., First lien senior secured loan2024-06-300001287750WebPT, Inc. and WPT Intermediate Holdco, Inc., First lien senior secured revolving loan2024-06-300001287750WebPT, Inc. and WPT Intermediate Holdco, Inc., First lien senior secured loan2024-06-300001287750WebPT, Inc. and WPT Intermediate Holdco, Inc., Senior subordinated loan2024-06-300001287750arcc:WebPTIncMember2024-06-300001287750Wellington Bidco Inc. and Wellington TopCo LP, First lien senior secured revolving loan2024-06-300001287750Wellington Bidco Inc. and Wellington TopCo LP, First lien senior secured loan2024-06-300001287750Wellington Bidco Inc. and Wellington TopCo LP, Class A-2 preferred units2024-06-300001287750arcc:WellingtonBidcoInc.AndWellingtonTopCoLPMember2024-06-300001287750Wellness AcquisitionCo, Inc., First lien senior secured loan 12024-06-300001287750Wellness AcquisitionCo, Inc., First lien senior secured loan 22024-06-300001287750arcc:WellnessAcquisitionCoIncMember2024-06-300001287750WorkWave Intermediate II, LLC, First lien senior secured loan 12024-06-300001287750WorkWave Intermediate II, LLC, First lien senior secured loan 22024-06-300001287750arcc:WorkWaveIntermediateIILLCMember2024-06-300001287750ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP, First lien senior secured loan2024-06-300001287750ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP, Series A preferred stock2024-06-300001287750ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP, Class A common units2024-06-300001287750arcc:ZenDeskIncZoroTopCoIncAndZoroTopCoLPMember2024-06-300001287750ZocDoc, Inc., First lien senior secured loan2024-06-300001287750arcc:SoftwareAndServicesMember2024-06-300001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC, First lien senior secured revolving loan2024-06-300001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC, First lien senior secured loan2024-06-300001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC, Class A common units2024-06-300001287750arcc:AbsoluteDentalGroupLLCAndAbsoluteDentalEquityLLCMember2024-06-300001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC, First lien senior secured loan2024-06-300001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC, Second lien senior secured loan2024-06-300001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC, Membership units2024-06-300001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC, Class A common units2024-06-300001287750arcc:ADGLLCAndRCIVGEDCInvestorLLCMember2024-06-300001287750Advarra Holdings, Inc., First lien senior secured loan2024-06-300001287750AHR Funding Holdings, Inc. and AHR Parent Holdings, LP, Series A preferred shares2024-06-300001287750AHR Funding Holdings, Inc. and AHR Parent Holdings, LP, Preferred units2024-06-300001287750AHR Funding Holdings, Inc. and AHR Parent Holdings, LP, Class B common units2024-06-300001287750arcc:AHRFundingHoldingsIncAndAHRParentHoldingsLPMember2024-06-300001287750Amerivet Partners Management, Inc. and AVE Holdings LP, Subordinated loan2024-06-300001287750Amerivet Partners Management, Inc. and AVE Holdings LP, Class A units2024-06-300001287750Amerivet Partners Management, Inc. and AVE Holdings LP, Class C units2024-06-300001287750arcc:AmerivetPartnersManagementIncAndAVEHoldingsLPMember2024-06-300001287750Artivion, Inc., First lien senior secured revolving loan2024-06-300001287750Artivion, Inc., First lien senior secured loan2024-06-300001287750arcc:ArtivionIncMember2024-06-300001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP, First lien senior secured loan2024-06-300001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP, Series A preferred stock2024-06-300001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP, Class A units2024-06-300001287750arcc:AthenaHealthGroupIncMinervaHoldcoIncAndBCPECoInvestALPMember2024-06-300001287750Avalign Holdings, Inc. and Avalign Technologies, Inc., First lien senior secured loan2024-06-300001287750BAART Programs, Inc., MedMark Services, Inc., and Canadian Addiction Treatment Centres LP, First lien senior secured loan2024-06-300001287750Bambino Group Holdings, LLC, Class A preferred units2024-06-300001287750Center for Autism and Related Disorders, LLC, First lien senior secured revolving loan 12024-06-300001287750Center for Autism and Related Disorders, LLC, First lien senior secured revolving loan 22024-06-300001287750Center for Autism and Related Disorders, LLC, First lien senior secured loan2024-06-300001287750arcc:CenterForAutismAndRelatedDisordersLLCMember2024-06-300001287750Color Intermediate, LLC, First lien senior secured loan2024-06-300001287750Comprehensive EyeCare Partners, LLC, First lien senior secured revolving loan2024-06-300001287750Comprehensive EyeCare Partners, LLC, First lien senior secured loan2024-06-300001287750arcc:ComprehensiveEyeCarePartnersLLCMember2024-06-300001287750Convey Health Solutions, Inc., First lien senior secured loan 12024-06-300001287750Convey Health Solutions, Inc., First lien senior secured loan 22024-06-300001287750Convey Health Solutions, Inc., First lien senior secured loan 32024-06-300001287750arcc:ConveyHealthSolutionsIncMember2024-06-300001287750Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC, First lien senior secured loan2024-06-300001287750Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC, Class A shares2024-06-300001287750Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC, Common units2024-06-300001287750arcc:CrownCTParentIncCrownCTHoldCoIncAndCrownCTManagementLLCMember2024-06-300001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, First lien senior secured loan2024-06-300001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, Class A preferred units2024-06-300001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, Common stock2024-06-300001287750arcc:CVPHoldcoIncAndOMERSWildcatsInvestmentHoldingsLLCMember2024-06-300001287750Empower Payments Investor, LLC, First lien senior secured loan2024-06-300001287750Evolent Health LLC and Evolent Health, Inc., Series A preferred shares2024-06-300001287750GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC, Second lien senior secured loan2024-06-300001287750GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC, Class A units2024-06-300001287750arcc:GHXUltimateParentCorporationCommerceParentIncAndCommerceTopcoLLCMember2024-06-300001287750Global Medical Response, Inc. and GMR Buyer Corp., First lien senior secured loan2024-06-300001287750Global Medical Response, Inc. and GMR Buyer Corp., Series B preferred shares2024-06-300001287750Global Medical Response, Inc. and GMR Buyer Corp., Warrant to purchase units of common stock 12024-06-300001287750Global Medical Response, Inc. and GMR Buyer Corp., Warrant to purchase units of common stock 22024-06-300001287750Global Medical Response, Inc. and GMR Buyer Corp., Warrants to purchase shares of common stock2024-06-300001287750arcc:GlobalMedicalResponseIncAndGMRBuyerCorpMember2024-06-300001287750Hanger, Inc., First lien senior secured revolving loan2024-06-300001287750Hanger, Inc., First lien senior secured loan 12024-06-300001287750Hanger, Inc., First lien senior secured loan 22024-06-300001287750Hanger, Inc., Second lien senior secured loan 12024-06-300001287750Hanger, Inc., Second lien senior secured loan 22024-06-300001287750arcc:HangerIncMember2024-06-300001287750HealthEdge Software, Inc., First lien senior secured revolving loan2024-06-300001287750HealthEdge Software, Inc., First lien senior secured loan 12024-06-300001287750HealthEdge Software, Inc., First lien senior secured loan 22024-06-300001287750arcc:HealthEdgeSoftwareIncMember2024-06-300001287750Honor Technology, Inc., Warrant to purchase shares of Series D-2 preferred stock2024-06-300001287750HuFriedy Group Acquisition LLC, First lien senior secured loan2024-06-300001287750JDC Healthcare Management, LLC, Senior subordinated loan2024-06-300001287750KBHS Acquisition, LLC (d/b/a Alita Care, LLC), First lien senior secured revolving loan 12024-06-300001287750KBHS Acquisition, LLC (d/b/a Alita Care, LLC), First lien senior secured revolving loan 22024-06-300001287750arcc:KBHSAcquisitionLLCDbaAlitaCareLLCMember2024-06-300001287750Lifescan Global Corporation, First lien senior secured loan2024-06-300001287750Lifescan Global Corporation, Second lien senior secured loan2024-06-300001287750arcc:LifescanGlobalCorporationMember2024-06-300001287750Medline Borrower, LP, First lien senior secured revolving loan2024-06-300001287750Napa Management Services Corporation and ASP NAPA Holdings, LLC, Preferred units2024-06-300001287750Napa Management Services Corporation and ASP NAPA Holdings, LLC, Senior preferred units2024-06-300001287750Napa Management Services Corporation and ASP NAPA Holdings, LLC, Class A units2024-06-300001287750arcc:NapaManagementServicesCorporationAndASPNAPAHoldingsLLCMember2024-06-300001287750Next Holdco, LLC, First lien senior secured loan2024-06-300001287750NMN Holdings III Corp. and NMN Holdings LP, First lien senior secured revolving loan2024-06-300001287750NMN Holdings III Corp. and NMN Holdings LP, Partnership units2024-06-300001287750arcc:NMNHoldingsIIICorpAndNMNHoldingsLPMember2024-06-300001287750Nomi Health, Inc., First lien senior secured loan 12024-06-300001287750Nomi Health, Inc., First lien senior secured loan 22024-06-300001287750Nomi Health, Inc., Warrant to purchase shares of Series B preferred stock2024-06-300001287750Nomi Health, Inc., Warrant to purchase units of Class A common stock2024-06-300001287750arcc:NomiHealthIncMember2024-06-300001287750NSPC Intermediate Corp. and NSPC Holdings, LLC, First lien senior secured loan2024-06-300001287750NSPC Intermediate Corp. and NSPC Holdings, LLC, Common units2024-06-300001287750arcc:NSPCIntermediateCorp.AndNSPCHoldingsLLCMember2024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, First lien senior secured loan 12024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, First lien senior secured loan 22024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, First lien senior secured loan 32024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, Preferred units2024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, Preferred stock2024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, Class A common units2024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, Common units2024-06-300001287750arcc:OlympiaAcquisitionIncOlympiaTopCoLPAndAsclepiusHoldingsLLCMember2024-06-300001287750OMH-HealthEdge Holdings, LLC, First lien senior secured loan2024-06-300001287750Paragon 28, Inc. and Paragon Advanced Technologies, Inc., First lien senior secured revolving loan2024-06-300001287750Paragon 28, Inc. and Paragon Advanced Technologies, Inc., First lien senior secured loan2024-06-300001287750arcc:Paragon28IncAndParagonAdvancedTechnologiesIncMember2024-06-300001287750Pathway Vet Alliance LLC and Jedi Group Holdings LLC, First lien senior secured revolving loan2024-06-300001287750Pathway Vet Alliance LLC and Jedi Group Holdings LLC, Second lien senior secured loan2024-06-300001287750Pathway Vet Alliance LLC and Jedi Group Holdings LLC, Class R common units2024-06-300001287750arcc:PathwayVetAllianceLLCAndJediGroupHoldingsLLCMember2024-06-300001287750PetVet Care Centers, LLC, First lien senior secured loan2024-06-300001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP, First lien senior secured revolving loan2024-06-300001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP, First lien senior secured loan2024-06-300001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP, Class A units2024-06-300001287750arcc:PremiseHealthHoldingCorpAndOMERSBluejayInvestmentHoldingsLPMember2024-06-300001287750Project Ruby Ultimate Parent Corp., Second lien senior secured loan2024-06-300001287750RTI Surgical, Inc. and Pioneer Surgical Technology, Inc., First lien senior secured revolving loan2024-06-300001287750RTI Surgical, Inc. and Pioneer Surgical Technology, Inc., First lien senior secured loan2024-06-300001287750arcc:RTISurgicalIncAndPioneerSurgicalTechnologyIncMember2024-06-300001287750SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC, First lien senior secured loan2024-06-300001287750SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC, Common units2024-06-300001287750arcc:SiroMedPhysicianServicesIncAndSiroMedEquityHoldingsLLCMember2024-06-300001287750SM Wellness Holdings, Inc. and SM Holdco, LLC, Series D units2024-06-300001287750SM Wellness Holdings, Inc. and SM Holdco, LLC, Series A units2024-06-300001287750SM Wellness Holdings, Inc. and SM Holdco, LLC, Series B units2024-06-300001287750arcc:SMWellnessHoldingsIncAndSMHoldcoIncMember2024-06-300001287750SOC Telemed, Inc. and PSC Spark Holdings, LP, First lien senior secured loan2024-06-300001287750SOC Telemed, Inc. and PSC Spark Holdings, LP, Class A-2 units2024-06-300001287750SOC Telemed, Inc. and PSC Spark Holdings, LP, Warrant to purchase units of common stock2024-06-300001287750arcc:SOCTelemedIncAndPSCSparkHoldingsLPMember2024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., First lien senior secured revolving loan2024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., First lien senior secured loan 12024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., First lien senior secured loan 22024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Second lien senior secured loan 12024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Second lien senior secured loan 22024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Series C-1 preferred shares2024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Series C-2 preferred shares2024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Series C-3 preferred shares2024-06-300001287750arcc:SymplrSoftwareIncAndSymplrSoftwareIntermediateHoldingsIncMember2024-06-300001287750Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC, First lien senior secured loan2024-06-300001287750Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC, Common units2024-06-300001287750arcc:SynergyHomeCareFranchisingLLCAndNPSynergyHoldingsLLCMember2024-06-300001287750Tempus AI, Inc., First lien senior secured loan 12024-06-300001287750Tempus AI, Inc., First lien senior secured loan 22024-06-300001287750Tempus AI, Inc., First lien senior secured loan 32024-06-300001287750Tempus AI, Inc., Common units2024-06-300001287750arcc:TempusLabsIncMember2024-06-300001287750Therapy Brands Holdings LLC, Second lien senior secured loan2024-06-300001287750Touchstone Acquisition, Inc. and Touchstone Holding, L.P., Class A preferred units2024-06-300001287750U.S. Anesthesia Partners, Inc. & U.S. Anesthesia Partners Holdings, Inc., Second lien senior secured loan2024-06-300001287750U.S. Anesthesia Partners, Inc. & U.S. Anesthesia Partners Holdings, Inc., Common stock2024-06-300001287750arcc:USAnesthesiaPartnersIncUSAnesthesiaPartnersHoldingsIncMember2024-06-300001287750United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, First lien senior secured revolving loan2024-06-300001287750United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, First lien senior secured loan2024-06-300001287750United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, Class A interests2024-06-300001287750arcc:UnitedDigestiveMSOParentLLCAndKolnCoInvestUnblockedLPMember2024-06-300001287750Viant Medical Holdings, Inc., First lien senior secured loan2024-06-300001287750Viant Medical Holdings, Inc., Second lien senior secured loan2024-06-300001287750arcc:ViantMedicalHoldingsInc.Member2024-06-300001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., First lien senior secured loan 12024-06-300001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., First lien senior secured loan 22024-06-300001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., First lien senior secured loan 32024-06-300001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., Class A-2 units 12024-06-300001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., Class A-2 units 22024-06-300001287750arcc:VPPIntermediateHoldingsLLCAndVPPGroupHoldingsLPMember2024-06-300001287750Wellpath Holdings, Inc., First lien senior secured revolving loan2024-06-300001287750Wellpath Holdings, Inc., First lien senior secured loan2024-06-300001287750arcc:WellpathHoldingsIncMember2024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured revolving loan2024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 12024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 22024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 32024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 42024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 52024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 62024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 72024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, Common units2024-06-300001287750arcc:WSHPFCAcquisitionLLCMember2024-06-300001287750us-gaap:HealthcareSectorMember2024-06-300001287750Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC, Class A common units2024-06-300001287750Aero Operating LLC, First lien senior secured loan 12024-06-300001287750Aero Operating LLC, First lien senior secured loan 22024-06-300001287750arcc:AeroOperatingLLCMember2024-06-300001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, First lien senior secured revolving loan2024-06-300001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, First lien senior secured loan 12024-06-300001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, First lien senior secured loan 22024-06-300001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, Second lien senior secured loan 12024-06-300001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, Second lien senior secured loan 22024-06-300001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, Second lien senior secured loan 32024-06-300001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, Common units2024-06-300001287750arcc:AIFireBuyerIncAndAIFireParentLLCMember2024-06-300001287750AMCP Clean Acquisition Company, LLC, First lien senior secured loan2024-06-300001287750Applied Technical Services, LLC, First lien senior secured revolving loan2024-06-300001287750Applied Technical Services, LLC, First lien senior secured loan 12024-06-300001287750Applied Technical Services, LLC, First lien senior secured loan 22024-06-300001287750Applied Technical Services, LLC, First lien senior secured loan 32024-06-300001287750arcc:AppliedTechnicalServicesLLCMember2024-06-300001287750Argenbright Holdings V, LLC, Amberstone Security Group Limited, Unifi Aviation North America LLC and Unifi Aviation Canada, Inc., First lien senior secured loan2024-06-300001287750Argenbright Holdings V, LLC, Amberstone Security Group Limited, Unifi Aviation North America LLC and Unifi Aviation Canada, Inc., Senior subordinated loan 12024-06-300001287750Argenbright Holdings V, LLC, Amberstone Security Group Limited, Unifi Aviation North America LLC and Unifi Aviation Canada, Inc., Senior subordinated loan 22024-06-300001287750arcc:ArgenbrightHoldingsVLLCAndAmberstoneSecurityGroupLimitedMember2024-06-300001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP, First lien senior secured revolving loan2024-06-300001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP, First lien senior secured loan2024-06-300001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP, Second lien senior secured loan2024-06-300001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP, Class A units2024-06-300001287750arcc:CapstoneAcquisitionHoldingsIncAndCapstoneParentHoldingsLPMember2024-06-300001287750Compex Legal Services, Inc., First lien senior secured revolving loan 12024-06-300001287750Compex Legal Services, Inc., First lien senior secured revolving loan 22024-06-300001287750Compex Legal Services, Inc., First lien senior secured loan2024-06-300001287750arcc:CompexLegalServicesIncMember2024-06-300001287750DTI Holdco, Inc. and OPE DTI Holdings, Inc., Class A common stock2024-06-300001287750DTI Holdco, Inc. and OPE DTI Holdings, Inc., Class B common stock2024-06-300001287750arcc:DTIHoldcoIncAndOPEDTIHoldingsIncMember2024-06-300001287750Duraserv LLC, First lien senior secured loan2024-06-300001287750Elevation Services Parent Holdings, LLC, First lien senior secured revolving loan2024-06-300001287750Elevation Services Parent Holdings, LLC, First lien senior secured loan 12024-06-300001287750Elevation Services Parent Holdings, LLC, First lien senior secured loan 22024-06-300001287750Elevation Services Parent Holdings, LLC, First lien senior secured loan 32024-06-300001287750arcc:ElevationServicesParentHoldingsLLCMember2024-06-300001287750FlyWheel Acquireco, Inc., First lien senior secured revolving loan2024-06-300001287750FlyWheel Acquireco, Inc., First lien senior secured loan2024-06-300001287750arcc:FlyWheelAcquirecoIncMember2024-06-300001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP, First lien senior secured revolving loan2024-06-300001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP, First lien senior secured loan 12024-06-300001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP, First lien senior secured loan 22024-06-300001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP, Class A units2024-06-300001287750arcc:HHStellaIncAndBedrockParentHoldingsLPMember2024-06-300001287750HP RSS Buyer, Inc., First lien senior secured loan 12024-06-300001287750HP RSS Buyer, Inc., First lien senior secured loan 22024-06-300001287750arcc:HPRSSBuyerInc.Member2024-06-300001287750IRI Group Holdings, Inc., Circana, LLC and IRI-NPD Co-Invest Aggregator, L.P., First lien senior secured revolving loan 12024-06-300001287750IRI Group Holdings, Inc., Circana, LLC and IRI-NPD Co-Invest Aggregator, L.P., First lien senior secured revolving loan 22024-06-300001287750IRI Group Holdings, Inc., Circana, LLC and IRI-NPD Co-Invest Aggregator, L.P., First lien senior secured loan2024-06-300001287750arcc:IRIGroupHoldingsInc.CircanaLLCAndIRINPDCoInvestAggregatorL.PMember2024-06-300001287750ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P., First lien senior secured revolving loan2024-06-300001287750ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P., First lien senior secured loan2024-06-300001287750ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P., Class A units2024-06-300001287750arcc:ISQHawkeyeHoldcoIncAndISQHawkeyeHoldingsLPMember2024-06-300001287750Kellermeyer Bergensons Services, LLC and KBS TopCo, LLC, First lien senior secured loan 12024-06-300001287750Kellermeyer Bergensons Services, LLC and KBS TopCo, LLC, First lien senior secured loan 22024-06-300001287750Kellermeyer Bergensons Services, LLC and KBS TopCo, LLC, Preferred units2024-06-300001287750Kellermeyer Bergensons Services, LLC and KBS TopCo, LLC, Class A common units2024-06-300001287750arcc:KellermeyerBergensonsServicesLLCAndKBSTopCoLLCMember2024-06-300001287750Kings Buyer, LLC, First lien senior secured revolving loan2024-06-300001287750Kings Buyer, LLC, First lien senior secured loan2024-06-300001287750arcc:KingsBuyerLLCMember2024-06-300001287750KPS Global LLC and Cool Group LLC, First lien senior secured loan 12024-06-300001287750KPS Global LLC and Cool Group LLC, First lien senior secured loan 22024-06-300001287750KPS Global LLC and Cool Group LLC, Class A units2024-06-300001287750arcc:KPSGlobalLLCAndCoolGroupLLCMember2024-06-300001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured revolving loan 12024-06-300001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured revolving loan 22024-06-300001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured loan 12024-06-300001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured loan 22024-06-300001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured loan 32024-06-300001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured loan 42024-06-300001287750Laboratories Bidco LLC and Laboratories Topco LLC, Class A units2024-06-300001287750arcc:LaboratoriesBidcoLLCAndLaboratoriesTopcoLLCMember2024-06-300001287750Lightbeam Bidco, Inc., First lien senior secured revolving loan2024-06-300001287750Lightbeam Bidco, Inc., First lien senior secured loan 12024-06-300001287750Lightbeam Bidco, Inc., First lien senior secured loan 22024-06-300001287750arcc:LightbeamBidcoIncMember2024-06-300001287750LJP Purchaser, Inc. and LJP Topco, LP, First lien senior secured loan2024-06-300001287750LJP Purchaser, Inc. and LJP Topco, LP, Class A units2024-06-300001287750arcc:LJPPurchaserIncAndLJPTopcoLPMember2024-06-300001287750Marmic Purchaser, LLC and Marmic Topco, L.P., First lien senior secured loan 12024-06-300001287750Marmic Purchaser, LLC and Marmic Topco, L.P., First lien senior secured loan 22024-06-300001287750Marmic Purchaser, LLC and Marmic Topco, L.P., First lien senior secured loan 32024-06-300001287750Marmic Purchaser, LLC and Marmic Topco, L.P., First lien senior secured loan 42024-06-300001287750Marmic Purchaser, LLC and Marmic Topco, L.P., First lien senior secured loan 52024-06-300001287750Marmic Purchaser, LLC and Marmic Topco, L.P., Limited partnership units2024-06-300001287750arcc:MarmicPurchaserLLCAndMarmicTopcoLPMember2024-06-300001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Second lien senior secured loan 12024-06-300001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Second lien senior secured loan 22024-06-300001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Series A preferred stock2024-06-300001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Series B preferred stock2024-06-300001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Common stock2024-06-300001287750arcc:MicrostarLogisticsLLCMicrostarGlobalAssetManagementLLCMStarHoldingCorporationAndKegstarUSAIncMember2024-06-300001287750Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc., First lien senior secured loan2024-06-300001287750NAS, LLC and Nationwide Marketing Group, LLC, First lien senior secured revolving loan2024-06-300001287750NAS, LLC and Nationwide Marketing Group, LLC, First lien senior secured loan 12024-06-300001287750NAS, LLC and Nationwide Marketing Group, LLC, First lien senior secured loan 22024-06-300001287750NAS, LLC and Nationwide Marketing Group, LLC, First lien senior secured loan 32024-06-300001287750arcc:NASLLCAndNationwideMarketingGroupLLCMember2024-06-300001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., First lien senior secured revolving loan2024-06-300001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., First lien senior secured loan 12024-06-300001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., First lien senior secured loan 22024-06-300001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., First lien senior secured note2024-06-300001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., Second lien senior secured loan2024-06-300001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., Limited partnership interests2024-06-300001287750arcc:NeptuneBidcoUSIncAndElliottMetronCoInvestorAggregatorLPMember2024-06-300001287750Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1, Senior subordinated loan2024-06-300001287750Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1, Limited partner interest2024-06-300001287750arcc:NestTopcoBorrowerIncKKRNestCoInvestLPAndNBLY20211Member2024-06-300001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC, First lien senior secured revolving loan2024-06-300001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC, First lien senior secured loan 12024-06-300001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC, First lien senior secured loan 22024-06-300001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC, Common units2024-06-300001287750arcc:NorthAmericanFireHoldingsLLCAndNorthAmericanFireUltimateHoldingsLLCMember2024-06-300001287750North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC, First lien senior secured revolving loan 12024-06-300001287750North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC, First lien senior secured revolving loan 22024-06-300001287750North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC, First lien senior secured loan2024-06-300001287750arcc:NorthHavenFairwayBuyerLLCFairwayLawnsLLCAndCommandPestControlLLCMember2024-06-300001287750North Haven Stack Buyer, LLC, First lien senior secured revolving loan2024-06-300001287750North Haven Stack Buyer, LLC, First lien senior secured loan 12024-06-300001287750North Haven Stack Buyer, LLC, First lien senior secured loan 22024-06-300001287750North Haven Stack Buyer, LLC, First lien senior secured loan 32024-06-300001287750North Haven Stack Buyer, LLC, First lien senior secured loan 42024-06-300001287750North Haven Stack Buyer, LLC, First lien senior secured loan 52024-06-300001287750arcc:NorthHavenStackBuyerLLCMember2024-06-300001287750Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, First lien senior secured loan 12024-06-300001287750Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, First lien senior secured loan 22024-06-300001287750Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, Warrant to purchase units of Class A common units 12024-06-300001287750Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, Warrant to purchase units of Class A common units 22024-06-300001287750arcc:PriorityWasteHoldingsLLCPriorityWasteHoldingsIndianaLLCAndPriorityWasteSuperHoldingsLLCMember2024-06-300001287750Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC, First lien senior secured loan 12024-06-300001287750Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC, First lien senior secured loan 22024-06-300001287750Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC, Class A units2024-06-300001287750arcc:PritchardIndustriesLLCAndLJPritchardTopCoHoldingsLLCMember2024-06-300001287750PS Operating Company LLC and PS Op Holdings LLC, First lien senior secured revolving loan2024-06-300001287750PS Operating Company LLC and PS Op Holdings LLC, First lien senior secured loan2024-06-300001287750PS Operating Company LLC and PS Op Holdings LLC, Common unit2024-06-300001287750arcc:PSOperatingCompanyLLCAndPSOPHoldingsLLCMember2024-06-300001287750PSC Parent, Inc., First lien senior secured revolving loan2024-06-300001287750PSC Parent, Inc., First lien senior secured loan2024-06-300001287750arcc:PSCGroupLLCMember2024-06-300001287750PYE-Barker Fire & Safety, LLC, First lien senior secured revolving loan2024-06-300001287750PYE-Barker Fire & Safety, LLC, First lien senior secured loan2024-06-300001287750arcc:PYEBarkerFireSafetyLLCMember2024-06-300001287750R2 Acquisition Corp., Common stock2024-06-300001287750RC V Tecmo Investor LLC, Common member units2024-06-300001287750RE Community Holdings GP, LLC and RE Community Holdings, LP, Limited partnership interest 12024-06-300001287750RE Community Holdings GP, LLC and RE Community Holdings, LP, Limited partnership interest 22024-06-300001287750arcc:RECommunityHoldingsGPLLCAndRECommunityHoldingsLPMember2024-06-300001287750Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P., First lien senior secured revolving loan2024-06-300001287750Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P., First lien senior secured loan2024-06-300001287750Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P., Limited partner interests2024-06-300001287750arcc:RegistrarIntermediateLLCAndPSPRegistrarCoInvestmentFundLPMember2024-06-300001287750Rodeo AcquisitionCo LLC, First lien senior secured revolving loan2024-06-300001287750Rodeo AcquisitionCo LLC, First lien senior secured loan2024-06-300001287750arcc:RodeoAcquisitionCoLLCMember2024-06-300001287750Saturn Purchaser Corp., First lien senior secured loan2024-06-300001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P., First lien senior secured revolving loan2024-06-300001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P., First lien senior secured loan2024-06-300001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P., Class A units2024-06-300001287750arcc:SchillLandscapingAndLawnCareServicesLLCTenderLawnCareULCAndLandscapeParallelPartnersLPMember2024-06-300001287750Shermco Intermediate Holdings, Inc., First lien senior secured revolving loan 12024-06-300001287750Shermco Intermediate Holdings, Inc., First lien senior secured revolving loan 22024-06-300001287750Shermco Intermediate Holdings, Inc., First lien senior secured loan 12024-06-300001287750Shermco Intermediate Holdings, Inc., First lien senior secured loan 22024-06-300001287750arcc:ShermcoIntermediateHoldingsIncMember2024-06-300001287750SSE Buyer, Inc., Supply Source Enterprises, Inc., Impact Products LLC, The Safety Zone, LLC and SSE Parent, LP, Limited partnership class A-1 units2024-06-300001287750SSE Buyer, Inc., Supply Source Enterprises, Inc., Impact Products LLC, The Safety Zone, LLC and SSE Parent, LP, Limited partnership class A-2 units2024-06-300001287750arcc:SSEBuyerIncSupplySourceEnterprisesIncImpactProductsLLCTheSafetyZoneLLCAndSSEParentLPMember2024-06-300001287750Startec Equity, LLC, Member interest2024-06-300001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 12024-06-300001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 22024-06-300001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 32024-06-300001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 42024-06-300001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 52024-06-300001287750arcc:StealthHoldingLLCAndUCITOnlineSecurityIncMember2024-06-300001287750SV Newco 2, Inc. and Site 2020 Incorporated, First lien senior secured loan2024-06-300001287750Systems Planning and Analysis, Inc., First lien senior secured loan2024-06-300001287750The Hiller Companies, LLC, First lien senior secured revolving loan2024-06-300001287750The Hiller Companies, LLC, First lien senior secured loan2024-06-300001287750arcc:TheHillerCompaniesLLCMember2024-06-300001287750Thermostat Purchaser III, Inc., First lien senior secured revolving loan2024-06-300001287750Thermostat Purchaser III, Inc., Second lien senior secured loan2024-06-300001287750arcc:ThermostatPurchaserIIIIncMember2024-06-300001287750UP Intermediate II LLC and UPBW Blocker LLC, First lien senior secured revolving loan2024-06-300001287750UP Intermediate II LLC and UPBW Blocker LLC, First lien senior secured loan2024-06-300001287750UP Intermediate II LLC and UPBW Blocker LLC, Common units2024-06-300001287750arcc:UPIntermediateIILLCAndUPBWBlockerLLCMember2024-06-300001287750Valcourt Holdings II, LLC and Jobs Holdings, Inc., First lien senior secured loan2024-06-300001287750Visual Edge Technology, Inc., First lien senior secured loan2024-06-300001287750Visual Edge Technology, Inc., Senior preferred stock2024-06-300001287750Visual Edge Technology, Inc., Junior preferred stock2024-06-300001287750Visual Edge Technology, Inc., Warrant to purchase shares of common stock2024-06-300001287750arcc:VisualEdgeTechnologyIncMember2024-06-300001287750VRC Companies, LLC, Senior subordinated loan2024-06-300001287750W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC, First lien senior secured loan2024-06-300001287750W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC, Class A preferred units2024-06-300001287750W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC, Class A common units2024-06-300001287750arcc:W.S.ConnellyCo.LLCAndWSCUltimateHoldingsLLCMember2024-06-300001287750Wash Encore Holdings, LLC, First lien senior secured loan2024-06-300001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, First lien senior secured revolving loan2024-06-300001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, First lien senior secured loan 12024-06-300001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, First lien senior secured loan 22024-06-300001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, Class A units2024-06-300001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, Class B units2024-06-300001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, Class C units2024-06-300001287750arcc:XIFINIncAndACPChargerCoInvestLLCMember2024-06-300001287750arcc:CommercialAndProfessionalServicesMember2024-06-300001287750AQ Sage Buyer, LLC, First lien senior secured revolving loan2024-06-300001287750AQ Sage Buyer, LLC, First lien senior secured loan2024-06-300001287750arcc:AQSageBuyerLLCMember2024-06-300001287750BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLC, First lien senior secured loan2024-06-300001287750BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLC, Senior subordinated loan2024-06-300001287750BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLC, Common units2024-06-300001287750arcc:BCCBlueprintHoldingsILLCAndBCCBlueprintInvestmentsLLCMember2024-06-300001287750Beacon Pointe Harmony, LLC, First lien senior secured loan 12024-06-300001287750Beacon Pointe Harmony, LLC, First lien senior secured loan 22024-06-300001287750arcc:BeaconPointeHarmonyLLCMember2024-06-300001287750Cliffwater LLC, First lien senior secured loan2024-06-300001287750Convera International Holdings Limited and Convera International Financial S.A R.L., First lien senior secured loan 12024-06-300001287750Convera International Holdings Limited and Convera International Financial S.A R.L., First lien senior secured loan 22024-06-300001287750arcc:ConveraInternationalHoldingsLimitedAndConveraInternationalFinancialSARLMember2024-06-300001287750Corient Holdings, Inc., Series A preferred stock2024-06-300001287750CrossCountry Mortgage, LLC and CrossCountry Holdco, LLC, Series D preferred units2024-06-300001287750DFC Global Facility Borrower III LLC, First lien senior secured revolving loan2024-06-300001287750eCapital Finance Corp., Senior subordinated loan 12024-06-300001287750eCapital Finance Corp., Senior subordinated loan 22024-06-300001287750eCapital Finance Corp., Senior subordinated loan 32024-06-300001287750eCapital Finance Corp., Senior subordinated loan 42024-06-300001287750eCapital Finance Corp., Senior subordinated loan 52024-06-300001287750arcc:ECapitalFinanceCorpMember2024-06-300001287750EP Wealth Advisors, LLC, First lien senior secured loan 12024-06-300001287750EP Wealth Advisors, LLC, First lien senior secured loan 22024-06-300001287750arcc:EPWealthAdvisorsLLCMember2024-06-300001287750GTCR F Buyer Corp. and GTCR (D) Investors LP, First lien senior secured loan2024-06-300001287750GTCR F Buyer Corp. and GTCR (D) Investors LP, Limited partnership interests2024-06-300001287750arcc:GTCRFBuyerCorpAndGTCRDInvestorsLPMember2024-06-300001287750HighTower Holding, LLC, Senior subordinated loan2024-06-300001287750Ivy Hill Asset Management, L.P., Subordinated revolving loan2024-06-300001287750Ivy Hill Asset Management, L.P., Member interest2024-06-300001287750arcc:IvyHillAssetManagementLPMember2024-06-300001287750Lido Advisors, LLC, First lien senior secured revolving loan2024-06-300001287750Lido Advisors, LLC, First lien senior secured loan2024-06-300001287750arcc:LidoAdvisorsLLCMember2024-06-300001287750LS DE LLC and LM LSQ Investors LLC, Senior subordinated loan 12024-06-300001287750LS DE LLC and LM LSQ Investors LLC, Senior subordinated loan 22024-06-300001287750LS DE LLC and LM LSQ Investors LLC, Membership units2024-06-300001287750arcc:LSDELLCAndLMLSQInvestorsLLCMember2024-06-300001287750Monica Holdco (US) Inc., First lien senior secured revolving loan2024-06-300001287750Monica Holdco (US) Inc., First lien senior secured loan2024-06-300001287750arcc:MonicaHoldcoUSIncMember2024-06-300001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured loan 12024-06-300001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured loan 22024-06-300001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured loan 32024-06-300001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., Limited partnership interests2024-06-300001287750arcc:PathstoneFamilyOfficeLLCAndKelsoXITailwindCoInvestmentLPMember2024-06-300001287750PCIA SPV-3, LLC and ASE Royal Aggregator, LLC, First lien senior secured loan2024-06-300001287750PCIA SPV-3, LLC and ASE Royal Aggregator, LLC, Preferred units2024-06-300001287750arcc:PCIASPV3LLCAndASERoyalAggregatorLLCMember2024-06-300001287750PCS MidCo, Inc. and PCS Parent, L.P., First lien senior secured revolving loan2024-06-300001287750PCS MidCo, Inc. and PCS Parent, L.P., First lien senior secured loan2024-06-300001287750PCS MidCo, Inc. and PCS Parent, L.P., Class A units2024-06-300001287750arcc:PCSMidCoInc.AndPCSParentL.P.Member2024-06-300001287750Perigon Wealth Management, LLC, Perigon Wealth Advisors Holdings Company, LLC and CWC Fund I Co-Invest (Prism) LP, First lien senior secured loan2024-06-300001287750Perigon Wealth Management, LLC, Perigon Wealth Advisors Holdings Company, LLC and CWC Fund I Co-Invest (Prism) LP, Limited partnership interest2024-06-300001287750arcc:PerigonWealthManagementLLCPerigonWealthAdvisorsHoldingsCompanyLLCAndCWCFundICoInvestPrismLPMember2024-06-300001287750Petrus Buyer, Inc., First lien senior secured loan2024-06-300001287750Priority Holdings, LLC and Priority Technology Holdings, Inc., Senior preferred stock2024-06-300001287750Priority Holdings, LLC and Priority Technology Holdings, Inc., Warrant to purchase shares of common stock2024-06-300001287750arcc:PriorityHoldingsLLCAndPriorityTechnologyHoldingsIncMember2024-06-300001287750RFS Opco LLC, First lien senior secured loan2024-06-300001287750Rialto Management Group, LLC, First lien senior secured revolving loan2024-06-300001287750Rialto Management Group, LLC, First lien senior secured loan 12024-06-300001287750Rialto Management Group, LLC, First lien senior secured loan 22024-06-300001287750Rialto Management Group, LLC, First lien senior secured loan 32024-06-300001287750arcc:RialtoManagementGroupLLCMember2024-06-300001287750Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC, First lien senior secured loan2024-06-300001287750The Edelman Financial Center, LLC, Second lien senior secured loan2024-06-300001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, First lien senior secured revolving loan2024-06-300001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, First lien senior secured loan2024-06-300001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, Senior subordinated loan2024-06-300001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, Series A preferred units2024-06-300001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, Common units2024-06-300001287750arcc:TheMatherGroupLLCTVGTMGTopcoIncAndTVGTMGHoldingsLLCMember2024-06-300001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, First lien senior secured loan2024-06-300001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, Class A preferred units2024-06-300001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, Class A common units2024-06-300001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, Class B common units 12024-06-300001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, Class B common units 22024-06-300001287750arcc:TheUltimusGroupMidcoLLCTheUltimusGroupLLCAndTheUltimusGroupAggregatorLPMember2024-06-300001287750Waverly Advisors, LLC and WAAM Topco, LLC, First lien senior secured loan 12024-06-300001287750Waverly Advisors, LLC and WAAM Topco, LLC, First lien senior secured loan 22024-06-300001287750Waverly Advisors, LLC and WAAM Topco, LLC, Class A units2024-06-300001287750arcc:WaverlyAdvisorsLLCAndWAAMTopcoLLCMember2024-06-300001287750Wealth Enhancement Group, LLC, First lien senior secured loan 12024-06-300001287750Wealth Enhancement Group, LLC, First lien senior secured loan 22024-06-300001287750Wealth Enhancement Group, LLC, First lien senior secured loan 32024-06-300001287750Wealth Enhancement Group, LLC, First lien senior secured loan 42024-06-300001287750Wealth Enhancement Group, LLC, First lien senior secured loan 52024-06-300001287750arcc:WealthEnhancementGroupLLCMember2024-06-300001287750us-gaap:FinancialServicesSectorMember2024-06-300001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 12024-06-300001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 22024-06-300001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 32024-06-300001287750arcc:AccessionRiskManagementGroupIncAndRSCInsuranceBrokerageIncMember2024-06-300001287750Acrisure, LLC, First lien senior secured loan2024-06-300001287750Alera Group, Inc., First lien senior secured loan 12024-06-300001287750Alera Group, Inc., First lien senior secured loan 22024-06-300001287750arcc:AleraGroupInc.Member2024-06-300001287750Amynta Agency Borrower Inc. and Amynta Warranty Borrower Inc., First lien senior secured loan2024-06-300001287750AQ Sunshine, Inc., First lien senior secured loan 12024-06-300001287750AQ Sunshine, Inc., First lien senior secured loan 22024-06-300001287750AQ Sunshine, Inc., First lien senior secured loan 32024-06-300001287750AQ Sunshine, Inc., First lien senior secured loan 42024-06-300001287750AQ Sunshine, Inc., First lien senior secured loan 52024-06-300001287750AQ Sunshine, Inc., First lien senior secured loan 62024-06-300001287750arcc:AQSunshineIncMember2024-06-300001287750Ardonagh Midco 3 PLC, Ardonagh Group Finco Pty Limited, Ardonagh Finco LLC and Ardonagh Finco B.V., First lien senior secured loan 12024-06-300001287750Ardonagh Midco 3 PLC, Ardonagh Group Finco Pty Limited, Ardonagh Finco LLC and Ardonagh Finco B.V., First lien senior secured loan 22024-06-300001287750Ardonagh Midco 3 PLC, Ardonagh Group Finco Pty Limited, Ardonagh Finco LLC and Ardonagh Finco B.V., First lien senior secured loan 32024-06-300001287750arcc:ArdonaghMidco3PLCArdonaghGroupFincoPtyLimitedArdonaghFincoLLCAndArdonaghFincoB.VMember2024-06-300001287750Benecon Midco II LLC and Benecon Holdings, LLC, First lien senior secured loan2024-06-300001287750Benecon Midco II LLC and Benecon Holdings, LLC, Class A units2024-06-300001287750arcc:BeneconMidcoIILLCAndBeneconHoldingsLLCMember2024-06-300001287750Captive Resources Midco, LLC, First lien senior secured loan2024-06-300001287750Daylight Beta Parent LLC and CFCo, LLC, First lien senior secured loan 12024-06-300001287750Daylight Beta Parent LLC and CFCo, LLC, First lien senior secured loan 22024-06-300001287750Daylight Beta Parent LLC and CFCo, LLC, Class B units2024-06-300001287750arcc:DaylightBetaParentLLCAndCFCoLLCMember2024-06-300001287750DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP, First lien senior secured loan2024-06-300001287750DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP, Limited partnership interest2024-06-300001287750arcc:DOXAInsuranceHoldingsLLCAndRocketCoInvestSLPMember2024-06-300001287750Foundation Risk Partners, Corp., First lien senior secured loan 12024-06-300001287750Foundation Risk Partners, Corp., First lien senior secured loan 22024-06-300001287750Foundation Risk Partners, Corp., First lien senior secured loan 32024-06-300001287750arcc:FoundationRiskPartnersCorpMember2024-06-300001287750Galway Borrower LLC, First lien senior secured revolving loan2024-06-300001287750Galway Borrower LLC, First lien senior secured loan2024-06-300001287750arcc:GalwayBorrowerLLCMember2024-06-300001287750Gestion ABS Bidco Inc. / ABS Bidco Holdings Inc., First lien senior secured loan2024-06-300001287750Higginbotham Insurance Agency, Inc., First lien senior secured loan 12024-06-300001287750Higginbotham Insurance Agency, Inc., First lien senior secured loan 22024-06-300001287750arcc:HigginbothamInsuranceAgencyInc.Member2024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC, First lien senior secured loan 12024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC, First lien senior secured loan 22024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC, First lien senior secured loan 32024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC, Series A preferred units 12024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC, Series A preferred units 22024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC, Series A preferred units 32024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC, Series A common units2024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC, Series C common units2024-06-300001287750arcc:HighStreetBuyerIncAndHighStreetHoldcoLLCMember2024-06-300001287750Inszone Mid, LLC and INSZ Holdings, LLC, First lien senior secured loan2024-06-300001287750Inszone Mid, LLC and INSZ Holdings, LLC, Limited partnership interests2024-06-300001287750Inszone Mid, LLC and INSZ Holdings, LLC, Common units2024-06-300001287750arcc:InszoneMidLLCAndINSZHoldingsLLCMember2024-06-300001287750Keystone Agency Partners LLC, First lien senior secured loan2024-06-300001287750OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, First lien senior secured loan2024-06-300001287750OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, Class A2 units2024-06-300001287750arcc:OakBridgeInsuranceAgencyLLCAndMapleAcquisitionHoldingsLPMember2024-06-300001287750OneDigital Borrower LLC, First lien senior secured revolving loan2024-06-300001287750Patriot Growth Insurance Services, LLC, First lien senior secured loan2024-06-300001287750People Corporation, First lien senior secured loan 12024-06-300001287750People Corporation, First lien senior secured loan 22024-06-300001287750People Corporation, First lien senior secured loan 32024-06-300001287750arcc:PeopleCorporationMember2024-06-300001287750Riser Topco II, LLC, First lien senior secured loan 12024-06-300001287750Riser Topco II, LLC, First lien senior secured loan 22024-06-300001287750Riser Topco II, LLC, First lien senior secured loan 32024-06-300001287750arcc:RiserIntercoLLCMember2024-06-300001287750SageSure Holdings, LLC and SageSure LLC, First lien senior secured loan2024-06-300001287750SageSure Holdings, LLC and SageSure LLC, Series A units2024-06-300001287750arcc:SageSureHoldingsLLCAndSageSureLLCMember2024-06-300001287750SCM Insurance Services Inc., First lien senior secured loan2024-06-300001287750SelectQuote, Inc., First lien senior secured loan2024-06-300001287750SG Acquisition, Inc., First lien senior secured loan2024-06-300001287750Spring Insurance Solutions, LLC, First lien senior secured loan2024-06-300001287750THG Acquisition, LLC, First lien senior secured revolving loan2024-06-300001287750THG Acquisition, LLC, First lien senior secured loan 12024-06-300001287750THG Acquisition, LLC, First lien senior secured loan 22024-06-300001287750THG Acquisition, LLC, First lien senior secured loan 32024-06-300001287750arcc:THGAcquisitionLLCMember2024-06-300001287750Truist Insurance Holdings, LLC and McGriff Insurance Services, LLC, First lien senior secured revolving loan2024-06-300001287750Truist Insurance Holdings, LLC and McGriff Insurance Services, LLC, First lien senior secured loan2024-06-300001287750arcc:TruistInsuranceHoldingsLLCAndMcGriffInsuranceServicesLLCMember2024-06-300001287750us-gaap:InsuranceSectorMember2024-06-300001287750ACAS Equity Holdings Corporation, Common stock2024-06-300001287750Constellation Wealth Capital Fund, L.P., Limited partner interests2024-06-300001287750CREST Exeter Street Solar 2004-1, Preferred shares2024-06-300001287750CWC Fund I Co-Invest (ALTI) LP, Limited partnership interest2024-06-300001287750European Capital UK SME Debt LP, Limited partnership interest2024-06-300001287750HCI Equity, LLC, Member interest2024-06-300001287750Partnership Capital Growth Investors III, L.P., Limited partnership interest2024-06-300001287750PCG-Ares Sidecar Investment II, L.P., Limited partnership interest2024-06-300001287750PCG-Ares Sidecar Investment, L.P., Limited partnership interest2024-06-300001287750Piper Jaffray Merchant Banking Fund I, L.P., Limited partnership interest2024-06-300001287750Senior Direct Lending Program, LLC, Subordinated certificates2024-06-300001287750Senior Direct Lending Program, LLC, Membership interest2024-06-300001287750arcc:SeniorDirectLendingProgramLLCMember2024-06-300001287750arcc:InvestmentFundsAndVehiclesMember2024-06-300001287750ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc., First lien senior secured loan2024-06-300001287750Aimbridge Acquisition Co., Inc., Second lien senior secured loan2024-06-300001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP, First lien senior secured revolving loan 12024-06-300001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP, First lien senior secured revolving loan 22024-06-300001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP, Second lien senior secured loan2024-06-300001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP, Series A preferred units2024-06-300001287750arcc:AmericanResidentialServicesLLCAndAragornParentHoldingsLPMember2024-06-300001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured revolving loan2024-06-300001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured loan2024-06-300001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, Series B common units2024-06-300001287750arcc:ApexServicePartnersLLCAndApexServicePartnersHoldingsLLCMember2024-06-300001287750ATI Restoration, LLC, First lien senior secured revolving loan2024-06-300001287750ATI Restoration, LLC, First lien senior secured loan 12024-06-300001287750ATI Restoration, LLC, First lien senior secured loan 22024-06-300001287750ATI Restoration, LLC, First lien senior secured loan 32024-06-300001287750arcc:ATIRestorationLLCMember2024-06-300001287750Belfor Holdings, Inc., First lien senior secured revolving loan2024-06-300001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC, First lien senior secured revolving loan2024-06-300001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC, First lien senior secured loan 12024-06-300001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC, First lien senior secured loan 22024-06-300001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC, Class A units2024-06-300001287750arcc:ClarionHomeServicesGroupLLCAndLBCBreezeHoldingsLLCMember2024-06-300001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc., First lien senior secured revolving loan 12024-06-300001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc., First lien senior secured revolving loan 22024-06-300001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc., First lien senior secured loan 12024-06-300001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc., First lien senior secured loan 22024-06-300001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc., First lien senior secured loan 32024-06-300001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc., Common stock2024-06-300001287750arcc:CMGHoldCoLLCAndCMGBuyerHoldingsIncMember2024-06-300001287750CST Holding Company, First lien senior secured revolving loan 12024-06-300001287750CST Holding Company, First lien senior secured revolving loan 22024-06-300001287750CST Holding Company, First lien senior secured loan2024-06-300001287750arcc:CSTHoldingCompanyMember2024-06-300001287750Equinox Holdings, Inc., First lien senior secured loan2024-06-300001287750Equinox Holdings, Inc., Second lien senior secured loan2024-06-300001287750arcc:EquinoxHoldingsInc.Member2024-06-300001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, First lien senior secured loan2024-06-300001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, Preferred units2024-06-300001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, Class A units2024-06-300001287750arcc:EssentialServicesHoldingCorporationAndOMERSMahomesInvestmentHoldingsLLCMember2024-06-300001287750Eternal Aus Bidco Pty Ltd, First lien senior secured loan2024-06-300001287750Excel Fitness Consolidator LLC, Health Buyer LLC and Excel Fitness Holdings, Inc., First lien senior secured loan2024-06-300001287750Flint OpCo, LLC, First lien senior secured loan 12024-06-300001287750Flint OpCo, LLC, First lien senior secured loan 22024-06-300001287750arcc:FlintOpCoLLCMember2024-06-300001287750GS SEER Group Borrower LLC and GS SEER Group Holdings LLC, First lien senior secured loan2024-06-300001287750GS SEER Group Borrower LLC and GS SEER Group Holdings LLC, Class A common units2024-06-300001287750arcc:GSSEERGroupBorrowerLLCAndGSSEERGroupHoldingsLLCMember2024-06-300001287750Helios Service Partners, LLC and Astra Service Partners, LLC, First lien senior secured loan2024-06-300001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured revolving loan 12024-06-300001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured revolving loan 22024-06-300001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 12024-06-300001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 22024-06-300001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 32024-06-300001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., Class A units2024-06-300001287750arcc:InfinityHomeServicesHoldCoIncAndIHSParentHoldingsLPMember2024-06-300001287750Jenny C Acquisition, Inc., Senior subordinated loan2024-06-300001287750Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P., First lien senior secured loan2024-06-300001287750Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P., Limited partnership interests2024-06-300001287750arcc:LeviathanIntermediateHoldcoLLCAndLeviathanHoldingsLPMember2024-06-300001287750ME Equity LLC, Common stock2024-06-300001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, First lien senior secured revolving loan 12024-06-300001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, First lien senior secured revolving loan 22024-06-300001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, First lien senior secured loan 12024-06-300001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, First lien senior secured loan 22024-06-300001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, Class A units2024-06-300001287750arcc:ModigentLLCAndOMERSPMCInvestmentHoldingsLLCMember2024-06-300001287750Northwinds Holding, Inc. and Northwinds Services Group LLC, First lien senior secured revolving loan 12024-06-300001287750Northwinds Holding, Inc. and Northwinds Services Group LLC, First lien senior secured revolving loan 22024-06-300001287750Northwinds Holding, Inc. and Northwinds Services Group LLC, First lien senior secured loan 12024-06-300001287750Northwinds Holding, Inc. and Northwinds Services Group LLC, First lien senior secured loan 22024-06-300001287750Northwinds Holding, Inc. and Northwinds Services Group LLC, Common units2024-06-300001287750arcc:NorthwindsHoldingIncAndNorthwindsServicesGroupLLCMember2024-06-300001287750OTG Concessions Management, LLC and Octa Parent Holdings, LLC, Second lien notes2024-06-300001287750OTG Concessions Management, LLC and Octa Parent Holdings, LLC, Participation rights2024-06-300001287750arcc:OTGConcessionsManagementLLCAndOctaParentHoldingsLLCMember2024-06-300001287750PestCo Holdings, LLC and PestCo, LLC, First lien senior secured loan2024-06-300001287750PestCo Holdings, LLC and PestCo, LLC, Class A units2024-06-300001287750arcc:PestCoHoldingsLLCAndPestCoLLCMember2024-06-300001287750Premiere Buyer, LLC, First lien senior secured loan2024-06-300001287750Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC, First lien senior secured loan2024-06-300001287750Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC, Preferred membership units2024-06-300001287750arcc:PyramidManagementAdvisorsLLCAndPyramidInvestorsLLCMember2024-06-300001287750Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P., First lien senior secured loan2024-06-300001287750Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P., Limited partnership interest2024-06-300001287750arcc:QuickQuackCarWashHoldingsLLCAndKKRGameChangerCoInvestFeederIIL.P.Member2024-06-300001287750Radiant Intermediate Holding, LLC, First lien senior secured loan2024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured revolving loan2024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 12024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 22024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 32024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 42024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 52024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 62024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC, Series D units2024-06-300001287750arcc:RedwoodServicesLLCAndRedwoodServicesHoldcoLLCMember2024-06-300001287750Safe Home Security, Inc., Security Systems Inc., Safe Home Monitoring, Inc., National Protective Services, Inc., Bright Integrations LLC and Medguard Alert, Inc., First lien senior secured loan2024-06-300001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., First lien senior secured revolving loan 12024-06-300001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., First lien senior secured revolving loan 22024-06-300001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., First lien senior secured revolving loan 32024-06-300001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., First lien senior secured loan 12024-06-300001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., First lien senior secured loan 22024-06-300001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., Class A units2024-06-300001287750arcc:TaymaxGroupLPTaymaxGroupGPLLCPFSalemCanadaULCAndTCPFitParentLPMember2024-06-300001287750The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc., First lien senior secured loan2024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured revolving loan 12024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured revolving loan 22024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured loan 12024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured loan 22024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured loan 32024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured loan 42024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, Class A units2024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, Class C units2024-06-300001287750arcc:TheArcticomGroupLLCAndAMCPMechanicalHoldingsLPMember2024-06-300001287750Triwizard Holdings, Inc. and Triwizard Parent, LP, First lien senior secured revolving loan 12024-06-300001287750Triwizard Holdings, Inc. and Triwizard Parent, LP, First lien senior secured revolving loan 22024-06-300001287750Triwizard Holdings, Inc. and Triwizard Parent, LP, Class A-2 common units2024-06-300001287750arcc:TriwizardHoldingsInc.AndTriwizardParentLPMember2024-06-300001287750TSS Buyer, LLC, First lien senior secured loan2024-06-300001287750Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, First lien senior secured revolving loan2024-06-300001287750Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, First lien senior secured loan2024-06-300001287750Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, Class B common units2024-06-300001287750arcc:VertexServicePartnersLLCAndVertexServicePartnersHoldingsLLCMember2024-06-300001287750YE Brands Holdings, LLC, First lien senior secured loan 12024-06-300001287750YE Brands Holdings, LLC, First lien senior secured loan 22024-06-300001287750YE Brands Holdings, LLC, First lien senior secured loan 32024-06-300001287750YE Brands Holdings, LLC, First lien senior secured loan 42024-06-300001287750arcc:YEBrandsHoldingsLLCMember2024-06-300001287750ZBS Mechanical Group Co-Invest Fund 2, LLC, Membership interest2024-06-300001287750arcc:ConsumerServicesMember2024-06-300001287750Apex Clean Energy TopCo, LLC, Class A common units2024-06-300001287750Ferrellgas, L.P. and Ferrellgas Partners, L.P., Senior preferred units2024-06-300001287750Ferrellgas, L.P. and Ferrellgas Partners, L.P., Class B units2024-06-300001287750arcc:FerrellgasLPAndFerrelgasPartnersLPMember2024-06-300001287750Opal Fuels Intermediate HoldCo LLC, and Opal Fuels Inc., Class A common stock2024-06-300001287750PosiGen, Inc., Warrant to purchase shares of series D-1 preferred stock2024-06-300001287750PosiGen, Inc., Warrant to purchase shares of common stock2024-06-300001287750arcc:PosiGenIncMember2024-06-300001287750Potomac Intermediate Holdings II LLC, Series A units2024-06-300001287750Sunrun Atlas Depositor 2019-2, LLC and Sunrun Atlas Holdings 2019-2, LLC, First lien senior secured loan2024-06-300001287750Sunrun Atlas Depositor 2019-2, LLC and Sunrun Atlas Holdings 2019-2, LLC, Senior subordinated loan2024-06-300001287750arcc:SunrunAtlasDepositor20192LLCAndSunrunAtlasHoldings20192LLCMember2024-06-300001287750Sunrun Luna Holdco 2021, LLC, Senior subordinated loan2024-06-300001287750Sunrun Xanadu Issuer 2019-1, LLC and Sunrun Xanadu Holdings 2019-1, LLC, First lien senior secured loan2024-06-300001287750Sunrun Xanadu Issuer 2019-1, LLC and Sunrun Xanadu Holdings 2019-1, LLC, Senior subordinated loan2024-06-300001287750arcc:SunrunXanaduIssuer20191LLCAndSunrunXanaduHoldings20191LLCMember2024-06-300001287750arcc:PowerGenerationMember2024-06-300001287750Bamboo Purchaser, Inc., First lien senior secured loan2024-06-300001287750BradyPlus Holdings, LLC, First lien senior secured loan2024-06-300001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., First lien senior secured loan 12024-06-300001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., First lien senior secured loan 22024-06-300001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., First lien senior secured loan 32024-06-300001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., First lien senior secured loan 42024-06-300001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., Common units2024-06-300001287750arcc:DisplayHoldingCompanyIncSaldonHoldingsIncAndFastsignsHoldingsIncMember2024-06-300001287750GPM Investments, LLC and ARKO Corp., Common stock2024-06-300001287750GPM Investments, LLC and ARKO Corp., Warrant to purchase common stock2024-06-300001287750arcc:GPMInvestmentsLLCAndARKOCorpMember2024-06-300001287750Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, First lien senior secured revolving loan2024-06-300001287750Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, First lien senior secured loan2024-06-300001287750Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, Limited partnership interest2024-06-300001287750arcc:HillsDistributionIncHillsIntermediateFTHoldingsLLCAndGMPHillsLPMember2024-06-300001287750Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLC, First lien senior secured loan 12024-06-300001287750Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLC, First lien senior secured loan 22024-06-300001287750Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLC, Class A common units2024-06-300001287750arcc:MarconeYellowstoneBuyerIncAndMarconeYellowstoneHoldingsLLCMember2024-06-300001287750Mavis Tire Express Services Topco Corp., Metis HoldCo, Inc., and Metis TopCo, LP, First lien senior secured revolving loan 12024-06-300001287750Mavis Tire Express Services Topco Corp., Metis HoldCo, Inc., and Metis TopCo, LP, First lien senior secured revolving loan 22024-06-300001287750Mavis Tire Express Services Topco Corp., Metis HoldCo, Inc., and Metis TopCo, LP, Series A preferred stock2024-06-300001287750Mavis Tire Express Services Topco Corp., Metis HoldCo, Inc., and Metis TopCo, LP, Class A-1 units2024-06-300001287750arcc:MavisTireExpressServicesTopcoCorpMetisHoldCoIncAndMetisTopCoLPMember2024-06-300001287750McKenzie Creative Brands, LLC, First lien senior secured revolving loan2024-06-300001287750McKenzie Creative Brands, LLC, First lien senior secured loan 12024-06-300001287750McKenzie Creative Brands, LLC, First lien senior secured loan 22024-06-300001287750arcc:McKenzieCreativeBrandsLLCMember2024-06-300001287750Monolith Brands Group, Inc., Series A-1 preferred stock2024-06-300001287750Moon Valley Nursery of Arizona Retail, LLC, Moon Valley Nursery Farm Holdings, LLC, Moon Valley Nursery RE Holdings LLC, and Stonecourt IV Partners, LP, Limited partnership interests2024-06-300001287750North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLC, First lien senior secured loan2024-06-300001287750North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLC, Class A units2024-06-300001287750arcc:NorthHavenFalconBuyerLLCAndNorthHavenFalconHoldingCompanyLLCMember2024-06-300001287750Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc., First lien senior secured loan2024-06-300001287750Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc., Class B common stock2024-06-300001287750arcc:PhoenixYWBuyerInc.AndPhoenixYWParentInc.Member2024-06-300001287750Reddy Ice LLC, First lien senior secured revolving loan 12024-06-300001287750Reddy Ice LLC, First lien senior secured revolving loan 22024-06-300001287750Reddy Ice LLC, First lien senior secured revolving loan 32024-06-300001287750Reddy Ice LLC, First lien senior secured loan2024-06-300001287750arcc:ReddyIceLLCMember2024-06-300001287750Trader Corporation and Project Auto Finco Corp., First lien senior secured loan 12024-06-300001287750Trader Corporation and Project Auto Finco Corp., First lien senior secured loan 22024-06-300001287750arcc:TraderCorporationAndProjectAutoFincoCorp.Member2024-06-300001287750US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P., First lien senior secured loan2024-06-300001287750US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P., Limited partner interests2024-06-300001287750arcc:USSaltInvestorsLLCAndEmeraldLakePearlAcquisitionALPMember2024-06-300001287750arcc:RetailingAndDistributionMember2024-06-30000128775022 HoldCo Limited, Senior subordinated loan2024-06-3000012877503 Step Sports LLC, First lien senior secured loan2024-06-300001287750Aventine Intermediate LLC & Aventine Holdings II LLC, First lien senior secured loan2024-06-300001287750Aventine Intermediate LLC & Aventine Holdings II LLC, Senior subordinated loan2024-06-300001287750arcc:AventineIntermediateLLCAventineHoldingsIILLCMember2024-06-300001287750Axiomatic, LLC, Class A-1 units2024-06-300001287750Broadcast Music, Inc., First lien senior secured loan2024-06-300001287750CFC Funding LLC, Loan instrument units2024-06-300001287750CMW Parent LLC (fka Black Arrow, Inc.), Series A units2024-06-300001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Senior subordinated loan 12024-06-300001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Senior subordinated loan 22024-06-300001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Senior subordinated loan 32024-06-300001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Ordinary shares2024-06-300001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Warrant to purchase shares of ordinary shares 12024-06-300001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Warrant to purchase shares of ordinary shares 22024-06-300001287750arcc:EagleFootballHoldingsBidCoLimitedAndEagleFootballHoldingsLimitedMember2024-06-300001287750Fever Labs, Inc., First lien senior secured loan2024-06-300001287750Global Music Rights, LLC, First lien senior secured loan 12024-06-300001287750Global Music Rights, LLC, First lien senior secured loan 22024-06-300001287750arcc:GlobalMusicRightsLLCMember2024-06-300001287750League One Volleyball, Inc., Series B preferred stock2024-06-300001287750LiveBarn Inc., Middle preferred shares2024-06-300001287750MailSouth, Inc., First lien senior secured loan2024-06-300001287750Miami Beckham United LLC, Class A preferred units2024-06-300001287750Miami Beckham United LLC, Class B preferred units2024-06-300001287750arcc:MiamiBeckhamUnitedLLCMember2024-06-300001287750OUTFRONT Media Inc., Series A convertible perpetual preferred stock2024-06-300001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 12024-06-300001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 22024-06-300001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 32024-06-300001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 42024-06-300001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 52024-06-300001287750Production Resource Group, L.L.C. and PRG III, LLC, Class A units2024-06-300001287750arcc:ProductionResourceGroupLLCAndPRGIIILLCMember2024-06-300001287750Professional Fighters League, LLC and PFL MMA, Inc., First lien senior secured loan2024-06-300001287750Professional Fighters League, LLC and PFL MMA, Inc., Second lien senior secured loan2024-06-300001287750Professional Fighters League, LLC and PFL MMA, Inc., Series E preferred stock2024-06-300001287750Professional Fighters League, LLC and PFL MMA, Inc., Warrant to purchase shares of common stock 12024-06-300001287750Professional Fighters League, LLC and PFL MMA, Inc., Warrant to purchase shares of common stock 22024-06-300001287750arcc:ProfessionalFightersLeagueLLCAndPFLMMAIncMember2024-06-300001287750Sandlot Action Sports, LLC, Common units2024-06-300001287750Storm Investment S.a.r.l., First lien senior secured loan2024-06-300001287750Storm Investment S.a.r.l., Class A redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Class B redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Class C redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Class D redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Class E redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Class F redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Class G redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Class H redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Class I redeemable shares2024-06-300001287750Storm Investment S.a.r.l., Ordinary shares2024-06-300001287750arcc:StormInvestmentSarlMember2024-06-300001287750The Teaching Company Holdings, Inc., Preferred stock2024-06-300001287750The Teaching Company Holdings, Inc., Common stock2024-06-300001287750arcc:TheTeachingCompanyHoldingsIncMember2024-06-300001287750arcc:MediaAndEntertainmentMember2024-06-300001287750Bowhunter Holdings, LLC, Common units2024-06-300001287750Centric Brands LLC, Centric Brands TopCo, LLC, and Centric Brands L.P., First lien senior secured loan2024-06-300001287750Centric Brands LLC, Centric Brands TopCo, LLC, and Centric Brands L.P., Senior subordinated loan2024-06-300001287750Centric Brands LLC, Centric Brands TopCo, LLC, and Centric Brands L.P., Class A LP interests2024-06-300001287750arcc:CentricBrandsLLCCentricBrandsTopCoLLCAndCentricBrandsL.P.Member2024-06-300001287750DRS Holdings III, Inc. and DRS Holdings I, Inc., First lien senior secured loan 12024-06-300001287750DRS Holdings III, Inc. and DRS Holdings I, Inc., First lien senior secured loan 22024-06-300001287750DRS Holdings III, Inc. and DRS Holdings I, Inc., Common stock2024-06-300001287750arcc:DRSHoldingsIIIIncAndDRSHoldingsIIncMember2024-06-300001287750Implus Footcare, LLC, First lien senior secured loan 12024-06-300001287750Implus Footcare, LLC, First lien senior secured loan 22024-06-300001287750Implus Footcare, LLC, First lien senior secured loan 32024-06-300001287750arcc:ImplusFootcareLLCMember2024-06-300001287750Johnnie-O Inc. and Johnnie-O Holdings Inc., First lien senior secured loan 12024-06-300001287750Johnnie-O Inc. and Johnnie-O Holdings Inc., First lien senior secured loan 22024-06-300001287750Johnnie-O Inc. and Johnnie-O Holdings Inc., Series A convertible preferred stock2024-06-300001287750Johnnie-O Inc. and Johnnie-O Holdings Inc., Warrant to purchase shares of common stock2024-06-300001287750arcc:JohnnieOIncAndJohnnieOHoldingsIncMember2024-06-300001287750Lew's Intermediate Holdings, LLC, First lien senior secured loan2024-06-300001287750Pelican Products, Inc., First lien senior secured revolving loan2024-06-300001287750Pelican Products, Inc., Second lien senior secured loan2024-06-300001287750arcc:PelicanProductsIncMember2024-06-300001287750Rawlings Sporting Goods Company, Inc. and SEP Diamond Fund, L.P., First lien senior secured loan 12024-06-300001287750Rawlings Sporting Goods Company, Inc. and SEP Diamond Fund, L.P., First lien senior secured loan 22024-06-300001287750Rawlings Sporting Goods Company, Inc. and SEP Diamond Fund, L.P., First lien senior secured loan 32024-06-300001287750Rawlings Sporting Goods Company, Inc. and SEP Diamond Fund, L.P., Limited partnership interest2024-06-300001287750arcc:RawlingsSportingGoodsCompanyIncAndEastonDiamondSportsLLCMember2024-06-300001287750Reef Lifestyle, LLC, First lien senior secured revolving loan 12024-06-300001287750Reef Lifestyle, LLC, First lien senior secured revolving loan 22024-06-300001287750Reef Lifestyle, LLC, First lien senior secured loan 12024-06-300001287750Reef Lifestyle, LLC, First lien senior secured loan 22024-06-300001287750arcc:ReefLifestyleLLCMember2024-06-300001287750S Toys Holdings LLC (fka The Step2 Company, LLC), Common units2024-06-300001287750S Toys Holdings LLC (fka The Step2 Company, LLC), Class B common units2024-06-300001287750S Toys Holdings LLC (fka The Step2 Company, LLC), Warrant to purchase units2024-06-300001287750arcc:SToysHoldingsLLCFkaTheStep2CompanyLLCMember2024-06-300001287750Shoes For Crews Global, LLC and Shoes For Crews Holdings, LLC, First lien senior secured loan2024-06-300001287750Shoes For Crews Global, LLC and Shoes For Crews Holdings, LLC, First lien senior secured loan 22024-06-300001287750Shoes For Crews Global, LLC and Shoes For Crews Holdings, LLC, Class A common units2024-06-300001287750arcc:ShoesForCrewsGlobalLLCAndShoesForCrewsHoldingsLLCMember2024-06-300001287750St Athena Global LLC and St Athena Global Holdings Limited, First lien senior secured revolving loan2024-06-300001287750St Athena Global LLC and St Athena Global Holdings Limited, First lien senior secured loan 12024-06-300001287750St Athena Global LLC and St Athena Global Holdings Limited, First lien senior secured loan 22024-06-300001287750arcc:StAthenaGlobalLLCAndStAthenaGlobalHoldingsLimitedMember2024-06-300001287750SVP-Singer Holdings Inc. and SVP-Singer Holdings LP, Class A common units2024-06-300001287750Team Acquisition Corporation, First lien senior secured loan2024-06-300001287750Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP, Second lien senior secured loan2024-06-300001287750Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP, Class A units2024-06-300001287750arcc:VarsityBrandsHoldingCo.Inc.HerculesAchievementInc.AndBCPEHerculesHoldingsMember2024-06-300001287750arcc:ConsumerDurablesAndApparelMember2024-06-300001287750AI Aqua Merger Sub, Inc., First lien senior secured loan2024-06-300001287750Airx Climate Solutions, Inc., First lien senior secured revolving loan2024-06-300001287750Airx Climate Solutions, Inc., First lien senior secured loan2024-06-300001287750arcc:AirxClimateSolutionsInc.Member2024-06-300001287750API Commercial Inc., API Military Inc., and API Space Intermediate, Inc., First lien senior secured loan2024-06-300001287750Arrowhead Holdco Company and Arrowhead GS Holdings, Inc., First lien senior secured loan2024-06-300001287750Arrowhead Holdco Company and Arrowhead GS Holdings, Inc., Common stock2024-06-300001287750arcc:ArrowheadHoldcoCompanyAndArrowheadGSHoldingsIncMember2024-06-300001287750BGIF IV Fearless Utility Services, Inc., First lien senior secured loan2024-06-300001287750BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC, First lien senior secured revolving loan 12024-06-300001287750BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC, First lien senior secured revolving loan 22024-06-300001287750BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC, First lien senior secured loan2024-06-300001287750arcc:BlueHaloFinancingHoldingsLLCBlueHaloGlobalHoldingsLLCAndBlueHaloLLCMember2024-06-300001287750Burgess Point Purchaser Corporation, First lien senior secured loan2024-06-300001287750CPIG Holdco Inc., First lien senior secured loan2024-06-300001287750Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc., First lien senior secured revolving loan2024-06-300001287750Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc., First lien senior secured loan2024-06-300001287750arcc:CubeIndustrialsBuyerIncAndCubeADBuyerIncMember2024-06-300001287750DFS Holding Company, Inc., First lien senior secured loan2024-06-300001287750Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP, First lien senior secured revolving loan2024-06-300001287750Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP, First lien senior secured loan2024-06-300001287750Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP, Common units2024-06-300001287750arcc:DynamicNCAerospaceHoldingsLLCAndDynamicNCInvestmentHoldingsLPMember2024-06-300001287750ESCP PPG Holdings, LLC, Class A-1 units2024-06-300001287750ESCP PPG Holdings, LLC, Class A-2 units2024-06-300001287750arcc:ESCPPPGHoldingsLLCMember2024-06-300001287750Harvey Tool Company, LLC, First lien senior secured loan 12024-06-300001287750Harvey Tool Company, LLC, First lien senior secured loan 22024-06-300001287750arcc:HarveyToolCompanyLLCMember2024-06-300001287750Helix Acquisition Holdings, Inc., First lien senior secured loan2024-06-300001287750Imaging Business Machines, L.L.C. and Scanner Holdings Corporation, Senior subordinated loan2024-06-300001287750Imaging Business Machines, L.L.C. and Scanner Holdings Corporation, Class A common stock2024-06-300001287750arcc:ImagingBusinessMachinesLLCAndScannerHoldingsCorporationMember2024-06-300001287750Kene Acquisition, Inc. and Kene Holdings, L.P., First lien senior secured loan2024-06-300001287750Kene Acquisition, Inc. and Kene Holdings, L.P., Class A units2024-06-300001287750arcc:KeneAcquisitionIncAndKeneHoldingsLPMember2024-06-300001287750LTG Acquisition, Inc., Class A membership units2024-06-300001287750Maverick Acquisition, Inc., First lien senior secured loan2024-06-300001287750NCWS Intermediate, Inc. and NCWS Holdings LP, Class A-2 common units2024-06-300001287750Osmose Utilities Services, Inc. and Pine Intermediate Holding LLC, Second lien senior secured loan2024-06-300001287750Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP., First lien senior secured loan 12024-06-300001287750Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP., First lien senior secured loan 22024-06-300001287750Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP., Class A units2024-06-300001287750arcc:PrecinmacUSHoldingsIncTrimasterManufacturingIncAndBladeGroupHoldingsLPMember2024-06-300001287750Prime Buyer, L.L.C., First lien senior secured revolving loan2024-06-300001287750Qnnect, LLC and Connector TopCo, LP, First lien senior secured loan2024-06-300001287750Qnnect, LLC and Connector TopCo, LP, Limited partnership interests2024-06-300001287750arcc:QnnectLLCAndConnectorTopCoLPMember2024-06-300001287750Radius Aerospace, Inc. and Radius Aerospace Europe Limited, First lien senior secured revolving loan 12024-06-300001287750Radius Aerospace, Inc. and Radius Aerospace Europe Limited, First lien senior secured revolving loan 22024-06-300001287750Radius Aerospace, Inc. and Radius Aerospace Europe Limited, First lien senior secured loan2024-06-300001287750arcc:RadiusAerospaceIncAndRadiusAerospaceEuropeLimitedMember2024-06-300001287750Radwell Parent, LLC, First lien senior secured revolving loan2024-06-300001287750Radwell Parent, LLC, First lien senior secured loan2024-06-300001287750arcc:RadwellParentLLCMember2024-06-300001287750Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, First lien senior secured revolving loan2024-06-300001287750Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, First lien senior secured loan2024-06-300001287750arcc:SunkRockFoundryPartnersLPHatterasElectricalManufacturingHoldingCompanyAndSigmaElectricManufacturingCorporationMember2024-06-300001287750Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P., First lien senior secured loan2024-06-300001287750Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P., Series A common units2024-06-300001287750arcc:SunvairAerospaceGroupInc.AndGBHeliosHoldingsL.P.Member2024-06-300001287750Two Six Labs, LLC, First lien senior secured loan2024-06-300001287750arcc:CapitalGoodsMember2024-06-300001287750American Seafoods Group LLC and American Seafoods Partners LLC, Class A units2024-06-300001287750American Seafoods Group LLC and American Seafoods Partners LLC, Warrant to purchase units of Class A units2024-06-300001287750arcc:AmericanSeafoodsGroupLLCAndAmericanSeafoodsPartnersLLCMember2024-06-300001287750Berner Food & Beverage, LLC, First lien senior secured revolving loan2024-06-300001287750Bragg Live Food Products, LLC and SPC Investment Co., L.P., First lien senior secured loan2024-06-300001287750Bragg Live Food Products, LLC and SPC Investment Co., L.P., Common units2024-06-300001287750arcc:BraggLiveFoodProductsLLCAndSPCInvestmentCoLPMember2024-06-300001287750CHG PPC Parent LLC & PPC CHG Blocker LLC, Second lien senior secured loan2024-06-300001287750CHG PPC Parent LLC & PPC CHG Blocker LLC, Common units2024-06-300001287750arcc:CHGPPCParentLLCPPCCHGBlockerLLCMember2024-06-300001287750Demakes Borrower, LLC, First lien senior secured loan2024-06-300001287750Florida Food Products, LLC, First lien senior secured loan 12024-06-300001287750Florida Food Products, LLC, First lien senior secured loan 22024-06-300001287750Florida Food Products, LLC, Second lien senior secured loan2024-06-300001287750arcc:FloridaFoodProductsLLCMember2024-06-300001287750GF Parent LLC, Class A preferred units2024-06-300001287750GF Parent LLC, Class A common units2024-06-300001287750arcc:GFParentLLCMember2024-06-300001287750Gotham Greens Holdings, PBC, First lien senior secured loan2024-06-300001287750Gotham Greens Holdings, PBC, Series E-1 preferred stock 12024-06-300001287750Gotham Greens Holdings, PBC, Series E-1 preferred stock 22024-06-300001287750Gotham Greens Holdings, PBC, Warrant to purchase shares of Series E-1 preferred stock2024-06-300001287750arcc:GothamGreensHoldingsPBCMember2024-06-300001287750KNPC HoldCo, LLC, First lien senior secured loan 12024-06-300001287750KNPC HoldCo, LLC, First lien senior secured loan 22024-06-300001287750KNPC HoldCo, LLC, First lien senior secured loan 32024-06-300001287750arcc:KNPCHoldCoLLCMember2024-06-300001287750Manna Pro Products, LLC, First lien senior secured revolving loan 12024-06-300001287750Manna Pro Products, LLC, First lien senior secured revolving loan 22024-06-300001287750arcc:MannaProProductsLLCMember2024-06-300001287750Max US Bidco Inc., First lien senior secured loan2024-06-300001287750RB Holdings InterCo, LLC, First lien senior secured revolving loan2024-06-300001287750RB Holdings InterCo, LLC, First lien senior secured loan2024-06-300001287750arcc:RBHoldingsInterCoLLCMember2024-06-300001287750RF HP SCF Investor, LLC, Member interest2024-06-300001287750Sugar PPC Buyer LLC, First lien senior secured loan2024-06-300001287750Teasdale Foods, Inc. and Familia Group Holdings Inc., First lien senior secured loan2024-06-300001287750Teasdale Foods, Inc. and Familia Group Holdings Inc., Warrant to purchase shares of common stock2024-06-300001287750arcc:TeasdaleFoodsIncAndFamiliaGroupHoldingsIncMember2024-06-300001287750Triton Water Holdings, Inc., First lien senior secured loan2024-06-300001287750Triton Water Holdings, Inc., Senior subordinated loan2024-06-300001287750arcc:TritonWaterHoldingsIncMember2024-06-300001287750Watermill Express, LLC and Watermill Express Holdings, LLC, First lien senior secured revolving loan 12024-06-300001287750Watermill Express, LLC and Watermill Express Holdings, LLC, First lien senior secured revolving loan 22024-06-300001287750Watermill Express, LLC and Watermill Express Holdings, LLC, First lien senior secured loan 12024-06-300001287750Watermill Express, LLC and Watermill Express Holdings, LLC, First lien senior secured loan 22024-06-300001287750Watermill Express, LLC and Watermill Express Holdings, LLC, Class A units2024-06-300001287750arcc:WatermillExpressLLCAndWatermillExpressHoldingsLLCMember2024-06-300001287750Winebow Holdings, Inc. and The Vintner Group, Inc., First lien senior secured loan2024-06-300001287750us-gaap:FoodAndBeverageSectorMember2024-06-300001287750Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P., First lien senior secured loan2024-06-300001287750Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P., Second lien senior secured loan2024-06-300001287750Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P., Class A preferred units2024-06-300001287750Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P., Series A preferred shares2024-06-300001287750arcc:BalrogAcquisitionIncBalrogTopcoIncAndBalrogParentLPMember2024-06-300001287750BGI Purchaser, Inc., First lien senior secured revolving loan2024-06-300001287750BGI Purchaser, Inc., First lien senior secured loan2024-06-300001287750arcc:BGIPurchaserInc.Member2024-06-300001287750BR PJK Produce, LLC, First lien senior secured loan2024-06-300001287750City Line Distributors LLC and City Line Investments LLC, First lien senior secured loan2024-06-300001287750City Line Distributors LLC and City Line Investments LLC, Class A units2024-06-300001287750arcc:CityLineDistributorsLLCAndCityLineInvestmentsLLCMember2024-06-300001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured revolving loan2024-06-300001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured loan 12024-06-300001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured loan 22024-06-300001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured loan 32024-06-300001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured loan 42024-06-300001287750arcc:ContinentalCafeLLCAndInfinityOvationYachtChartersLLCMember2024-06-300001287750DecoPac, Inc. and KCAKE Holdings Inc., First lien senior secured revolving loan2024-06-300001287750DecoPac, Inc. and KCAKE Holdings Inc., First lien senior secured loan2024-06-300001287750DecoPac, Inc. and KCAKE Holdings Inc., Common stock2024-06-300001287750arcc:DecoPacIncAndKCAKEHoldingsIncMember2024-06-300001287750FS Squared Holding Corp. and FS Squared, LLC, First lien senior secured revolving loan2024-06-300001287750FS Squared Holding Corp. and FS Squared, LLC, First lien senior secured loan2024-06-300001287750FS Squared Holding Corp. and FS Squared, LLC, Class A units2024-06-300001287750arcc:FSSquaredHoldingCorpAndFSSquaredLLCMember2024-06-300001287750JWC/KI Holdings, LLC, Membership units2024-06-300001287750LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P., First lien senior secured loan2024-06-300001287750LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P., Limited partnership interests2024-06-300001287750arcc:LJPerimeterBuyerIncAndLJPerimeterCoInvestLPMember2024-06-300001287750Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, First lien senior secured revolving loan2024-06-300001287750Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, First lien senior secured loan2024-06-300001287750Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, Class B limited liability company interest2024-06-300001287750arcc:MrGreensIntermediateLLCFloridaVegInvestmentsLLCMRGTexasLLCAndRestaurantProduceAndServicesBlockerLLCMember2024-06-300001287750SFE Intermediate Holdco LLC, First lien senior secured loan 12024-06-300001287750SFE Intermediate Holdco LLC, First lien senior secured loan 22024-06-300001287750SFE Intermediate Holdco LLC, First lien senior secured loan 32024-06-300001287750arcc:SFEIntermediateHoldcoLLCMember2024-06-300001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., First lien senior secured revolving loan2024-06-300001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., First lien senior secured loan2024-06-300001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., Common units2024-06-300001287750arcc:WorldwideProduceAcquisitionLLCAndREPWWPCoinvestIVLPMember2024-06-300001287750ZB Holdco LLC and ZB TopCo LLC, First lien senior secured revolving loan2024-06-300001287750ZB Holdco LLC and ZB TopCo LLC, First lien senior secured loan 12024-06-300001287750ZB Holdco LLC and ZB TopCo LLC, First lien senior secured loan 22024-06-300001287750ZB Holdco LLC and ZB TopCo LLC, Series A units2024-06-300001287750arcc:ZBHoldcoLLCZBParentLLCMember2024-06-300001287750arcc:ConsumerStaplesDistributionAndRetailMember2024-06-300001287750Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC, First lien senior secured loan2024-06-300001287750GNZ Energy Bidco Limited and Galileo Co-investment Trust I, First lien senior secured loan2024-06-300001287750GNZ Energy Bidco Limited and Galileo Co-investment Trust I, Common units2024-06-300001287750arcc:GNZEnergyBidcoLimitedAndGalileoCoInvestmentTrustIMember2024-06-300001287750Halcon Holdings, LLC, First lien senior secured loan 12024-06-300001287750Halcon Holdings, LLC, First lien senior secured loan 22024-06-300001287750arcc:HalconHoldingsLLCMember2024-06-300001287750HighPeak Energy, Inc., First lien senior secured loan2024-06-300001287750Murchison Oil and Gas, LLC and Murchison Holdings, LLC, First lien senior secured loan2024-06-300001287750Murchison Oil and Gas, LLC and Murchison Holdings, LLC, Preferred units2024-06-300001287750arcc:MurchisonOilAndGasLLCAndMurchisonHoldingsLLCMember2024-06-300001287750Offen, Inc., First lien senior secured loan2024-06-300001287750SilverBow Resources, Inc., Common stock2024-06-300001287750VPROP Operating, LLC and V SandCo, LLC, First lien senior secured loan 12024-06-300001287750VPROP Operating, LLC and V SandCo, LLC, First lien senior secured loan 22024-06-300001287750VPROP Operating, LLC and V SandCo, LLC, First lien senior secured loan 32024-06-300001287750VPROP Operating, LLC and V SandCo, LLC, Class A units2024-06-300001287750arcc:VPROPOperatingLLCAndVSandCoLLCMember2024-06-300001287750us-gaap:EnergySectorMember2024-06-300001287750Abzena Holdings, Inc. and Astro Group Holdings Ltd., A ordinary shares2024-06-300001287750ADMA Biologics Inc., First lien senior secured loan2024-06-300001287750Alcami Corporation and ACM Note Holdings, LLC, First lien senior secured loan2024-06-300001287750Alcami Corporation and ACM Note Holdings, LLC, Senior subordinated loan2024-06-300001287750arcc:AlcamiCorporationAndACMHoldingsILLCMember2024-06-300001287750Athyrium Buffalo LP, Limited partnership interests 12024-06-300001287750Athyrium Buffalo LP, Limited partnership interests 22024-06-300001287750arcc:AthyriumBuffaloLPMember2024-06-300001287750Bamboo US BidCo LLC, First lien senior secured loan2024-06-300001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., First lien senior secured revolving loan2024-06-300001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., First lien senior secured loan 12024-06-300001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., First lien senior secured loan 22024-06-300001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., Preferred units2024-06-300001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., Series A preferred shares2024-06-300001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., Class A common units2024-06-300001287750arcc:CobaltBuyerSubIncCobaltHoldingsILPAndCobaltIntermediateIIncMember2024-06-300001287750NMC Skincare Intermediate Holdings II, LLC, First lien senior secured revolving loan 12024-06-300001287750NMC Skincare Intermediate Holdings II, LLC, First lien senior secured revolving loan 22024-06-300001287750NMC Skincare Intermediate Holdings II, LLC, First lien senior secured loan 12024-06-300001287750NMC Skincare Intermediate Holdings II, LLC, First lien senior secured loan 22024-06-300001287750arcc:NMCSkincareIntermediateHoldingsIILLCMember2024-06-300001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured revolving loan2024-06-300001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured loan 12024-06-300001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured loan 22024-06-300001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured loan 32024-06-300001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured loan 42024-06-300001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., Senior subordinated loan2024-06-300001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., Class A preferred units2024-06-300001287750arcc:NorthAmericanScienceAssociatesLLCCardinalPurchaserLLCAndCardinalTopcoHoldingsLPMember2024-06-300001287750Verista, Inc., First lien senior secured revolving loan2024-06-300001287750Verista, Inc., First lien senior secured loan2024-06-300001287750arcc:VeristaInc.Member2024-06-300001287750Vertice Pharma UK Parent Limited, Preferred shares2024-06-300001287750WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P., First lien senior secured loan2024-06-300001287750WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P., Limited partnership interest2024-06-300001287750arcc:WCIBXCPurchaserLLCAndWCIBXCInvestmentHoldingsL.P.Member2024-06-300001287750arcc:PharmaceuticalsBiotechnologyAndLifeSciencesMember2024-06-300001287750ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP, First lien senior secured revolving loan2024-06-300001287750ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP, First lien senior secured loan2024-06-300001287750ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP, Class A units2024-06-300001287750arcc:ASPRPacAcquisitionCoLLCAndASPRPacHoldingsLPMember2024-06-300001287750Halex Holdings, Inc., Common stock2024-06-300001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, First lien senior secured loan 12024-06-300001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, First lien senior secured loan 22024-06-300001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, First lien senior secured loan 32024-06-300001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, Second lien senior secured loan2024-06-300001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, Common units2024-06-300001287750arcc:HFoodHoldingsLLCAndMatterhornParentLLCMember2024-06-300001287750Meyer Laboratory, LLC and Meyer Parent, LLC, First lien senior secured loan2024-06-300001287750Meyer Laboratory, LLC and Meyer Parent, LLC, Common units2024-06-300001287750arcc:MeyerLaboratoryLLCAndMeyerParentLLCMember2024-06-300001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured revolving loan 12024-06-300001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured revolving loan 22024-06-300001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured loan 12024-06-300001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured loan 22024-06-300001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., Class A units2024-06-300001287750arcc:NelipakHoldingCompanyNelipakEuropeanHoldingsCooperatiefUAKNPAKHoldingsLPAndPAKNKNetherlandsTreasuryBVMember2024-06-300001287750Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C., First lien senior secured loan 12024-06-300001287750Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C., First lien senior secured loan 22024-06-300001287750Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C., Class A preferred units2024-06-300001287750Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C., Class C units2024-06-300001287750arcc:NovipaxBuyerLLCAndNovipaxParentHoldingCompanyLLCMember2024-06-300001287750Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC, First lien senior secured loan2024-06-300001287750Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC, Second lien senior secured loan2024-06-300001287750Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC, Preferred units2024-06-300001287750Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC, Co-Invest units2024-06-300001287750arcc:PlaskolitePPCIntermediateIILLCAndPlaskolitePPCBlockerLLCMember2024-06-300001287750Precision Concepts International LLC and Precision Concepts Canada Corporation, First lien senior secured revolving loan2024-06-300001287750Precision Concepts International LLC and Precision Concepts Canada Corporation, First lien senior secured loan 12024-06-300001287750Precision Concepts International LLC and Precision Concepts Canada Corporation, First lien senior secured loan 22024-06-300001287750Precision Concepts International LLC and Precision Concepts Canada Corporation, First lien senior secured loan 32024-06-300001287750arcc:PrecisionConceptsInternationalLLCAndPrecisionConceptsCanadaCorporationMember2024-06-300001287750Reagent Chemical & Research, LLC, First lien senior secured loan2024-06-300001287750SCI PH Parent, Inc., Series B shares2024-06-300001287750Vobev, LLC and Vobev Holdings, LLC, First lien senior secured loan 12024-06-300001287750Vobev, LLC and Vobev Holdings, LLC, First lien senior secured loan 22024-06-300001287750Vobev, LLC and Vobev Holdings, LLC, First lien senior secured loan 32024-06-300001287750Vobev, LLC and Vobev Holdings, LLC, Warrant to purchase shares of ordinary shares2024-06-300001287750Vobev, LLC and Vobev Holdings, LLC, Warrant to purchase units of class B units2024-06-300001287750arcc:VobevLLCAndVobevHoldingsLLCMember2024-06-300001287750arcc:MaterialsSectorMember2024-06-300001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, First lien senior secured loan 12024-06-300001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, First lien senior secured loan 22024-06-300001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, Preferred units 12024-06-300001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, Preferred units 22024-06-300001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, Class A common units2024-06-300001287750arcc:AutomotiveKeysGroupLLCAndAutomotiveKeysInvestorLLCMember2024-06-300001287750Collision SP Subco, LLC, First lien senior secured revolving loan2024-06-300001287750Collision SP Subco, LLC, First lien senior secured loan2024-06-300001287750arcc:CollisionSPSubcoLLCMember2024-06-300001287750Continental Acquisition Holdings, Inc., First lien senior secured loan 12024-06-300001287750Continental Acquisition Holdings, Inc., First lien senior secured loan 22024-06-300001287750arcc:ContinentalAcquisitionHoldingsIncMember2024-06-300001287750Eckler Purchaser LLC, Class A common units2024-06-300001287750Faraday Buyer, LLC, First lien senior secured loan 12024-06-300001287750Faraday Buyer, LLC, First lien senior secured loan 22024-06-300001287750arcc:FaradayBuyerLLCMember2024-06-300001287750Faraday&Future Inc., FF Inc., Faraday SPE, LLC and Faraday Future Intelligent Electric Inc., Warrant to purchase shares of Class A common stock2024-06-300001287750Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC, First lien senior secured revolving loan2024-06-300001287750Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC, Second lien senior secured loan2024-06-300001287750Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC, Co-invest units2024-06-300001287750arcc:HighlineAftermarketAcquisitionLLCHighlineAftermarketSCAcquisitionIncAndHighlinePPCBlockerLLCMember2024-06-300001287750New ChurcHill HoldCo LLC and Victory Topco, LP, First lien senior secured revolving loan2024-06-300001287750New ChurcHill HoldCo LLC and Victory Topco, LP, First lien senior secured loan2024-06-300001287750New ChurcHill HoldCo LLC and Victory Topco, LP, Class A-2 common units2024-06-300001287750arcc:NewChurcHillHoldCoLLCAndVictoryTopcoLPMember2024-06-300001287750Sun Acquirer Corp. and Sun TopCo, LP, First lien senior secured revolving loan2024-06-300001287750Sun Acquirer Corp. and Sun TopCo, LP, First lien senior secured loan 12024-06-300001287750Sun Acquirer Corp. and Sun TopCo, LP, First lien senior secured loan 22024-06-300001287750Sun Acquirer Corp. and Sun TopCo, LP, First lien senior secured loan 32024-06-300001287750Sun Acquirer Corp. and Sun TopCo, LP, Class A units2024-06-300001287750arcc:SunAcquirerCorpAndSunTopCoLPMember2024-06-300001287750Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC, First lien senior secured revolving loan2024-06-300001287750Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC, First lien senior secured loan2024-06-300001287750Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC, Class A common units2024-06-300001287750arcc:TruckLiteCo.LLCEccoHoldingsCorp.AndClarienceTechnologiesLLCMember2024-06-300001287750arcc:AutomobilesAndComponentsSectorMember2024-06-300001287750Beacon Wellness Brands, Inc. and CDI Holdings I Corp., First lien senior secured loan2024-06-300001287750Beacon Wellness Brands, Inc. and CDI Holdings I Corp., Common stock2024-06-300001287750arcc:BeaconWellnessBrandsIncAndCDIHoldingsICorpMember2024-06-300001287750Foundation Consumer Brands, LLC, First lien senior secured loan 12024-06-300001287750Foundation Consumer Brands, LLC, First lien senior secured loan 22024-06-300001287750arcc:FoundationConsumerBrandsLLCMember2024-06-300001287750LifeStyles Bidco Ltd., Lifestyles US Holdco, Inc. and LifeStyles Parent, L.P., First lien senior secured loan 12024-06-300001287750LifeStyles Bidco Ltd., Lifestyles US Holdco, Inc. and LifeStyles Parent, L.P., First lien senior secured loan 22024-06-300001287750LifeStyles Bidco Ltd., Lifestyles US Holdco, Inc. and LifeStyles Parent, L.P., Preferred units2024-06-300001287750LifeStyles Bidco Ltd., Lifestyles US Holdco, Inc. and LifeStyles Parent, L.P., Class B common units2024-06-300001287750arcc:LifeStylesBidcoLtd.LifestylesUSHoldcoInc.AndLifeStylesParentL.P.Member2024-06-300001287750Premier Specialties, Inc. and RMCF V CIV XLIV, L.P., First lien senior secured revolving loan2024-06-300001287750Premier Specialties, Inc. and RMCF V CIV XLIV, L.P., First lien senior secured loan2024-06-300001287750Premier Specialties, Inc. and RMCF V CIV XLIV, L.P., Limited partner interests2024-06-300001287750arcc:PremierSpecialtiesInc.AndRMCFVCIVXLIVL.P.Member2024-06-300001287750RD Holdco Inc., Senior subordinated loan 12024-06-300001287750RD Holdco Inc., Senior subordinated loan 22024-06-300001287750RD Holdco Inc., Common stock2024-06-300001287750arcc:RDHoldcoIncMember2024-06-300001287750Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured revolving loan2024-06-300001287750Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured loan 12024-06-300001287750Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured loan 22024-06-300001287750Silk Holdings III Corp. and Silk Holdings I Corp., Common stock2024-06-300001287750arcc:SilkHoldingsIIICorp.AndSilkHoldingsICorp.Member2024-06-300001287750Walnut Parent, Inc., First lien senior secured loan 12024-06-300001287750Walnut Parent, Inc., First lien senior secured loan 22024-06-300001287750arcc:WalnutParentIncMember2024-06-300001287750arcc:HouseholdAndPersonalProductsMember2024-06-300001287750Chariot Buyer LLC, First lien senior secured loan2024-06-300001287750Everspin Technologies, Inc., Warrant to purchase shares of common stock2024-06-300001287750Excelitas Technologies Corp., First lien senior secured loan2024-06-300001287750ITI Holdings, Inc., First lien senior secured revolving loan 12024-06-300001287750ITI Holdings, Inc., First lien senior secured revolving loan 22024-06-300001287750ITI Holdings, Inc., First lien senior secured loan2024-06-300001287750arcc:ITIHoldingsIncMember2024-06-300001287750Micromeritics Instrument Corp., First lien senior secured loan2024-06-300001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P., First lien senior secured loan 12024-06-300001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P., First lien senior secured loan 22024-06-300001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P., Class A-2 units2024-06-300001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P., Limited partnership interests2024-06-300001287750arcc:PerkinElmerUSLLCAndNMPolarisCoInvestLPMember2024-06-300001287750Repairify, Inc. and Repairify Holdings, LLC, First lien senior secured revolving loan2024-06-300001287750Repairify, Inc. and Repairify Holdings, LLC, Class A common units2024-06-300001287750arcc:RepairifyIncAndRepairifyHoldingsLLCMember2024-06-300001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured revolving loan2024-06-300001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 12024-06-300001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 22024-06-300001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 32024-06-300001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 42024-06-300001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 52024-06-300001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, Limited partnership interests2024-06-300001287750arcc:WildcatBuyerCoIncAndWildcatParentLPMember2024-06-300001287750arcc:TechnologyHardwareAndEquipmentMember2024-06-300001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., First lien senior secured loan 12024-06-300001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., First lien senior secured loan 22024-06-300001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., First lien senior secured loan 32024-06-300001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., First lien senior secured loan 42024-06-300001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., Common stock2024-06-300001287750arcc:ShurCoAcquisitionIncAndShurCoHoldCoIncMember2024-06-300001287750arcc:TransportationMember2024-06-300001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., First lien senior secured revolving loan2024-06-300001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., First lien senior secured loan 12024-06-300001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., First lien senior secured loan 22024-06-300001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., First lien senior secured loan 32024-06-300001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., Series A preferred stock2024-06-300001287750arcc:FlinnScientificIncAndWCIQuantumHoldingsIncMember2024-06-300001287750arcc:EducationMember2024-06-300001287750Emergency Communications Network, LLC, First lien senior secured revolving loan2024-06-300001287750Emergency Communications Network, LLC, First lien senior secured loan2024-06-300001287750arcc:EmergencyCommunicationsNetworkLLCMember2024-06-300001287750arcc:TelecommunicationServicesMember2024-06-300001287750OPH NEP Investment, LLC, Senior subordinated loan2024-06-300001287750OPH NEP Investment, LLC, Class B common units2024-06-300001287750arcc:OPHNEPInvestmentLLCMember2024-06-300001287750arcc:RealEstateManagementAndDevelopmentMember2024-06-300001287750EUR, CIBC - Toronto, Company Settlement Date 7/26/20242024-06-300001287750CAD, CIBC - Toronto, Company Settlement Date 7/26/20242024-06-300001287750CAD, Royal Bank of Canada, Company Settlement Date 7/18/20242024-06-300001287750EUR, Royal Bank of Canada, Company Settlement Date 7/26/20242024-06-300001287750GBP, CIBC - Toronto, Company Settlement Date 8/21/20262024-06-300001287750GBP, CIBC - Toronto, Company Settlement Date 7/26/20242024-06-300001287750GBP, Royal Bank of Canada, Company Settlement Date 7/26/20242024-06-300001287750CAD, CIBC - Toronto, Company Settlement Date 7/10/20242024-06-300001287750NZD, Royal Bank of Canada, Company Settlement Date 7/26/20242024-06-300001287750CAD, Royal Bank of Canada, Company Settlement Date 7/26/20242024-06-300001287750AUD, CIBC - Toronto, Company Settlement Date 11/17/20262024-06-300001287750AUD, CIBC - Toronto, Company Settlement Date 7/26/20242024-06-300001287750NOK, CIBC - Toronto, Company Settlement Date 7/26/20242024-06-300001287750arcc:InterestRateSwap1Member2024-06-300001287750arcc:January2027NotesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001287750us-gaap:AccountsPayableAndAccruedLiabilitiesMemberarcc:InterestRateSwap1Member2024-06-300001287750arcc:InterestRateSwap2Member2024-06-300001287750us-gaap:InterestRateSwapMemberarcc:March2029NotesMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001287750us-gaap:AccountsPayableAndAccruedLiabilitiesMemberarcc:InterestRateSwap2Member2024-06-300001287750arcc:InterestRateSwap3Member2024-06-300001287750us-gaap:InterestRateSwapMemberarcc:July2029NotesMemberus-gaap:DesignatedAsHedgingInstrumentMember2024-06-300001287750us-gaap:OtherAssetsMemberarcc:InterestRateSwap3Member2024-06-300001287750us-gaap:InterestRateSwapMember2024-06-300001287750Apex Clean Energy TopCo, LLC2024-01-012024-06-300001287750Apex Clean Energy TopCo, LLC2024-06-300001287750APG Intermediate Holdings Corporation and APG Holdings, LLC2024-01-012024-06-300001287750APG Intermediate Holdings Corporation and APG Holdings, LLC2024-06-300001287750Bragg Live Food Products, LLC and SPC Investment Co., L.P.2024-01-012024-06-300001287750Bragg Live Food Products, LLC and SPC Investment Co., L.P.2024-06-300001287750Centric Brands LLC, Centric Brands TopCo, LLC, and Centric Brands L.P.2024-01-012024-06-300001287750Centric Brands LLC, Centric Brands TopCo, LLC, and Centric Brands L.P.2024-06-300001287750Daylight Beta Parent LLC and CFCo, LLC2024-01-012024-06-300001287750Daylight Beta Parent LLC and CFCo, LLC2024-06-300001287750ESCP PPG Holdings, LLC2024-01-012024-06-300001287750ESCP PPG Holdings, LLC2024-06-300001287750European Capital UK SME Debt LP2024-01-012024-06-300001287750European Capital UK SME Debt LP2024-06-300001287750OPH NEP Investment, LLC2024-01-012024-06-300001287750OPH NEP Investment, LLC2024-06-300001287750PCG-Ares Sidecar Investment, L.P.2024-01-012024-06-300001287750PCG-Ares Sidecar Investment, L.P.2024-06-300001287750PCG-Ares Sidecar Investment II, L.P.2024-01-012024-06-300001287750PCG-Ares Sidecar Investment II, L.P.2024-06-300001287750Production Resource Group, L.L.C. and PRG III, LLC2024-01-012024-06-300001287750Production Resource Group, L.L.C. and PRG III, LLC2024-06-300001287750Shoes For crews Global, LLC and Shoes for crews Holdings, LLC2024-01-012024-06-300001287750Shoes For crews Global, LLC and Shoes for crews Holdings, LLC2024-06-300001287750Totes Isotoner Corporation and Totes Ultimate Holdco, Inc.2024-01-012024-06-300001287750Totes Isotoner Corporation and Totes Ultimate Holdco, Inc.2024-06-300001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC2024-01-012024-06-300001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC2024-06-300001287750ACAS Equity Holdings Corporation2024-01-012024-06-300001287750ACAS Equity Holdings Corporation2024-06-300001287750ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc.2024-01-012024-06-300001287750ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc.2024-06-300001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC2024-01-012024-06-300001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC2024-06-300001287750CoLTs 2005-1 Ltd.2024-01-012024-06-300001287750CoLTs 2005-1 Ltd.2024-06-300001287750Eckler Industries, Inc. and Eckler Purchaser LLC2024-01-012024-06-300001287750Eckler Industries, Inc. and Eckler Purchaser LLC2024-06-300001287750Halex Holdings, Inc.2024-01-012024-06-300001287750Halex Holdings, Inc.2024-06-300001287750HCI Equity, LLC2024-01-012024-06-300001287750HCI Equity, LLC2024-06-300001287750Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC2024-01-012024-06-300001287750Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC2024-06-300001287750Imaging Business Machines, L.L.C. and Scanner Holdings Corporation2024-01-012024-06-300001287750Imaging Business Machines, L.L.C. and Scanner Holdings Corporation2024-06-300001287750Ivy Hill Asset Management, L.P.2024-01-012024-06-300001287750Ivy Hill Asset Management, L.P.2024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC2024-01-012024-06-300001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC2024-06-300001287750Potomac Intermediate Holdings II LLC2024-01-012024-06-300001287750Potomac Intermediate Holdings II LLC2024-06-300001287750PS Operating Company LLC and PS Op Holdings LLC2024-01-012024-06-300001287750PS Operating Company LLC and PS Op Holdings LLC2024-06-300001287750RD Holdco Inc.2024-01-012024-06-300001287750RD Holdco Inc.2024-06-300001287750S Toys Holdings LLC (fka The Step2 Company, LLC)2024-01-012024-06-300001287750S Toys Holdings LLC (fka The Step2 Company, LLC)2024-06-300001287750Senior Direct Lending Program, LLC2024-01-012024-06-300001287750Senior Direct Lending Program, LLC2024-06-300001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc.2024-01-012024-06-300001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc.2024-06-300001287750Startec Equity, LLC2024-01-012024-06-300001287750Startec Equity, LLC2024-06-300001287750Visual Edge Technology, Inc.2024-01-012024-06-300001287750Visual Edge Technology, Inc.2024-06-300001287750VPROP Operating, LLC and V SandCo, LLC2024-01-012024-06-300001287750VPROP Operating, LLC and V SandCo, LLC2024-06-300001287750arcc:AresCapitalCorporationMemberarcc:SubordinatedCertificatesOfTheSDLPMembersrt:MinimumMember2024-06-300001287750arcc:InvestmentsAtFairValueAndOtherNonQualifyingAssetsMemberus-gaap:CustomerConcentrationRiskMemberarcc:NonQualifyingAssetsMember2024-01-012024-06-300001287750McKenzie Creative Brands, LLC, First lien senior secured loan, First Out Tranche2024-06-300001287750DFC Global Facility Borrower III LLC, First lien senior secured revolving loan, Secured borrowing2024-06-30000128775022 HoldCo Limited2024-06-3000012877503 Step Sports LLC2024-06-300001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc.2024-06-300001287750Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC2024-06-300001287750Actfy Buyer, Inc.2024-06-300001287750Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP2024-06-300001287750Advarra Holdings, Inc.2024-06-300001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC2024-06-300001287750AI Fire Buyer, Inc. and AI Fire Parent LLC2024-06-300001287750AIM Acquisition, LLC2024-06-300001287750Airx Climate Solutions, Inc.2024-06-300001287750Alcami Corporation and ACM Note Holdings, LLC2024-06-300001287750Alera Group, Inc.2024-06-300001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP2024-06-300001287750Amerivet Partners Management, Inc. and AVE Holdings LP2024-06-300001287750Anaplan, Inc.2024-06-300001287750Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua2024-06-300001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC2024-06-300001287750Applied Technical Services, LLC2024-06-300001287750Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc.2024-06-300001287750Aptean, Inc. and Aptean Acquiror Inc.2024-06-300001287750AQ Sage Buyer, LLC2024-06-300001287750AQ Sunshine, Inc.2024-06-300001287750Ardonagh Midco 3 PLC, Ardonagh Group Finco Pty Limited, Ardonagh Finco LLC and Ardonagh Finco B.V.2024-06-300001287750Argenbright Holdings V, LLC, Amberstone Security Group Limited, Unifi Aviation North America LLC and Unifi Aviation Canada, Inc.2024-06-300001287750Artifact Bidco, Inc.2024-06-300001287750Artivion, Inc.2024-06-300001287750ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP2024-06-300001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP2024-06-300001287750ATI Restoration, LLC2024-06-300001287750Avalara, Inc.2024-06-300001287750Avalign Holdings, Inc. and Avalign Technologies, Inc.2024-06-300001287750Bamboo US BidCo LLC2024-06-300001287750Banyan Software Holdings, LLC and Banyan Software, LP2024-06-300001287750Beacon Pointe Harmony, LLC2024-06-300001287750Beacon Wellness Brands, Inc. and CDI Holdings I Corp.2024-06-300001287750Belfor Holdings, Inc.2024-06-300001287750Benecon Midco II LLC and Benecon Holdings, LLC2024-06-300001287750Berner Food & Beverage, LLC2024-06-300001287750BGI Purchaser, Inc.2024-06-300001287750BGIF IV Fearless Utility Services, Inc.2024-06-300001287750BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC2024-06-300001287750Bobcat Purchaser, LLC and Bobcat Topco, L.P.2024-06-300001287750Borrower R365 Holdings LLC2024-06-300001287750Bottomline Technologies, Inc. and Legal Spend Holdings, LLC2024-06-300001287750BR PJK Produce, LLC2024-06-300001287750BradyPlus Holdings, LLC2024-06-300001287750Broadcast Music, Inc.2024-06-300001287750Businessolver.com, Inc.2024-06-300001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP2024-06-300001287750Captive Resources Midco, LLC2024-06-300001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc.2024-06-300001287750Center for Autism and Related Disorders, LLC2024-06-300001287750Centralsquare Technologies, LLC and Supermoose Newco, Inc.2024-06-300001287750Chariot Buyer LLC2024-06-300001287750Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC2024-06-300001287750City Line Distributors LLC and City Line Investments LLC2024-06-300001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC2024-06-300001287750Cliffwater LLC2024-06-300001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P.2024-06-300001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc.2024-06-300001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc.2024-06-300001287750Collision SP Subco, LLC2024-06-300001287750Community Brands ParentCo, LLC2024-06-300001287750Compex Legal Services, Inc.2024-06-300001287750Comprehensive EyeCare Partners, LLC2024-06-300001287750Computer Services, Inc.2024-06-300001287750Concert Golf Partners Holdco LLC2024-06-300001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P.2024-06-300001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC2024-06-300001287750Convera International Holdings Limited and Convera International Financial S.A R.L.2024-06-300001287750CoreLogic, Inc. and T-VIII Celestial Co-Invest LP2024-06-300001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc.2024-06-300001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc.2024-06-300001287750Coupa Holdings, LLC and Coupa Software Incorporated2024-06-300001287750Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC2024-06-300001287750CST Holding Company2024-06-300001287750Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc.2024-06-300001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC2024-06-300001287750Datix Bidco Limited and RL Datix Holdings (USA), Inc.2024-06-300001287750DecoPac, Inc. and KCAKE Holdings Inc.2024-06-300001287750Demakes Borrower, LLC2024-06-300001287750Denali Holdco LLC and Denali Apexco LP2024-06-300001287750DFC Global Facility Borrower III LLC2024-06-300001287750DFS Holding Company, Inc.2024-06-300001287750Diligent Corporation and Diligent Preferred Issuer, Inc.2024-06-300001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc.2024-06-300001287750DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP2024-06-300001287750DRS Holdings III, Inc. and DRS Holdings I, Inc.2024-06-300001287750Duraserv LLC2024-06-300001287750Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP2024-06-300001287750Echo Purchaser, Inc.2024-06-300001287750Edmunds Govtech, Inc.2024-06-300001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc.2024-06-300001287750Elevation Services Parent Holdings, LLC2024-06-300001287750Emergency Communications Network, LLC2024-06-300001287750Empower Payments Investor, LLC2024-06-300001287750Enverus Holdings, Inc. and Titan DI Preferred Holdings, Inc.2024-06-300001287750EpiServer Inc. and Episerver Sweden Holdings AB2024-06-300001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT2024-06-300001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P.2024-06-300001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC2024-06-300001287750Eternal Aus Bidco Pty Ltd2024-06-300001287750Excel Fitness Consolidator LLC, Health Buyer LLC and Excel Fitness Holdings, Inc.2024-06-300001287750Excelitas Technologies Corp.2024-06-300001287750Extrahop Networks, Inc.2024-06-300001287750Faraday Buyer, LLC2024-06-300001287750Fever Labs, Inc.2024-06-300001287750Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L.2024-06-300001287750FL Hawk Intermediate Holdings, Inc.2024-06-300001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc.2024-06-300001287750Flint OpCo, LLC2024-06-300001287750FlyWheel Acquireco, Inc.2024-06-300001287750Forescout Technologies, Inc.2024-06-300001287750Foundation Risk Partners, Corp.2024-06-300001287750FS Squared Holding Corp. and FS Squared, LLC2024-06-300001287750Galway Borrower LLC2024-06-300001287750GC Waves Holdings, Inc.2024-06-300001287750Gestion ABS Bidco Inc. / ABS Bidco Holdings Inc.2024-06-300001287750GI Ranger Intermediate LLC2024-06-300001287750Global Music Rights, LLC2024-06-300001287750GNZ Energy Bidco Limited and Galileo Co-investment Trust I2024-06-300001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC2024-06-300001287750GS SEER Group Borrower LLC and GS SEER Group Holdings LLC2024-06-300001287750GTCR F Buyer Corp. and GTCR (D) Investors LP2024-06-300001287750Guidepoint Security Holdings, LLC2024-06-300001287750Hanger, Inc.2024-06-300001287750Harvey Tool Company, LLC2024-06-300001287750HealthEdge Software, Inc.2024-06-300001287750Heavy Construction Systems Specialists, LLC2024-06-300001287750Helios Service Partners, LLC and Astra Service Partners, LLC2024-06-300001287750Help/Systems Holdings, Inc.2024-06-300001287750HGC Holdings, LLC2024-06-300001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP2024-06-300001287750Higginbotham Insurance Agency, Inc.2024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC2024-06-300001287750Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC2024-06-300001287750Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP2024-06-300001287750HP RSS Buyer, Inc.2024-06-300001287750HuFriedy Group Acquisition LLC2024-06-300001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP2024-06-300001287750Hyland Software, Inc.2024-06-300001287750Icefall Parent, Inc.2024-06-300001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P.2024-06-300001287750Inszone Mid, LLC and INSZ Holdings, LLC2024-06-300001287750Internet Truckstop Group LLC2024-06-300001287750IQN Holding Corp.2024-06-300001287750IRI Group Holdings, Inc., Circana, LLC and IRI-NPD Co-Invest Aggregator, L.P.2024-06-300001287750ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P.2024-06-300001287750ITI Holdings, Inc.2024-06-300001287750Kaseya Inc. and Knockout Intermediate Holdings I Inc.2024-06-300001287750KBHS Acquisition, LLC (d/b/a Alita Care, LLC)2024-06-300001287750Kellermeyer Bergensons Services, LLC and KBS TopCo, LLC2024-06-300001287750Kene Acquisition, Inc. and Kene Holdings, L.P.2024-06-300001287750Keystone Agency Partners LLC2024-06-300001287750Kings Buyer, LLC2024-06-300001287750Laboratories Bidco LLC and Laboratories Topco LLC2024-06-300001287750LeanTaaS Holdings, Inc.2024-06-300001287750Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P.2024-06-300001287750Lew's Intermediate Holdings, LLC2024-06-300001287750Lido Advisors, LLC2024-06-300001287750Lightbeam Bidco, Inc.2024-06-300001287750LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P.2024-06-300001287750LJP Purchaser, Inc. and LJP Topco, LP2024-06-300001287750Majesco and Magic Topco, L.P.2024-06-300001287750Manna Pro Products, LLC2024-06-300001287750Marmic Purchaser, LLC and Marmic Topco, L.P.2024-06-300001287750Mavis Tire Express Services Topco Corp., Metis HoldCo, Inc., and Metis TopCo, LP2024-06-300001287750McKenzie Creative Brands, LLC2024-06-300001287750Medline Borrower, LP2024-06-300001287750Meyer Laboratory, LLC and Meyer Parent, LLC2024-06-300001287750Micromeritics Instrument Corp.2024-06-300001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp2024-06-300001287750Ministry Brands Holdings, LLC and RCP MB Investments B, L.P.2024-06-300001287750Modigent, LLC and OMERS PMC Investment Holdings LLC2024-06-300001287750Monica Holdco (US) Inc.2024-06-300001287750Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC2024-06-300001287750Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC2024-06-300001287750MRI Software LLC2024-06-300001287750Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc.2024-06-300001287750NAS, LLC and Nationwide Marketing Group, LLC2024-06-300001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V.2024-06-300001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P.2024-06-300001287750New ChurcHill HoldCo LLC and Victory Topco, LP2024-06-300001287750Next Holdco, LLC2024-06-300001287750NMC Skincare Intermediate Holdings II, LLC2024-06-300001287750NMN Holdings III Corp. and NMN Holdings LP2024-06-300001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC2024-06-300001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P.2024-06-300001287750North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC2024-06-300001287750North Haven Stack Buyer, LLC2024-06-300001287750North Star Acquisitionco, LLC and Toucan Bidco Limited2024-06-300001287750Northwinds Holding, Inc. and Northwinds Services Group LLC2024-06-300001287750OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP2024-06-300001287750OMH-HealthEdge Holdings, LLC2024-06-300001287750OneDigital Borrower LLC2024-06-300001287750Opal Fuels Intermediate HoldCo LLC, and Opal Fuels Inc.2024-06-300001287750Packaging Coordinators Midco, Inc.2024-06-300001287750Paragon 28, Inc. and Paragon Advanced Technologies, Inc.2024-06-300001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P.2024-06-300001287750Pathway Vet Alliance LLC and Jedi Group Holdings LLC2024-06-300001287750Patriot Growth Insurance Services, LLC2024-06-300001287750PCIA SPV-3, LLC and ASE Royal Aggregator, LLC2024-06-300001287750PCS MidCo, Inc. and PCS Parent, L.P.2024-06-300001287750PDDS HoldCo, Inc.2024-06-300001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC2024-06-300001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC2024-06-300001287750Pelican Products, Inc.2024-06-300001287750People Corporation2024-06-300001287750Perforce Software, Inc.2024-06-300001287750Perigon Wealth Management, LLC, Perigon Wealth Advisors Holdings Company, LLC and CWC Fund I Co-Invest (Prism) LP2024-06-300001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P.2024-06-300001287750PestCo Holdings, LLC and PestCo, LLC2024-06-300001287750Petrus Buyer, Inc.2024-06-300001287750PetVet Care Centers, LLC2024-06-300001287750Petvisor Holdings, LLC2024-06-300001287750Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc.2024-06-300001287750Ping Identity Holding Corp.2024-06-300001287750Pluralsight, Inc.2024-06-300001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC2024-06-300001287750Precision Concepts International LLC and Precision Concepts Canada Corporation2024-06-300001287750Premier Specialties, Inc. and RMCF V CIV XLIV, L.P.2024-06-300001287750Premiere Buyer, LLC2024-06-300001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP2024-06-300001287750Prime Buyer, L.L.C.2024-06-300001287750Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC2024-06-300001287750ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P.2024-06-300001287750Project Essential Bidco, Inc. and Project Essential Super Parent, Inc.2024-06-300001287750Project Potter Buyer, LLC and Project Potter Parent, L.P.2024-06-300001287750Proofpoint, Inc.2024-06-300001287750PSC Parent, Inc.2024-06-300001287750PushPay USA Inc.2024-06-300001287750PYE-Barker Fire & Safety, LLC2024-06-300001287750Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC2024-06-300001287750QF Holdings, Inc.2024-06-300001287750Qnnect, LLC and Connector TopCo, LP2024-06-300001287750Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P.2024-06-300001287750Radius Aerospace, Inc. and Radius Aerospace Europe Limited2024-06-300001287750Radwell Parent, LLC2024-06-300001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC2024-06-300001287750RB Holdings InterCo, LLC2024-06-300001287750Reagent Chemical & Research, LLC2024-06-300001287750Reddy Ice LLC2024-06-300001287750Redwood Services, LLC and Redwood Services Holdco, LLC2024-06-300001287750Reef Lifestyle, LLC2024-06-300001287750Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P.2024-06-300001287750Relativity ODA LLC2024-06-300001287750Repairify, Inc. and Repairify Holdings, LLC2024-06-300001287750Revalize, Inc.2024-06-300001287750Rialto Management Group, LLC2024-06-300001287750Riser Topco II, LLC2024-06-300001287750RMS HoldCo II, LLC & RMS Group Holdings, Inc.2024-06-300001287750Rodeo AcquisitionCo LLC2024-06-300001287750RTI Surgical, Inc. and Pioneer Surgical Technology, Inc.2024-06-300001287750SageSure Holdings, LLC and SageSure LLC2024-06-300001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P.2024-06-300001287750SCIH Salt Holdings Inc.2024-06-300001287750SCM Insurance Services Inc.2024-06-300001287750SG Acquisition, Inc.2024-06-300001287750Shermco Intermediate Holdings, Inc.2024-06-300001287750Shoes For Crews Global, LLC and Shoes For Crews Holdings, LLC2024-06-300001287750Silk Holdings III Corp. and Silk Holdings I Corp.2024-06-300001287750SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC2024-06-300001287750SM Wellness Holdings, Inc. and SM Holdco, LLC2024-06-300001287750Smarsh Inc. and Skywalker TopCo, LLC2024-06-300001287750Spark Purchaser, Inc.2024-06-300001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp2024-06-300001287750St Athena Global LLC and St Athena Global Holdings Limited2024-06-300001287750Star US Bidco LLC2024-06-300001287750Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC2024-06-300001287750Sun Acquirer Corp. and Sun TopCo, LP2024-06-300001287750Sundance Group Holdings, Inc.2024-06-300001287750Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation2024-06-300001287750Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P.2024-06-300001287750SV Newco 2, Inc. & Site 2020 Incorporated2024-06-300001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc.2024-06-300001287750Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC2024-06-300001287750Systems Planning and Analysis, Inc.2024-06-300001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C.2024-06-300001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P.2024-06-300001287750TCP Hawker Intermediate LLC2024-06-300001287750Team Acquisition Corporation2024-06-300001287750The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc.2024-06-300001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP2024-06-300001287750The Hiller Companies, LLC2024-06-300001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC2024-06-300001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP2024-06-300001287750Thermostat Purchaser III, Inc.2024-06-300001287750THG Acquisition, LLC2024-06-300001287750Trader Corporation and Project Auto Finco Corp.2024-06-300001287750Triwizard Holdings, Inc. and Triwizard Parent, LP2024-06-300001287750Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC2024-06-300001287750Truist Insurance Holdings, LLC and McGriff Insurance Services, LLC2024-06-300001287750TSS Buyer, LLC2024-06-300001287750Two Six Labs, LLC2024-06-300001287750United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP2024-06-300001287750UP Intermediate II LLC and UPBW Blocker LLC2024-06-300001287750US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P.2024-06-300001287750Valcourt Holdings II, LLC and Jobs Holdings, Inc.2024-06-300001287750Verista, Inc.2024-06-300001287750Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC2024-06-300001287750Vobev, LLC and Vobev Holdings, LLC2024-06-300001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P.2024-06-300001287750VRC Companies, LLC2024-06-300001287750W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC2024-06-300001287750Watermill Express, LLC and Watermill Express Holdings, LLC2024-06-300001287750Waverly Advisors, LLC and WAAM Topco, LLC2024-06-300001287750WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P.2024-06-300001287750Wealth Enhancement Group, LLC2024-06-300001287750WebPT, Inc. and WPT Intermediate Holdco, Inc.2024-06-300001287750Wellington Bidco Inc. and Wellington TopCo LP2024-06-300001287750Wellness AcquisitionCo, Inc.2024-06-300001287750Wellpath Holdings, Inc.2024-06-300001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP2024-06-300001287750WorkWave Intermediate II, LLC2024-06-300001287750World Insurance Associates, LLC and World Associates Holdings, LLC2024-06-300001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P.2024-06-300001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC2024-06-300001287750XIFIN, Inc. and ACP Charger Co-Invest LLC2024-06-300001287750YE Brands Holdings, LLC2024-06-300001287750ZB Holdco LLC and ZB TopCo LLC2024-06-300001287750ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP2024-06-300001287750arcc:RevolvingAndDelayedDrawLoanCommitmentsMember2024-06-300001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP 12024-06-300001287750Constellation Wealth Capital Fund, L.P.2024-06-300001287750DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP 12024-06-300001287750GTCR F Buyer Corp. and GTCR (D) Investors LP 12024-06-300001287750HFCP XI (Parallel - A), L.P.2024-06-300001287750High Street Buyer, Inc. and High Street Holdco LLC 12024-06-300001287750LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. 12024-06-300001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. 12024-06-300001287750PCG-Ares Sidecar Investment, L.P. and PCG-Ares Sidecar Investment II, L.P.2024-06-300001287750Rawlings Sporting Goods Company, Inc. and SEP Diamond Fund, L.P.2024-06-300001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P. 12024-06-300001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. 12024-06-300001287750arcc:EquityInvestmentCommitmentsMember2024-06-300001287750arcc:SeniorDirectLendingProgramMemberarcc:AresCapitalCorporationMember2024-06-300001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC, First lien senior secured loan 12023-12-310001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC, First lien senior secured loan 22023-12-310001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC, First lien senior secured loan 32023-12-310001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC, Senior subordinated loan2023-12-310001287750arcc:AffiniPayMidcoLLCAndAffiniPayIntermediateHoldingsLLCMember2023-12-310001287750Anaplan, Inc., First lien senior secured loan2023-12-310001287750Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua, First lien senior secured loan 12023-12-310001287750Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua, First lien senior secured loan 22023-12-310001287750Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua, Limited partnership units2023-12-310001287750arcc:AnaquaParentHoldingsIncAstorgVIICoInvestAnaquaMember2023-12-310001287750APG Intermediate Holdings Corporation and APG Holdings, LLC, First lien senior secured loan2023-12-310001287750APG Intermediate Holdings Corporation and APG Holdings, LLC, Class A membership units2023-12-310001287750arcc:APGIntermediateHoldingsCorporationAndAPGHoldingsLLCMember2023-12-310001287750Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc., First lien senior secured loan2023-12-310001287750Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc., Series A preferred shares2023-12-310001287750arcc:ApprissHealthLLCAndApprissHealthIntermediateHoldingsIncMember2023-12-310001287750Aptean, Inc. and Aptean Acquiror Inc., First lien senior secured loan2023-12-310001287750Auctane, Inc., First lien senior secured loan2023-12-310001287750Avalara, Inc., First lien senior secured loan2023-12-310001287750Avetta, LLC, First lien senior secured loan2023-12-310001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured revolving loan2023-12-310001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured loan 12023-12-310001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured loan 22023-12-310001287750Banyan Software Holdings, LLC and Banyan Software, LP, First lien senior secured loan 32023-12-310001287750Banyan Software Holdings, LLC and Banyan Software, LP, Preferred units2023-12-310001287750arcc:BanyanSoftwareHoldingsLLCAndBanyanSoftwareLPMember2023-12-310001287750BCTO Ignition Purchaser, Inc., First lien senior secured loan2023-12-310001287750Bobcat Purchaser, LLC and Bobcat Topco, L.P., First lien senior secured loan2023-12-310001287750Bobcat Purchaser, LLC and Bobcat Topco, L.P., Class A-1 units2023-12-310001287750arcc:BobcatPurchaserLLCAndBobcatTopcoLPMember2023-12-310001287750Borrower R365 Holdings LLC, First lien senior secured loan 12023-12-310001287750Borrower R365 Holdings LLC, First lien senior secured loan 22023-12-310001287750arcc:BorrowerR365HoldingsLLCMember2023-12-310001287750Bottomline Technologies, Inc. and Legal Spend Holdings, LLC, First lien senior secured loan 12023-12-310001287750Bottomline Technologies, Inc. and Legal Spend Holdings, LLC, First lien senior secured loan 22023-12-310001287750arcc:BottomlineTechnologiesIncAndLegalSpendHoldingsLLCMember2023-12-310001287750Businessolver.com, Inc., First lien senior secured loan2023-12-310001287750CallMiner, Inc., Warrant to purchase shares of Series 1 preferred stock2023-12-310001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., First lien senior secured revolving loan 12023-12-310001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., First lien senior secured revolving loan 22023-12-310001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., Second lien senior secured loan2023-12-310001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., Series A preferred shares2023-12-310001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., Series A-2 preferred shares2023-12-310001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc., Series A-3 preferred shares2023-12-310001287750arcc:CardinalParentIncAndPackersSoftwareIntermediateHoldingsIncMember2023-12-310001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., First lien senior secured notes2023-12-310001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., First lien senior secured loan2023-12-310001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., Second lien senior secured notes2023-12-310001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., Series A preferred stock2023-12-310001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P., Limited partnership interests2023-12-310001287750arcc:CloudSoftwareGroupIncPicardParentIncCloudSoftwareGroupHoldingsIncPicardHoldCoLLCAndElliottAltoCoInvestorAggregatorLPMember2023-12-310001287750Community Brands ParentCo, LLC, First lien senior secured loan2023-12-310001287750Community Brands ParentCo, LLC, Class A units2023-12-310001287750arcc:CommunityBrandsParentCoLLCMember2023-12-310001287750Computer Services, Inc., First lien senior secured loan2023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured revolving loan 12023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured revolving loan 22023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured revolving loan 32023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured loan 12023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured loan 22023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured loan 32023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., First lien senior secured loan 42023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., Common units2023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P., Series A common units2023-12-310001287750arcc:ConsilioMidcoLimitedCompusoftUSLLCAndConsilioInvestmentHoldingsLPMember2023-12-310001287750CoreLogic, Inc. and T-VIII Celestial Co-Invest LP, Second lien senior secured loan2023-12-310001287750CoreLogic, Inc. and T-VIII Celestial Co-Invest LP, Limited partnership units2023-12-310001287750arcc:CoreLogicIncAndTVIIICelestialCoInvestLPMember2023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 12023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 22023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 32023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 42023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 52023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., First lien senior secured loan 62023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., Preferred equity2023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc., Common equity2023-12-310001287750arcc:CoritySoftwareIncCoritySoftwareUSAIncAndCorityParentIncMember2023-12-310001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., First lien senior secured revolving loan2023-12-310001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., Second lien senior secured loan2023-12-310001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., Series A preferred shares2023-12-310001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc., Class A-1 common stock2023-12-310001287750arcc:CornerstoneOnDemandIncAndSunshineSoftwareHoldingsIncMember2023-12-310001287750Coupa Holdings, LLC and Coupa Software Incorporated, First lien senior secured loan2023-12-310001287750Crosspoint Capital AS SPV, LP, First lien senior secured revolving loan2023-12-310001287750Crosspoint Capital AS SPV, LP, First lien senior secured loan2023-12-310001287750Crosspoint Capital AS SPV, LP, Limited partnership interest2023-12-310001287750arcc:CrosspointCapitalASSPVLPMember2023-12-310001287750Datix Bidco Limited, First lien senior secured loan2023-12-310001287750Datix Bidco Limited, Second lien senior secured loan2023-12-310001287750arcc:DatixBidcoLimitedMember2023-12-310001287750Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P., Second lien senior secured loan2023-12-310001287750Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P., Series A preferred shares2023-12-310001287750Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P., Series A units2023-12-310001287750arcc:DcertBuyerIncDCertPreferredHoldingsIncAndDestinyDigitalHoldingsLPMember2023-12-310001287750Denali Holdco LLC and Denali Apexco LP, First lien senior secured loan 12023-12-310001287750Denali Holdco LLC and Denali Apexco LP, First lien senior secured loan 22023-12-310001287750Denali Holdco LLC and Denali Apexco LP, Class A units2023-12-310001287750arcc:DenaliHoldcoLLCAndDenaliApexcoLPMember2023-12-310001287750Diligent Corporation and Diligent Preferred Issuer, Inc., First lien senior secured revolving loan2023-12-310001287750Diligent Corporation and Diligent Preferred Issuer, Inc., First lien senior secured loan 12023-12-310001287750Diligent Corporation and Diligent Preferred Issuer, Inc., First lien senior secured loan 22023-12-310001287750Diligent Corporation and Diligent Preferred Issuer, Inc., First lien senior secured loan 32023-12-310001287750Diligent Corporation and Diligent Preferred Issuer, Inc., First lien senior secured loan 42023-12-310001287750Diligent Corporation and Diligent Preferred Issuer, Inc., First lien senior secured loan 52023-12-310001287750Diligent Corporation and Diligent Preferred Issuer, Inc., Preferred stock2023-12-310001287750arcc:DiligentCorporationAndDiligentPreferredIssuerIncMember2023-12-310001287750DS Admiral Bidco, LLC, First lien senior secured loan2023-12-310001287750Dye & Durham Corporation, First lien senior secured revolving loan2023-12-310001287750Dye & Durham Corporation, First lien senior secured loan2023-12-310001287750arcc:DyeDurhamCorporationMember2023-12-310001287750Echo Purchaser, Inc., First lien senior secured revolving loan2023-12-310001287750Echo Purchaser, Inc., First lien senior secured loan2023-12-310001287750arcc:EchoPurchaserIncMember2023-12-310001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., First lien senior secured revolving loan2023-12-310001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., First lien senior secured loan 12023-12-310001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., First lien senior secured loan 22023-12-310001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc., Preferred equity2023-12-310001287750arcc:ElemicaParentIncEZElemicaHoldingsIncMember2023-12-310001287750Enverus Holdings, Inc. and Titan DI Preferred Holdings, Inc., First lien senior secured loan2023-12-310001287750Enverus Holdings, Inc. and Titan DI Preferred Holdings, Inc., Preferred stock2023-12-310001287750arcc:EnverusHoldingsIncAndTitanDIPreferredHoldingsIncMember2023-12-310001287750EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P., First lien senior secured loan2023-12-310001287750EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P., Second lien senior secured loan2023-12-310001287750EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P., Partnership units2023-12-310001287750arcc:EPPurchaserLLCAndTPGVIIIEPCoInvestIILPMember2023-12-310001287750EpiServer Inc. and Episerver Sweden Holdings AB, First lien senior secured loan 12023-12-310001287750EpiServer Inc. and Episerver Sweden Holdings AB, First lien senior secured loan 22023-12-310001287750EpiServer Inc. and Episerver Sweden Holdings AB, First lien senior secured loan 32023-12-310001287750arcc:EpiServerIncAndEpiserverSwedenHoldingsABMember2023-12-310001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, First lien senior secured loan2023-12-310001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, Second lien senior secured loan 12023-12-310001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, Second lien senior secured loan 22023-12-310001287750eResearch Technology, Inc. and Astorg VII Co-Invest ERT, Limited partnership interest2023-12-310001287750arcc:EResearchTechnologyIncAndAstorgVIICoInvestERTMember2023-12-310001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P., First lien senior secured revolving loan2023-12-310001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P., First lien senior secured loan2023-12-310001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P., Limited partner interests2023-12-310001287750arcc:ESHAResearchLLCAndRMCFVICIVXLVIIILPMember2023-12-310001287750Extrahop Networks, Inc., First lien senior secured loan 12023-12-310001287750Extrahop Networks, Inc., First lien senior secured loan 22023-12-310001287750arcc:ExtraHopNetworksIncMember2023-12-310001287750Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L., First lien senior secured loan2023-12-310001287750First Insight, Inc., Warrant to purchase shares of Series C preferred stock2023-12-310001287750Forescout Technologies, Inc., First lien senior secured loan 12023-12-310001287750Forescout Technologies, Inc., First lien senior secured loan 22023-12-310001287750arcc:ForescoutTechnologiesIncMember2023-12-310001287750Genesis Acquisition Co. and Genesis Ultimate Holding Co., First lien senior secured revolving loan2023-12-310001287750Genesis Acquisition Co. and Genesis Ultimate Holding Co., First lien senior secured loan 12023-12-310001287750Genesis Acquisition Co. and Genesis Ultimate Holding Co., First lien senior secured loan 22023-12-310001287750Genesis Acquisition Co. and Genesis Ultimate Holding Co., Second lien senior secured loan 12023-12-310001287750Genesis Acquisition Co. and Genesis Ultimate Holding Co., Second lien senior secured loan 22023-12-310001287750Genesis Acquisition Co. and Genesis Ultimate Holding Co., Second lien senior secured loan 32023-12-310001287750Genesis Acquisition Co. and Genesis Ultimate Holding Co., Class A common stock2023-12-310001287750arcc:GenesisAcquisitionCoAndGenesisUltimateHoldingCoMember2023-12-310001287750GI Ranger Intermediate LLC, First lien senior secured revolving loan2023-12-310001287750GI Ranger Intermediate LLC, First lien senior secured loan 12023-12-310001287750GI Ranger Intermediate LLC, First lien senior secured loan 22023-12-310001287750arcc:GIRangerIntermediateLLCMember2023-12-310001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, First lien senior secured revolving loan2023-12-310001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, First lien senior secured loan 12023-12-310001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, First lien senior secured loan 22023-12-310001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, First lien senior secured loan 32023-12-310001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, First lien senior secured loan 42023-12-310001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, Senior subordinated loan2023-12-310001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC, Preferred units2023-12-310001287750arcc:GraphPADSoftwareLLCInsightfulScienceIntermediateILLCAndInsightfulScienceHoldingsLLCMember2023-12-310001287750Guidepoint Security Holdings, LLC, First lien senior secured loan2023-12-310001287750Heavy Construction Systems Specialists, LLC, First lien senior secured loan2023-12-310001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP, First lien senior secured revolving loan2023-12-310001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP, First lien senior secured loan2023-12-310001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP, Senior subordinated loan2023-12-310001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP, Company units2023-12-310001287750arcc:HuskiesParentIncGIInsurityParentLLCAndGIInsurityTopcoLPMember2023-12-310001287750Hyland Software, Inc., First lien senior secured loan2023-12-310001287750Imprivata, Inc., Second lien senior secured loan2023-12-310001287750Inmar, Inc., First lien senior secured loan2023-12-310001287750IQN Holding Corp., First lien senior secured loan2023-12-310001287750IV Rollover Holdings, LLC, Class B units2023-12-310001287750IV Rollover Holdings, LLC, Class X units2023-12-310001287750arcc:IVRolloverHoldingsLLCMember2023-12-310001287750Kaseya Inc. and Knockout Intermediate Holdings I Inc., First lien senior secured revolving loan2023-12-310001287750Kaseya Inc. and Knockout Intermediate Holdings I Inc., First lien senior secured loan2023-12-310001287750Kaseya Inc. and Knockout Intermediate Holdings I Inc., Preferred stock2023-12-310001287750arcc:KaseyaIncAndKnockoutIntermediateHoldingsIIncMember2023-12-310001287750LeanTaaS Holdings, Inc., First lien senior secured loan2023-12-310001287750Majesco and Magic Topco, L.P., First lien senior secured loan2023-12-310001287750Majesco and Magic Topco, L.P., Class A units2023-12-310001287750Majesco and Magic Topco, L.P., Class B units2023-12-310001287750arcc:MajescoAndMagicTopcoLPMember2023-12-310001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp, First lien senior secured loan 12023-12-310001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp, First lien senior secured loan 22023-12-310001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp, Limited partnership interest2023-12-310001287750arcc:MimecastBorrowercoIncAndMagnesiumCoInvestSCSpMember2023-12-310001287750Ministry Brands Holdings, LLC and RCP MB Investments B, L.P., First lien senior secured revolving loan 12023-12-310001287750Ministry Brands Holdings, LLC and RCP MB Investments B, L.P., First lien senior secured revolving loan 22023-12-310001287750Ministry Brands Holdings, LLC and RCP MB Investments B, L.P., First lien senior secured loan2023-12-310001287750Ministry Brands Holdings, LLC and RCP MB Investments B, L.P., Limited partner interests2023-12-310001287750arcc:MinistryBrandsHoldingsLLCAndRCPMBInvestmentsBLPMember2023-12-310001287750Mitchell International, Inc., First lien senior secured loan2023-12-310001287750Mitchell International, Inc., Second lien senior secured loan2023-12-310001287750arcc:MitchellInternationalIncMember2023-12-310001287750Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC, First lien senior secured revolving loan2023-12-310001287750Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC, First lien senior secured loan2023-12-310001287750Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC, Class A units2023-12-310001287750arcc:MoonrakerAcquisitionCoLLCAndMoonrakerHoldCoLLCMember2023-12-310001287750MRI Software LLC, First lien senior secured loan 12023-12-310001287750MRI Software LLC, First lien senior secured loan 22023-12-310001287750arcc:MRISoftwareLLCMember2023-12-310001287750Netsmart, Inc. and Netsmart Technologies, Inc., First lien senior secured loan2023-12-310001287750OpenMarket Inc., First lien senior secured loan2023-12-310001287750PDDS HoldCo, Inc., First lien senior secured revolving loan2023-12-310001287750PDDS HoldCo, Inc., First lien senior secured loan2023-12-310001287750arcc:PDDSHoldCoIncMember2023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, First lien senior secured revolving loan2023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, First lien senior secured loan2023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Second lien senior secured loan 12023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Second lien senior secured loan 22023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Second lien senior secured loan 32023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Second lien senior secured loan 42023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Second lien senior secured loan 52023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Series A preferred stock2023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC, Class A units2023-12-310001287750arcc:PDITAHoldingsIncPeachtreeParentIncAndInsightPDIHoldingsLLCMember2023-12-310001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC, First lien senior secured loan 12023-12-310001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC, First lien senior secured loan 22023-12-310001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC, First lien senior secured loan 32023-12-310001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC, Class A units2023-12-310001287750arcc:PegasusGlobalEnterpriseHoldingsLLCMekoneBlockerAcquisitionIncAndMekoneParentLLCMember2023-12-310001287750Perforce Software, Inc., First lien senior secured revolving loan2023-12-310001287750Petvisor Holdings, LLC, First lien senior secured loan 12023-12-310001287750Petvisor Holdings, LLC, First lien senior secured loan 22023-12-310001287750arcc:PetvisorHoldingsLLCMember2023-12-310001287750Ping Identity Holding Corp., First lien senior secured loan2023-12-310001287750Pluralsight, Inc., First lien senior secured revolving loan2023-12-310001287750Pluralsight, Inc., First lien senior secured loan2023-12-310001287750arcc:PluralsightIncMember2023-12-310001287750Poplicus Incorporated, Warrant to purchase shares of Series C preferred stock2023-12-310001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC, First lien senior secured revolving loan2023-12-310001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC, First lien senior secured loan2023-12-310001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC, Senior subordinated loan2023-12-310001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC, Class A units2023-12-310001287750arcc:PracticeTekPurchaserLLCPracticeTekMidCoLLCAndGSVPracticeTekHoldingsLLCMember2023-12-310001287750ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P., First lien senior secured loan2023-12-310001287750ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P., Limited partnership units2023-12-310001287750arcc:ProfitSolvPurchaserIncAndPSCoInvestLPMember2023-12-310001287750Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc., Class A common stock2023-12-310001287750Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc., Class B common stock2023-12-310001287750arcc:ProjectAlphaIntermediateHoldingIncAndQlikParentIncMember2023-12-310001287750Project Essential Bidco, Inc. and Project Essential Super Parent, Inc., First lien senior secured loan2023-12-310001287750Project Essential Bidco, Inc. and Project Essential Super Parent, Inc., Preferred shares2023-12-310001287750arcc:ProjectEssentialBidcoIncAndProjectEssentialSuperParentIncMember2023-12-310001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., First lien senior secured revolving loan2023-12-310001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., First lien senior secured loan 12023-12-310001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., First lien senior secured loan 22023-12-310001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., First lien senior secured loan 32023-12-310001287750Project Potter Buyer, LLC and Project Potter Parent, L.P., Class B units2023-12-310001287750arcc:ProjectPotterBuyerLLCAndProjectPotterParentLPMember2023-12-310001287750Proofpoint, Inc., First lien senior secured loan2023-12-310001287750Proofpoint, Inc., Second lien senior secured loan2023-12-310001287750arcc:ProofpointIncMember2023-12-310001287750PushPay USA Inc., First lien senior secured loan2023-12-310001287750QF Holdings, Inc., First lien senior secured loan 12023-12-310001287750QF Holdings, Inc., First lien senior secured loan 22023-12-310001287750QF Holdings, Inc., First lien senior secured loan 32023-12-310001287750QF Holdings, Inc., First lien senior secured loan 42023-12-310001287750arcc:QFHoldingsIncMember2023-12-310001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC, First lien senior secured loan 12023-12-310001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC, First lien senior secured loan 22023-12-310001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC, Class A common units2023-12-310001287750arcc:RaptorTechnologiesLLCSycamoreBidcoLTDAndRocketParentLLCMember2023-12-310001287750RealPage, Inc., Second lien senior secured loan2023-12-310001287750Regent Education, Inc., Warrant to purchase shares of common stock 12023-12-310001287750Regent Education, Inc., Warrant to purchase shares of common stock 22023-12-310001287750arcc:RegentEducationIncMember2023-12-310001287750Relativity ODA LLC, First lien senior secured loan2023-12-310001287750Revalize, Inc., First lien senior secured revolving loan2023-12-310001287750Revalize, Inc., First lien senior secured loan2023-12-310001287750arcc:RevalizeIncMember2023-12-310001287750RMS HoldCo II, LLC & RMS Group Holdings, Inc., First lien senior secured loan 12023-12-310001287750RMS HoldCo II, LLC & RMS Group Holdings, Inc., First lien senior secured loan 22023-12-310001287750RMS HoldCo II, LLC & RMS Group Holdings, Inc., Class A common stock2023-12-310001287750arcc:RMSHoldcoIILLCRMSGroupHoldingsIncMember2023-12-310001287750Smarsh Inc. and Skywalker TopCo, LLC, First lien senior secured loan2023-12-310001287750Smarsh Inc. and Skywalker TopCo, LLC, Common units2023-12-310001287750arcc:SmarshIncAndSkywalkerTopCoLLCMember2023-12-310001287750SocialFlow, Inc., Warrant to purchase shares of Series C preferred stock2023-12-310001287750Sophia, L.P., Second lien senior secured loan2023-12-310001287750SoundCloud Limited, Common stock2023-12-310001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp, First lien senior secured revolving loan2023-12-310001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp, First lien senior secured loan2023-12-310001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp, Limited partner interests2023-12-310001287750arcc:SpiritRRHoldingsIncAndWinterfellCoInvestSCSpMember2023-12-310001287750Storable, Inc. and EQT IX Co-Investment (E) SCSP, Second lien senior secured loan 12023-12-310001287750Storable, Inc. and EQT IX Co-Investment (E) SCSP, Second lien senior secured loan 22023-12-310001287750Storable, Inc. and EQT IX Co-Investment (E) SCSP, Limited partnership interests2023-12-310001287750arcc:StorableIncAndEQTIXCoInvestmentESCSPMember2023-12-310001287750Sundance Group Holdings, Inc., First lien senior secured revolving loan2023-12-310001287750Sundance Group Holdings, Inc., First lien senior secured loan 12023-12-310001287750Sundance Group Holdings, Inc., First lien senior secured loan 22023-12-310001287750arcc:SundanceGroupHoldingsIncMember2023-12-310001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., First lien senior secured loan 12023-12-310001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., First lien senior secured loan 22023-12-310001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C., Class A-2 units2023-12-310001287750arcc:TamarackIntermediateLLCAndTamarackParentLLCMember2023-12-310001287750TCP Hawker Intermediate LLC, First lien senior secured loan 12023-12-310001287750TCP Hawker Intermediate LLC, First lien senior secured loan 22023-12-310001287750TCP Hawker Intermediate LLC, First lien senior secured loan 32023-12-310001287750TCP Hawker Intermediate LLC, First lien senior secured loan 42023-12-310001287750arcc:TCPHawkerIntermediateLLCMember2023-12-310001287750UKG Inc. and H&F Unite Partners, L.P., First lien senior secured revolving loan2023-12-310001287750UKG Inc. and H&F Unite Partners, L.P., Limited partnership interests2023-12-310001287750arcc:UKGIncAndHFUnitePartnersLPMember2023-12-310001287750UserZoom Technologies, Inc., First lien senior secured loan2023-12-310001287750WebPT, Inc., First lien senior secured revolving loan2023-12-310001287750WebPT, Inc., First lien senior secured loan2023-12-310001287750arcc:WebPTIncMember2023-12-310001287750Wellness AcquisitionCo, Inc., First lien senior secured loan2023-12-310001287750WorkWave Intermediate II, LLC, First lien senior secured loan 12023-12-310001287750WorkWave Intermediate II, LLC, First lien senior secured loan 22023-12-310001287750arcc:WorkWaveIntermediateIILLCMember2023-12-310001287750ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP, First lien senior secured loan2023-12-310001287750ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP, Series A preferred stock2023-12-310001287750ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP, Class A common units2023-12-310001287750arcc:ZenDeskIncZoroTopCoIncAndZoroTopCoLPMember2023-12-310001287750arcc:SoftwareAndServicesMember2023-12-310001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC, First lien senior secured revolving loan 12023-12-310001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC, First lien senior secured revolving loan 22023-12-310001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC, First lien senior secured loan2023-12-310001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC, Class A common units2023-12-310001287750arcc:AbsoluteDentalGroupLLCAndAbsoluteDentalEquityLLCMember2023-12-310001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC, First lien senior secured loan2023-12-310001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC, Second lien senior secured loan2023-12-310001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC, Membership units2023-12-310001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC, Class A common units2023-12-310001287750arcc:ADGLLCAndRCIVGEDCInvestorLLCMember2023-12-310001287750Advarra Holdings, Inc., First lien senior secured loan2023-12-310001287750AHR Funding Holdings, Inc. and AHR Parent Holdings, LP, Series A preferred shares2023-12-310001287750AHR Funding Holdings, Inc. and AHR Parent Holdings, LP, Preferred units2023-12-310001287750AHR Funding Holdings, Inc. and AHR Parent Holdings, LP, Class B common units2023-12-310001287750arcc:AHRFundingHoldingsIncAndAHRParentHoldingsLPMember2023-12-310001287750Amerivet Partners Management, Inc. and AVE Holdings LP, Subordinated loan2023-12-310001287750Amerivet Partners Management, Inc. and AVE Holdings LP, Class C units2023-12-310001287750arcc:AmerivetPartnersManagementIncAndAVEHoldingsLPMember2023-12-310001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP, First lien senior secured loan2023-12-310001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP, Series A preferred stock2023-12-310001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP, Class A units2023-12-310001287750arcc:AthenaHealthGroupIncMinervaHoldcoIncAndBCPECoInvestALPMember2023-12-310001287750BAART Programs, Inc., MedMark Services, Inc., and Canadian Addiction Treatment Centres LP, First lien senior secured loan2023-12-310001287750Bambino Group Holdings, LLC, Class A preferred units2023-12-310001287750Center for Autism and Related Disorders, LLC, First lien senior secured revolving loan 12023-12-310001287750Center for Autism and Related Disorders, LLC, First lien senior secured revolving loan 22023-12-310001287750Center for Autism and Related Disorders, LLC, First lien senior secured loan2023-12-310001287750arcc:CenterForAutismAndRelatedDisordersLLCMember2023-12-310001287750Color Intermediate, LLC, First lien senior secured loan2023-12-310001287750Comprehensive EyeCare Partners, LLC, First lien senior secured revolving loan2023-12-310001287750Comprehensive EyeCare Partners, LLC, First lien senior secured loan2023-12-310001287750arcc:ComprehensiveEyeCarePartnersLLCMember2023-12-310001287750Convey Health Solutions, Inc., First lien senior secured loan 12023-12-310001287750Convey Health Solutions, Inc., First lien senior secured loan 22023-12-310001287750Convey Health Solutions, Inc., First lien senior secured loan 32023-12-310001287750arcc:ConveyHealthSolutionsIncMember2023-12-310001287750Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC, First lien senior secured loan2023-12-310001287750Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC, Class A shares2023-12-310001287750Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC, Common units2023-12-310001287750arcc:CrownCTParentIncCrownCTHoldCoIncAndCrownCTManagementLLCMember2023-12-310001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, First lien senior secured loan 12023-12-310001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, First lien senior secured loan 22023-12-310001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, First lien senior secured loan 32023-12-310001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, First lien senior secured loan 42023-12-310001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, Class A preferred units2023-12-310001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC, Common stock2023-12-310001287750arcc:CVPHoldcoIncAndOMERSWildcatsInvestmentHoldingsLLCMember2023-12-310001287750Evolent Health LLC and Evolent Health, Inc., Series A preferred shares2023-12-310001287750GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC, Second lien senior secured loan2023-12-310001287750GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC, Class A units2023-12-310001287750arcc:GHXUltimateParentCorporationCommerceParentIncAndCommerceTopcoLLCMember2023-12-310001287750Global Medical Response, Inc. and GMR Buyer Corp., First lien senior secured loan 12023-12-310001287750Global Medical Response, Inc. and GMR Buyer Corp., First lien senior secured loan 22023-12-310001287750Global Medical Response, Inc. and GMR Buyer Corp., Second lien senior secured loan2023-12-310001287750Global Medical Response, Inc. and GMR Buyer Corp., Warrant to purchase units of common stock 12023-12-310001287750Global Medical Response, Inc. and GMR Buyer Corp., Warrant to purchase units of common stock 22023-12-310001287750arcc:GlobalMedicalResponseIncAndGMRBuyerCorpMember2023-12-310001287750Hanger, Inc., First lien senior secured loan 12023-12-310001287750Hanger, Inc., First lien senior secured loan 22023-12-310001287750Hanger, Inc., First lien senior secured loan 32023-12-310001287750Hanger, Inc., Second lien senior secured loan 12023-12-310001287750Hanger, Inc., Second lien senior secured loan 22023-12-310001287750arcc:HangerIncMember2023-12-310001287750HealthEdge Software, Inc., First lien senior secured revolving loan2023-12-310001287750HealthEdge Software, Inc., First lien senior secured loan 12023-12-310001287750HealthEdge Software, Inc., First lien senior secured loan 22023-12-310001287750arcc:HealthEdgeSoftwareIncMember2023-12-310001287750Honor Technology, Inc., First lien senior secured loan2023-12-310001287750Honor Technology, Inc., Warrant to purchase shares of Series D-2 preferred stock2023-12-310001287750arcc:HonorTechnologyIncMember2023-12-310001287750JDC Healthcare Management, LLC, Senior subordinated loan2023-12-310001287750KBHS Acquisition, LLC (d/b/a Alita Care, LLC), First lien senior secured revolving loan2023-12-310001287750Lifescan Global Corporation, First lien senior secured loan2023-12-310001287750Lifescan Global Corporation, Second lien senior secured loan2023-12-310001287750arcc:LifescanGlobalCorporationMember2023-12-310001287750Medline Borrower, LP, First lien senior secured revolving loan2023-12-310001287750Napa Management Services Corporation and ASP NAPA Holdings, LLC, Preferred units2023-12-310001287750Napa Management Services Corporation and ASP NAPA Holdings, LLC, Senior preferred units2023-12-310001287750Napa Management Services Corporation and ASP NAPA Holdings, LLC, Class A units2023-12-310001287750arcc:NapaManagementServicesCorporationAndASPNAPAHoldingsLLCMember2023-12-310001287750Next Holdco, LLC, First lien senior secured loan2023-12-310001287750NMN Holdings III Corp. and NMN Holdings LP, First lien senior secured revolving loan2023-12-310001287750NMN Holdings III Corp. and NMN Holdings LP, Partnership units2023-12-310001287750arcc:NMNHoldingsIIICorpAndNMNHoldingsLPMember2023-12-310001287750Nomi Health, Inc., First lien senior secured loan2023-12-310001287750Nomi Health, Inc., Warrant to purchase shares of Series B preferred stock2023-12-310001287750arcc:NomiHealthIncMember2023-12-310001287750NSPC Intermediate Corp. and NSPC Holdings, LLC, Common units2023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, First lien senior secured loan 12023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, First lien senior secured loan 22023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, First lien senior secured loan 32023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, Preferred units2023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, Preferred stock2023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, Class A common units2023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC, Common units2023-12-310001287750arcc:OlympiaAcquisitionIncOlympiaTopCoLPAndAsclepiusHoldingsLLCMember2023-12-310001287750OMH-HealthEdge Holdings, LLC, First lien senior secured loan2023-12-310001287750Paragon 28, Inc. and Paragon Advanced Technologies, Inc., First lien senior secured revolving loan2023-12-310001287750Paragon 28, Inc. and Paragon Advanced Technologies, Inc., First lien senior secured loan2023-12-310001287750arcc:Paragon28IncAndParagonAdvancedTechnologiesIncMember2023-12-310001287750Pathway Vet Alliance LLC and Jedi Group Holdings LLC, First lien senior secured revolving loan2023-12-310001287750Pathway Vet Alliance LLC and Jedi Group Holdings LLC, Second lien senior secured loan2023-12-310001287750Pathway Vet Alliance LLC and Jedi Group Holdings LLC, Class R common units2023-12-310001287750arcc:PathwayVetAllianceLLCAndJediGroupHoldingsLLCMember2023-12-310001287750PetVet Care Centers, LLC, First lien senior secured loan2023-12-310001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP, First lien senior secured revolving loan2023-12-310001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP, First lien senior secured loan2023-12-310001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP, Second lien senior secured loan2023-12-310001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP, Class A units2023-12-310001287750arcc:PremiseHealthHoldingCorpAndOMERSBluejayInvestmentHoldingsLPMember2023-12-310001287750Project Ruby Ultimate Parent Corp., First lien senior secured loan2023-12-310001287750Project Ruby Ultimate Parent Corp., Second lien senior secured loan2023-12-310001287750arcc:ProjectRubyUltimateParentCorpMember2023-12-310001287750RTI Surgical, Inc. and Pioneer Surgical Technology, Inc., First lien senior secured revolving loan2023-12-310001287750RTI Surgical, Inc. and Pioneer Surgical Technology, Inc., First lien senior secured loan2023-12-310001287750arcc:RTISurgicalIncAndPioneerSurgicalTechnologyIncMember2023-12-310001287750SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC, First lien senior secured loan2023-12-310001287750SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC, Common units2023-12-310001287750arcc:SiroMedPhysicianServicesIncAndSiroMedEquityHoldingsLLCMember2023-12-310001287750SM Wellness Holdings, Inc. and SM Holdco, LLC, Series D units2023-12-310001287750SM Wellness Holdings, Inc. and SM Holdco, LLC, Series A units2023-12-310001287750SM Wellness Holdings, Inc. and SM Holdco, LLC, Series B units2023-12-310001287750arcc:SMWellnessHoldingsIncAndSMHoldcoIncMember2023-12-310001287750SOC Telemed, Inc. and PSC Spark Holdings, LP, First lien senior secured loan2023-12-310001287750SOC Telemed, Inc. and PSC Spark Holdings, LP, Class A-2 units2023-12-310001287750SOC Telemed, Inc. and PSC Spark Holdings, LP, Warrant to purchase units of common stock2023-12-310001287750arcc:SOCTelemedIncAndPSCSparkHoldingsLPMember2023-12-310001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., First lien senior secured revolving loan2023-12-310001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., First lien senior secured loan2023-12-310001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Second lien senior secured loan2023-12-310001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Series C-1 preferred shares2023-12-310001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Series C-2 preferred shares2023-12-310001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc., Series C-3 preferred shares2023-12-310001287750arcc:SymplrSoftwareIncAndSymplrSoftwareIntermediateHoldingsIncMember2023-12-310001287750Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC, First lien senior secured loan2023-12-310001287750Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC, Common units2023-12-310001287750arcc:SynergyHomeCareFranchisingLLCAndNPSynergyHoldingsLLCMember2023-12-310001287750Tempus Labs, Inc., First lien senior secured loan 12023-12-310001287750Tempus Labs, Inc., First lien senior secured loan 22023-12-310001287750Tempus Labs, Inc., First lien senior secured loan 32023-12-310001287750Tempus Labs, Inc., Series G-4 preferred stock2023-12-310001287750arcc:TempusLabsIncMember2023-12-310001287750Therapy Brands Holdings LLC, Second lien senior secured loan2023-12-310001287750Touchstone Acquisition, Inc. and Touchstone Holding, L.P., Class A preferred units2023-12-310001287750U.S. Anesthesia Partners, Inc. & U.S. Anesthesia Partners Holdings, Inc., Second lien senior secured loan2023-12-310001287750U.S. Anesthesia Partners, Inc. & U.S. Anesthesia Partners Holdings, Inc., Common stock2023-12-310001287750arcc:USAnesthesiaPartnersIncUSAnesthesiaPartnersHoldingsIncMember2023-12-310001287750United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, First lien senior secured loan2023-12-310001287750United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP, Class A interests2023-12-310001287750arcc:UnitedDigestiveMSOParentLLCAndKolnCoInvestUnblockedLPMember2023-12-310001287750Viant Medical Holdings, Inc., First lien senior secured loan2023-12-310001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., First lien senior secured loan 12023-12-310001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., First lien senior secured loan 22023-12-310001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., First lien senior secured loan 32023-12-310001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., Class A-2 units 12023-12-310001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P., Class A-2 units 22023-12-310001287750arcc:VPPIntermediateHoldingsLLCAndVPPGroupHoldingsLPMember2023-12-310001287750Wellpath Holdings, Inc., First lien senior secured revolving loan2023-12-310001287750Wellpath Holdings, Inc., First lien senior secured loan2023-12-310001287750arcc:WellpathHoldingsIncMember2023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured revolving loan2023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 12023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 22023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 32023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 42023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 52023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 62023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, First lien senior secured loan 72023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC, Common units2023-12-310001287750arcc:WSHPFCAcquisitionLLCMember2023-12-310001287750us-gaap:HealthcareSectorMember2023-12-310001287750AQ Sage Buyer, LLC, First lien senior secured loan2023-12-310001287750BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLC, First lien senior secured loan2023-12-310001287750BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLC, Senior subordinated loan2023-12-310001287750BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLC, Common units2023-12-310001287750arcc:BCCBlueprintHoldingsILLCAndBCCBlueprintInvestmentsLLCMember2023-12-310001287750Beacon Pointe Harmony, LLC, First lien senior secured loan 12023-12-310001287750Beacon Pointe Harmony, LLC, First lien senior secured loan 22023-12-310001287750Beacon Pointe Harmony, LLC, First lien senior secured loan 32023-12-310001287750arcc:BeaconPointeHarmonyLLCMember2023-12-310001287750Cliffwater LLC, First lien senior secured loan2023-12-310001287750Convera International Holdings Limited and Convera International Financial S.A R.L., First lien senior secured loan 12023-12-310001287750Convera International Holdings Limited and Convera International Financial S.A R.L., First lien senior secured loan 22023-12-310001287750arcc:ConveraInternationalHoldingsLimitedAndConveraInternationalFinancialSARLMember2023-12-310001287750Corient Holdings, Inc., Series A preferred stock2023-12-310001287750CrossCountry Mortgage, LLC and CrossCountry Holdco, LLC, Series D preferred units2023-12-310001287750DFC Global Facility Borrower III LLC, First lien senior secured revolving loan2023-12-310001287750eCapital Finance Corp., Senior subordinated loan 12023-12-310001287750eCapital Finance Corp., Senior subordinated loan 22023-12-310001287750eCapital Finance Corp., Senior subordinated loan 32023-12-310001287750eCapital Finance Corp., Senior subordinated loan 42023-12-310001287750eCapital Finance Corp., Senior subordinated loan 52023-12-310001287750arcc:ECapitalFinanceCorpMember2023-12-310001287750EP Wealth Advisors, LLC, First lien senior secured revolving loan2023-12-310001287750EP Wealth Advisors, LLC, First lien senior secured loan 12023-12-310001287750EP Wealth Advisors, LLC, First lien senior secured loan 22023-12-310001287750EP Wealth Advisors, LLC, First lien senior secured loan 32023-12-310001287750EP Wealth Advisors, LLC, First lien senior secured loan 42023-12-310001287750arcc:EPWealthAdvisorsLLCMember2023-12-310001287750GTCR F Buyer Corp. and GTCR (D) Investors LP, First lien senior secured loan2023-12-310001287750GTCR F Buyer Corp. and GTCR (D) Investors LP, Limited partnership interests2023-12-310001287750arcc:GTCRFBuyerCorpAndGTCRDInvestorsLPMember2023-12-310001287750HighTower Holding, LLC, Senior subordinated loan2023-12-310001287750Ivy Hill Asset Management, L.P., Subordinated revolving loan2023-12-310001287750Ivy Hill Asset Management, L.P., Member interest (100.00% interest)2023-12-310001287750arcc:IvyHillAssetManagementLPMember2023-12-310001287750Lido Advisors, LLC, First lien senior secured revolving loan2023-12-310001287750Lido Advisors, LLC, First lien senior secured loan2023-12-310001287750arcc:LidoAdvisorsLLCMember2023-12-310001287750LS DE LLC and LM LSQ Investors LLC, Senior subordinated loan 12023-12-310001287750LS DE LLC and LM LSQ Investors LLC, Senior subordinated loan 22023-12-310001287750LS DE LLC and LM LSQ Investors LLC, Membership units2023-12-310001287750arcc:LSDELLCAndLMLSQInvestorsLLCMember2023-12-310001287750Monica Holdco (US) Inc., First lien senior secured revolving loan2023-12-310001287750Monica Holdco (US) Inc., First lien senior secured loan2023-12-310001287750arcc:MonicaHoldcoUSIncMember2023-12-310001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured loan 12023-12-310001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., First lien senior secured loan 22023-12-310001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P., Limited partnership interests2023-12-310001287750arcc:PathstoneFamilyOfficeLLCAndKelsoXITailwindCoInvestmentLPMember2023-12-310001287750PCIA SPV-3, LLC and ASE Royal Aggregator, LLC, First lien senior secured loan2023-12-310001287750PCIA SPV-3, LLC and ASE Royal Aggregator, LLC, Preferred units2023-12-310001287750arcc:PCIASPV3LLCAndASERoyalAggregatorLLCMember2023-12-310001287750Petrus Buyer, Inc., First lien senior secured loan2023-12-310001287750Priority Holdings, LLC and Priority Technology Holdings, Inc., First lien senior secured loan2023-12-310001287750Priority Holdings, LLC and Priority Technology Holdings, Inc., Senior preferred stock2023-12-310001287750Priority Holdings, LLC and Priority Technology Holdings, Inc., Warrant to purchase shares of common stock2023-12-310001287750arcc:PriorityHoldingsLLCAndPriorityTechnologyHoldingsIncMember2023-12-310001287750Rialto Management Group, LLC, First lien senior secured revolving loan2023-12-310001287750Rialto Management Group, LLC, First lien senior secured loan 12023-12-310001287750Rialto Management Group, LLC, First lien senior secured loan 22023-12-310001287750Rialto Management Group, LLC, First lien senior secured loan 32023-12-310001287750arcc:RialtoManagementGroupLLCMember2023-12-310001287750Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC, First lien senior secured loan2023-12-310001287750TA/WEG Holdings, LLC, First lien senior secured loan 12023-12-310001287750TA/WEG Holdings, LLC, First lien senior secured loan 22023-12-310001287750TA/WEG Holdings, LLC, First lien senior secured loan 32023-12-310001287750TA/WEG Holdings, LLC, First lien senior secured loan 42023-12-310001287750arcc:TAWEGHoldingsLLCMember2023-12-310001287750The Edelman Financial Center, LLC, Second lien senior secured loan2023-12-310001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, First lien senior secured revolving loan2023-12-310001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, First lien senior secured loan2023-12-310001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, Senior subordinated loan2023-12-310001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, Series A preferred units2023-12-310001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC, Common units2023-12-310001287750arcc:TheMatherGroupLLCTVGTMGTopcoIncAndTVGTMGHoldingsLLCMember2023-12-310001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, First lien senior secured revolving loan2023-12-310001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, First lien senior secured loan2023-12-310001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, Class A units 12023-12-310001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, Class A units 22023-12-310001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, Class B units 12023-12-310001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP, Class B units 22023-12-310001287750arcc:TheUltimusGroupMidcoLLCTheUltimusGroupLLCAndTheUltimusGroupAggregatorLPMember2023-12-310001287750Waverly Advisors, LLC and WAAM Topco, LLC, First lien senior secured loan2023-12-310001287750Waverly Advisors, LLC and WAAM Topco, LLC, Class A units2023-12-310001287750arcc:WaverlyAdvisorsLLCAndWAAMTopcoLLCMember2023-12-310001287750us-gaap:FinancialServicesSectorMember2023-12-310001287750Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC, First lien senior secured revolving loan2023-12-310001287750Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC, Class A common units2023-12-310001287750arcc:AccommodationsPlusTechnologiesLLCAndAccommodationsPlusTechnologiesHoldingsLLCMember2023-12-310001287750Aero Operating LLC, First lien senior secured loan 12023-12-310001287750Aero Operating LLC, First lien senior secured loan 22023-12-310001287750arcc:AeroOperatingLLCMember2023-12-310001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, First lien senior secured loan 12023-12-310001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, First lien senior secured loan 22023-12-310001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, First lien senior secured loan 32023-12-310001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, Second lien senior secured loan 12023-12-310001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, Second lien senior secured loan 22023-12-310001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, Second lien senior secured loan 32023-12-310001287750AI Fire Buyer, Inc. and AI Fire Parent LLC, Common units2023-12-310001287750arcc:AIFireBuyerIncAndAIFireParentLLCMember2023-12-310001287750Applied Technical Services, LLC, First lien senior secured revolving loan2023-12-310001287750Applied Technical Services, LLC, First lien senior secured loan 12023-12-310001287750Applied Technical Services, LLC, First lien senior secured loan 22023-12-310001287750arcc:AppliedTechnicalServicesLLCMember2023-12-310001287750Argenbright Holdings V, LLC and Amberstone Security Group Limited, First lien senior secured loan 12023-12-310001287750Argenbright Holdings V, LLC and Amberstone Security Group Limited, First lien senior secured loan 22023-12-310001287750arcc:ArgenbrightHoldingsVLLCAndAmberstoneSecurityGroupLimitedMember2023-12-310001287750BH-Sharp Holdings LP, Common units2023-12-310001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP, First lien senior secured revolving loan2023-12-310001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP, First lien senior secured loan2023-12-310001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP, Second lien senior secured loan2023-12-310001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP, Class A units2023-12-310001287750arcc:CapstoneAcquisitionHoldingsIncAndCapstoneParentHoldingsLPMember2023-12-310001287750Compex Legal Services, Inc., First lien senior secured revolving loan2023-12-310001287750Compex Legal Services, Inc., First lien senior secured loan2023-12-310001287750arcc:CompexLegalServicesIncMember2023-12-310001287750DTI Holdco, Inc. and OPE DTI Holdings, Inc., Class A common stock2023-12-310001287750DTI Holdco, Inc. and OPE DTI Holdings, Inc., Class B common stock2023-12-310001287750arcc:DTIHoldcoIncAndOPEDTIHoldingsIncMember2023-12-310001287750Elevation Services Parent Holdings, LLC, First lien senior secured revolving loan2023-12-310001287750Elevation Services Parent Holdings, LLC, First lien senior secured loan 12023-12-310001287750Elevation Services Parent Holdings, LLC, First lien senior secured loan 22023-12-310001287750arcc:ElevationServicesParentHoldingsLLCMember2023-12-310001287750FlyWheel Acquireco, Inc., First lien senior secured revolving loan2023-12-310001287750FlyWheel Acquireco, Inc., First lien senior secured loan2023-12-310001287750arcc:FlyWheelAcquirecoIncMember2023-12-310001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP, First lien senior secured revolving loan2023-12-310001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP, First lien senior secured loan 12023-12-310001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP, First lien senior secured loan 22023-12-310001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP, Class A units2023-12-310001287750arcc:HHStellaIncAndBedrockParentHoldingsLPMember2023-12-310001287750HP RSS Buyer, Inc., First lien senior secured loan2023-12-310001287750IRI Holdings, Inc., IRI Group Holdings, Inc. and IRI Parent, L.P., First lien senior secured revolving loan 12023-12-310001287750IRI Holdings, Inc., IRI Group Holdings, Inc. and IRI Parent, L.P., First lien senior secured revolving loan 22023-12-310001287750IRI Holdings, Inc., IRI Group Holdings, Inc. and IRI Parent, L.P., First lien senior secured loan2023-12-310001287750IRI Holdings, Inc., IRI Group Holdings, Inc. and IRI Parent, L.P., Class A units2023-12-310001287750arcc:IRIHoldingsIncIRIGroupHoldingsIncAndIRIParentLPMember2023-12-310001287750ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P., First lien senior secured revolving loan2023-12-310001287750ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P., First lien senior secured loan2023-12-310001287750ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P., Class A units2023-12-310001287750arcc:ISQHawkeyeHoldcoIncAndISQHawkeyeHoldingsLPMember2023-12-310001287750Kellermeyer Bergensons Services, LLC, First lien senior secured loan 12023-12-310001287750Kellermeyer Bergensons Services, LLC, First lien senior secured loan 22023-12-310001287750arcc:KellermeyerBergensonsServicesLLCMember2023-12-310001287750Kings Buyer, LLC, First lien senior secured loan2023-12-310001287750KPS Global LLC and Cool Group LLC, First lien senior secured loan 12023-12-310001287750KPS Global LLC and Cool Group LLC, First lien senior secured loan 22023-12-310001287750KPS Global LLC and Cool Group LLC, Class A units2023-12-310001287750arcc:KPSGlobalLLCAndCoolGroupLLCMember2023-12-310001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured revolving loan 12023-12-310001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured revolving loan 22023-12-310001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured loan 12023-12-310001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured loan 22023-12-310001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured loan 32023-12-310001287750Laboratories Bidco LLC and Laboratories Topco LLC, First lien senior secured loan 42023-12-310001287750Laboratories Bidco LLC and Laboratories Topco LLC, Class A units2023-12-310001287750arcc:LaboratoriesBidcoLLCAndLaboratoriesTopcoLLCMember2023-12-310001287750Lightbeam Bidco, Inc., First lien senior secured revolving loan2023-12-310001287750Lightbeam Bidco, Inc., First lien senior secured loan 12023-12-310001287750Lightbeam Bidco, Inc., First lien senior secured loan 22023-12-310001287750Lightbeam Bidco, Inc.2023-12-310001287750LJP Purchaser, Inc. and LJP Topco, LP, First lien senior secured loan2023-12-310001287750LJP Purchaser, Inc. and LJP Topco, LP, Class A units2023-12-310001287750arcc:LJPPurchaserIncAndLJPTopcoLPMember2023-12-310001287750Marmic Purchaser, LLC and Marmic Topco, L.P., First lien senior secured loan 12023-12-310001287750Marmic Purchaser, LLC and Marmic Topco, L.P., First lien senior secured loan 22023-12-310001287750Marmic Purchaser, LLC and Marmic Topco, L.P., First lien senior secured loan 32023-12-310001287750Marmic Purchaser, LLC and Marmic Topco, L.P., Limited partnership units2023-12-310001287750arcc:MarmicPurchaserLLCAndMarmicTopcoLPMember2023-12-310001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Second lien senior secured loan 12023-12-310001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Second lien senior secured loan 22023-12-310001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Series A preferred stock2023-12-310001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Series B preferred stock2023-12-310001287750Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc., Common stock2023-12-310001287750arcc:MicrostarLogisticsLLCMicrostarGlobalAssetManagementLLCMStarHoldingCorporationAndKegstarUSAIncMember2023-12-310001287750NAS, LLC and Nationwide Marketing Group, LLC, First lien senior secured revolving loan2023-12-310001287750NAS, LLC and Nationwide Marketing Group, LLC, First lien senior secured loan 12023-12-310001287750NAS, LLC and Nationwide Marketing Group, LLC, First lien senior secured loan 22023-12-310001287750NAS, LLC and Nationwide Marketing Group, LLC, First lien senior secured loan 32023-12-310001287750arcc:NASLLCAndNationwideMarketingGroupLLCMember2023-12-310001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., First lien senior secured revolving loan2023-12-310001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., First lien senior secured loan 12023-12-310001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., First lien senior secured loan 22023-12-310001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., First lien senior secured note2023-12-310001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., Second lien senior secured loan2023-12-310001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P., Limited partnership interests2023-12-310001287750arcc:NeptuneBidcoUSIncAndElliottMetronCoInvestorAggregatorLPMember2023-12-310001287750Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1, Senior subordinated loan2023-12-310001287750Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1, Limited partner interest2023-12-310001287750arcc:NestTopcoBorrowerIncKKRNestCoInvestLPAndNBLY20211Member2023-12-310001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC, First lien senior secured revolving loan2023-12-310001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC, First lien senior secured loan 12023-12-310001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC, First lien senior secured loan 22023-12-310001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC, Common units2023-12-310001287750arcc:NorthAmericanFireHoldingsLLCAndNorthAmericanFireUltimateHoldingsLLCMember2023-12-310001287750North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC, First lien senior secured loan2023-12-310001287750North Haven Stack Buyer, LLC, First lien senior secured revolving loan 12023-12-310001287750North Haven Stack Buyer, LLC, First lien senior secured revolving loan 22023-12-310001287750North Haven Stack Buyer, LLC, First lien senior secured loan 12023-12-310001287750North Haven Stack Buyer, LLC, First lien senior secured loan 22023-12-310001287750arcc:NorthHavenStackBuyerLLCMember2023-12-310001287750Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, First lien senior secured loan2023-12-310001287750Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC, Warrant to purchase units of Class A common units2023-12-310001287750arcc:PriorityWasteHoldingsLLCPriorityWasteHoldingsIndianaLLCAndPriorityWasteSuperHoldingsLLCMember2023-12-310001287750Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC, First lien senior secured loan2023-12-310001287750Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC, Class A units2023-12-310001287750arcc:PritchardIndustriesLLCAndLJPritchardTopCoHoldingsLLCMember2023-12-310001287750PS Operating Company LLC and PS Op Holdings LLC, First lien senior secured revolving loan2023-12-310001287750PS Operating Company LLC and PS Op Holdings LLC, First lien senior secured loan2023-12-310001287750PS Operating Company LLC and PS Op Holdings LLC, Common unit2023-12-310001287750arcc:PSOperatingCompanyLLCAndPSOPHoldingsLLCMember2023-12-310001287750PSC Group LLC, First lien senior secured revolving loan2023-12-310001287750PSC Group LLC, First lien senior secured loan 12023-12-310001287750PSC Group LLC, First lien senior secured loan 22023-12-310001287750PSC Group LLC, First lien senior secured loan 32023-12-310001287750PSC Group LLC, First lien senior secured loan 42023-12-310001287750PSC Group LLC, First lien senior secured loan 52023-12-310001287750arcc:PSCGroupLLCMember2023-12-310001287750R2 Acquisition Corp., Common stock2023-12-310001287750RC V Tecmo Investor LLC, Common member units2023-12-310001287750RE Community Holdings GP, LLC and RE Community Holdings, LP, Limited partnership interest 12023-12-310001287750RE Community Holdings GP, LLC and RE Community Holdings, LP, Limited partnership interest 22023-12-310001287750arcc:RECommunityHoldingsGPLLCAndRECommunityHoldingsLPMember2023-12-310001287750Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P., First lien senior secured loan2023-12-310001287750Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P., Limited partner interests2023-12-310001287750arcc:RegistrarIntermediateLLCAndPSPRegistrarCoInvestmentFundLPMember2023-12-310001287750Rodeo AcquisitionCo LLC, First lien senior secured revolving loan2023-12-310001287750Rodeo AcquisitionCo LLC, First lien senior secured loan2023-12-310001287750arcc:RodeoAcquisitionCoLLCMember2023-12-310001287750Saturn Purchaser Corp., First lien senior secured loan 12023-12-310001287750Saturn Purchaser Corp., First lien senior secured loan 22023-12-310001287750arcc:SaturnPurchaserCorpMember2023-12-310001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P., First lien senior secured revolving loan2023-12-310001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P., First lien senior secured loan2023-12-310001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P., Class A units2023-12-310001287750arcc:SchillLandscapingAndLawnCareServicesLLCTenderLawnCareULCAndLandscapeParallelPartnersLPMember2023-12-310001287750Shermco Intermediate Holdings, Inc., First lien senior secured revolving loan2023-12-310001287750Shermco Intermediate Holdings, Inc., First lien senior secured loan 12023-12-310001287750Shermco Intermediate Holdings, Inc., First lien senior secured loan 22023-12-310001287750arcc:ShermcoIntermediateHoldingsIncMember2023-12-310001287750SSE Buyer, Inc.,Supply SourceEnterprises, Inc.,Impact ProductsLLC, The SafetyZone, LLC and SSEParent, LP, Second lien senior secured loan2023-12-310001287750SSE Buyer, Inc.,Supply SourceEnterprises, Inc.,Impact ProductsLLC, The SafetyZone, LLC and SSEParent, LP, Limited partnership class A-1 units2023-12-310001287750SSE Buyer, Inc.,Supply SourceEnterprises, Inc.,Impact ProductsLLC, The SafetyZone, LLC and SSEParent, LP, Limited partnership class A-2 units2023-12-310001287750arcc:SSEBuyerIncSupplySourceEnterprisesIncImpactProductsLLCTheSafetyZoneLLCAndSSEParentLPMember2023-12-310001287750Startec Equity, LLC, Member interest2023-12-310001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 12023-12-310001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 22023-12-310001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 32023-12-310001287750Stealth Holding LLC and UCIT Online Security Inc., First lien senior secured loan 42023-12-310001287750arcc:StealthHoldingLLCAndUCITOnlineSecurityIncMember2023-12-310001287750Systems Planning and Analysis, Inc., First lien senior secured loan2023-12-310001287750Thermostat Purchaser III, Inc., First lien senior secured revolving loan2023-12-310001287750Thermostat Purchaser III, Inc., Second lien senior secured loan2023-12-310001287750arcc:ThermostatPurchaserIIIIncMember2023-12-310001287750Valcourt Holdings II, LLC and Jobs Holdings, Inc., First lien senior secured revolving loan2023-12-310001287750Valcourt Holdings II, LLC and Jobs Holdings, Inc., First lien senior secured loan2023-12-310001287750arcc:ValcourtHoldingsIILLCAndJobsHoldingsIncMember2023-12-310001287750Visual Edge Technology, Inc., First lien senior secured loan2023-12-310001287750Visual Edge Technology, Inc., Senior preferred stock2023-12-310001287750Visual Edge Technology, Inc., Junior preferred stock2023-12-310001287750Visual Edge Technology, Inc., Warrant to purchase shares of common stock2023-12-310001287750arcc:VisualEdgeTechnologyIncMember2023-12-310001287750VRC Companies, LLC, Senior subordinated loan2023-12-310001287750Wash Encore Holdings, LLC, First lien senior secured loan2023-12-310001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, First lien senior secured revolving loan2023-12-310001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, First lien senior secured loan 12023-12-310001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, First lien senior secured loan 22023-12-310001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, Class A units2023-12-310001287750XIFIN, Inc. and ACP Charger Co-Invest LLC, Class B units2023-12-310001287750arcc:XIFINIncAndACPChargerCoInvestLLCMember2023-12-310001287750arcc:CommercialAndProfessionalServicesMember2023-12-310001287750ACAS Equity Holdings Corporation, Common stock2023-12-310001287750ARES 2007-3R, Subordinated notes2023-12-310001287750Blue Wolf Capital Fund II, L.P., Limited partnership interest (8.50% interest)2023-12-310001287750CoLTs 2005-1 Ltd., Preferred shares2023-12-310001287750CREST Exeter Street Solar 2004-1, Preferred shares2023-12-310001287750European Capital UK SME Debt LP, Limited partnership interest2023-12-310001287750HCI Equity, LLC, Member interest2023-12-310001287750Partnership Capital Growth Investors III, L.P., Limited partnership interest2023-12-310001287750PCG-Ares Sidecar Investment II, L.P., Limited partnership interest2023-12-310001287750PCG-Ares Sidecar Investment, L.P., Limited partnership interest2023-12-310001287750Piper Jaffray Merchant Banking Fund I, L.P., Limited partnership interest2023-12-310001287750Senior Direct Lending Program, LLC, Subordinated certificates2023-12-310001287750Senior Direct Lending Program, LLC, Membership interest2023-12-310001287750arcc:SeniorDirectLendingProgramLLCMember2023-12-310001287750arcc:InvestmentFundsAndVehiclesMember2023-12-310001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 12023-12-310001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 22023-12-310001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 32023-12-310001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc., First lien senior secured loan 42023-12-310001287750arcc:AccessionRiskManagementGroupIncAndRSCInsuranceBrokerageIncMember2023-12-310001287750Acrisure, LLC, First lien senior secured loan2023-12-310001287750Alera Group, Inc., First lien senior secured loan2023-12-310001287750Amynta Agency Borrower Inc. and Amynta Warranty Borrower Inc., First lien senior secured loan2023-12-310001287750AQ Sunshine, Inc., First lien senior secured loan 12023-12-310001287750AQ Sunshine, Inc., First lien senior secured loan 22023-12-310001287750AQ Sunshine, Inc., First lien senior secured loan 32023-12-310001287750AQ Sunshine, Inc., First lien senior secured loan 42023-12-310001287750AQ Sunshine, Inc., First lien senior secured loan 52023-12-310001287750AQ Sunshine, Inc., First lien senior secured loan 62023-12-310001287750arcc:AQSunshineIncMember2023-12-310001287750Ardonagh Midco 2 plc and Ardonagh Midco 3 plc, First lien senior secured loan 12023-12-310001287750Ardonagh Midco 2 plc and Ardonagh Midco 3 plc, First lien senior secured loan 22023-12-310001287750Ardonagh Midco 2 plc and Ardonagh Midco 3 plc, First lien senior secured loan 32023-12-310001287750Ardonagh Midco 2 plc and Ardonagh Midco 3 plc, First lien senior secured loan 42023-12-310001287750Ardonagh Midco 2 plc and Ardonagh Midco 3 plc, First lien senior secured loan 52023-12-310001287750Ardonagh Midco 2 plc and Ardonagh Midco 3 plc, Senior subordinated loan2023-12-310001287750arcc:ArdonaghMidco2PlcAndArdonaghMidco3PlcMember2023-12-310001287750Benecon Midco II LLC and Locutus Holdco LLC, Common units2023-12-310001287750Captive Resources Midco, LLC, First lien senior secured loan2023-12-310001287750Daylight Beta Parent LLC and CFCo, LLC, First lien senior secured loan 12023-12-310001287750Daylight Beta Parent LLC and CFCo, LLC, First lien senior secured loan 22023-12-310001287750Daylight Beta Parent LLC and CFCo, LLC, Class B units2023-12-310001287750arcc:DaylightBetaParentLLCAndCFCoLLCMember2023-12-310001287750DOXA Insurance Holdings LLC, First lien senior secured loan2023-12-310001287750Foundation Risk Partners, Corp., First lien senior secured loan 12023-12-310001287750Foundation Risk Partners, Corp., First lien senior secured loan 22023-12-310001287750arcc:FoundationRiskPartnersCorpMember2023-12-310001287750Galway Borrower LLC, First lien senior secured revolving loan2023-12-310001287750Galway Borrower LLC, First lien senior secured loan2023-12-310001287750arcc:GalwayBorrowerLLCMember2023-12-310001287750Higginbotham Insurance Agency, Inc., First lien senior secured loan2023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC, First lien senior secured loan 12023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC, First lien senior secured loan 22023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC, First lien senior secured loan 32023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC, Series A preferred units 12023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC, Series A preferred units 22023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC, Series A common units2023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC, Series C common units2023-12-310001287750arcc:HighStreetBuyerIncAndHighStreetHoldcoLLCMember2023-12-310001287750Inszone Mid, LLC and INSZ Holdings, LLC, First lien senior secured loan2023-12-310001287750Inszone Mid, LLC and INSZ Holdings, LLC, Limited partnership interests2023-12-310001287750Inszone Mid, LLC and INSZ Holdings, LLC, Common units2023-12-310001287750arcc:InszoneMidLLCAndINSZHoldingsLLCMember2023-12-310001287750Keystone Agency Partners LLC, First lien senior secured loan2023-12-310001287750OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, First lien senior secured loan2023-12-310001287750OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP, Class A2 units2023-12-310001287750arcc:OakBridgeInsuranceAgencyLLCAndMapleAcquisitionHoldingsLPMember2023-12-310001287750OneDigital Borrower LLC, First lien senior secured revolving loan2023-12-310001287750Patriot Growth Insurance Services, LLC, First lien senior secured loan2023-12-310001287750People Corporation, First lien senior secured revolving loan2023-12-310001287750People Corporation, First lien senior secured loan 12023-12-310001287750People Corporation, First lien senior secured loan 22023-12-310001287750People Corporation, First lien senior secured loan 32023-12-310001287750arcc:PeopleCorporationMember2023-12-310001287750Riser Interco, LLC, First lien senior secured loan 12023-12-310001287750Riser Interco, LLC, First lien senior secured loan 22023-12-310001287750arcc:RiserMergerSubIncMember2023-12-310001287750SageSure Holdings, LLC and SageSure LLC, First lien senior secured loan2023-12-310001287750SageSure Holdings, LLC and SageSure LLC, Series A units2023-12-310001287750arcc:SageSureHoldingsLLCInsightCatastropheGroupLLCMember2023-12-310001287750SCM Insurance Services Inc., First lien senior secured loan2023-12-310001287750SelectQuote, Inc., First lien senior secured loan2023-12-310001287750SG Acquisition, Inc., First lien senior secured loan2023-12-310001287750Spring Insurance Solutions, LLC, First lien senior secured loan2023-12-310001287750THG Acquisition, LLC, First lien senior secured revolving loan2023-12-310001287750THG Acquisition, LLC, First lien senior secured loan 12023-12-310001287750THG Acquisition, LLC, First lien senior secured loan 22023-12-310001287750THG Acquisition, LLC, First lien senior secured loan 32023-12-310001287750arcc:THGAcquisitionLLCMember2023-12-310001287750us-gaap:InsuranceSectorMember2023-12-310001287750ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc., First lien senior secured loan2023-12-310001287750Aimbridge Acquisition Co., Inc., Second lien senior secured loan2023-12-310001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP, First lien senior secured revolving loan 12023-12-310001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP, First lien senior secured revolving loan 22023-12-310001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP, Second lien senior secured loan2023-12-310001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP, Series A preferred units2023-12-310001287750arcc:AmericanResidentialServicesLLCAndAragornParentHoldingsLPMember2023-12-310001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured revolving loan 12023-12-310001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured revolving loan 22023-12-310001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, First lien senior secured loan2023-12-310001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC, Series B common units2023-12-310001287750arcc:ApexServicePartnersLLCMember2023-12-310001287750ATI Restoration, LLC, First lien senior secured revolving loan 12023-12-310001287750ATI Restoration, LLC, First lien senior secured revolving loan 22023-12-310001287750ATI Restoration, LLC, First lien senior secured loan 12023-12-310001287750ATI Restoration, LLC, First lien senior secured loan 22023-12-310001287750ATI Restoration, LLC, First lien senior secured loan 32023-12-310001287750arcc:ATIRestorationLLCMember2023-12-310001287750Belfor Holdings, Inc., First lien senior secured revolving loan2023-12-310001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC, First lien senior secured revolving loan2023-12-310001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC, First lien senior secured loan 12023-12-310001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC, First lien senior secured loan 22023-12-310001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC, Class A units2023-12-310001287750arcc:ClarionHomeServicesGroupLLCAndLBCBreezeHoldingsLLCMember2023-12-310001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc., First lien senior secured loan2023-12-310001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc., Common stock2023-12-310001287750arcc:CMGHoldCoLLCAndCMGBuyerHoldingsIncMember2023-12-310001287750CST Holding Company, First lien senior secured revolving loan2023-12-310001287750CST Holding Company, First lien senior secured loan2023-12-310001287750arcc:CSTHoldingCompanyMember2023-12-310001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, First lien senior secured revolving loan2023-12-310001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, First lien senior secured loan 12023-12-310001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, First lien senior secured loan 22023-12-310001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, First lien senior secured loan 32023-12-310001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, Preferred units2023-12-310001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC, Class A units2023-12-310001287750arcc:EssentialServicesHoldingCorporationAndOMERSMahomesInvestmentHoldingsLLCMember2023-12-310001287750Eternal Aus Bidco Pty Ltd, First lien senior secured loan2023-12-310001287750Excel Fitness Consolidator LLC, First lien senior secured loan2023-12-310001287750Flint OpCo, LLC, First lien senior secured loan2023-12-310001287750GroundWorks, LLC, First lien senior secured loan2023-12-310001287750GS SEER Group Borrower LLC and GS SEER Group Holdings LLC, First lien senior secured loan2023-12-310001287750GS SEER Group Borrower LLC and GS SEER Group Holdings LLC, Class A common units2023-12-310001287750arcc:GSSEERGroupBorrowerLLCAndGSSEERGroupHoldingsLLCMember2023-12-310001287750Helios Service Partners, LLC and Astra Service Partners, LLC, First lien senior secured revolving loan2023-12-310001287750Helios Service Partners, LLC and Astra Service Partners, LLC, First lien senior secured loan2023-12-310001287750arcc:HeliosServicePartnersLLCAndAstraServicePartnersLLCMember2023-12-310001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 12023-12-310001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., First lien senior secured loan 22023-12-310001287750Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P., Class A units2023-12-310001287750arcc:InfinityHomeServicesHoldCoIncAndIHSParentHoldingsLPMember2023-12-310001287750Jenny C Acquisition, Inc., Senior subordinated loan2023-12-310001287750Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P., First lien senior secured loan2023-12-310001287750Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P., Limited partnership interests2023-12-310001287750arcc:LeviathanIntermediateHoldcoLLCAndLeviathanHoldingsLPMember2023-12-310001287750ME Equity LLC, Common stock2023-12-310001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, First lien senior secured revolving loan2023-12-310001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, First lien senior secured loan 12023-12-310001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, First lien senior secured loan 22023-12-310001287750Modigent, LLC and OMERS PMC Investment Holdings LLC, Class A units2023-12-310001287750arcc:ModigentLLCAndOMERSPMCInvestmentHoldingsLLCMember2023-12-310001287750Movati Athletic (Group) Inc., First lien senior secured loan2023-12-310001287750Northwinds Holding, Inc. and Northwinds Services Group LLC, First lien senior secured loan2023-12-310001287750Northwinds Holding, Inc. and Northwinds Services Group LLC, Common units2023-12-310001287750arcc:NorthwindsHoldingIncAndNorthwindsServicesGroupLLCMember2023-12-310001287750OTG Management, LLC, Class A preferred units2023-12-310001287750OTG Management, LLC, Common units2023-12-310001287750OTG Management, LLC, Warrant to purchase common units2023-12-310001287750arcc:OTGManagementLLCMember2023-12-310001287750PestCo Holdings, LLC and PestCo, LLC, First lien senior secured loan2023-12-310001287750PestCo Holdings, LLC and PestCo, LLC, Class A units2023-12-310001287750arcc:PestCoHoldingsLLCAndPestCoLLCMember2023-12-310001287750Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC, First lien senior secured loan2023-12-310001287750Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC, Preferred membership units2023-12-310001287750arcc:PyramidManagementAdvisorsLLCAndPyramidInvestorsLLCMember2023-12-310001287750Radiant Intermediate Holding, LLC, First lien senior secured loan2023-12-310001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 12023-12-310001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 22023-12-310001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 32023-12-310001287750Redwood Services, LLC and Redwood Services Holdco, LLC, First lien senior secured loan 42023-12-310001287750Redwood Services, LLC and Redwood Services Holdco, LLC, Series D units2023-12-310001287750arcc:RedwoodServicesLLCAndRedwoodServicesHoldcoLLCMember2023-12-310001287750Safe Home Security, Inc., Security Systems Inc., Safe Home Monitoring, Inc., National Protective Services, Inc., Bright Integrations LLC and Medguard Alert, Inc., First lien senior secured loan2023-12-310001287750Service Logic Acquisition, Inc. and MSHC, Inc., First lien senior secured loan2023-12-310001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., First lien senior secured revolving loan 12023-12-310001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., First lien senior secured revolving loan 22023-12-310001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., First lien senior secured loan2023-12-310001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P., Class A units2023-12-310001287750arcc:TaymaxGroupLPTaymaxGroupGPLLCPFSalemCanadaULCAndTCPFitParentLPMember2023-12-310001287750The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc., First lien senior secured loan2023-12-310001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured revolving loan2023-12-310001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured loan 12023-12-310001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured loan 22023-12-310001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured loan 32023-12-310001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, First lien senior secured loan 42023-12-310001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, Class A units2023-12-310001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP, Class C units2023-12-310001287750arcc:TheArcticomGroupLLCAndAMCPMechanicalHoldingsLPMember2023-12-310001287750Triwizard Holdings, Inc. and Triwizard Parent, LP, Class A-2 common units2023-12-310001287750TSS Buyer, LLC, First lien senior secured loan2023-12-310001287750Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, First lien senior secured loan2023-12-310001287750Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC, Class B common units2023-12-310001287750arcc:VertexServicePartnersLLCAndVertexServicePartnersHoldingsLLCMember2023-12-310001287750YE Brands Holdings, LLC, First lien senior secured revolving loan2023-12-310001287750YE Brands Holdings, LLC, First lien senior secured loan 12023-12-310001287750YE Brands Holdings, LLC, First lien senior secured loan 22023-12-310001287750YE Brands Holdings, LLC, First lien senior secured loan 32023-12-310001287750arcc:YEBrandsHoldingsLLCMember2023-12-310001287750ZBS Mechanical Group Co-Invest Fund 2, LLC, Membership interest2023-12-310001287750arcc:ConsumerServicesMember2023-12-310001287750Apex Clean Energy TopCo, LLC, Class A common units2023-12-310001287750Ferrellgas, L.P. and Ferrellgas Partners, L.P., Senior preferred units2023-12-310001287750Ferrellgas, L.P. and Ferrellgas Partners, L.P., Class B units2023-12-310001287750arcc:FerrellgasLPAndFerrelgasPartnersLPMember2023-12-310001287750Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC, First lien senior secured loan2023-12-310001287750Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC, Class A1 units2023-12-310001287750arcc:HeelstoneRenewableEnergyLLCAndHeelstoneRenewableEnergyInvestorsLLCMember2023-12-310001287750Opal Fuels Intermediate HoldCo LLC, and Opal Fuels Inc., Class A common stock2023-12-310001287750PosiGen, Inc., Warrant to purchase shares of series D-1 preferred stock2023-12-310001287750PosiGen, Inc., Warrant to purchase shares of common stock2023-12-310001287750arcc:PosiGenIncMember2023-12-310001287750Potomac Intermediate Holdings II LLC, Series A units2023-12-310001287750Riverview Power LLC, First lien senior secured loan2023-12-310001287750Sunrun Atlas Depositor 2019-2, LLC and Sunrun Atlas Holdings 2019-2, LLC, First lien senior secured loan2023-12-310001287750Sunrun Atlas Depositor 2019-2, LLC and Sunrun Atlas Holdings 2019-2, LLC, Senior subordinated loan2023-12-310001287750arcc:SunrunAtlasDepositor20192LLCAndSunrunAtlasHoldings20192LLCMember2023-12-310001287750Sunrun Luna Holdco 2021, LLC, Senior subordinated revolving loan 12023-12-310001287750Sunrun Luna Holdco 2021, LLC, Senior subordinated revolving loan 22023-12-310001287750arcc:SunrunLunaHoldco2021LLCMember2023-12-310001287750Sunrun Xanadu Issuer 2019-1, LLC and Sunrun Xanadu Holdings 2019-1, LLC, First lien senior secured loan2023-12-310001287750Sunrun Xanadu Issuer 2019-1, LLC and Sunrun Xanadu Holdings 2019-1, LLC, Senior subordinated loan2023-12-310001287750arcc:SunrunXanaduIssuer20191LLCAndSunrunXanaduHoldings20191LLCMember2023-12-310001287750arcc:PowerGenerationMember2023-12-310001287750Badger Sportswear Acquisition, LLC, Second lien senior secured loan2023-12-310001287750Bowhunter Holdings, LLC, Common units2023-12-310001287750Centric Brands LLC and Centric Brands GP LLC, First lien senior secured loan2023-12-310001287750Centric Brands LLC and Centric Brands GP LLC, Membership interests2023-12-310001287750arcc:CentricBrandsLLCAndCentricBrandsGPLLCMember2023-12-310001287750DRS Holdings III, Inc. and DRS Holdings I, Inc., First lien senior secured loan 12023-12-310001287750DRS Holdings III, Inc. and DRS Holdings I, Inc., First lien senior secured loan 22023-12-310001287750DRS Holdings III, Inc. and DRS Holdings I, Inc., Common stock2023-12-310001287750arcc:DRSHoldingsIIIIncAndDRSHoldingsIIncMember2023-12-310001287750Implus Footcare, LLC, First lien senior secured loan 12023-12-310001287750Implus Footcare, LLC, First lien senior secured loan 22023-12-310001287750Implus Footcare, LLC, First lien senior secured loan 32023-12-310001287750arcc:ImplusFootcareLLCMember2023-12-310001287750Johnnie-O Inc. and Johnnie-O Holdings Inc., First lien senior secured loan 12023-12-310001287750Johnnie-O Inc. and Johnnie-O Holdings Inc., First lien senior secured loan 22023-12-310001287750Johnnie-O Inc. and Johnnie-O Holdings Inc., Series A convertible preferred stock2023-12-310001287750Johnnie-O Inc. and Johnnie-O Holdings Inc., Warrant to purchase shares of common stock2023-12-310001287750arcc:JohnnieOIncAndJohnnieOHoldingsIncMember2023-12-310001287750Lew's Intermediate Holdings, LLC, First lien senior secured loan2023-12-310001287750Pelican Products, Inc., First lien senior secured revolving loan2023-12-310001287750Pelican Products, Inc., Second lien senior secured loan2023-12-310001287750arcc:PelicanProductsIncMember2023-12-310001287750Rawlings Sporting Goods Company, Inc. and Easton Diamond Sports, LLC, First lien senior secured loan 12023-12-310001287750Rawlings Sporting Goods Company, Inc. and Easton Diamond Sports, LLC, First lien senior secured loan 22023-12-310001287750arcc:RawlingsSportingGoodsCompanyIncAndEastonDiamondSportsLLCMember2023-12-310001287750Reef Lifestyle, LLC, First lien senior secured revolving loan 12023-12-310001287750Reef Lifestyle, LLC, First lien senior secured revolving loan 22023-12-310001287750Reef Lifestyle, LLC, First lien senior secured loan 12023-12-310001287750Reef Lifestyle, LLC, First lien senior secured loan 22023-12-310001287750arcc:ReefLifestyleLLCMember2023-12-310001287750S Toys Holdings LLC (fka The Step2 Company, LLC), Common units2023-12-310001287750S Toys Holdings LLC (fka The Step2 Company, LLC), Class B common units2023-12-310001287750S Toys Holdings LLC (fka The Step2 Company, LLC), Warrant to purchase units2023-12-310001287750arcc:SToysHoldingsLLCFkaTheStep2CompanyLLCMember2023-12-310001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc., First lien senior secured loan 12023-12-310001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc., First lien senior secured loan 22023-12-310001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc., Second lien senior secured loan2023-12-310001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc., Series A preferred stock2023-12-310001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc., Common stock2023-12-310001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc., Warrant to purchase shares of common stock2023-12-310001287750arcc:SHOHoldingICorporationShoesForCrewsEuropeLimitedAndNeverSlipTopCoIncMember2023-12-310001287750SVP-Singer Holdings Inc. and SVP-Singer Holdings LP, First lien senior secured loan2023-12-310001287750SVP-Singer Holdings Inc. and SVP-Singer Holdings LP, Class A common units2023-12-310001287750arcc:SVPSingerHoldingsIncAndSVPSingerHoldingsLPMember2023-12-310001287750Totes Isotoner Corporation and Totes Ultimate Holdco, Inc., First lien senior secured loan 12023-12-310001287750Totes Isotoner Corporation and Totes Ultimate Holdco, Inc., First lien senior secured loan 22023-12-310001287750Totes Isotoner Corporation and Totes Ultimate Holdco, Inc., Common stock2023-12-310001287750arcc:TotesIsotonerCorporationAndTotesUltimateHoldcoIncMember2023-12-310001287750Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP, First lien senior secured loan2023-12-310001287750Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP, Second lien senior secured loan2023-12-310001287750Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP, Class A units2023-12-310001287750arcc:VarsityBrandsHoldingCoIncAndBCPEHerculesHoldingsLPMember2023-12-310001287750arcc:ConsumerDurablesAndApparelMember2023-12-31000128775022 HoldCo Limited, Senior subordinated loan2023-12-3100012877503 Step Sports LLC and 3 Step Holdings, LLC, First lien senior secured revolving loan2023-12-3100012877503 Step Sports LLC and 3 Step Holdings, LLC, First lien senior secured loan2023-12-3100012877503 Step Sports LLC and 3 Step Holdings, LLC, Series D preferred units2023-12-310001287750arcc:A3StepSportsLLCAnd3StepHoldingsLLCMember2023-12-310001287750Aventine Intermediate LLC & Aventine Holdings II LLC, First lien senior secured loan2023-12-310001287750Aventine Intermediate LLC & Aventine Holdings II LLC, Senior subordinated loan2023-12-310001287750arcc:AventineIntermediateLLCAventineHoldingsIILLCMember2023-12-310001287750Axiomatic, LLC, Class A-1 units2023-12-310001287750CFC Funding LLC, Loan instrument units2023-12-310001287750CMW Parent LLC (fka Black Arrow, Inc.), Series A units2023-12-310001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Senior subordinated loan 12023-12-310001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Senior subordinated loan 22023-12-310001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Senior subordinated loan 32023-12-310001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Ordinary shares2023-12-310001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Warrant to purchase shares of ordinary shares 12023-12-310001287750Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited, Warrant to purchase shares of ordinary shares 22023-12-310001287750arcc:EagleFootballHoldingsBidCoLimitedAndEagleFootballHoldingsLimitedMember2023-12-310001287750Global Music Rights, LLC, First lien senior secured loan2023-12-310001287750League One Volleyball, Inc., Series B preferred stock2023-12-310001287750LiveBarn Inc., Middle preferred shares2023-12-310001287750MailSouth, Inc., First lien senior secured loan2023-12-310001287750Miami Beckham United LLC, Class A preferred units2023-12-310001287750Miami Beckham United LLC, Class B preferred units2023-12-310001287750arcc:MiamiBeckhamUnitedLLCMember2023-12-310001287750OUTFRONT Media Inc., Series A convertible perpetual preferred stock2023-12-310001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 12023-12-310001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 22023-12-310001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 32023-12-310001287750Production Resource Group, L.L.C. and PRG III, LLC, First lien senior secured loan 42023-12-310001287750Production Resource Group, L.L.C. and PRG III, LLC, Class A units2023-12-310001287750arcc:ProductionResourceGroupLLCAndPRGIIILLCMember2023-12-310001287750Professional Fighters League, LLC and PFL MMA, Inc., First lien senior secured loan2023-12-310001287750Professional Fighters League, LLC and PFL MMA, Inc., Second lien senior secured loan2023-12-310001287750Professional Fighters League, LLC and PFL MMA, Inc., Series E preferred stock2023-12-310001287750Professional Fighters League, LLC and PFL MMA, Inc., Warrant to purchase shares of common stock 12023-12-310001287750Professional Fighters League, LLC and PFL MMA, Inc., Warrant to purchase shares of common stock 22023-12-310001287750arcc:ProfessionalFightersLeagueLLCAndPFLMMAIncMember2023-12-310001287750Storm Investment S.a.r.l., First lien senior secured loan2023-12-310001287750Storm Investment S.a.r.l., Ordinary shares2023-12-310001287750Storm Investment S.a.r.l., Class A redeemable shares2023-12-310001287750Storm Investment S.a.r.l., Class B redeemable shares2023-12-310001287750Storm Investment S.a.r.l., Class C redeemable shares2023-12-310001287750Storm Investment S.a.r.l., Class D redeemable shares2023-12-310001287750Storm Investment S.a.r.l., Class E redeemable shares2023-12-310001287750Storm Investment S.a.r.l., Class F redeemable shares2023-12-310001287750Storm Investment S.a.r.l., Class G redeemable shares2023-12-310001287750Storm Investment S.a.r.l., Class H redeemable shares2023-12-310001287750Storm Investment S.a.r.l., Class I redeemable shares2023-12-310001287750arcc:StormInvestmentSarlMember2023-12-310001287750The Teaching Company Holdings, Inc., Preferred stock2023-12-310001287750The Teaching Company Holdings, Inc., Common stock2023-12-310001287750arcc:TheTeachingCompanyHoldingsIncMember2023-12-310001287750arcc:MediaAndEntertainmentMember2023-12-310001287750Bamboo Purchaser, Inc., First lien senior secured loan2023-12-310001287750BradyIFS Holdings, LLC, First lien senior secured loan2023-12-310001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., First lien senior secured loan 12023-12-310001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., First lien senior secured loan 22023-12-310001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., First lien senior secured loan 32023-12-310001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc., Common units2023-12-310001287750arcc:DisplayHoldingCompanyIncSaldonHoldingsIncAndFastsignsHoldingsIncMember2023-12-310001287750GPM Investments, LLC and ARKO Corp., Common stock2023-12-310001287750GPM Investments, LLC and ARKO Corp., Warrant to purchase common stock2023-12-310001287750arcc:GPMInvestmentsLLCAndARKOCorpMember2023-12-310001287750Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, First lien senior secured revolving loan2023-12-310001287750Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, First lien senior secured loan2023-12-310001287750Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP, Limited partnership interest2023-12-310001287750arcc:HillsDistributionIncHillsIntermediateFTHoldingsLLCAndGMPHillsLPMember2023-12-310001287750Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLC, First lien senior secured loan 12023-12-310001287750Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLC, First lien senior secured loan 22023-12-310001287750Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLC, Class A common units2023-12-310001287750arcc:MarconeYellowstoneBuyerIncAndMarconeYellowstoneHoldingsLLCMember2023-12-310001287750Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP, First lien senior secured revolving loan2023-12-310001287750Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP, Series A preferred stock2023-12-310001287750Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP, Class A-1 units2023-12-310001287750arcc:MavisTireExpressServicesTopcoCorpMetisHoldCoIncAndMetisTopCoLPMember2023-12-310001287750McKenzie Creative Brands, LLC, First lien senior secured revolving loan2023-12-310001287750McKenzie Creative Brands, LLC, First lien senior secured loan 12023-12-310001287750McKenzie Creative Brands, LLC, First lien senior secured loan 22023-12-310001287750arcc:McKenzieCreativeBrandsLLCMember2023-12-310001287750Monolith Brands Group, Inc., Series A-1 preferred stock2023-12-310001287750Moon Valley Nursery of Arizona Retail, LLC, Moon Valley Nursery Farm Holdings, LLC, Moon Valley Nursery RE Holdings LLC, and Stonecourt IV Partners, LP, Limited partnership interests2023-12-310001287750North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLC, First lien senior secured loan2023-12-310001287750North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLC, Class A units2023-12-310001287750arcc:NorthHavenFalconBuyerLLCAndNorthHavenFalconHoldingCompanyLLCMember2023-12-310001287750Reddy Ice LLC, First lien senior secured revolving loan2023-12-310001287750Reddy Ice LLC, First lien senior secured loan 12023-12-310001287750Reddy Ice LLC, First lien senior secured loan 22023-12-310001287750Reddy Ice LLC, First lien senior secured loan 32023-12-310001287750Reddy Ice LLC, First lien senior secured loan 42023-12-310001287750Reddy Ice LLC, First lien senior secured loan 52023-12-310001287750arcc:ReddyIceLLCMember2023-12-310001287750SCIH Salt Holdings Inc., First lien senior secured revolving loan2023-12-310001287750Trader Corporation and Project Auto Finco Corp., First lien senior secured loan2023-12-310001287750US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P., First lien senior secured loan2023-12-310001287750US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P., Limited partner interests2023-12-310001287750arcc:USSaltInvestorsLLCAndEmeraldLakePearlAcquisitionALPMember2023-12-310001287750arcc:RetailingAndDistributionMember2023-12-310001287750AI Aqua Merger Sub, Inc., First lien senior secured loan2023-12-310001287750Airx Climate Solutions, Inc., First lien senior secured loan2023-12-310001287750API Commercial Inc., API Military Inc., and API Space Intermediate, Inc., First lien senior secured loan2023-12-310001287750Arrowhead Holdco Company and Arrowhead GS Holdings, Inc., First lien senior secured loan2023-12-310001287750Arrowhead Holdco Company and Arrowhead GS Holdings, Inc., Common stock2023-12-310001287750arcc:ArrowheadHoldcoCompanyAndArrowheadGSHoldingsIncMember2023-12-310001287750BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC, First lien senior secured revolving loan2023-12-310001287750BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC, First lien senior secured loan2023-12-310001287750arcc:BlueHaloFinancingHoldingsLLCBlueHaloGlobalHoldingsLLCAndBlueHaloLLCMember2023-12-310001287750Burgess Point Purchaser Corporation, First lien senior secured loan2023-12-310001287750CPIG Holdco Inc., First lien senior secured loan2023-12-310001287750Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc., First lien senior secured revolving loan2023-12-310001287750Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc., First lien senior secured loan2023-12-310001287750arcc:CubeIndustrialsBuyerIncAndCubeADBuyerIncMember2023-12-310001287750DFS Holding Company, Inc., First lien senior secured loan2023-12-310001287750Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP, First lien senior secured revolving loan2023-12-310001287750Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP, First lien senior secured loan2023-12-310001287750Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP, Common units2023-12-310001287750arcc:DynamicNCAerospaceHoldingsLLCAndDynamicNCInvestmentHoldingsLPMember2023-12-310001287750EPS NASS Parent, Inc., First lien senior secured revolving loan2023-12-310001287750EPS NASS Parent, Inc., First lien senior secured loan2023-12-310001287750arcc:EPSNASSParentIncMember2023-12-310001287750ESCP PPG Holdings, LLC, Class A-1 units2023-12-310001287750ESCP PPG Holdings, LLC, Class A-2 units2023-12-310001287750arcc:ESCPPPGHoldingsLLCMember2023-12-310001287750Harvey Tool Company, LLC, First lien senior secured loan2023-12-310001287750Helix Acquisition Holdings, Inc., First lien senior secured loan2023-12-310001287750Imaging Business Machines, L.L.C. and Scanner Holdings Corporation, Senior subordinated loan2023-12-310001287750Imaging Business Machines, L.L.C. and Scanner Holdings Corporation, Class A common stock2023-12-310001287750arcc:ImagingBusinessMachinesLLCAndScannerHoldingsCorporationMember2023-12-310001287750Kene Acquisition, Inc. and Kene Holdings, L.P., First lien senior secured revolving loan2023-12-310001287750Kene Acquisition, Inc. and Kene Holdings, L.P., First lien senior secured loan2023-12-310001287750Kene Acquisition, Inc. and Kene Holdings, L.P., Class A units2023-12-310001287750arcc:KeneAcquisitionIncAndKeneHoldingsLPMember2023-12-310001287750LTG Acquisition, Inc., Class A membership units2023-12-310001287750Maverick Acquisition, Inc., First lien senior secured loan2023-12-310001287750NCWS Intermediate, Inc. and NCWS Holdings LP, First lien senior secured loan 12023-12-310001287750NCWS Intermediate, Inc. and NCWS Holdings LP, First lien senior secured loan 22023-12-310001287750NCWS Intermediate, Inc. and NCWS Holdings LP, First lien senior secured loan 32023-12-310001287750NCWS Intermediate, Inc. and NCWS Holdings LP, First lien senior secured loan 42023-12-310001287750NCWS Intermediate, Inc. and NCWS Holdings LP, Class A-2 common units2023-12-310001287750arcc:NCWSIntermediateIncAndNCWSHoldingsLPMember2023-12-310001287750Osmose Utilities Services, Inc. and Pine Intermediate Holding LLC, Second lien senior secured loan2023-12-310001287750Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP., First lien senior secured loan 12023-12-310001287750Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP., First lien senior secured loan 22023-12-310001287750Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP., Class A units2023-12-310001287750arcc:PrecinmacUSHoldingsIncTrimasterManufacturingIncAndBladeGroupHoldingsLPMember2023-12-310001287750Qnnect, LLC and Connector TopCo, LP, First lien senior secured loan2023-12-310001287750Qnnect, LLC and Connector TopCo, LP, Limited partnership interests2023-12-310001287750arcc:QnnectLLCAndConnectorTopCoLPMember2023-12-310001287750Radius Aerospace, Inc. and Radius Aerospace Europe Limited, First lien senior secured revolving loan 12023-12-310001287750Radius Aerospace, Inc. and Radius Aerospace Europe Limited, First lien senior secured revolving loan 22023-12-310001287750arcc:RadiusAerospaceIncAndRadiusAerospaceEuropeLimitedMember2023-12-310001287750Radwell Parent, LLC, First lien senior secured revolving loan2023-12-310001287750Radwell Parent, LLC, First lien senior secured loan2023-12-310001287750arcc:RadwellParentLLCMember2023-12-310001287750Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, Diecast Beacon, First lien senior secured revolving loan2023-12-310001287750Two Six Labs, LLC, First lien senior secured loan2023-12-310001287750arcc:CapitalGoodsMember2023-12-310001287750Calyx Energy III, LLC, First lien senior secured loan 12023-12-310001287750Calyx Energy III, LLC, First lien senior secured loan 22023-12-310001287750Calyx Energy III, LLC, First lien senior secured loan 32023-12-310001287750arcc:CalyxEnergyIIILLCMember2023-12-310001287750Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC, First lien senior secured loan2023-12-310001287750GNZ Energy Bidco Limited and Galileo Co-investment Trust I, First lien senior secured loan2023-12-310001287750GNZ Energy Bidco Limited and Galileo Co-investment Trust I, Common units2023-12-310001287750arcc:GNZEnergyBidcoLimitedAndGalileoCoInvestmentTrustIMember2023-12-310001287750Halcon Holdings, LLC, First lien senior secured loan2023-12-310001287750HighPeak Energy, Inc., First lien senior secured loan2023-12-310001287750Murchison Oil and Gas, LLC and Murchison Holdings, LLC, First lien senior secured loan2023-12-310001287750Murchison Oil and Gas, LLC and Murchison Holdings, LLC, Preferred units2023-12-310001287750arcc:MurchisonOilAndGasLLCAndMurchisonHoldingsLLCMember2023-12-310001287750Offen, Inc., First lien senior secured loan2023-12-310001287750SilverBow Resources, Inc., Common stock2023-12-310001287750VPROP Operating, LLC and V SandCo, LLC, First lien senior secured loan 12023-12-310001287750VPROP Operating, LLC and V SandCo, LLC, First lien senior secured loan 22023-12-310001287750VPROP Operating, LLC and V SandCo, LLC, First lien senior secured loan 32023-12-310001287750VPROP Operating, LLC and V SandCo, LLC, Class A units2023-12-310001287750arcc:VPROPOperatingLLCAndVSandCoLLCMember2023-12-310001287750us-gaap:EnergySectorMember2023-12-310001287750American Seafoods Group LLC and American Seafoods Partners LLC, Class A units2023-12-310001287750American Seafoods Group LLC and American Seafoods Partners LLC, Warrant to purchase units of Class A units2023-12-310001287750arcc:AmericanSeafoodsGroupLLCAndAmericanSeafoodsPartnersLLCMember2023-12-310001287750Berner Food & Beverage, LLC, First lien senior secured revolving loan 12023-12-310001287750Berner Food & Beverage, LLC, First lien senior secured revolving loan 22023-12-310001287750arcc:BernerFoodBeverageLLCMember2023-12-310001287750Bragg Live Food Products, LLC and SPC Investment Co., L.P., First lien senior secured loan2023-12-310001287750Bragg Live Food Products, LLC and SPC Investment Co., L.P., Common units2023-12-310001287750arcc:BraggLiveFoodProductsLLCAndSPCInvestmentCoLPMember2023-12-310001287750CHG PPC Parent LLC & PPC CHG Blocker LLC, Second lien senior secured loan2023-12-310001287750CHG PPC Parent LLC & PPC CHG Blocker LLC, Common units2023-12-310001287750arcc:CHGPPCParentLLCPPCCHGBlockerLLCMember2023-12-310001287750Demakes Borrower, LLC, First lien senior secured loan2023-12-310001287750Florida Food Products, LLC, First lien senior secured loan 12023-12-310001287750Florida Food Products, LLC, First lien senior secured loan 22023-12-310001287750Florida Food Products, LLC, Second lien senior secured loan2023-12-310001287750arcc:FloridaFoodProductsLLCMember2023-12-310001287750GF Parent LLC, Class A preferred units2023-12-310001287750GF Parent LLC, Class A common units2023-12-310001287750arcc:GFParentLLCMember2023-12-310001287750Gotham Greens Holdings, PBC, First lien senior secured loan2023-12-310001287750Gotham Greens Holdings, PBC, Series E-1 preferred stock 12023-12-310001287750Gotham Greens Holdings, PBC, Series E-1 preferred stock 22023-12-310001287750Gotham Greens Holdings, PBC, Warrant to purchase shares of Series E-1 preferred stock2023-12-310001287750arcc:GothamGreensHoldingsPBCMember2023-12-310001287750KNPC HoldCo, LLC, First lien senior secured loan 12023-12-310001287750KNPC HoldCo, LLC, First lien senior secured loan 22023-12-310001287750KNPC HoldCo, LLC, First lien senior secured loan 32023-12-310001287750arcc:KNPCHoldCoLLCMember2023-12-310001287750Manna Pro Products, LLC, First lien senior secured revolving loan2023-12-310001287750Max US Bidco Inc., First lien senior secured loan2023-12-310001287750RB Holdings InterCo, LLC, First lien senior secured revolving loan2023-12-310001287750RB Holdings InterCo, LLC, First lien senior secured loan2023-12-310001287750arcc:RBHoldingsInterCoLLCMember2023-12-310001287750RF HP SCF Investor, LLC, Membership interest2023-12-310001287750Sugar PPC Buyer LLC, First lien senior secured loan2023-12-310001287750Teasdale Foods, Inc. and Familia Group Holdings Inc., First lien senior secured loan2023-12-310001287750Teasdale Foods, Inc. and Familia Group Holdings Inc., Warrant to purchase shares of common stock2023-12-310001287750arcc:TeasdaleFoodsIncAndFamiliaGroupHoldingsIncMember2023-12-310001287750Triton Water Holdings, Inc., First lien senior secured loan2023-12-310001287750Triton Water Holdings, Inc., Senior subordinated loan2023-12-310001287750arcc:TritonWaterHoldingsIncMember2023-12-310001287750Watermill Express, LLC and Watermill Express Holdings, LLC, First lien senior secured loan2023-12-310001287750Watermill Express, LLC and Watermill Express Holdings, LLC, Class A units2023-12-310001287750arcc:WatermillExpressLLCAndWatermillExpressHoldingsLLCMember2023-12-310001287750Winebow Holdings, Inc. and The Vintner Group, Inc., First lien senior secured loan2023-12-310001287750us-gaap:FoodAndBeverageSectorMember2023-12-310001287750Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P., First lien senior secured loan2023-12-310001287750Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P., Second lien senior secured loan2023-12-310001287750Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P., Class A preferred units2023-12-310001287750Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P., Series A preferred shares2023-12-310001287750arcc:BalrogAcquisitionIncBalrogTopcoIncAndBalrogParentLPMember2023-12-310001287750BR PJK Produce, LLC, First lien senior secured loan2023-12-310001287750City Line Distributors LLC and City Line Investments LLC, First lien senior secured loan2023-12-310001287750City Line Distributors LLC and City Line Investments LLC, Class A units2023-12-310001287750arcc:CityLineDistributorsLLCAndCityLineInvestmentsLLCMember2023-12-310001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured revolving loan2023-12-310001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured loan 12023-12-310001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured loan 22023-12-310001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC, First lien senior secured loan 32023-12-310001287750arcc:ContinentalCafeLLCAndInfinityOvationYachtChartersLLCMember2023-12-310001287750DecoPac, Inc. and KCAKE Holdings Inc., First lien senior secured revolving loan2023-12-310001287750DecoPac, Inc. and KCAKE Holdings Inc., First lien senior secured loan2023-12-310001287750DecoPac, Inc. and KCAKE Holdings Inc., Common stock2023-12-310001287750arcc:DecoPacIncAndKCAKEHoldingsIncMember2023-12-310001287750FS Squared Holding Corp. and FS Squared, LLC, First lien senior secured revolving loan2023-12-310001287750FS Squared Holding Corp. and FS Squared, LLC, First lien senior secured loan2023-12-310001287750FS Squared Holding Corp. and FS Squared, LLC, Class A units2023-12-310001287750arcc:FSSquaredHoldingCorpAndFSSquaredLLCMember2023-12-310001287750JWC/KI Holdings, LLC, Membership units2023-12-310001287750LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P., First lien senior secured loan2023-12-310001287750LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P., Limited partnership interests2023-12-310001287750arcc:LJPerimeterBuyerIncAndLJPerimeterCoInvestLPMember2023-12-310001287750Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, First lien senior secured revolving loan2023-12-310001287750Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, First lien senior secured loan2023-12-310001287750Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC, Class B limited liability company interest2023-12-310001287750arcc:MrGreensIntermediateLLCFloridaVegInvestmentsLLCMRGTexasLLCAndRestaurantProduceAndServicesBlockerLLCMember2023-12-310001287750SFE Intermediate Holdco LLC, First lien senior secured loan 12023-12-310001287750SFE Intermediate Holdco LLC, First lien senior secured loan 22023-12-310001287750SFE Intermediate Holdco LLC, First lien senior secured loan 32023-12-310001287750arcc:SFEIntermediateHoldcoLLCMember2023-12-310001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., First lien senior secured revolving loan2023-12-310001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., First lien senior secured loan2023-12-310001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P., Common units2023-12-310001287750arcc:WorldwideProduceAcquisitionLLCAndREPWWPCoinvestIVLPMember2023-12-310001287750ZB Holdco LLC and ZB TopCo LLC, First lien senior secured revolving loan2023-12-310001287750ZB Holdco LLC and ZB TopCo LLC, First lien senior secured loan 12023-12-310001287750ZB Holdco LLC and ZB TopCo LLC, First lien senior secured loan 22023-12-310001287750ZB Holdco LLC and ZB TopCo LLC, Series A units2023-12-310001287750arcc:ZBHoldcoLLCZBParentLLCMember2023-12-310001287750arcc:ConsumerStaplesDistributionAndRetailMember2023-12-310001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, First lien senior secured loan 12023-12-310001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, First lien senior secured loan 22023-12-310001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, Preferred units 12023-12-310001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, Preferred units 22023-12-310001287750Automotive Keys Group, LLC and Automotive Keys Investor, LLC, Class A common units2023-12-310001287750arcc:AutomotiveKeysGroupLLCAndAutomotiveKeysInvestorLLCMember2023-12-310001287750Continental Acquisition Holdings, Inc., First lien senior secured loan 12023-12-310001287750Continental Acquisition Holdings, Inc., First lien senior secured loan 22023-12-310001287750arcc:ContinentalAcquisitionHoldingsIncMember2023-12-310001287750Eckler Purchaser LLC, Class A common units2023-12-310001287750Faraday Buyer, LLC, First lien senior secured loan2023-12-310001287750Faraday&Future Inc., FF Inc., Faraday SPE, LLC and Faraday Future Intelligent Electric Inc., Warrant to purchase shares of Class A common stock2023-12-310001287750Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC, First lien senior secured revolving loan2023-12-310001287750Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC, Second lien senior secured loan2023-12-310001287750Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC, Co-invest units2023-12-310001287750arcc:HighlineAftermarketAcquisitionLLCHighlineAftermarketSCAcquisitionIncAndHighlinePPCBlockerLLCMember2023-12-310001287750New ChurcHill HoldCo LLC and Victory Topco, LP, First lien senior secured revolving loan2023-12-310001287750New ChurcHill HoldCo LLC and Victory Topco, LP, First lien senior secured loan2023-12-310001287750New ChurcHill HoldCo LLC and Victory Topco, LP, Class A-2 common units2023-12-310001287750arcc:NewChurcHillHoldCoLLCAndVictoryTopcoLPMember2023-12-310001287750Sun Acquirer Corp. and Sun TopCo, LP, First lien senior secured revolving loan2023-12-310001287750Sun Acquirer Corp. and Sun TopCo, LP, First lien senior secured loan 12023-12-310001287750Sun Acquirer Corp. and Sun TopCo, LP, First lien senior secured loan 22023-12-310001287750Sun Acquirer Corp. and Sun TopCo, LP, Class A units2023-12-310001287750arcc:SunAcquirerCorpAndSunTopCoLPMember2023-12-310001287750Wand Newco 3, Inc., Second lien senior secured loan2023-12-310001287750arcc:AutomobilesAndComponentsSectorMember2023-12-310001287750Abzena Holdings, Inc. and Astro Group Holdings Ltd., A ordinary shares2023-12-310001287750ADMA Biologics Inc., First lien senior secured loan2023-12-310001287750Alcami Corporation and ACM Note Holdings, LLC, First lien senior secured loan2023-12-310001287750Alcami Corporation and ACM Note Holdings, LLC, Senior subordinated loan2023-12-310001287750arcc:AlcamiCorporationAndACMHoldingsILLCMember2023-12-310001287750Athyrium Buffalo LP, Limited partnership interests 12023-12-310001287750Athyrium Buffalo LP, Limited partnership interests 22023-12-310001287750arcc:AthyriumBuffaloLPMember2023-12-310001287750Bamboo US BidCo LLC, First lien senior secured loan2023-12-310001287750Caerus Midco 3 S.à r.l., First lien senior secured revolving loan2023-12-310001287750Caerus Midco 3 S.à r.l., First lien senior secured loan2023-12-310001287750arcc:CaerusMidco3SaRlMember2023-12-310001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., First lien senior secured revolving loan2023-12-310001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., First lien senior secured loan 12023-12-310001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., First lien senior secured loan 22023-12-310001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., Series A preferred shares2023-12-310001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., Preferred units2023-12-310001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc., Class A common units2023-12-310001287750arcc:CobaltBuyerSubIncCobaltHoldingsILPAndCobaltIntermediateIIncMember2023-12-310001287750NMC Skincare Intermediate Holdings II, LLC, First lien senior secured revolving loan2023-12-310001287750NMC Skincare Intermediate Holdings II, LLC, First lien senior secured loan 12023-12-310001287750NMC Skincare Intermediate Holdings II, LLC, First lien senior secured loan 22023-12-310001287750arcc:NMCSkincareIntermediateHoldingsIILLCMember2023-12-310001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured loan 12023-12-310001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured loan 22023-12-310001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured loan 32023-12-310001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., First lien senior secured loan 42023-12-310001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., Senior subordinated loan2023-12-310001287750North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P., Class A preferred units2023-12-310001287750arcc:NorthAmericanScienceAssociatesLLCCardinalPurchaserLLCAndCardinalTopcoHoldingsLPMember2023-12-310001287750Verista, Inc., First lien senior secured revolving loan2023-12-310001287750Verista, Inc., First lien senior secured loan2023-12-310001287750arcc:VeristaInc.Member2023-12-310001287750Vertice Pharma UK Parent Limited, Preferred shares2023-12-310001287750WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P., First lien senior secured loan2023-12-310001287750WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P., Limited partnership interest2023-12-310001287750arcc:WCIBXCPurchaserLLCAndWCIBXCInvestmentHoldingsL.P.Member2023-12-310001287750arcc:PharmaceuticalsBiotechnologyAndLifeSciencesMember2023-12-310001287750ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP, First lien senior secured loan2023-12-310001287750ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP, Class A units2023-12-310001287750arcc:ASPRPacAcquisitionCoLLCAndASPRPacHoldingsLPMember2023-12-310001287750Halex Holdings, Inc., Common stock2023-12-310001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, First lien senior secured loan 12023-12-310001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, First lien senior secured loan 22023-12-310001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, First lien senior secured loan 32023-12-310001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, Second lien senior secured loan2023-12-310001287750H-Food Holdings, LLC and Matterhorn Parent, LLC, Common units2023-12-310001287750arcc:HFoodHoldingsLLCAndMatterhornParentLLCMember2023-12-310001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured revolving loan 12023-12-310001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured revolving loan 22023-12-310001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured loan 12023-12-310001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured loan 22023-12-310001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., First lien senior secured loan 32023-12-310001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V., Class A units2023-12-310001287750arcc:NelipakHoldingCompanyNelipakEuropeanHoldingsCooperatiefUAKNPAKHoldingsLPAndPAKNKNetherlandsTreasuryBVMember2023-12-310001287750Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C., First lien senior secured loan 12023-12-310001287750Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C., First lien senior secured loan 22023-12-310001287750Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C., Class A preferred units2023-12-310001287750Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C., Class C units2023-12-310001287750arcc:NovipaxBuyerLLCAndNovipaxParentHoldingCompanyLLCMember2023-12-310001287750Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC, First lien senior secured loan2023-12-310001287750Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC, Second lien senior secured loan2023-12-310001287750Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC, Preferred units2023-12-310001287750Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC, Co-Invest units2023-12-310001287750arcc:PlaskolitePPCIntermediateIILLCAndPlaskolitePPCBlockerLLCMember2023-12-310001287750Precision Concepts International LLC and Precision Concepts Canada Corporation, First lien senior secured loan 12023-12-310001287750Precision Concepts International LLC and Precision Concepts Canada Corporation, First lien senior secured loan 22023-12-310001287750Precision Concepts International LLC and Precision Concepts Canada Corporation, First lien senior secured loan 32023-12-310001287750arcc:PrecisionConceptsInternationalLLCAndPrecisionConceptsCanadaCorporationMember2023-12-310001287750SCI PH Parent, Inc., Series B shares2023-12-310001287750Vobev, LLC and Vobev Holdings, LLC, First lien senior secured loan 12023-12-310001287750Vobev, LLC and Vobev Holdings, LLC, First lien senior secured loan 22023-12-310001287750Vobev, LLC and Vobev Holdings, LLC, Warrant to purchase shares of ordinary shares2023-12-310001287750Vobev, LLC and Vobev Holdings, LLC, Warrant to purchase units of class B units2023-12-310001287750arcc:VobevLLCAndVobevHoldingsLLCMember2023-12-310001287750arcc:MaterialsSectorMember2023-12-310001287750Chariot Buyer LLC, Second lien senior secured loan2023-12-310001287750Everspin Technologies, Inc., Warrant to purchase shares of common stock2023-12-310001287750ITI Holdings, Inc., First lien senior secured revolving loan 12023-12-310001287750ITI Holdings, Inc., First lien senior secured revolving loan 22023-12-310001287750ITI Holdings, Inc., First lien senior secured revolving loan 32023-12-310001287750ITI Holdings, Inc., First lien senior secured loan2023-12-310001287750arcc:ITIHoldingsIncMember2023-12-310001287750Micromeritics Instrument Corp., First lien senior secured loan2023-12-310001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P., First lien senior secured loan 12023-12-310001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P., First lien senior secured loan 22023-12-310001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P., Limited partnership interests2023-12-310001287750PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P., Class A-2 units2023-12-310001287750arcc:PerkinElmerUSLLCAndNMPolarisCoInvestLPMember2023-12-310001287750Repairify, Inc. and Repairify Holdings, LLC, First lien senior secured revolving loan2023-12-310001287750Repairify, Inc. and Repairify Holdings, LLC, Class A common units2023-12-310001287750arcc:RepairifyIncAndRepairifyHoldingsLLCMember2023-12-310001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured revolving loan2023-12-310001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 12023-12-310001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 22023-12-310001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 32023-12-310001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, First lien senior secured loan 42023-12-310001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP, Limited partnership interests2023-12-310001287750arcc:WildcatBuyerCoIncAndWildcatParentLPMember2023-12-310001287750arcc:TechnologyHardwareAndEquipmentMember2023-12-310001287750Beacon Wellness Brands, Inc. and CDI Holdings I Corp., First lien senior secured loan2023-12-310001287750Beacon Wellness Brands, Inc. and CDI Holdings I Corp., Common stock2023-12-310001287750arcc:BeaconWellnessBrandsIncAndCDIHoldingsICorpMember2023-12-310001287750Foundation Consumer Brands, LLC, First lien senior secured loan 12023-12-310001287750Foundation Consumer Brands, LLC, First lien senior secured loan 22023-12-310001287750arcc:FoundationConsumerBrandsLLCMember2023-12-310001287750LifeStyles Bidco Ltd., Lifestyles Intermediate Holdco Ltd. and LifeStyles Parent, L.P., First lien senior secured loan 12023-12-310001287750LifeStyles Bidco Ltd., Lifestyles Intermediate Holdco Ltd. and LifeStyles Parent, L.P., First lien senior secured loan 22023-12-310001287750LifeStyles Bidco Ltd., Lifestyles Intermediate Holdco Ltd. and LifeStyles Parent, L.P., Preferred units2023-12-310001287750LifeStyles Bidco Ltd., Lifestyles Intermediate Holdco Ltd. and LifeStyles Parent, L.P., Class B common units2023-12-310001287750arcc:LifeStylesBidcoLtdLifestylesIntermediateHoldcoLtdAndLifeStylesParentLPMember2023-12-310001287750Premier Specialties, Inc. and RMCF V CIV XLIV, L.P., First lien senior secured revolving loan2023-12-310001287750Premier Specialties, Inc. and RMCF V CIV XLIV, L.P., First lien senior secured loan2023-12-310001287750Premier Specialties, Inc. and RMCF V CIV XLIV, L.P., Limited partner interests2023-12-310001287750arcc:PremierSpecialtiesInc.AndRMCFVCIVXLIVL.P.Member2023-12-310001287750RD Holdco Inc., Senior subordinated loan 12023-12-310001287750RD Holdco Inc., Senior subordinated loan 22023-12-310001287750RD Holdco Inc., Common stock2023-12-310001287750arcc:RDHoldcoIncMember2023-12-310001287750Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured revolving loan2023-12-310001287750Silk Holdings III Corp. and Silk Holdings I Corp., First lien senior secured loan2023-12-310001287750Silk Holdings III Corp. and Silk Holdings I Corp., Common stock2023-12-310001287750arcc:SilkHoldingsIIICorp.AndSilkHoldingsICorp.Member2023-12-310001287750Walnut Parent, Inc., First lien senior secured loan 12023-12-310001287750Walnut Parent, Inc., First lien senior secured loan 22023-12-310001287750arcc:WalnutParentIncMember2023-12-310001287750arcc:HouseholdAndPersonalProductsMember2023-12-310001287750Aventiv Technologies, LLC and Securus Technologies Holdings, Inc., First lien senior secured loan2023-12-310001287750Aventiv Technologies, LLC and Securus Technologies Holdings, Inc., Second lien senior secured loan2023-12-310001287750arcc:AventivTechnologiesLLCAndSecurusTechnologiesHoldingsIncMember2023-12-310001287750Emergency Communications Network, LLC, First lien senior secured revolving loan2023-12-310001287750Emergency Communications Network, LLC, First lien senior secured loan2023-12-310001287750arcc:EmergencyCommunicationsNetworkLLCMember2023-12-310001287750arcc:TelecommunicationServicesMember2023-12-310001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., First lien senior secured loan 12023-12-310001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., First lien senior secured loan 22023-12-310001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., First lien senior secured loan 32023-12-310001287750Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc., Common stock2023-12-310001287750arcc:ShurCoAcquisitionIncAndShurCoHoldCoIncMember2023-12-310001287750arcc:TransportationMember2023-12-310001287750Excelligence Holdings Corp., First lien senior secured loan2023-12-310001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., First lien senior secured revolving loan 12023-12-310001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., First lien senior secured revolving loan 22023-12-310001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., First lien senior secured loan 12023-12-310001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., First lien senior secured loan 22023-12-310001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc., Series A preferred stock2023-12-310001287750arcc:FlinnScientificIncAndWCIQuantumHoldingsIncMember2023-12-310001287750arcc:EducationMember2023-12-310001287750EUR, Royal Bank of Canada, Company Settlement Date 1/26/20242023-12-310001287750GBP, Royal Bank of Canada, Company Settlement Date 1/26/20242023-12-310001287750CAD, Royal Bank of Canada, Company Settlement Date 1/26/20242023-12-310001287750CAD, Royal Bank of Canada, Company Settlement Date 1/18/20242023-12-310001287750GBP, Royal Bank of Canada, Company Settlement Date Aug 21, 20262023-12-310001287750NZD, Royal Bank of Canada, Company Settlement Date 1/26/20242023-12-310001287750USD, Royal Bank of Canada, Company Settlement Date Jan 26, 20242023-12-310001287750AUD, Royal Bank of Canada, Company Settlement Date 11/17/20262023-12-310001287750CAD, CIBC - Toronto, Company Settlement Date 1/26/242023-12-310001287750arcc:InterestRateSwap1Member2023-12-310001287750arcc:InterestRateSwap2Member2023-12-310001287750us-gaap:InterestRateSwapMember2023-12-310001287750Apex Clean Energy TopCo, LLC2023-01-012023-12-310001287750Apex Clean Energy TopCo, LLC2023-12-310001287750APG Intermediate Holdings Corporation and APG Holdings, LLC2023-01-012023-12-310001287750APG Intermediate Holdings Corporation and APG Holdings, LLC2023-12-310001287750Blue Wolf Capital Fund II, L.P.2023-01-012023-12-310001287750Blue Wolf Capital Fund II, L.P.2023-12-310001287750Bragg Live Food Products, LLC and SPC Investment Co., L.P.2023-01-012023-12-310001287750Bragg Live Food Products, LLC and SPC Investment Co., L.P.2023-12-310001287750Daylight Beta Parent LLC and CFCo, LLC2023-01-012023-12-310001287750Daylight Beta Parent LLC and CFCo, LLC2023-12-310001287750ESCP PPG Holdings, LLC2023-01-012023-12-310001287750ESCP PPG Holdings, LLC2023-12-310001287750European Capital UK SME Debt LP2023-01-012023-12-310001287750European Capital UK SME Debt LP2023-12-310001287750PCG-Ares Sidecar Investment, L.P.2023-01-012023-12-310001287750PCG-Ares Sidecar Investment, L.P.2023-12-310001287750PCG-Ares Sidecar Investment II, L.P.2023-01-012023-12-310001287750PCG-Ares Sidecar Investment II, L.P.2023-12-310001287750Production Resource Group, L.L.C. and PRG III, LLC2023-01-012023-12-310001287750Production Resource Group, L.L.C. and PRG III, LLC2023-12-310001287750Shock Doctor, Inc. and Shock Doctor Holdings, LLC2023-01-012023-12-310001287750Shock Doctor, Inc. and Shock Doctor Holdings, LLC2023-12-310001287750Totes Isotoner Corporation and Totes Ultimate Holdco, Inc.2023-01-012023-12-310001287750Totes Isotoner Corporation and Totes Ultimate Holdco, Inc.2023-12-310001287750us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-01-012023-12-310001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC2023-01-012023-12-310001287750Absolute Dental Group LLC and Absolute Dental Equity, LLC2023-12-310001287750ACAS Equity Holdings Corporation2023-01-012023-12-310001287750ACAS Equity Holdings Corporation2023-12-310001287750ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc.2023-01-012023-12-310001287750ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc.2023-12-310001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC2023-01-012023-12-310001287750ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC2023-12-310001287750CoLTs 2005-1 Ltd.2023-01-012023-12-310001287750CoLTs 2005-1 Ltd.2023-12-310001287750Eckler Industries, Inc. and Eckler Purchaser LLC2023-01-012023-12-310001287750Eckler Industries, Inc. and Eckler Purchaser LLC2023-12-310001287750Halex Holdings, Inc.2023-01-012023-12-310001287750Halex Holdings, Inc.2023-12-310001287750HCI Equity, LLC2023-01-012023-12-310001287750HCI Equity, LLC2023-12-310001287750Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC2023-01-012023-12-310001287750Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC2023-12-310001287750Imaging Business Machines, L.L.C. and Scanner Holdings Corporation2023-01-012023-12-310001287750Imaging Business Machines, L.L.C. and Scanner Holdings Corporation2023-12-310001287750Ivy Hill Asset Management, L.P.2023-01-012023-12-310001287750Ivy Hill Asset Management, L.P.2023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC2023-01-012023-12-310001287750Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC2023-12-310001287750Potomac Intermediate Holdings II LLC2023-01-012023-12-310001287750Potomac Intermediate Holdings II LLC2023-12-310001287750PS Operating Company LLC and PS Op Holdings LLC2023-01-012023-12-310001287750PS Operating Company LLC and PS Op Holdings LLC2023-12-310001287750RD Holdco Inc.2023-01-012023-12-310001287750RD Holdco Inc.2023-12-310001287750S Toys Holdings LLC (fka The Step2 Company, LLC)2023-01-012023-12-310001287750S Toys Holdings LLC (fka The Step2 Company, LLC)2023-12-310001287750Senior Direct Lending Program, LLC2023-01-012023-12-310001287750Senior Direct Lending Program, LLC2023-12-310001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc.2023-01-012023-12-310001287750SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc.2023-12-310001287750Startec Equity, LLC2023-01-012023-12-310001287750Startec Equity, LLC2023-12-310001287750Visual Edge Technology, Inc.2023-01-012023-12-310001287750Visual Edge Technology, Inc.2023-12-310001287750VPROP Operating, LLC and V SandCo, LLC2023-01-012023-12-310001287750VPROP Operating, LLC and V SandCo, LLC2023-12-310001287750us-gaap:InvestmentAffiliatedIssuerControlledMember2023-01-012023-12-310001287750arcc:AresCapitalCorporationMemberarcc:SubordinatedCertificatesOfTheSDLPMembersrt:MinimumMember2023-12-310001287750arcc:InvestmentsAtFairValueAndOtherNonQualifyingAssetsMemberus-gaap:CustomerConcentrationRiskMemberarcc:NonQualifyingAssetsMember2023-01-012023-12-310001287750McKenzie Creative Brands, LLC, First lien senior secured loan, First Out Tranche2023-12-310001287750DFC Global Facility Borrower III LLC, First lien senior secured revolving loan, Secured borrowing2023-12-31000128775022 HoldCo Limited2023-12-3100012877503 Step Sports LLC2023-12-310001287750Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc.2023-12-310001287750Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC2023-12-310001287750Advarra Holdings, Inc.2023-12-310001287750AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC2023-12-310001287750AI Fire Buyer, Inc. and AI Fire Parent LLC2023-12-310001287750AIM Acquisition, LLC2023-12-310001287750Airx Climate Solutions, Inc.2023-12-310001287750Alcami Corporation and ACM Note Holdings, LLC2023-12-310001287750Alera Group, Inc.2023-12-310001287750American Residential Services L.L.C. and Aragorn Parent Holdings LP2023-12-310001287750AmeriVet Partners Management, Inc.2023-12-310001287750Anaplan, Inc.2023-12-310001287750Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua2023-12-310001287750Apex Service Partners, LLC and Apex Service Partners Holdings, LLC2023-12-310001287750Applied Technical Services, LLC2023-12-310001287750Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc.2023-12-310001287750AQ Sage Buyer, LLC2023-12-310001287750AQ Sunshine, Inc.2023-12-310001287750Ardonagh Midco 2 plc and Ardonagh Midco 3 plc2023-12-310001287750Argenbright Holdings V, LLC and Amberstone Security Group Limited2023-12-310001287750ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP2023-12-310001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP2023-12-310001287750ATI Restoration, LLC2023-12-310001287750Avalara, Inc.2023-12-310001287750Avetta, LLC2023-12-310001287750Bamboo US BidCo LLC2023-12-310001287750Banyan Software Holdings, LLC and Banyan Software, LP2023-12-310001287750Beacon Pointe Harmony, LLC2023-12-310001287750Beacon Wellness Brands, Inc. and CDI Holdings I Corp.2023-12-310001287750Belfor Holdings, Inc.2023-12-310001287750Benecon Midco II LLC and Locutus Holdco LLC2023-12-310001287750Berner Food & Beverage, LLC2023-12-310001287750BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC2023-12-310001287750Bobcat Purchaser, LLC and Bobcat Topco, L.P.2023-12-310001287750Borrower R365 Holdings LLC2023-12-310001287750Bottomline Technologies, Inc. and Legal Spend Holdings, LLC2023-12-310001287750BR PJK Produce, LLC2023-12-310001287750BradyIFS Holdings, LLC2023-12-310001287750Businessolver.com, Inc.2023-12-310001287750Caerus Midco 3 S.à r.l.2023-12-310001287750Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP2023-12-310001287750Captive Resources Midco, LLC2023-12-310001287750Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc.2023-12-310001287750Center for Autism and Related Disorders, LLC2023-12-310001287750Centric Brands LLC and Centric Brands GP LLC2023-12-310001287750Chariot Buyer LLC2023-12-310001287750Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC2023-12-310001287750City Line Distributors LLC and City Line Investments LLC2023-12-310001287750Clarion Home Services Group, LLC and LBC Breeze Holdings LLC2023-12-310001287750Cliffwater LLC2023-12-310001287750Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P.2023-12-310001287750CMG HoldCo, LLC and CMG Buyer Holdings, Inc.2023-12-310001287750Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc.2023-12-310001287750Community Brands ParentCo, LLC2023-12-310001287750Compex Legal Services, Inc.2023-12-310001287750Comprehensive EyeCare Partners, LLC2023-12-310001287750Concert Golf Partners Holdco LLC2023-12-310001287750Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P.2023-12-310001287750Continental Café, LLC and Infinity Ovation Yacht Charters, LLC2023-12-310001287750Convera International Holdings Limited and Convera International Financial S.A R.L.2023-12-310001287750CoreLogic, Inc. and T-VIII Celestial Co-Invest LP2023-12-310001287750Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc.2023-12-310001287750Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc.2023-12-310001287750Coupa Holdings, LLC and Coupa Software Incorporated2023-12-310001287750Coyote Buyer, LLC2023-12-310001287750Crosspoint Capital AS SPV, LP2023-12-310001287750Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC2023-12-310001287750CST Holding Company2023-12-310001287750Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc.2023-12-310001287750CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC2023-12-310001287750DecoPac, Inc. and KCAKE Holdings Inc.2023-12-310001287750Demakes Borrower, LLC2023-12-310001287750Denali Holdco LLC and Denali Apexco LP2023-12-310001287750DFC Global Facility Borrower III LLC2023-12-310001287750DFS Holding Company, Inc.2023-12-310001287750Diligent Corporation and Diligent Preferred Issuer, Inc.2023-12-310001287750Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc.2023-12-310001287750DOXA Insurance Holdings, LLC2023-12-310001287750DRS Holdings III, Inc. and DRS Holdings I, Inc.2023-12-310001287750DS Admiral Bidco, LLC2023-12-310001287750Dye & Durham Corporation2023-12-310001287750Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP2023-12-310001287750Echo Purchaser, Inc.2023-12-310001287750Elemica Parent, Inc. & EZ Elemica Holdings, Inc.2023-12-310001287750Elevation Services Parent Holdings, LLC2023-12-310001287750Emergency Communications Network, LLC2023-12-310001287750Enverus Holdings, Inc.2023-12-310001287750EP Wealth Advisors, LLC2023-12-310001287750EpiServer Inc. and Episerver Sweden Holdings AB2023-12-310001287750EPS NASS Parent, Inc.2023-12-310001287750ESHA Research, LLC and RMCF VI CIV XLVIII, L.P.2023-12-310001287750Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC2023-12-310001287750Eternal Aus Bidco Pty Ltd2023-12-310001287750Excel Fitness Consolidator LLC2023-12-310001287750Extrahop Networks, Inc.2023-12-310001287750Faraday Buyer, LLC2023-12-310001287750Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L.2023-12-310001287750FL Hawk Intermediate Holdings, Inc.2023-12-310001287750Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc.2023-12-310001287750Flint OpCo, LLC2023-12-310001287750FlyWheel Acquireco, Inc.2023-12-310001287750Forescout Technologies, Inc.2023-12-310001287750Foundation Risk Partners, Corp.2023-12-310001287750FS Squared Holding Corp. and FS Squared, LLC2023-12-310001287750Galway Borrower LLC2023-12-310001287750GC Waves Holdings, Inc.2023-12-310001287750Genesis Acquisition Co. and Genesis Ultimate Holding Co.2023-12-310001287750GI Ranger Intermediate LLC2023-12-310001287750Global Music Rights, LLC2023-12-310001287750GNZ Energy Bidco Limited and Galileo Co-investment Trust I2023-12-310001287750Gotham Greens Holdings, PBC2023-12-310001287750GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC2023-12-310001287750GroundWorks, LLC2023-12-310001287750GS SEER Group Borrower LLC and GS SEER Group Holdings LLC2023-12-310001287750GTCR F Buyer Corp. and GTCR (D) Investors LP2023-12-310001287750Guidepoint Security Holdings, LLC2023-12-310001287750Hanger, Inc.2023-12-310001287750Harvey Tool Company, LLC2023-12-310001287750HealthEdge Software, Inc.2023-12-310001287750Heavy Construction Systems Specialists, LLC2023-12-310001287750Helios Service Partners, LLC and Astra Service Partners, LLC2023-12-310001287750Help/Systems Holdings, Inc.2023-12-310001287750HGC Holdings, LLC2023-12-310001287750HH-Stella, Inc. and Bedrock Parent Holdings, LP2023-12-310001287750Higginbotham Insurance Agency, Inc.2023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC2023-12-310001287750Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC2023-12-310001287750Hills Distribution, Inc.2023-12-310001287750HP RSS Buyer, Inc.2023-12-310001287750Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP2023-12-310001287750Hyland Software, Inc.2023-12-310001287750Infinity Home Services HoldCo, Inc. and IHS Parent Holdings, L.P.2023-12-310001287750Inszone Mid, LLC and INSZ Holdings, LLC2023-12-310001287750IQN Holding Corp.2023-12-310001287750IRI Holdings, Inc., IRI Group Holdings, Inc. and IRI Parent, L.P.2023-12-310001287750ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P.2023-12-310001287750ITI Holdings, Inc.2023-12-310001287750Kaseya Inc. and Knockout Intermediate Holdings I Inc.2023-12-310001287750KBHS Acquisition, LLC (d/b/a Alita Care, LLC)2023-12-310001287750Kene Acquisition, Inc. and Kene Holdings, L.P.2023-12-310001287750Keystone Agency Partners LLC2023-12-310001287750Kings Buyer, LLC2023-12-310001287750Laboratories Bidco LLC and Laboratories Topco LLC2023-12-310001287750LeanTaaS Holdings, Inc.2023-12-310001287750Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P.2023-12-310001287750Lew's Intermediate Holdings, LLC2023-12-310001287750Lido Advisors, LLC2023-12-310001287750LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P.2023-12-310001287750LJP Purchaser, Inc. and LJP Topco, LP2023-12-310001287750Majesco and Magic Topco, L.P.2023-12-310001287750Manna Pro Products, LLC2023-12-310001287750Marmic Purchaser, LLC and Marmic Topco, L.P.2023-12-310001287750Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP2023-12-310001287750McKenzie Creative Brands, LLC2023-12-310001287750Medline Borrower, LP2023-12-310001287750Micromeritics Instrument Corp.2023-12-310001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp2023-12-310001287750Ministry Brands Holdings, LLC and RCP MB Investments B, L.P.2023-12-310001287750Modigent, LLC and OMERS PMC Investment Holdings LLC2023-12-310001287750Monica Holdco (US) Inc.2023-12-310001287750Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC2023-12-310001287750Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC2023-12-310001287750MRI Software LLC2023-12-310001287750NAS, LLC and Nationwide Marketing Group, LLC2023-12-310001287750Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V.2023-12-310001287750Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P.2023-12-310001287750New Churchill Holdco LLC2023-12-310001287750Next Holdco, LLC2023-12-310001287750NMC Skincare Intermediate Holdings II, LLC2023-12-310001287750NMN Holdings III Corp. and NMN Holdings LP2023-12-310001287750North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC2023-12-310001287750North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC2023-12-310001287750North Haven Stack Buyer, LLC2023-12-310001287750Northwinds Holding, Inc. and Northwinds Services Group LLC2023-12-310001287750OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP2023-12-310001287750OMH-HealthEdge Holdings, LLC2023-12-310001287750OneDigital Borrower LLC2023-12-310001287750Opal Fuels Intermediate HoldCo LLC, and Opal Fuels Inc.2023-12-310001287750Paragon 28, Inc.2023-12-310001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P.2023-12-310001287750Pathway Vet Alliance LLC and Jedi Group Holdings LLC2023-12-310001287750Patriot Growth Insurance Services, LLC2023-12-310001287750PCIA SPV-3, LLC and ASE Royal Aggregator, LLC2023-12-310001287750PDDS HoldCo, Inc.2023-12-310001287750PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC2023-12-310001287750Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC2023-12-310001287750Pelican Products, Inc.2023-12-310001287750People Corporation2023-12-310001287750Perforce Software, Inc.2023-12-310001287750PestCo Holdings, LLC and PestCo, LLC2023-12-310001287750Petrus Buyer, Inc.2023-12-310001287750PetVet Care Centers, LLC2023-12-310001287750Petvisor Holdings, LLC2023-12-310001287750Ping Identity Holding Corp.2023-12-310001287750Pluralsight, Inc.2023-12-310001287750PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC2023-12-310001287750Precision Concepts International LLC and Precision Concepts Canada Corporation2023-12-310001287750Premier Specialties, Inc. and RMCF V CIV XLIV, L.P.2023-12-310001287750Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP2023-12-310001287750Prime Buyer, L.L.C.2023-12-310001287750Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC2023-12-310001287750Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC2023-12-310001287750ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P.2023-12-310001287750Project Essential Bidco, Inc. and Project Essential Super Parent, Inc.2023-12-310001287750Project Potter Buyer, LLC and Project Potter Parent, L.P.2023-12-310001287750Proofpoint, Inc.2023-12-310001287750PSC Group LLC2023-12-310001287750PushPay USA Inc.2023-12-310001287750PYE-Barker Fire & Safety, LLC2023-12-310001287750Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC2023-12-310001287750QF Holdings, Inc.2023-12-310001287750Qnnect, LLC and Connector TopCo, LP2023-12-310001287750Radius Aerospace, Inc. and Radius Aerospace Europe Limited2023-12-310001287750Radwell Parent, LLC2023-12-310001287750Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC2023-12-310001287750RB Holdings InterCo, LLC2023-12-310001287750Reddy Ice LLC2023-12-310001287750Redwood Services, LLC and Redwood Services Holdco, LLC2023-12-310001287750Reef Lifestyle, LLC2023-12-310001287750Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P.2023-12-310001287750Relativity ODA LLC2023-12-310001287750Repairify, Inc. and Repairify Holdings, LLC2023-12-310001287750Revalize, Inc.2023-12-310001287750Rialto Management Group, LLC2023-12-310001287750Riser Merger Sub, Inc.2023-12-310001287750RMS HoldCo II, LLC & RMS Group Holdings, Inc.2023-12-310001287750Rodeo AcquisitionCo LLC2023-12-310001287750RTI Surgical, Inc. and Pioneer Surgical Technology, Inc.2023-12-310001287750SageSure Holdings, LLC and SageSure LLC2023-12-310001287750Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P.2023-12-310001287750SCIH Salt Holdings Inc.2023-12-310001287750SCM Insurance Services Inc.2023-12-310001287750Shermco Intermediate Holdings, Inc.2023-12-310001287750Silk Holdings III Corp. and Silk Holdings I Corp.2023-12-310001287750SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC2023-12-310001287750SM Wellness Holdings, Inc. and SM Holdco, LLC2023-12-310001287750Smarsh Inc. and Skywalker TopCo, LLC2023-12-310001287750Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp2023-12-310001287750Star US Bidco LLC2023-12-310001287750Steward Partners Global Advisory, LLC2023-12-310001287750Sugar PPC Buyer LLC2023-12-310001287750Sun Acquirer Corp. and Sun TopCo, LP2023-12-310001287750Sundance Group Holdings, Inc.2023-12-310001287750Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, Diecast Beacon2023-12-310001287750Sunrun Luna Holdco 2021, LLC2023-12-310001287750Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc.2023-12-310001287750Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC2023-12-310001287750Systems Planning and Analysis, Inc.2023-12-310001287750TA/WEG Holdings, LLC2023-12-310001287750Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C.2023-12-310001287750Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P.2023-12-310001287750TCP Hawker Intermediate LLC2023-12-310001287750The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc.2023-12-310001287750The Arcticom Group, LLC and AMCP Mechanical Holdings, LP2023-12-310001287750The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC2023-12-310001287750The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP2023-12-310001287750Thermostat Purchaser III, Inc.2023-12-310001287750THG Acquisition, LLC2023-12-310001287750Trader Corporation and Project Auto Finco Corp.2023-12-310001287750Triwizard Holdings, Inc. and Triwizard Parent, LP2023-12-310001287750TSS Buyer, LLC2023-12-310001287750Two Six Labs, LLC2023-12-310001287750UKG Inc. and H&F Unite Partners, L.P.2023-12-310001287750United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP2023-12-310001287750US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P.2023-12-310001287750Valcourt Holdings II, LLC2023-12-310001287750Verista, Inc.2023-12-310001287750Verscend Holding Corp.2023-12-310001287750Vertex Service Partners, LLC2023-12-310001287750Vobev, LLC and Vobev Holdings, LLC2023-12-310001287750VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P.2023-12-310001287750VRC Companies, LLC2023-12-310001287750VS Buyer, LLC2023-12-310001287750Waverly Advisors, LLC and WAAM Topco, LLC2023-12-310001287750WCI-BXC Purchaser, LLC2023-12-310001287750WebPT, Inc.2023-12-310001287750Wellness AcquisitionCo, Inc.2023-12-310001287750Wellpath Holdings, Inc.2023-12-310001287750Wildcat BuyerCo, Inc. and Wildcat Parent, LP2023-12-310001287750WorkWave Intermediate II, LLC2023-12-310001287750World Insurance Associates, LLC2023-12-310001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P.2023-12-310001287750WSHP FC Acquisition LLC and WSHP FC Holdings LLC2023-12-310001287750XIFIN, Inc. and ACP Charger Co-Invest LLC2023-12-310001287750YE Brands Holdings, LLC2023-12-310001287750ZB Holdco LLC and ZB TopCo LLC2023-12-310001287750ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP2023-12-310001287750arcc:RevolvingAndDelayedDrawLoanCommitmentsMember2023-12-310001287750AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP 12023-12-310001287750HFCP XI (Parallel - A), L.P.2023-12-310001287750High Street Buyer, Inc. and High Street Holdco LLC 12023-12-310001287750LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. 12023-12-310001287750Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp 12023-12-310001287750Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P 1.2023-12-310001287750PCG-Ares Sidecar Investment, L.P. and PCG-Ares Sidecar Investment II, L.P.2023-12-310001287750Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File No. 814-00663
ARES CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter)
| | | | | | | | |
Maryland | | 33-1089684 |
(State or other jurisdiction of | | (I.R.S. Employer |
incorporation or organization) | | Identification Number) |
245 Park Avenue, 44th Floor, New York, NY 10167
(Address of principal executive office) (Zip Code)
(212) 750-7300
(Registrant’s telephone number, including area code)
____________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of each class | Trading symbol | Name of each exchange on which registered |
Common stock, par value $0.001 per share | ARCC | NASDAQ Global Select Market |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. | | | | | | | | |
Large accelerated filer x | | Accelerated filer o |
Non-accelerated filer o | | Smaller reporting company o |
| | Emerging growth company o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| | | | | | | | |
Class | | Outstanding at July 26, 2024 |
Common stock, $0.001 par value | | 630,386,591 |
ARES CAPITAL CORPORATION
INDEX
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Part I. | | |
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Item 1. | | |
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Item 2. | | |
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Item 3. | | |
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Item 4. | | |
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Part II. | | |
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Item 1. | | |
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Item 1A. | | |
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Item 2. | | |
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Item 3. | | |
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Item 4. | | |
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Item 5. | | |
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Item 6. | | |
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions, except per share data)
| | | | | | | | | | | |
| As of |
| June 30, 2024 | | December 31, 2023 |
| | | |
| (unaudited) | | |
ASSETS | | | |
Investments at fair value | | | |
Non-controlled/non-affiliate company investments | $ | 20,609 | | | $ | 18,283 | |
Non-controlled affiliate company investments | 590 | | | 424 | |
Controlled affiliate company investments | 3,774 | | | 4,167 | |
Total investments at fair value (amortized cost of $24,707 and $22,668, respectively) | 24,973 | | | 22,874 | |
Cash and cash equivalents | 601 | | | 535 | |
Restricted cash | 80 | | | 29 | |
Interest receivable | 285 | | | 245 | |
| | | |
Receivable for open trades | 46 | | | 16 | |
Other assets | 99 | | | 91 | |
Operating lease right-of-use asset | 8 | | | 10 | |
Total assets | $ | 26,092 | | | $ | 23,800 | |
LIABILITIES | | | |
Debt | $ | 12,960 | | | $ | 11,884 | |
Base management fee payable | 91 | | | 84 | |
Income based fee payable | 93 | | | 90 | |
Capital gains incentive fee payable | 100 | | | 88 | |
Interest and facility fees payable | 153 | | | 132 | |
Payable to participants | 37 | | | 29 | |
Payable for open trades | 10 | | | 7 | |
Accounts payable and other liabilities | 237 | | | 234 | |
Secured borrowings | 33 | | | 34 | |
Operating lease liabilities | 14 | | | 17 | |
Total liabilities | 13,728 | | | 12,599 | |
Commitments and contingencies (Note 7) | | | |
STOCKHOLDERS’ EQUITY | | | |
Common stock, par value $0.001 per share, 1,000 common shares authorized; 630 and 582 common shares issued and outstanding, respectively | 1 | | | 1 | |
Capital in excess of par value | 11,721 | | | 10,738 | |
Accumulated undistributed earnings | 642 | | | 462 | |
Total stockholders’ equity | 12,364 | | | 11,201 | |
Total liabilities and stockholders’ equity | $ | 26,092 | | | $ | 23,800 | |
NET ASSETS PER SHARE | $ | 19.61 | | | $ | 19.24 | |
See accompanying notes to consolidated financial statements.
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share data)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | |
INVESTMENT INCOME: | | | | | | | |
From non-controlled/non-affiliate company investments: | | | | | | | |
Interest income (excluding payment-in-kind (“PIK”) interest income) | $ | 434 | | | $ | 376 | | | $ | 847 | | | $ | 743 | |
PIK interest income | 43 | | | 35 | | | 85 | | | 72 | |
Capital structuring service fees | 56 | | | 16 | | | 82 | | | 26 | |
Dividend income | 73 | | | 57 | | | 152 | | | 114 | |
Other income | 12 | | | 13 | | | 24 | | | 29 | |
Total investment income from non-controlled/non-affiliate company investments | 618 | | | 497 | | | 1,190 | | | 984 | |
From non-controlled affiliate company investments: | | | | | | | |
Interest income (excluding PIK interest income) | 4 | | | 3 | | | 8 | | | 6 | |
PIK interest income | 5 | | | 1 | | | 6 | | | 2 | |
Capital structuring service fees | 2 | | | — | | | 2 | | | — | |
Dividend income | — | | | 6 | | | 1 | | | 6 | |
Other income | 1 | | | — | | | 1 | | | — | |
Total investment income from non-controlled affiliate company investments | 12 | | | 10 | | | 18 | | | 14 | |
From controlled affiliate company investments: | | | | | | | |
Interest income (excluding PIK interest income) | 50 | | | 57 | | | 98 | | | 116 | |
PIK interest income | 3 | | | 4 | | | 8 | | | 7 | |
Capital structuring service fees | — | | | 5 | | | 2 | | | 5 | |
Dividend income | 70 | | | 60 | | | 137 | | | 124 | |
Other income | 2 | | | 1 | | | 3 | | | 2 | |
Total investment income from controlled affiliate company investments | 125 | | | 127 | | | 248 | | | 254 | |
Total investment income | 755 | | | 634 | | | 1,456 | | | 1,252 | |
EXPENSES: | | | | | | | |
Interest and credit facility fees | 174 | | | 141 | | | 333 | | | 280 | |
Base management fee | 91 | | | 79 | | | 178 | | | 158 | |
Income based fee | 93 | | | 79 | | | 181 | | | 155 | |
Capital gains incentive fee | (13) | | | 4 | | | 12 | | | (2) | |
Administrative and other fees | 3 | | | 3 | | | 6 | | | 6 | |
Other general and administrative | 8 | | | 8 | | | 15 | | | 15 | |
Total expenses | 356 | | | 314 | | | 725 | | | 612 | |
NET INVESTMENT INCOME BEFORE INCOME TAXES | 399 | | | 320 | | | 731 | | | 640 | |
Income tax expense, including excise tax | 41 | | | 6 | | | 48 | | | 8 | |
NET INVESTMENT INCOME | 358 | | | 314 | | | 683 | | | 632 | |
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS: | | | | | | | |
Net realized gains (losses): | | | | | | | |
Non-controlled/non-affiliate company investments | (23) | | | (68) | | | (28) | | | (88) | |
Non-controlled affiliate company investments | (6) | | | — | | | (6) | | | — | |
Controlled affiliate company investments | 27 | | | — | | | 28 | | | — | |
Foreign currency and other transactions | 14 | | | (13) | | | — | | | (43) | |
Net realized gains (losses) | 12 | | | (81) | | | (6) | | | (131) | |
Net unrealized gains (losses): | | | | | | | |
Non-controlled/non-affiliate company investments | (12) | | | 66 | | | 85 | | | 69 | |
Non-controlled affiliate company investments | 16 | | | — | | | 13 | | | 14 | |
Controlled affiliate company investments | (42) | | | 31 | | | (10) | | | (1) | |
Foreign currency and other transactions | (10) | | | 1 | | | 20 | | | 26 | |
Net unrealized (losses) gains | (48) | | | 98 | | | 108 | | | 108 | |
Net realized and unrealized (losses) gains on investments, foreign currency and other transactions | (36) | | | 17 | | | 102 | | | (23) | |
REALIZED GAIN ON EXTINGUISHMENT OF DEBT | — | | | — | | | (14) | | | — | |
NET INCREASE IN STOCKHOLDERS' EQUITY RESULTING FROM OPERATIONS | $ | 322 | | | $ | 331 | | | $ | 771 | | | $ | 609 | |
NET INCOME PER COMMON SHARE (see Note 10) | | | | | | | |
Basic | $ | 0.52 | | | $ | 0.61 | | | $ | 1.28 | | | $ | 1.13 | |
Diluted | $ | 0.52 | | | $ | 0.59 | | | $ | 1.28 | | | $ | 1.10 | |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (see Note 10) | | | | | | | |
Basic | 616 | | | 547 | | | 603 | | | 541 | |
Diluted | 616 | | | 567 | | | 603 | | | 561 | |
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See accompanying notes to consolidated financial statements.
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Software and Services | | | | | | | | | | | | | | | | | | | | | | | | |
Actfy Buyer, Inc. (15) | | Software provider of end to end fraud management workflow solutions | | First lien senior secured loan | | 10.58% | SOFR (S) | 5.25% | | 05/2024 | | 05/2031 | | | $ | 57.2 | | | $ | 57.2 | | | $ | 56.0 | | (2)(11) | | | | |
Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP (15) | | Provider of software services that support the management and security of computing devices, applications, data, and networks | | First lien senior secured loan | | 11.58% | SOFR (Q) | 6.25% | | 07/2023 | | 07/2030 | | | 42.7 | | | 42.7 | | | 42.7 | | (2)(6)(11) | | | | |
| | | | Limited partnership interest | | 8.00% PIK | | | | 10/2023 | | | | 9,249,000 | | | 9.5 | | | 14.2 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 52.2 | | | 56.9 | | | | | | |
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC (15) | | Payment processing solution provider | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 02/2020 | | 06/2028 | | | 62.4 | | | 62.4 | | | 62.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.81% | SOFR (Q) | 5.50% | | 06/2022 | | 06/2028 | | | 99.1 | | | 98.0 | | | 99.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 11/2023 | | 06/2028 | | | 2.1 | | | 2.1 | | | 2.1 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 15.33% PIK | SOFR (Q) | 10.00% | | 02/2020 | | 06/2030 | | | 61.8 | | | 61.8 | | | 61.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 224.3 | | | 225.4 | | | | | | |
Anaplan, Inc. (15) | | Provider of cloud-based connected planning platforms for business analytics | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 06/2022 | | 06/2029 | | | 1.8 | | | 1.8 | | | 1.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.08% | SOFR (S) | 5.75% | | 05/2024 | | 06/2029 | | | 4.1 | | | 4.1 | | | 4.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 5.9 | | | 5.9 | | | | | | |
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua (15) | | Provider of intellectual property management lifecycle software | | First lien senior secured loan | | 9.35% | Euribor (S) | 5.50% | | 04/2019 | | 04/2026 | | | 4.3 | | | 4.5 | | | 4.3 | | (2) | | | | |
| | | | First lien senior secured loan | | 10.76% | SOFR (S) | 5.25% | | 06/2021 | | 04/2026 | | | 2.3 | | | 2.3 | | | 2.3 | | (2)(11) | | | | |
| | | | Limited partnership units | | | | | | 06/2019 | | | | 4,400,000 | | | 4.2 | | | 11.8 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 11.0 | | | 18.4 | | | | | | |
APG Intermediate Holdings Corporation and APG Holdings, LLC (4)(15) | | Aircraft performance software provider | | First lien senior secured loan | | 10.73% | SOFR (M) | 5.25% | | 01/2020 | | 01/2025 | | | 13.1 | | | 13.1 | | 13.1 | (2)(11) | | | | |
| | | | Class A membership units | | | | | | 01/2020 | | | | 9,750,000 | | | 9.8 | | | 8.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 22.9 | | | 21.6 | | | | | | |
Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc. (15) | | Software platform for identification, prevention and management of substance use disorder | | First lien senior secured loan | | 12.48% | SOFR (Q) | 7.00% | | 05/2021 | | 05/2027 | | | 5.6 | | | 5.6 | | | 5.6 | | (2)(11) | | | | |
| | | | Series A preferred shares | | 11.00% PIK | | | | 05/2021 | | | | 32,236 | | | 45.6 | | | 43.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 51.2 | | | 49.4 | | | | | | |
Aptean, Inc. and Aptean Acquiror Inc. (15) | | Provider of CRM, ERP and supply chain software application | | First lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 01/2024 | | 01/2031 | | | 16.4 | | | 16.3 | | | 16.3 | | (2)(11) | | | | |
Artifact Bidco, Inc. (fka Avetta, LLC) (15) | | Supply chain risk management SaaS platform for global enterprise clients | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.75% | | 10/2023 | | 10/2030 | | | 32.9 | | | 32.9 | | | 32.9 | | (2)(11) | | | | |
Auctane, Inc. | | Provider of mailing and shipping solutions | | First lien senior secured loan | | 11.18% | SOFR (Q) | 5.75% | | 10/2021 | | 10/2028 | | | 144.5 | | | 144.5 | | | 138.8 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
5
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Avalara, Inc. (15) | | Provider of cloud-based solutions for transaction tax compliance worldwide | | First lien senior secured loan | | 12.58% | SOFR (Q) | 7.25% | | 10/2022 | | 10/2028 | | | 72.2 | | | 72.2 | | | 72.2 | | (2)(11) | | | | |
Banyan Software Holdings, LLC and Banyan Software, LP (15) | | Vertical software businesses holding company | | First lien senior secured revolving loan | | 10.84% | SOFR (M) | 5.50% | | 01/2023 | | 10/2026 | | | 1.3 | | | 1.3 | | | 1.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.44% | SOFR (M) | 7.00% | | 10/2020 | | 10/2026 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.44% | SOFR (M) | 7.00% | | 12/2021 | | 10/2026 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.69% | SOFR (M) | 7.25% | | 01/2023 | | 10/2026 | | | 10.5 | | | 10.5 | | | 10.5 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.59% | SOFR (M) | 6.25% | | 01/2024 | | 10/2026 | | | 4.1 | | | 4.1 | | | 4.1 | | (2)(6)(11) | | | | |
| | | | Preferred units | | | | | | 01/2022 | | | | 120,999 | | | 4.1 | | | 10.9 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 21.2 | | | 28.0 | | | | | | |
BCTO Ignition Purchaser, Inc. | | Enterprise software provider | | First lien senior secured loan | | 14.33% PIK | SOFR (Q) | 9.00% | | 04/2023 | | 10/2030 | | | 3.7 | | | 3.7 | | | 3.7 | | (2)(6)(11) | | | | |
Bobcat Purchaser, LLC and Bobcat Topco, L.P. (15) | | Healthcare software provider | | First lien senior secured loan | | 10.09% | SOFR (Q) | 4.75% | | 06/2023 | | 06/2030 | | | 15.8 | | | 15.8 | | | 15.8 | | (2)(11) | | | | |
| | | | Class A-1 units | | | | | | 06/2023 | | | | 1,729,228 | | | 1.7 | | | 1.8 | | | | | | |
| | | | | | | | | | | | | | | | | 17.5 | | | 17.6 | | | | | | |
Borrower R365 Holdings LLC (15) | | Provider of restaurant enterprise resource planning systems | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 06/2021 | | 06/2027 | | | 16.0 | | | 15.8 | | | 16.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 01/2022 | | 06/2027 | | | 1.9 | | | 1.9 | | | 1.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 17.7 | | | 17.9 | | | | | | |
Bottomline Technologies, Inc. and Legal Spend Holdings, LLC (15) | | Provider of payment automation solutions | | First lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 05/2022 | | 05/2029 | | | 8.1 | | | 8.1 | | | 8.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.09% | SOFR (M) | 5.75% | | 10/2023 | | 05/2029 | | | 4.2 | | | 4.2 | | | 4.2 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 12.3 | | | 12.3 | | | | | | |
Businessolver.com, Inc. (15) | | Provider of SaaS-based benefits solutions for employers and employees | | First lien senior secured loan | | 10.93% | SOFR (Q) | 5.50% | | 12/2021 | | 12/2027 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(11) | | | | |
CallMiner, Inc. | | Provider of cloud-based conversational analytics solutions | | Warrant to purchase shares of Series 1 preferred stock | | | | | | 07/2014 | | 07/2024 | | 2,350,636 | | | — | | | — | | | | | | |
Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc. (15) | | Provider of software and technology-enabled content and analytical solutions to insurance brokers | | First lien senior secured loan | | 9.98% | SOFR (Q) | 4.50% | | 04/2024 | | 11/2027 | | | 11.1 | | | 10.6 | | | 10.3 | | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 13.23% | SOFR (Q) | 7.75% | | 11/2020 | | 11/2028 | | | 64.3 | | | 64.3 | | | 61.7 | | (2)(11) | | | | |
| | | | Series A preferred shares | | 11.00% PIK | | | | 11/2020 | | | | 24,898 | | | 37.1 | | | 31.9 | | (2) | | | | |
| | | | Series A-2 preferred shares | | 11.00% PIK | | | | 12/2020 | | | | 8,963 | | | 13.2 | | | 11.4 | | (2) | | | | |
| | | | Series A-3 preferred shares | | 11.00% PIK | | | | 11/2021 | | | | 11,952 | | | 15.9 | | | 13.7 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 141.1 | | | 129.0 | | | | | | |
Centralsquare Technologies, LLC and Supermoose Newco, Inc. (15) | | Provider of mission-critical software solutions for the public sector | | First lien senior secured loan | | 11.83% (3.00% PIK) | SOFR (M) | 6.50% | | 04/2024 | | 04/2030 | | | 139.8 | | | 139.8 | | | 136.2 | | (2)(11) | | | | |
| | | | Series A preferred stock | | 15.00% PIK | | | | 04/2024 | | | | 83,332 | | | 86.0 | | | 83.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 225.8 | | | 219.5 | | | | | | |
See accompanying notes to consolidated financial statements
6
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P. (15) | | Provider of server, application and desktop virtualization, networking, software as a service, and cloud computing technologies | | First lien senior secured loan | | 9.83% | SOFR (Q) | 4.50% | | 03/2024 | | 03/2031 | | | 8.6 | | | 8.5 | | | 8.6 | | (2)(11)(18) | | | | |
| | | | First lien senior secured loan | | 9.33% | SOFR (B) | 4.00% | | 05/2024 | | 03/2029 | | | 15.6 | | | 15.0 | | | 15.6 | | (2)(11)(18) | | | | |
| | | | First lien senior secured notes | | 6.50% | | | | 09/2022 | | 03/2029 | | | 88.9 | | | 87.0 | | | 85.2 | | (2)(18) | | | | |
| | | | Second lien senior secured notes | | 9.00% | | | | 04/2023 | | 09/2029 | | | 121.0 | | | 113.0 | | | 117.4 | | (2)(18) | | | | |
| | | | Series A preferred stock | | 17.33% | SOFR (Q) | 12.00% | | 09/2022 | | | | 117,813 | | | 123.5 | | | 127.6 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 09/2022 | | | | 12,250,000 | | | 12.3 | | | 27.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 359.3 | | | 381.9 | | | | | | |
Community Brands ParentCo, LLC (15) | | Software and payment services provider to non-profit institutions | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 02/2022 | | 02/2028 | | | 10.5 | | | 10.5 | | | 10.5 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2016 | | | | 500,000 | | | 5.0 | | | 3.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 15.5 | | | 13.5 | | | | | | |
Computer Services, Inc. (15) | | Infrastructure software provider to community banks | | First lien senior secured loan | | 10.60% | SOFR (Q) | 5.25% | | 11/2022 | | 11/2029 | | | 33.6 | | | 33.6 | | | 33.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.60% | SOFR (Q) | 5.25% | | 02/2024 | | 11/2029 | | | 26.5 | | | 26.5 | | | 26.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 60.1 | | | 60.1 | | | | | | |
Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P. (15) | | Provider of sales software for the interior design industry | | First lien senior secured revolving loan | | 11.23% | SOFR (Q) | 5.75% | | 05/2021 | | 05/2028 | | | 7.3 | | | 7.3 | | | 7.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 9.95% | Euribor (S) | 6.25% | | 11/2021 | | 05/2028 | | | 1.5 | | | 1.5 | | | 1.5 | | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.98% | SOFR (Q) | 5.50% | | 04/2024 | | 05/2028 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 05/2021 | | 05/2028 | | | 73.7 | | | 73.7 | | | 73.7 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 9.95% | Euribor (Q) | 6.25% | | 11/2021 | | 05/2028 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 9.95% | Euribor (Q) | 6.25% | | 11/2021 | | 05/2028 | | | 29.1 | | | 30.3 | | | 29.1 | | (2)(6) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 06/2022 | | 05/2028 | | | 11.5 | | | 11.5 | | | 11.5 | | (2)(6)(11) | | | | |
| | | | Common units | | | | | | 05/2021 | | | | 483,584 | | | 4.8 | | | 8.0 | | (2)(6) | | | | |
| | | | Series A common units | | | | | | 09/2022 | | | | 23,340 | | | 0.2 | | | 0.4 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 130.3 | | | 132.5 | | | | | | |
CoreLogic, Inc. and T-VIII Celestial Co-Invest LP (15) | | Provider of information, insight, analytics, software and other outsourced services primarily to the mortgage, real estate and insurance sectors | | Second lien senior secured loan | | 11.96% | SOFR (M) | 6.50% | | 06/2021 | | 06/2029 | | | 155.7 | | | 155.7 | | | 149.4 | | (2)(11) | | | | |
| | | | Limited partnership units | | | | | | 04/2021 | | | | 59,665,989 | | | 59.7 | | | 39.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 215.4 | | | 188.5 | | | | | | |
Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc. (15) | | Provider of environmental, health and safety software to track compliance data | | First lien senior secured loan | | 10.30% | SOFR (Q) | 5.00% | | 07/2019 | | 07/2026 | | | 6.2 | | | 6.2 | | | 6.2 | | (2)(6)(11) | | | | |
See accompanying notes to consolidated financial statements
7
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 10.30% | SOFR (Q) | 5.00% | | 10/2019 | | 07/2026 | | | 4.3 | | | 4.3 | | | 4.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.30% | SOFR (Q) | 7.00% | | 09/2020 | | 07/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.80% | SOFR (Q) | 5.50% | | 09/2022 | | 07/2026 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.05% | SOFR (Q) | 5.75% | | 04/2023 | | 07/2026 | | | 7.6 | | | 7.6 | | | 7.6 | | (2)(6)(11) | | | | |
| | | | Preferred equity | | 9.00% PIK | | | | 07/2019 | | | | 198 | | | 0.3 | | | 1.0 | | (2)(6) | | | | |
| | | | Common equity | | | | | | 07/2019 | | | | 190,143 | | | — | | | — | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 18.7 | | | 19.4 | | | | | | |
Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc. (15) | | Provider of a cloud-based, SaaS platform for talent management | | First lien senior secured revolving loan | | 8.69% | SOFR (M) | 3.25% | | 10/2021 | | 10/2026 | | | 5.2 | | | 5.2 | | | 4.8 | | (2)(14) | | | | |
| | | | First lien senior secured loan | | 9.21% | SOFR (M) | 3.75% | | 06/2024 | | 10/2028 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 11.96% | SOFR (M) | 6.50% | | 10/2021 | | 10/2029 | | | 137.5 | | | 137.5 | | | 129.2 | | (2)(11) | | | | |
| | | | Series A preferred shares | | 10.50% PIK | | | | 10/2021 | | | | 116,413 | | | 153.6 | | | 130.6 | | (2) | | | | |
| | | | Class A-1 common stock | | | | | | 10/2021 | | | | 1,360,100 | | | 13.6 | | | 16.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 310.7 | | | 281.4 | | | | | | |
Coupa Holdings, LLC and Coupa Software Incorporated (15) | | Provider of Business Spend Management software | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 03/2023 | | 02/2030 | | | 9.0 | | | 9.0 | | | 9.0 | | (2)(11) | | | | |
Datix Bidco Limited and RL Datix Holdings (USA), Inc. (15) | | Global healthcare software company that provides software solutions for patient safety and risk management | | First lien senior secured loan | | 10.81% | SOFR (S) | 5.50% | | 04/2024 | | 04/2031 | | | 104.6 | | | 104.6 | | | 102.5 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.74% | SONIA (S) | 5.50% | | 04/2024 | | 04/2031 | | | 53.6 | | | 53.1 | | | 52.5 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 157.7 | | | 155.0 | | | | | | |
Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P. | | Provider of internet security tools and solutions | | Second lien senior secured loan | | 12.34% | SOFR (M) | 7.00% | | 05/2022 | | 02/2029 | | | 11.0 | | | 10.5 | | | 10.8 | | (2) | | | | |
| | | | Series A preferred shares | | 10.50% PIK | | | | 05/2021 | | | | 129,822 | | | 178.3 | | | 156.9 | | (2) | | | | |
| | | | Series A units | | | | | | 05/2021 | | | | 817,194 | | | 13.3 | | | 10.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 202.1 | | | 178.6 | | | | | | |
Denali Holdco LLC and Denali Apexco LP (15) | | Provider of cybersecurity audit and assessment services | | First lien senior secured loan | | 10.93% | SOFR (M) | 5.50% | | 09/2021 | | 09/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.93% | SOFR (M) | 5.50% | | 07/2022 | | 09/2027 | | | 1.1 | | | 1.1 | | | 1.1 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 02/2022 | | | | 2,549,000 | | | 2.5 | | | 4.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 3.7 | | | 5.2 | | | | | | |
Diligent Corporation and Diligent Preferred Issuer, Inc. (15) | | Provider of secure SaaS solutions for board and leadership team documents | | First lien senior secured loan | | 10.34% | SOFR (M) | 5.00% | | 04/2024 | | 08/2030 | | | 23.5 | | | 23.3 | | | 23.3 | | (2)(11) | | | | |
| | | | Preferred stock | | 10.50% PIK | | | | 04/2021 | | | | 13,140 | | | 17.6 | | | 17.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 40.9 | | | 40.7 | | | | | | |
Echo Purchaser, Inc. (15) | | Software provider of mission critical security, supply chain, and collaboration solutions for highly regulated end markets | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 11/2023 | | 11/2029 | | | 10.6 | | | 10.6 | | | 10.6 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
8
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Edmunds Govtech, Inc. (15) | | Provider of ERP software solutions for local governments | | First lien senior secured revolving loan | | 9.33% | SOFR (Q) | 4.00% | | 02/2024 | | 02/2030 | | | 1.7 | | | 1.7 | | | 1.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 02/2024 | | 02/2031 | | | 18.5 | | | 18.5 | | | 18.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 20.2 | | | 19.7 | | | | | | |
Elemica Parent, Inc. & EZ Elemica Holdings, Inc. (15) | | SaaS based supply chain management software provider focused on chemical markets | | First lien senior secured revolving loan | | 10.98% | SOFR (Q) | 5.50% | | 05/2024 | | 09/2026 | | | 5.4 | | | 5.4 | | | 5.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 09/2019 | | 09/2026 | | | 60.3 | | | 60.3 | | | 60.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.93% | SOFR (M) | 5.50% | | 12/2020 | | 09/2026 | | | 5.7 | | | 5.7 | | | 5.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 05/2024 | | 09/2026 | | | 4.9 | | | 4.9 | | | 4.9 | | (2)(11) | | | | |
| | | | Preferred equity | | | | | | 09/2019 | | | | 4,599 | | | 4.6 | | | 6.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 80.9 | | | 82.7 | | | | | | |
Enverus Holdings, Inc. and Titan DI Preferred Holdings, Inc. (15) | | SaaS based business analytics company focused on oil and gas industry | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 12/2023 | | 12/2029 | | | 134.6 | | | 134.6 | | | 134.6 | | (2)(11) | | | | |
| | | | Preferred stock | | 13.50% PIK | | | | 02/2020 | | | | 30 | | | 51.9 | | | 52.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 186.5 | | | 187.4 | | | | | | |
EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P. | | Provider of entertainment workforce and production management solutions | | First lien senior secured loan | | 10.10% | SOFR (Q) | 4.50% | | 06/2023 | | 11/2028 | | | 8.4 | | | 8.1 | | | 8.4 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 12.10% | SOFR (Q) | 6.50% | | 11/2021 | | 11/2029 | | | 177.9 | | | 177.9 | | | 177.9 | | (2)(11) | | | | |
| | | | Partnership units | | | | | | 05/2019 | | | | 5,034,483 | | | 3.2 | | | 12.1 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 189.2 | | | 198.4 | | | | | | |
EpiServer Inc. and Episerver Sweden Holdings AB (15) | | Provider of web content management and digital commerce solutions | | First lien senior secured loan | | 10.73% | SOFR (Q) | 5.25% | | 10/2018 | | 04/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 9.20% | Euribor (Q) | 5.50% | | 03/2019 | | 04/2026 | | | 5.5 | | | 5.8 | | | 5.5 | | (2)(6) | | | | |
| | | | First lien senior secured loan | | 10.73% | SOFR (Q) | 5.25% | | 12/2021 | | 04/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 6.0 | | | 5.7 | | | | | | |
eResearch Technology, Inc. and Astorg VII Co-Invest ERT (15) | | Provider of mission-critical, software-enabled clinical research solutions | | First lien senior secured revolving loan | | 9.59% | SOFR (M) | 4.25% | | 01/2024 | | 08/2026 | | | 6.1 | | | 6.1 | | | 6.1 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 11.75% | Base Rate (Q) | 3.25% | | 01/2024 | | 08/2026 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 9.34% | SOFR (M) | 4.00% | | 11/2023 | | 02/2027 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 13.44% | SOFR (M) | 8.00% | | 02/2020 | | 02/2028 | | | 24.7 | | | 23.9 | | | 24.7 | | (2) | | | | |
| | | | Second lien senior secured loan | | 13.44% | SOFR (M) | 8.00% | | 02/2020 | | 02/2028 | | | 2.5 | | | 2.5 | | | 2.5 | | (2) | | | | |
| | | | Second lien senior secured loan | | 13.44% | SOFR (M) | 8.00% | | 04/2021 | | 02/2028 | | | 30.6 | | | 30.0 | | | 30.6 | | (2) | | | | |
| | | | Limited partnership interest | | | | | | 01/2020 | | | | 3,988,000 | | | 4.5 | | | 6.8 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 69.0 | | | 72.7 | | | | | | |
See accompanying notes to consolidated financial statements
9
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
ESHA Research, LLC and RMCF VI CIV XLVIII, L.P. (15) | | Provider of nutritional information and software as a services (SaaS) compliance solutions | | First lien senior secured revolving loan | | 10.86% | SOFR (S) | 5.50% | | 06/2022 | | 06/2028 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 11.03% | SOFR (Q) | 5.75% | | 06/2022 | | 06/2028 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.02% | SOFR (S) | 5.75% | | 06/2022 | | 06/2028 | | | 6.7 | | | 6.7 | | | 6.7 | | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 06/2022 | | | | 6,246,801 | | | 6.2 | | | 7.7 | | | | | | |
| | | | | | | | | | | | | | | | | 13.8 | | | 15.3 | | | | | | |
Extrahop Networks, Inc. (15) | | Provider of real-time wire data analytics solutions for application and infrastructure monitoring | | First lien senior secured loan | | 12.94% | SOFR (M) | 7.50% | | 07/2021 | | 07/2027 | | | 24.4 | | | 24.4 | | | 24.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.94% | SOFR (M) | 7.50% | | 03/2023 | | 07/2027 | | | 3.9 | | | 3.9 | | | 3.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 28.3 | | | 28.3 | | | | | | |
Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L. (15) | | Provider of back-office software services for the banking sector | | First lien senior secured loan | | 12.46% | SOFR (Q) | 7.25% | | 09/2023 | | 09/2029 | | | 190.0 | | | 186.7 | | | 190.0 | | (2)(6)(11) | | | | |
Forescout Technologies, Inc. (15) | | Network access control solutions provider | | First lien senior secured loan | | 10.33% | SOFR (Q) | 5.00% | | 05/2024 | | 05/2031 | | | 13.6 | | | 13.6 | | | 13.5 | | (2)(11) | | | | |
GI Ranger Intermediate LLC (15) | | Provider of payment processing services and software to healthcare providers | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 10/2021 | | 10/2028 | | | 10.0 | | | 10.0 | | | 9.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 03/2022 | | 10/2028 | | | 3.1 | | | 3.1 | | | 3.0 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 13.1 | | | 12.8 | | | | | | |
GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC (15) | | Provider of data analysis, statistics, and visualization software solutions for scientific research applications | | First lien senior secured loan | | 10.08% | SOFR (Q) | 4.75% | | 06/2024 | | 06/2031 | | | 74.3 | | | 74.3 | | | 74.0 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 10.50% PIK | | | | 04/2021 | | 04/2032 | | | 50.8 | | | 50.8 | | | 48.8 | | (2) | | | | |
| | | | Preferred units | | 14.00% PIK | | | | 04/2021 | | | | 1,828,645 | | | 74.8 | | | 74.8 | | | | | | |
| | | | | | | | | | | | | | | | | 199.9 | | | 197.6 | | | | | | |
Guidepoint Security Holdings, LLC (15) | | Cybersecurity solutions provider | | First lien senior secured loan | | 11.33% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 6.7 | | | 6.7 | | | 6.7 | | (2)(11) | | | | |
Heavy Construction Systems Specialists, LLC (15) | | Provider of construction software | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 11/2021 | | 11/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 03/2024 | | 11/2028 | | | 14.0 | | | 14.0 | | | 14.0 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 14.1 | | | 14.1 | | | | | | |
Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP (15) | | Insurance software provider | | First lien senior secured revolving loan | | 10.99% | SOFR (Q) | 5.50% | | 11/2021 | | 11/2027 | | | 10.9 | | | 10.9 | | | 10.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 11/2021 | | 11/2028 | | | 59.5 | | | 59.5 | | | 57.1 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 10.00% PIK | | | | 11/2021 | | 11/2031 | | | 115.4 | | | 115.4 | | | 99.2 | | (2) | | | | |
| | | | Company units | | | | | | 11/2021 | | | | 4,246,457 | | | 8.8 | | | 6.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 194.6 | | | 173.2 | | | | | | |
Hyland Software, Inc. (15) | | Enterprise content management software provider | | First lien senior secured loan | | 11.34% | SOFR (M) | 6.00% | | 09/2023 | | 09/2030 | | | 97.1 | | | 95.8 | | | 97.0 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
10
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Icefall Parent, Inc. (15) | | Provider of customer engagement software and integrated payments solutions | | First lien senior secured loan | | 11.83% | SOFR (Q) | 6.50% | | 01/2024 | | 01/2030 | | | 16.7 | | | 16.7 | | | 16.4 | | (2)(11) | | | | |
Imprivata, Inc. | | Provider of identity and access management solutions to the healthcare industry | | Second lien senior secured loan | | 11.58% | SOFR (Q) | 6.25% | | 04/2022 | | 12/2028 | | | 16.1 | | | 16.0 | | | 16.1 | | (2)(11) | | | | |
Inmar, Inc. | | Technology-driven solutions provider for retailers, wholesalers and manufacturers | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 06/2023 | | 05/2026 | | | 13.3 | | | 12.9 | | | 13.3 | | (2)(11)(18) | | | | |
Internet Truckstop Group LLC (15) | | Provider of freight-moving lifecycle software | | First lien senior secured loan | | 10.98% | SOFR (S) | 5.50% | | 06/2024 | | 04/2027 | | | 39.5 | | | 39.1 | | | 39.1 | | (2)(11) | | | | |
IQN Holding Corp. (15) | | Provider of extended workforce management software | | First lien senior secured revolving loan | | 10.60% | SOFR (Q) | 5.25% | | 05/2022 | | 05/2028 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.60% | SOFR (Q) | 5.25% | | 05/2022 | | 05/2029 | | | 1.4 | | | 1.4 | | | 1.4 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.7 | | | 1.7 | | | | | | |
IV Rollover Holdings, LLC | | Provider of cloud based IT solutions, infrastructure and services | | Class B units | | | | | | 05/2017 | | | | 170,490 | | | — | | | — | | (2) | | | | |
| | | | Class X units | | | | | | 05/2017 | | | | 5,000,000 | | | 1.9 | | | 2.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 1.9 | | | 2.1 | | | | | | |
Kaseya Inc. and Knockout Intermediate Holdings I Inc. (15) | | Provider of cloud-based software and technology solutions for small and medium sized businesses | | First lien senior secured revolving loan | | 10.83% | SOFR (Q) | 5.50% | | 06/2022 | | 06/2029 | | | 4.9 | | | 4.9 | | | 4.9 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.33% (2.50% PIK) | SOFR (Q) | 6.00% | | 06/2022 | | 06/2029 | | | 171.9 | | | 171.7 | | | 171.9 | | (2)(11) | | | | |
| | | | Preferred stock | | 11.75% PIK | | | | 06/2022 | | | | 38,798 | | | 49.8 | | | 49.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 226.4 | | | 226.6 | | | | | | |
LeanTaaS Holdings, Inc. (15) | | Provider of SaaS tools to optimize healthcare asset utilization | | First lien senior secured loan | | 12.83% | SOFR (Q) | 7.50% | | 07/2022 | | 07/2028 | | | 59.4 | | | 59.4 | | | 59.4 | | (2)(11) | | | | |
Majesco and Magic Topco, L.P. (15) | | Insurance software provider | | First lien senior secured loan | | 10.08% | SOFR (Q) | 4.75% | | 09/2020 | | 09/2028 | | | 18.2 | | | 18.2 | | | 18.2 | | (2)(11) | | | | |
| | | | Class A units | | 9.00% PIK | | | | 09/2020 | | | | 2,539 | | | 3.5 | | | 6.0 | | (2) | | | | |
| | | | Class B units | | | | | | 09/2020 | | | | 570,625 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 21.7 | | | 24.2 | | | | | | |
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp (15) | | Cybersecurity solutions provider | | First lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 05/2022 | | 05/2029 | | | 83.3 | | | 83.3 | | | 83.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.45% | SONIA (Q) | 5.25% | | 05/2022 | | 05/2029 | | | 35.9 | | | 35.0 | | | 35.9 | | (2)(6)(11) | | | | |
| | | | Limited partnership interest | | | | | | 05/2022 | | | | 3,975 | | | 39.8 | | | 44.2 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 158.1 | | | 163.4 | | | | | | |
Ministry Brands Holdings, LLC and RCP MB Investments B, L.P. (15) | | Software and payment services provider to faith-based institutions | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 12/2021 | | 12/2028 | | | 39.2 | | | 39.2 | | | 38.0 | | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 12/2021 | | | | 9,574,000 | | | 9.6 | | | 7.7 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 48.8 | | | 45.7 | | | | | | |
See accompanying notes to consolidated financial statements
11
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC (15) | | Leading technology solution provider for casing and auditioning to the entertainment industry | | First lien senior secured revolving loan | | 11.33% | SOFR (Q) | 6.00% | | 08/2022 | | 08/2028 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.34% | SOFR (Q) | 6.00% | | 08/2022 | | 08/2028 | | | 24.7 | | | 24.7 | | | 24.7 | | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 08/2022 | | | | 45,320 | | | 4.9 | | | 3.5 | | | | | | |
| | | | | | | | | | | | | | | | | 30.0 | | | 28.6 | | | | | | |
MRI Software LLC (15) | | Provider of real estate and investment management software | | First lien senior secured loan | | 10.93% | SOFR (Q) | 5.50% | | 02/2020 | | 02/2027 | | | 50.8 | | | 50.8 | | | 50.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.93% | SOFR (Q) | 5.50% | | 08/2020 | | 02/2027 | | | 24.1 | | | 24.1 | | | 24.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 12/2023 | | 02/2027 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 75.3 | | | 75.3 | | | | | | |
Netsmart, Inc. and Netsmart Technologies, Inc. | | Developer and operator of health care software and technology solutions | | First lien senior secured loan | | 9.21% | SOFR (M) | 3.75% | | 06/2022 | | 10/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11)(18) | | | | |
North Star Acquisitionco, LLC and Toucan Bidco Limited (15) | | Literacy solution software provider for grades k-12 | | First lien senior secured revolving loan | | 10.20% | SONIA (Q) | 5.00% | | 04/2024 | | 05/2029 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 9.72% | NIBOR (Q) | 5.00% | | 04/2024 | | 05/2029 | | | 5.9 | | | 5.8 | | | 5.9 | | (2)(6) | | | | |
| | | | First lien senior secured loan | | 10.20% | SONIA (S) | 5.00% | | 04/2024 | | 05/2029 | | | 3.7 | | | 3.6 | | | 3.6 | | (2)(6) | | | | |
| | | | First lien senior secured loan | | 10.31% | SOFR (S) | 5.00% | | 04/2024 | | 05/2029 | | | 25.7 | | | 25.7 | | | 25.6 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 35.5 | | | 35.5 | | | | | | |
OpenMarket Inc. | | Provider of cloud-based mobile engagement platform | | First lien senior secured loan | | 11.85% | SOFR (Q) | 6.25% | | 09/2021 | | 09/2026 | | | 16.1 | | | 16.1 | | | 16.1 | | (2)(6)(11) | | | | |
PDDS HoldCo, Inc. (15) | | Provider of cloud-based dental practice management software | | First lien senior secured revolving loan | | 12.98% | SOFR (Q) | 7.50% | | 07/2022 | | 07/2028 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.99% | SOFR (Q) | 7.50% | | 07/2022 | | 07/2028 | | | 11.7 | | | 11.7 | | | 11.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 11.9 | | | 11.9 | | | | | | |
PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC (15) | | Provider of enterprise management software for the convenience retail and petroleum wholesale market | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 01/2024 | | 02/2031 | | | 45.8 | | | 45.8 | | | 45.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.60% | SOFR (Q) | 5.25% | | 02/2024 | | 02/2031 | | | 5.5 | | | 5.5 | | | 5.5 | | (2)(11) | | | | |
| | | | Series A preferred stock | | 13.25% PIK | | | | 03/2019 | | | | 13,656 | | | 27.2 | | | 27.5 | | (2) | | | | |
| | | | Class A units | | | | | | 03/2019 | | | | 2,062,493 | | | 2.1 | | | 4.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 80.6 | | | 82.8 | | | | | | |
Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC (15) | | Provider of plant maintenance and scheduling software | | First lien senior secured loan | | 10.73% | SOFR (Q) | 5.25% | | 05/2019 | | 05/2025 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.35% | SOFR (Q) | 5.75% | | 06/2020 | | 05/2025 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 10/2020 | | 05/2025 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 05/2019 | | | | 5,000 | | | 5.0 | | | 24.2 | | | | | | |
| | | | | | | | | | | | | | | | | 5.6 | | | 24.8 | | | | | | |
See accompanying notes to consolidated financial statements
12
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Petvisor Holdings, LLC (15) | | Provider of veterinarian-focused SaaS solutions | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 06/2022 | | 11/2029 | | | 1.5 | | | 1.5 | | | 1.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.78% PIK | SOFR (S) | 6.50% | | 06/2022 | | 11/2029 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.78% | SOFR (S) | 5.50% | | 06/2022 | | 11/2029 | | | 5.9 | | | 5.9 | | | 5.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.78% | SOFR (S) | 5.50% | | 11/2023 | | 11/2029 | | | 3.7 | | | 3.7 | | | 3.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 11.2 | | | 11.2 | | | | | | |
Ping Identity Holding Corp. (15) | | Provider of identity and access management solutions | | First lien senior secured loan | | 12.34% | SOFR (M) | 7.00% | | 10/2022 | | 10/2029 | | | 11.3 | | | 11.3 | | | 11.3 | | (2)(11) | | | | |
Pluralsight, Inc. (15) | | Online education learning platform | | First lien senior secured revolving loan | | | | | | 04/2021 | | 04/2027 | | | 0.3 | | | 0.3 | | | 0.1 | | (2)(10) | | | | |
| | | | First lien senior secured loan | | | | | | 04/2021 | | 04/2027 | | | 106.2 | | | 106.2 | | | 51.0 | | (2)(10) | | | | |
| | | | | | | | | | | | | | | | | 106.5 | | | 51.1 | | | | | | |
Poplicus Incorporated | | Business intelligence and market analytics platform for companies that sell to the public sector | | Warrant to purchase shares of Series C preferred stock | | | | | | 06/2015 | | 06/2025 | | 2,402,991 | | | 0.1 | | | — | | | | | | |
PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC (15) | | Software provider for medical practitioners | | First lien senior secured revolving loan | | 9.84% | SOFR (M) | 4.50% | | 08/2023 | | 08/2029 | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.09% | SOFR (M) | 5.75% | | 08/2023 | | 08/2029 | | | 36.8 | | | 36.8 | | | 36.8 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 14.00% PIK | | | | 08/2023 | | 08/2030 | | | 43.5 | | | 43.5 | | | 43.5 | | (2) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 03/2021 | | | | 33,220,282 | | | 23.5 | | | 38.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 104.3 | | | 119.6 | | | | | | |
ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P. (15) | | Provider of practice management software to law firms | | First lien senior secured revolving loan | | 10.84% | SOFR (M) | 5.50% | | 03/2021 | | 03/2027 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 03/2021 | | 03/2027 | | | 9.8 | | | 9.8 | | | 9.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 06/2024 | | 03/2027 | | | 18.3 | | | 18.3 | | | 18.3 | | (2)(11) | | | | |
| | | | Limited partnership units | | | | | | 03/2021 | | | | 1,624,000 | | | 0.9 | | | 2.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 29.7 | | | 31.1 | | | | | | |
Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc. | | Provider of data visualization software for data analytics | | Class A common stock | | | | | | 08/2016 | | | | 7,445 | | | 7.4 | | | 20.9 | | (2) | | | | |
| | | | Class B common stock | | | | | | 08/2016 | | | | 1,841,609 | | | 0.1 | | | 0.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.5 | | | 21.1 | | | | | | |
Project Essential Bidco, Inc. and Project Essential Super Parent, Inc. (15) | | Saas provider of automated crew callout and scheduling software for the utility industry | | First lien senior secured loan | | 11.74% (3.25% PIK) | SOFR (Q) | 6.25% | | 04/2021 | | 04/2028 | | | 37.2 | | | 37.2 | | | 33.8 | | (2)(11) | | | | |
| | | | Preferred shares | | 14.98% PIK | SOFR (Q) | 9.50% | | 04/2021 | | | | 26,436 | | | 39.8 | | | 36.2 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 77.0 | | | 70.0 | | | | | | |
Project Potter Buyer, LLC and Project Potter Parent, L.P. (15) | | Software solutions provider to the ready-mix concrete industry | | First lien senior secured revolving loan | | 12.09% | SOFR (M) | 6.75% | | 04/2020 | | 04/2026 | | | 2.1 | | | 2.0 | | | 2.1 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 12.09% | SOFR (M) | 6.75% | | 04/2020 | | 04/2027 | | | 43.0 | | | 43.0 | | | 43.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.09% | SOFR (M) | 6.75% | | 10/2020 | | 04/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
13
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 12.09% | SOFR (M) | 6.75% | | 11/2020 | | 04/2027 | | | 11.8 | | | 11.8 | | | 11.8 | | (2)(11) | | | | |
| | | | Class B units | | | | | | 04/2020 | | | | 588,636 | | | — | | | 2.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 56.9 | | | 59.4 | | | | | | |
Proofpoint, Inc. (15) | | Cybersecurity solutions provider | | First lien senior secured loan | | 8.34% | SOFR (M) | 3.00% | | 06/2021 | | 08/2028 | | | 1.0 | | | 0.9 | | | 1.0 | | (2)(11)(18) | | | | |
PushPay USA Inc. (15) | | Provider of software and integrated payment solutions | | First lien senior secured loan | | 12.23% | SOFR (Q) | 6.75% | | 05/2023 | | 05/2030 | | | 12.6 | | | 12.6 | | | 12.6 | | (2)(11) | | | | |
QF Holdings, Inc. (15) | | SaaS based electronic health record software provider | | First lien senior secured revolving loan | | 11.17% | SOFR (Q) | 5.75% | | 09/2019 | | 12/2027 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.18% | SOFR (Q) | 5.75% | | 09/2019 | | 12/2027 | | | 6.8 | | | 6.8 | | | 6.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.18% | SOFR (Q) | 5.75% | | 08/2020 | | 12/2027 | | | 4.9 | | | 4.9 | | | 4.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.18% | SOFR (Q) | 5.75% | | 12/2021 | | 12/2027 | | | 8.1 | | | 8.1 | | | 8.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.20% | SOFR (Q) | 5.75% | | 12/2023 | | 12/2027 | | | 5.1 | | | 5.1 | | | 5.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 25.3 | | | 25.3 | | | | | | |
Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC (15) | | Provider of SaaS-based safety and security software to the K-12 school market | | First lien senior secured loan | | 10.08% | SOFR (Q) | 4.75% | | 10/2021 | | 10/2028 | | | 8.4 | | | 8.4 | | | 8.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.08% | SOFR (Q) | 4.75% | | 04/2023 | | 10/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.08% | SOFR (Q) | 4.75% | | 05/2024 | | 10/2028 | | | 8.1 | | | 8.1 | | | 8.1 | | (2)(11) | | | | |
| | | | Class A common units | | | | | | 12/2018 | | | | 2,880,582 | | | 3.5 | | | 8.1 | | | | | | |
| | | | | | | | | | | | | | | | | 20.1 | | | 24.7 | | | | | | |
RealPage, Inc. | | Provider of enterprise software solutions to the residential real estate industry | | Second lien senior secured loan | | 11.96% | SOFR (M) | 6.50% | | 04/2021 | | 04/2029 | | | 84.1 | | | 83.3 | | | 82.8 | | (2)(11) | | | | |
Regent Education, Inc. | | Provider of software solutions designed to optimize the financial aid and enrollment processes | | Warrant to purchase shares of common stock | | | | | | 12/2016 | | 12/2026 | | 5,394,181 | | | — | | | — | | | | | | |
Relativity ODA LLC (15) | | Electronic discovery document review software platform for use in litigations and investigations | | First lien senior secured loan | | 11.44% | SOFR (M) | 6.00% | | 05/2021 | | 05/2027 | | | 23.0 | | | 23.0 | | | 23.0 | | (2)(11) | | | | |
Revalize, Inc. (15) | | Developer and operator of software providing configuration, price and quote capabilities | | First lien senior secured revolving loan | | 11.23% | SOFR (Q) | 5.75% | | 05/2022 | | 04/2027 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 05/2022 | | 04/2027 | | | 0.7 | | | 0.7 | | | 0.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.0 | | | 0.9 | | | | | | |
RMS HoldCo II, LLC & RMS Group Holdings, Inc. (15) | | Developer of revenue cycle management solutions, process automation, analytics and integration for the healthcare industry | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 12/2021 | | 12/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 08/2022 | | 12/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | Class A common stock | | | | | | 12/2021 | | | | 465 | | | 4.6 | | | 3.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 4.9 | | | 3.6 | | | | | | |
Smarsh Inc. and Skywalker TopCo, LLC (15) | | SaaS based communication archival service provider | | First lien senior secured revolving loan | | 11.10% | SOFR (M) | 5.75% | | 02/2022 | | 02/2029 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
14
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 02/2022 | | 02/2029 | | | 1.4 | | | 1.4 | | | 1.4 | | (2)(11) | | | | |
| | | | Common units | | | | | | 11/2020 | | | | 1,742,623 | | | 6.3 | | | 11.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 8.0 | | | 12.7 | | | | | | |
SocialFlow, Inc. | | Social media optimization platform provider | | Warrant to purchase shares of Series C preferred stock | | | | | | 01/2016 | | 01/2026 | | 215,331 | | | — | | | — | | | | | | |
Sophia, L.P. | | Provider of ERP software and services for higher education institutions | | Second lien senior secured loan | | 13.44% | SOFR (M) | 8.00% | | 10/2020 | | 10/2028 | | | 66.1 | | | 66.1 | | | 66.1 | | (2)(11) | | | | |
SoundCloud Limited | | Platform for receiving, sending, and distributing music | | Common stock | | | | | | 08/2017 | | | | 73,422 | | | 0.4 | | | 0.7 | | (2)(6) | | | | |
Spark Purchaser, Inc. (15) | | Software platform for Medicare application process | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 04/2024 | | 04/2031 | | | 30.8 | | | 30.8 | | | 30.2 | | (2)(11) | | | | |
Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp (15) | | Provider of data, analytics, news, and workflow tools to customers in the counter-cyclical distressed debt space | | First lien senior secured revolving loan | | 10.45% | SOFR (M) | 5.00% | | 09/2022 | | 09/2028 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.43% | SOFR (Q) | 5.00% | | 09/2022 | | 09/2028 | | | 2.5 | | | 2.5 | | | 2.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.65% | SOFR (Q) | 5.25% | | 12/2023 | | 09/2028 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 09/2022 | | | | 1,010 | | | 10.2 | | | 13.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 13.8 | | | 16.9 | | | | | | |
Storable, Inc. and EQT IX Co-Investment (E) SCSP | | Payment management system solutions and web services for the self-storage industry | | Second lien senior secured loan | | 12.09% | SOFR (M) | 6.75% | | 04/2021 | | 04/2029 | | | 42.8 | | | 42.8 | | | 42.8 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 12.09% | SOFR (M) | 6.75% | | 03/2022 | | 04/2029 | | | 10.3 | | | 10.3 | | | 10.3 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 04/2021 | | | | 614,950 | | | 6.2 | | | 9.7 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 59.3 | | | 62.8 | | | | | | |
Sundance Group Holdings, Inc. (15) | | Provider of cloud-based document management and collaboration solutions | | First lien senior secured revolving loan | | 11.68% | SOFR (Q) | 6.25% | | 07/2021 | | 07/2027 | | | 1.8 | | | 1.7 | | | 1.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.68% | SOFR (Q) | 6.25% | | 07/2021 | | 07/2027 | | | 20.1 | | | 19.9 | | | 20.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.70% | SOFR (Q) | 6.25% | | 11/2022 | | 07/2027 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 22.4 | | | 22.7 | | | | | | |
Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C. (15) | | Provider of environment, health, safety, and sustainability software | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 03/2022 | | 03/2028 | | | 34.6 | | | 34.6 | | | 34.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 10/2023 | | 03/2028 | | | 3.0 | | | 3.0 | | | 3.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 10/2023 | | 03/2028 | | | 6.0 | | | 6.0 | | | 6.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 10/2023 | | 03/2028 | | | 1.9 | | | 1.9 | | | 1.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 06/2024 | | 03/2028 | | | 5.8 | | | 5.8 | | | 5.8 | | (2)(11) | | | | |
| | | | Class A-2 units | | | | | | 03/2022 | | | | 5,057 | | | 5.2 | | | 6.2 | | | | | | |
| | | | | | | | | | | | | | | | | 56.5 | | | 57.5 | | | | | | |
See accompanying notes to consolidated financial statements
15
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
TCP Hawker Intermediate LLC (15) | | Workforce management solutions provider | | First lien senior secured revolving loan | | 10.59% | SOFR (M) | 5.25% | | 08/2019 | | 08/2026 | | | 2.8 | | | 2.8 | | | 2.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 08/2019 | | 08/2026 | | | 33.9 | | | 33.9 | | | 33.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.96% | SOFR (Q) | 5.50% | | 12/2020 | | 08/2026 | | | 6.4 | | | 6.4 | | | 6.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 10/2021 | | 08/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 10/2023 | | 08/2026 | | | 10.5 | | | 10.5 | | | 10.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 53.7 | | | 53.7 | | | | | | |
UKG Inc. and H&F Unite Partners, L.P. | | Provider of cloud based HCM solutions for businesses | | Limited partnership interests | | | | | | 05/2019 | | | | 12,583,556 | | | 12.6 | | | 23.1 | | (2)(6) | | | | |
UserZoom Technologies, Inc. | | User experience research automation software | | First lien senior secured loan | | 12.81% | SOFR (Q) | 7.50% | | 02/2023 | | 04/2029 | | | 5.8 | | | 5.7 | | | 5.8 | | (2)(11) | | | | |
WebPT, Inc. and WPT Intermediate Holdco, Inc. (15) | | Electronic medical record software provider | | First lien senior secured revolving loan | | 12.19% | SOFR (Q) | 6.75% | | 08/2019 | | 01/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.20% | SOFR (Q) | 6.75% | | 08/2019 | | 01/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.25% PIK | | | | 05/2024 | | 05/2029 | | | 61.1 | | | 61.1 | | | 59.6 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 61.3 | | | 59.8 | | | | | | |
Wellington Bidco Inc. and Wellington TopCo LP (15) | | Provider of ERP and payments software for local governments | | First lien senior secured revolving loan | | 10.34% | SOFR (Q) | 5.00% | | 06/2024 | | 06/2030 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.34% | SOFR (Q) | 5.00% | | 06/2024 | | 06/2030 | | | 61.2 | | | 61.2 | | | 60.6 | | (2)(11) | | | | |
| | | | Class A-2 preferred units | | 8.00% PIK | | | | 06/2024 | | | | 2,323,000 | | | 2.3 | | | 2.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 64.1 | | | 63.5 | | | | | | |
Wellness AcquisitionCo, Inc. (15) | | Provider of retail consumer insights and analytics for manufacturers and retailers in the natural, organic and specialty products industry | | First lien senior secured loan | | 10.95% | SOFR (Q) | 5.50% | | 01/2021 | | 01/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (Q) | 5.50% | | 02/2022 | | 01/2027 | | | 1.7 | | | 1.7 | | | 1.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.8 | | | 1.8 | | | | | | |
WorkWave Intermediate II, LLC (15) | | Provider of cloud-based field services and fleet management solutions | | First lien senior secured loan | | 12.43% (3.75% PIK) | SOFR (Q) | 7.00% | | 06/2021 | | 06/2027 | | | 52.1 | | | 52.1 | | | 52.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.43% (3.75% PIK) | SOFR (Q) | 7.00% | | 02/2022 | | 06/2027 | | | 18.9 | | | 18.9 | | | 18.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 71.0 | | | 71.0 | | | | | | |
ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP (15) | | Provider of cloud-based customer support solutions | | First lien senior secured loan | | 11.60% | SOFR (Q) | 6.25% | | 12/2022 | | 11/2028 | | | 43.5 | | | 43.5 | | | 43.5 | | (2)(11) | | | | |
| | | | Series A preferred stock | | 12.50% PIK | | | | 11/2022 | | | | 27,226 | | | 33.2 | | | 33.2 | | (2) | | | | |
| | | | Class A common units | | | | | | 11/2022 | | | | 269,100 | | | 2.7 | | | 2.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 79.4 | | | 79.5 | | | | | | |
ZocDoc, Inc. | | Healthcare marketplace connecting patients and providers | | First lien senior secured loan | | 11.83% | SOFR (M) | 6.50% | | 05/2024 | | 05/2029 | | | 74.1 | | 71.5 | | | 73.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements
16
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 6,094.8 | | | 6,046.7 | | | 48.91% | | | |
Health Care Services | | | | | | | | | | | | | | | | | | | | | | | | |
Absolute Dental Group LLC and Absolute Dental Equity, LLC (5)(15) | | Dental services provider | | First lien senior secured revolving loan | | 14.52% (7.00% PIK) | SOFR (Q) | 9.00% | | 06/2021 | | 06/2026 | | | 11.3 | | | 11.3 | | | 11.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 14.57% (7.00% PIK) | SOFR (Q) | 9.00% | | 06/2021 | | 06/2026 | | | 57.0 | | | 57.0 | | | 57.0 | | (2)(11) | | | | |
| | | | Class A common units | | | | | | 06/2021 | | | | 6,553,553 | | | 4.7 | | | 0.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 73.0 | | | 69.1 | | | | | | |
ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC (5)(15) | | Dental services provider | | First lien senior secured loan | | 12.58% (3.00% PIK) | SOFR (S) | 7.00% | | 09/2016 | | 09/2026 | | | 15.2 | | | 15.2 | | | 15.2 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 10.00% PIK | | | | 06/2023 | | 03/2027 | | | 37.8 | | | 37.8 | | | 37.8 | | (2) | | | | |
| | | | Membership units | | | | | | 09/2016 | | | | 3,000,000 | | | — | | | — | | (2) | | | | |
| | | | Class A common units | | | | | | 06/2023 | | | | 7,343,253 | | | 29.4 | | | 18.6 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 82.4 | | | 71.6 | | | | | | |
Advarra Holdings, Inc. (15) | | Provider of central institutional review boards over clinical trials | | First lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 08/2022 | | 08/2029 | | | 4.0 | | | 4.0 | | | 4.0 | | (2)(11) | | | | |
AHR Funding Holdings, Inc. and AHR Parent Holdings, LP | | Provider of revenue cycle management solutions to hospitals | | Series A preferred shares | | 12.75% PIK | | | | 07/2022 | | 07/2028 | | 35,000 | | | 44.7 | | | 44.7 | | (2) | | | | |
| | Provider of Revenue Cycle Management solutions to hospitals | | Preferred units | | 8.00% PIK | | | | 07/2022 | | | | 9,900 | | | 11.5 | | | 12.2 | | (2) | | | | |
| | | | Class B common units | | | | | | 07/2022 | | | | 100,000 | | | 0.1 | | | 0.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 56.3 | | | 57.0 | | | | | | |
Amerivet Partners Management, Inc. and AVE Holdings LP (15) | | Veterinary practice management platform | | Subordinated loan | | 16.50% PIK | | | | 11/2023 | | 12/2030 | | | 60.2 | | | 58.9 | | | 60.2 | | (2) | | | | |
| | | | Class A units | | | | | | 03/2024 | | | | 2,922 | | | 2.9 | | | 2.9 | | (2) | | | | |
| | | | Class C units | | | | | | 11/2023 | | | | 7,144 | | | 1.4 | | | 1.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 63.2 | | | 64.5 | | | | | | |
Artivion, Inc. (15) | | Manufacturer, processor and distributor of medical devices and implantable human tissues | | First lien senior secured revolving loan | | 9.33% | SOFR (Q) | 4.00% | | 01/2024 | | 01/2030 | | | 0.9 | | | 0.9 | | | 0.9 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.83% | SOFR (Q) | 6.50% | | 01/2024 | | 01/2030 | | | 11.5 | | | 11.5 | | | 11.5 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 12.4 | | | 12.4 | | | | | | |
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP (15)(16) | | Revenue cycle management provider to the physician practices and acute care hospitals | | First lien senior secured loan | | 8.59% | SOFR (M) | 3.25% | | 07/2023 | | 02/2029 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11)(18) | | | | |
| | | | Series A preferred stock | | 10.75% PIK | | | | 02/2022 | | | | 198,505 | | | 256.2 | | | 246.0 | | (2) | | | | |
| | | | Class A units | | | | | | 02/2022 | | | | 10,487,951 | | | 10.5 | | | 12.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 266.8 | | | 258.2 | | | | | | |
Avalign Holdings, Inc. and Avalign Technologies, Inc. (15) | | Full-service contract manufacturer of medical device components for the orthopedic OEM industry | | First lien senior secured loan | | 12.60% (3.63% PIK) | SOFR (Q) | 7.25% | | 03/2024 | | 12/2028 | | | 38.4 | | | 38.4 | | | 37.7 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
17
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
BAART Programs, Inc., MedMark Services, Inc., and Canadian Addiction Treatment Centres LP | | Opiod treatment provider | | First lien senior secured loan | | 10.60% | SOFR (Q) | 5.00% | | 05/2022 | | 06/2027 | | | 5.9 | | | 6.0 | | | 5.6 | | (2)(11) | | | | |
Bambino Group Holdings, LLC | | Dental services provider | | Class A preferred units | | | | | | 12/2016 | | | | 1,000,000 | | | 1.0 | | | 0.8 | | (2) | | | | |
Center for Autism and Related Disorders, LLC (15) | | Autism treatment and services provider specializing in applied behavior analysis therapy | | First lien senior secured revolving loan | | | | | | 11/2018 | | 11/2023 | | | 6.8 | | | — | | | — | | (2)(10)(14) | | | | |
| | | | First lien senior secured revolving loan | | | | | | 01/2022 | | 11/2023 | | | 1.0 | | | — | | | — | | (2)(10)(14) | | | | |
| | | | First lien senior secured loan | | | | | | 06/2023 | | 08/2023 | | | 1.4 | | | — | | | — | | (2)(10) | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
Color Intermediate, LLC | | Provider of pre-payment integrity software solution | | First lien senior secured loan | | 10.93% | SOFR (Q) | 5.50% | | 10/2022 | | 10/2029 | | | 20.1 | | | 20.1 | | | 20.1 | | (2)(11) | | | | |
Comprehensive EyeCare Partners, LLC (15) | | Vision care practice management company | | First lien senior secured revolving loan | | 12.10% (2.50% PIK) | SOFR (Q) | 6.50% | | 02/2018 | | 02/2025 | | | 2.0 | | | 2.0 | | | 1.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.10% (2.50% PIK) | SOFR (Q) | 6.50% | | 02/2018 | | 02/2025 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 2.3 | | | 2.0 | | | | | | |
Convey Health Solutions, Inc. | | Healthcare workforce management software provider | | First lien senior secured loan | | 10.68% | SOFR (Q) | 5.25% | | 09/2019 | | 09/2026 | | | 2.7 | | | 2.7 | | | 2.2 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.68% | SOFR (Q) | 5.25% | | 02/2022 | | 09/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.68% | SOFR (Q) | 5.25% | | 10/2022 | | 09/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 2.9 | | | 2.4 | | | | | | |
Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC (15) | | Provider of medical devices and services for the treatment of positional plagiocephaly | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 03/2022 | | 03/2029 | | | 24.1 | | | 24.1 | | | 23.7 | | (2)(11) | | | | |
| | | | Class A shares | | | | | | 03/2022 | | | | 192 | | | 1.9 | | | 2.2 | | (2) | | | | |
| | | | Common units | | | | | | 03/2022 | | | | 31 | | | 0.3 | | | 0.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 26.3 | | | 26.3 | | | | | | |
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC (15) | | Veterinary hospital operator | | First lien senior secured loan | | 10.34% | SOFR (S) | 5.00% | | 06/2024 | | 06/2031 | | | 159.2 | | | 159.2 | | | 157.6 | | (2)(11) | | | | |
| | | | Class A preferred units | | 15.00% PIK | | | | 08/2023 | | | | 3,678 | | | 2.4 | | | 2.1 | | (2) | | | | |
| | | | Common stock | | | | | | 10/2019 | | | | 41,443 | | | 14.5 | | | 23.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 176.1 | | | 183.5 | | | | | | |
Empower Payments Investor, LLC (15) | | Financial communication and payment solutions provider | | First lien senior secured loan | | 10.48% | SOFR (S) | 5.25% | | 03/2024 | | 03/2031 | | | 36.2 | | | 35.5 | | | 35.5 | | (2)(11) | | | | |
Evolent Health LLC and Evolent Health, Inc. | | Medical technology company focused on value based care services and payment solutions | | Series A preferred shares | | 11.48% | SOFR (Q) | 6.00% | | 01/2023 | | 01/2029 | | 3,834 | | | 3.8 | | | 4.1 | | (2)(6)(11) | | | | |
GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC | | On-demand supply chain automation solutions provider to the healthcare industry | | Second lien senior secured loan | | 12.23% | SOFR (Q) | 6.75% | | 05/2021 | | 05/2029 | | | 114.0 | | | 114.0 | | | 114.0 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 06/2017 | | | | 15,706,534 | | | 17.4 | | | 36.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 131.4 | | | 150.3 | | | | | | |
Global Medical Response, Inc. and GMR Buyer Corp. | | Emergency air medical services provider | | First lien senior secured loan | | 10.85% (0.75% PIK) | SOFR (Q) | 5.50% | | 06/2022 | | 10/2028 | | | 41.3 | | | 39.1 | | | 40.0 | | (2)(11)(18) | | | | |
See accompanying notes to consolidated financial statements
18
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | Series B preferred shares | | 15.00% PIK | | | | 05/2024 | | | | 126,377 | | | 128.5 | | | 122.8 | | (2) | | | | |
| | | | Warrant to purchase units of common stock | | | | | | 03/2018 | | 03/2028 | | 115,733 | | | 0.9 | | | 2.5 | | (2) | | | | |
| | | | Warrant to purchase units of common stock | | | | | | 12/2021 | | 12/2031 | | 1,927 | | | 0.1 | | | — | | (2) | | | | |
| | | | Warrants to purchase shares of common stock | | | | | | 05/2024 | | 05/2031 | | 3,116,642 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 168.6 | | | 165.3 | | | | | | |
Hanger, Inc. (15) | | Provider of orthotic and prosthetic equipment and services | | First lien senior secured revolving loan | | 9.59% | SOFR (M) | 4.25% | | 10/2022 | | 10/2027 | | | 5.8 | | | 5.8 | | | 5.8 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.59% | SOFR (M) | 6.25% | | 10/2022 | | 10/2028 | | | 53.6 | | | 53.6 | | | 53.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.59% | SOFR (M) | 6.25% | | 07/2023 | | 10/2028 | | | 25.4 | | | 25.4 | | | 25.4 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 15.09% | SOFR (M) | 9.75% | | 10/2022 | | 10/2029 | | | 110.6 | | | 110.6 | | | 110.6 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 15.09% | SOFR (M) | 9.75% | | 07/2023 | | 10/2029 | | | 15.4 | | | 15.4 | | | 15.4 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 210.8 | | | 210.8 | | | | | | |
HealthEdge Software, Inc. (15) | | Provider of financial, administrative and clinical software platforms to the healthcare industry | | First lien senior secured revolving loan | | | | | | 12/2021 | | 04/2026 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 12/2021 | | 04/2026 | | | 97.5 | | | 97.5 | | | 97.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 12/2022 | | 04/2026 | | | 6.3 | | | 6.3 | | | 6.3 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 103.8 | | | 103.8 | | | | | | |
Honor Technology, Inc. | | Nursing and home care provider | | Warrant to purchase shares of Series D-2 preferred stock | | | | | | 08/2021 | | 08/2031 | | 133,333 | | | 0.1 | | | — | | (2) | | | | |
HuFriedy Group Acquisition LLC (15) | | Manufacturer of surgical dental equipment and sterile instruments | | First lien senior secured loan | | 10.85% | SOFR (S) | 5.50% | | 05/2024 | | 05/2031 | | | 63.4 | | | 63.4 | | | 62.1 | | (2)(11) | | | | |
JDC Healthcare Management, LLC | | Dental services provider | | Senior subordinated loan | | | | | | 09/2023 | | 09/2029 | | | 12.2 | | | 0.7 | | | 0.4 | | (2)(10) | | | | |
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) (15) | | Provider of behavioral health services | | First lien senior secured revolving loan | | 11.94% (1.50% PIK) | SOFR (Q) | 6.50% | | 03/2017 | | 03/2026 | | | 3.3 | | | 3.3 | | | 2.7 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 14.00% (1.50% PIK) | Base Rate (Q) | 5.50% | | 03/2017 | | 03/2026 | | | 0.4 | | | 0.4 | | | 0.3 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 3.7 | | | 3.0 | | | | | | |
Lifescan Global Corporation | | Provider of blood glucose monitoring systems for home and hospital use | | First lien senior secured loan | | | | | | 05/2022 | | 12/2026 | | | 12.0 | | | 10.7 | | | 5.5 | | (2)(10)(18) | | | | |
| | | | Second lien senior secured loan | | | | | | 05/2022 | | 03/2027 | | | 0.2 | | | 0.2 | | | — | | (2)(10) | | | | |
| | | | | | | | | | | | | | | | | 10.9 | | | 5.5 | | | | | | |
Medline Borrower, LP (15) | | Manufacturer and distributor of medical supplies | | First lien senior secured revolving loan | | | | | | 10/2021 | | 10/2026 | | | — | | | — | | | — | | (2)(13) | | | | |
Napa Management Services Corporation and ASP NAPA Holdings, LLC | | Anesthesia management services provider | | Preferred units | | 15.00% PIK | | | | 06/2020 | | | | 1,842 | | | 0.2 | | | 0.2 | | (2) | | | | |
| | | | Senior preferred units | | 8.00% PIK | | | | 06/2020 | | | | 5,320 | | | 0.4 | | | 0.4 | | (2) | | | | |
| | | | Class A units | | | | | | 04/2016 | | | | 25,277 | | | 2.5 | | | 4.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 3.1 | | | 4.8 | | | | | | |
See accompanying notes to consolidated financial statements
19
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Next Holdco, LLC (15) | | Provider of electronic medical record and practice management software | | First lien senior secured loan | | 11.32% | SOFR (Q) | 6.00% | | 11/2023 | | 11/2030 | | | 6.5 | | | 6.5 | | | 6.5 | | (2)(11) | | | | |
NMN Holdings III Corp. and NMN Holdings LP (15) | | Provider of complex rehabilitation technology solutions for patients with mobility loss | | First lien senior secured revolving loan | | 11.25% | Base Rate (Q) | 2.75% | | 11/2018 | | 08/2025 | | | 2.0 | | | 2.0 | | | 2.0 | | (2)(14) | | | | |
| | | | Partnership units | | | | | | 11/2018 | | | | 30,000 | | | 3.0 | | | 6.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 5.0 | | | 8.9 | | | | | | |
Nomi Health, Inc. | | Provider of software payment services for healthcare industry | | First lien senior secured loan | | 13.55% | SOFR (Q) | 8.25% | | 07/2023 | | 07/2028 | | | 11.4 | | | 11.4 | | | 11.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.59% | SOFR (Q) | 8.25% | | 06/2024 | | 07/2028 | | | 6.8 | | | 6.8 | | | 6.7 | | (2)(11) | | | | |
| | | | Warrant to purchase shares of Series B preferred stock | | | | | | 07/2023 | | 07/2033 | | 9,941 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase units of Class A common stock | | | | | | 06/2024 | | 06/2034 | | 22,211 | | | — | | | 0.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 18.2 | | | 18.0 | | | | | | |
NSPC Intermediate Corp. and NSPC Holdings, LLC | | Acute and chronic pain treatment provider | | First lien senior secured loan | | | | | | 02/2023 | | 02/2026 | | | — | | | — | | | — | | (2)(10) | | | | |
| | | | Common units | | | | | | 02/2023 | | | | 1,182 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC (5)(15) | | Behavioral health and special education platform provider | | First lien senior secured loan | | | | | | 09/2019 | | 02/2027 | | | 60.7 | | | 49.3 | | | 32.8 | | (2)(10) | | | | |
| | | | First lien senior secured loan | | | | | | 02/2022 | | 02/2027 | | | 12.4 | | | 10.2 | | | 6.7 | | (2)(10) | | | | |
| | | | First lien senior secured loan | | 14.99% PIK | SOFR (Q) | 9.50% | | 01/2023 | | 02/2027 | | | 3.4 | | | 3.3 | | | 3.4 | | (2)(11) | | | | |
| | | | Preferred units | | | | | | 07/2021 | | 04/2024 | | 417,189 | | | 0.3 | | | — | | (2) | | | | |
| | | | Preferred stock | | | | | | 02/2022 | | | | 7,983 | | | 3.1 | | | — | | (2) | | | | |
| | | | Class A common units | | | | | | 09/2019 | | | | 9,549,000 | | | 9.5 | | | — | | (2) | | | | |
| | | | Common units | | | | | | 02/2022 | | | | 7,584 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 75.7 | | | 42.9 | | | | | | |
OMH-HealthEdge Holdings, LLC (15) | | Revenue cycle management provider to the healthcare industry | | First lien senior secured loan | | 11.23% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 97.4 | | | 97.4 | | | 97.4 | | (2)(11) | | | | |
Paragon 28, Inc. and Paragon Advanced Technologies, Inc. (15) | | Medical device company | | First lien senior secured revolving loan | | 9.30% | SOFR (Q) | 4.00% | | 11/2023 | | 11/2028 | | | 0.1 | | | 0.1 | | | — | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.05% | SOFR (Q) | 6.75% | | 11/2023 | | 11/2028 | | | 24.0 | | | 24.0 | | | 23.4 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 24.1 | | | 23.4 | | | | | | |
Pathway Vet Alliance LLC and Jedi Group Holdings LLC (15) | | Veterinary hospital operator | | First lien senior secured revolving loan | | | | | | 03/2020 | | 03/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | Second lien senior secured loan | | 13.21% | SOFR (M) | 7.75% | | 03/2020 | | 03/2028 | | | 76.3 | | | 76.3 | | | 60.3 | | (2)(11) | | | | |
| | | | Class R common units | | | | | | 03/2020 | | | | 6,004,768 | | | 6.0 | | | 1.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 82.3 | | | 61.5 | | | | | | |
PetVet Care Centers, LLC (15) | | Veterinary hospital operator | | First lien senior secured loan | | 11.34% | SOFR (M) | 6.00% | | 11/2023 | | 11/2030 | | | 132.1 | | | 132.1 | | | 125.5 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
20
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP (15) | | Provider of employer-sponsored onsite health and wellness clinics and pharmacies | | First lien senior secured revolving loan | | | | | | 02/2024 | | 03/2030 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.76% | SOFR (Q) | 5.50% | | 02/2024 | | 03/2031 | | | 54.4 | | | 54.4 | | | 53.6 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 07/2018 | | | | 9,775 | | | 9.8 | | | 16.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 64.2 | | | 70.1 | | | | | | |
Project Ruby Ultimate Parent Corp. | | Provider of care coordination and transition management software solutions | | Second lien senior secured loan | | 11.96% | SOFR (M) | 6.50% | | 03/2021 | | 03/2029 | | | 193.1 | | | 193.1 | | | 193.1 | | (2)(11) | | | | |
RTI Surgical, Inc. and Pioneer Surgical Technology, Inc. (15) | | Manufacturer of biologic, metal and synthetic implants/devices | | First lien senior secured revolving loan | | 12.19% | SOFR (M) | 6.75% | | 07/2020 | | 07/2026 | | | 8.1 | | | 8.1 | | | 8.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.15% | SOFR (S) | 6.75% | | 07/2020 | | 07/2026 | | | 22.2 | | | 22.2 | | | 22.2 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 30.3 | | | 30.3 | | | | | | |
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC (15) | | Outsourced anesthesia provider | | First lien senior secured loan | | 10.73% | SOFR (Q) | 5.25% | | 03/2018 | | 03/2025 | | | 7.4 | | | 7.4 | | | 7.4 | | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2018 | | | | 684,854 | | | 4.8 | | | 1.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 12.2 | | | 9.2 | | | | | | |
SM Wellness Holdings, Inc. and SM Holdco, LLC (15) | | Breast cancer screening provider | | Series D units | | 8.00% PIK | | | | 03/2023 | | | | 1,127 | | | 1.2 | | | 1.5 | | (2) | | | | |
| | | | Series A units | | | | | | 08/2018 | | | | 8,041 | | | 8.0 | | | 10.3 | | (2) | | | | |
| | | | Series B units | | | | | | 08/2018 | | | | 916,795 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.2 | | | 11.8 | | | | | | |
SOC Telemed, Inc. and PSC Spark Holdings, LP | | Provider of acute care telemedicine | | First lien senior secured loan | | 13.84% PIK | SOFR (Q) | 8.50% | | 08/2022 | | 08/2027 | | | 102.8 | | | 99.9 | | | 96.7 | | (2)(11) | | | | |
| | | | Class A-2 units | | | | | | 08/2022 | | | | 4,812 | | | 4.9 | | | 3.8 | | (2) | | | | |
| | | | Warrant to purchase units of common stock | | | | | | 08/2022 | | 08/2029 | | 6,118 | | | 4.7 | | | 3.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 109.5 | | | 103.9 | | | | | | |
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc. (15) | | SaaS based healthcare compliance platform provider | | First lien senior secured revolving loan | | 9.08% | SOFR (Q) | 3.75% | | 12/2020 | | 12/2027 | | | 0.4 | | | 0.4 | | | 0.4 | | (2) | | | | |
| | | | First lien senior secured loan | | 9.93% | SOFR (Q) | 4.50% | | 02/2022 | | 12/2027 | | | 28.7 | | | 27.7 | | | 26.8 | | (2)(11)(18) | | | | |
| | | | First lien senior secured loan | | 10.68% | SOFR (Q) | 5.25% | | 04/2024 | | 12/2027 | | | 17.4 | | | 17.4 | | | 16.5 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 13.30% | SOFR (Q) | 7.88% | | 12/2020 | | 12/2028 | | | 76.3 | | | 76.3 | | | 72.4 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 15.43% (4.00% PIK) | SOFR (Q) | 10.00% | | 04/2024 | | 12/2028 | | | 51.9 | | | 51.9 | | | 51.9 | | (2)(11) | | | | |
| | | | Series C-1 preferred shares | | 11.00% PIK | | | | 06/2021 | | | | 75,939 | | | 111.9 | | | 92.5 | | (2) | | | | |
| | | | Series C-2 preferred shares | | 11.00% PIK | | | | 06/2021 | | | | 40,115 | | | 56.0 | | | 46.3 | | (2) | | | | |
| | | | Series C-3 preferred shares | | 11.00% PIK | | | | 10/2021 | | | | 16,201 | | | 21.8 | | | 18.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 363.4 | | | 324.9 | | | | | | |
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC (15) | | Franchisor of private-pay home care for the elderly | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 04/2018 | | 04/2026 | | | 13.1 | | | 13.1 | | | 13.1 | | (2)(11) | | | | |
| | | | Common units | | | | | | 04/2018 | | | | 550 | | | 0.5 | | | 1.3 | | | | | | |
| | | | | | | | | | | | | | | | | 13.6 | | | 14.4 | | | | | | |
See accompanying notes to consolidated financial statements
21
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Tempus AI, Inc. | | Provider of technology enabled precision medicine solutions | | First lien senior secured loan | | 13.55% (3.25% PIK) | SOFR (Q) | 8.25% | | 09/2022 | | 09/2027 | | | 73.8 | | | 73.8 | | | 73.8 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 13.55% (3.25% PIK) | SOFR (Q) | 8.25% | | 04/2023 | | 09/2027 | | | 21.4 | | | 21.4 | | | 21.4 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 13.55% (3.25% PIK) | SOFR (Q) | 8.25% | | 10/2023 | | 09/2027 | | | 9.2 | | | 9.2 | | | 9.2 | | (2)(6)(11) | | | | |
| | | | Common units | | | | | | 10/2023 | | | | 60,821 | | | 1.9 | | | 2.1 | | (2)(6)(18) | | | | |
| | | | | | | | | | | | | | | | | 106.3 | | | 106.5 | | | | | | |
Therapy Brands Holdings LLC | | Provider of software solutions for the mental and behavioral health market segments | | Second lien senior secured loan | | 12.21% | SOFR (M) | 6.75% | | 06/2021 | | 05/2029 | | | 29.1 | | | 28.9 | | | 27.9 | | (2)(11) | | | | |
Touchstone Acquisition, Inc. and Touchstone Holding, L.P. | | Manufacturer of consumable products in the dental, medical, cosmetic and consumer/industrial end-markets | | Class A preferred units | | 8.00% PIK | | | | 11/2018 | | | | 2,149 | | | 3.4 | | | 4.2 | | (2) | | | | |
U.S. Anesthesia Partners, Inc. & U.S. Anesthesia Partners Holdings, Inc. | | Anesthesiology service provider | | Second lien senior secured loan | | 12.94% | SOFR (M) | 7.50% | | 10/2021 | | 10/2029 | | | 147.8 | | | 147.8 | | | 140.4 | | (2)(11) | | | | |
| | | | Common stock | | | | | | 12/2021 | | | | 3,671,429 | | | 12.9 | | | 8.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 160.7 | | | 148.7 | | | | | | |
United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP (15) | | Gastroenterology physician group | | First lien senior secured revolving loan | | 11.83% | SOFR (Q) | 6.50% | | 03/2023 | | 03/2029 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 03/2023 | | 03/2029 | | | 10.3 | | | 10.3 | | | 10.3 | | (2)(11) | | | | |
| | | | Class A interests | | | | | | 03/2023 | | | | 4,623 | | | 4.6 | | | 5.4 | | | | | | |
| | | | | | | | | | | | | | | | | 15.7 | | | 16.5 | | | | | | |
Viant Medical Holdings, Inc. | | Manufacturer of plastic and rubber components for health care equipment | | First lien senior secured loan | | 9.21% | SOFR (M) | 3.75% | | 05/2022 | | 07/2025 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(18) | | | | |
| | | | Second lien senior secured loan | | 13.21% | SOFR (M) | 7.75% | | 05/2022 | | 07/2026 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(18) | | | | |
| | | | | | | | | | | | | | | | | 0.6 | | | 0.6 | | | | | | |
VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P. (15) | | Veterinary hospital operator | | First lien senior secured loan | | 10.69% | SOFR (M) | 5.25% | | 12/2021 | | 12/2027 | | | 6.1 | | | 6.1 | | | 6.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.69% | SOFR (M) | 5.25% | | 08/2022 | | 12/2027 | | | 9.1 | | | 9.1 | | | 9.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 08/2023 | | 12/2027 | | | 4.3 | | | 4.3 | | | 4.3 | | (2)(11) | | | | |
| | | | Class A-2 units | | | | | | 12/2021 | | | | 7,524 | | | 7.5 | | | 11.5 | | (2) | | | | |
| | | | Class A-2 units | | | | | | 03/2023 | | | | 45 | | | 0.1 | | | 0.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.1 | | | 31.1 | | | | | | |
Wellpath Holdings, Inc. (15) | | Correctional facility healthcare operator | | First lien senior secured revolving loan | | 10.85% | SOFR (Q) | 5.25% | | 10/2018 | | 10/2024 | | | 11.4 | | | 11.4 | | | 7.1 | | (2)(14) | | | | |
| | | | First lien senior secured loan | | 11.11% | SOFR (Q) | 5.50% | | 09/2018 | | 10/2025 | | | 12.2 | | | 12.2 | | | 7.6 | | (2)(18) | | | | |
| | | | | | | | | | | | | | | | | 23.6 | | | 14.7 | | | | | | |
WSHP FC Acquisition LLC and WSHP FC Holdings LLC (15) | | Provider of biospecimen products for pharma research | | First lien senior secured revolving loan | | 11.98% | SOFR (Q) | 6.50% | | 03/2018 | | 03/2028 | | | 15.3 | | | 15.3 | | | 14.4 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 03/2018 | | 03/2028 | | | 32.5 | | | 32.5 | | | 30.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 02/2019 | | 03/2028 | | | 4.4 | | | 4.4 | | | 4.1 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
22
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 08/2019 | | 03/2028 | | | 13.7 | | | 13.7 | | | 12.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 10/2019 | | 03/2028 | | | 10.6 | | | 10.6 | | | 9.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 10/2021 | | 03/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 11/2021 | | 03/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 07/2022 | | 03/2028 | | | 30.6 | | | 30.6 | | | 28.8 | | (2)(11) | | | | |
| | | | Common units | | | | | | 07/2022 | | | | 34,742 | | | 4.9 | | | 3.9 | | | | | | |
| | | | | | | | | | | | | | | | | 112.2 | | | 104.7 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 3,282.3 | | | 3,157.5 | | | 25.54% | | | |
Commercial and Professional Services | | | | | | | | | | | | | | | | | | | | | | | | |
Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC (15) | | Provider of outsourced crew accommodations and logistics management solutions to the airline industry | | Class A common units | | | | | | 05/2018 | | | | 236,358 | | | 4.3 | | | 37.8 | | | | | | |
Aero Operating LLC | | Provider of snow removal and melting service for airports and marine terminals | | First lien senior secured loan | | 14.45% | SOFR (Q) | 9.00% | | 02/2020 | | 02/2026 | | | 36.6 | | | 36.6 | | | 31.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 14.45% | SOFR (Q) | 9.00% | | 12/2021 | | 02/2026 | | | 1.2 | | | 1.2 | | | 1.0 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 37.8 | | | 32.1 | | | | | | |
AI Fire Buyer, Inc. and AI Fire Parent LLC (15) | | Provider of fire safety and life safety services | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 03/2021 | | 03/2027 | | | 1.1 | | | 1.1 | | | 1.1 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (Q) | 5.50% | | 03/2021 | | 03/2027 | | | 4.0 | | | 4.0 | | | 4.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.75% | | 11/2023 | | 03/2027 | | | 4.4 | | | 4.4 | | | 4.4 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 16.23% PIK | SOFR (Q) | 10.75% | | 03/2021 | | 09/2027 | | | 58.0 | | | 58.0 | | | 58.0 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 16.33% PIK | SOFR (Q) | 10.75% | | 05/2022 | | 09/2027 | | | 13.1 | | | 13.1 | | | 13.1 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 16.23% PIK | SOFR (Q) | 10.75% | | 06/2022 | | 09/2027 | | | 12.7 | | | 12.7 | | | 12.7 | | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2021 | | | | 46,990 | | | 4.7 | | | 13.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 98.0 | | | 106.4 | | | | | | |
AMCP Clean Acquisition Company, LLC | | Provider of commercial laundry services | | First lien senior secured loan | | 10.35% | SOFR (S) | 5.00% | | 02/2024 | | 06/2028 | | | 10.4 | | | 10.2 | | | 10.2 | | (2)(11) | | | | |
Applied Technical Services, LLC (15) | | Provider engineering, testing, and inspection services to various industrial, commercial and consumer customers | | First lien senior secured revolving loan | | 13.25% | Base Rate (Q) | 4.75% | | 05/2022 | | 12/2026 | | | 4.5 | | | 4.3 | | | 4.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 05/2022 | | 12/2026 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 09/2023 | | 12/2026 | | | 2.8 | | | 2.8 | | | 2.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 01/2024 | | 12/2026 | | | 2.5 | | | 2.5 | | | 2.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 10.6 | | | 10.8 | | | | | | |
See accompanying notes to consolidated financial statements
23
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Argenbright Holdings V, LLC, Amberstone Security Group Limited, Unifi Aviation North America LLC and Unifi Aviation Canada, Inc. (15) | | Provider of outsourced security guard services, outsourced facilities management and outsourced aviation services | | First lien senior secured loan | | 10.70% | SOFR (Q) | 5.25% | | 04/2024 | | 09/2028 | | | 53.5 | | | 53.5 | | | 52.6 | | (2)(6)(11) | | | | |
| | | | Senior subordinated loan | | 13.73% | SOFR (Q) | 8.25% | | 11/2021 | | 11/2028 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(6)(11) | | | | |
| | | | Senior subordinated loan | | 13.73% | SOFR (Q) | 8.25% | | 08/2022 | | 11/2028 | | | 6.3 | | | 6.1 | | | 6.3 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 60.3 | | | 59.6 | | | | | | |
Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP (15) | | Outsourced supply chain solutions provider to operators of distribution centers | | First lien senior secured revolving loan | | | | | | 11/2020 | | 11/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.19% | SOFR (M) | 4.75% | | 11/2020 | | 11/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.19% | SOFR (M) | 8.75% | | 11/2020 | | 11/2028 | | | 68.3 | | | 68.3 | | | 68.3 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 11/2020 | | | | 10,581 | | | 10.6 | | | 22.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 79.1 | | | 90.7 | | | | | | |
Compex Legal Services, Inc. (15) | | Provider of outsourced litigated and non-litigated medical records retrieval services | | First lien senior secured revolving loan | | 10.88% | SOFR (Q) | 5.45% | | 05/2022 | | 02/2025 | | | 1.8 | | | 1.8 | | | 1.8 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.85% | SOFR (Q) | 5.45% | | 05/2022 | | 02/2025 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.42% | SOFR (Q) | 6.00% | | 07/2023 | | 02/2026 | | | 1.9 | | | 1.9 | | | 1.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 4.4 | | | 4.4 | | | | | | |
DTI Holdco, Inc. and OPE DTI Holdings, Inc. | | Provider of legal process outsourcing and managed services | | Class A common stock | | | | | | 08/2014 | | | | 7,500 | | | 7.5 | | | 13.8 | | (2) | | | | |
| | | | Class B common stock | | | | | | 08/2014 | | | | 7,500 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.5 | | | 13.8 | | | | | | |
Duraserv LLC (15) | | Provider of commercial loading dock maintenance and remodeling services | | First lien senior secured loan | | 10.08% | SOFR (M) | 4.75% | | 06/2024 | | 06/2031 | | | 21.4 | | | 21.4 | | | 21.2 | | (2)(11) | | | | |
Elevation Services Parent Holdings, LLC (15) | | Elevator service platform | | First lien senior secured revolving loan | | 11.49% | SOFR (Q) | 6.00% | | 12/2020 | | 12/2026 | | | 1.7 | | | 1.7 | | | 1.6 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 12/2020 | | 12/2026 | | | 1.6 | | | 1.6 | | | 1.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.45% | SOFR (Q) | 6.00% | | 12/2020 | | 12/2026 | | | 8.5 | | | 8.5 | | | 8.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 05/2022 | | 12/2026 | | | 14.0 | | | 14.0 | | | 13.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 25.8 | | | 25.3 | | | | | | |
FlyWheel Acquireco, Inc. (15) | | Professional employer organization offering human resources, compliance and risk management services | | First lien senior secured revolving loan | | 11.84% | SOFR (M) | 6.50% | | 05/2023 | | 05/2028 | | | 5.5 | | | 5.5 | | | 5.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.84% | SOFR (M) | 6.50% | | 05/2023 | | 05/2030 | | | 52.2 | | | 52.2 | | | 52.2 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 57.7 | | | 57.7 | | | | | | |
HH-Stella, Inc. and Bedrock Parent Holdings, LP (15) | | Provider of municipal solid waste transfer management services | | First lien senior secured revolving loan | | 11.45% | SOFR (M) | 6.00% | | 04/2021 | | 04/2027 | | | 1.3 | | | 1.3 | | | 1.3 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 04/2021 | | 04/2028 | | | 8.8 | | | 8.8 | | | 8.8 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
24
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.49% | SOFR (Q) | 6.00% | | 09/2023 | | 04/2028 | | | 17.9 | | | 17.9 | | | 17.9 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 04/2021 | | | | 32,982 | | | 3.3 | | | 2.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 31.3 | | | 30.8 | | | | | | |
HP RSS Buyer, Inc. (15) | | Provider of road striping, and road safety related services | | First lien senior secured loan | | 10.33% | SOFR (Q) | 5.00% | | 12/2023 | | 12/2029 | | | 17.1 | | | 17.1 | | | 17.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.10% | SOFR (Q) | 4.75% | | 03/2024 | | 12/2029 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 17.7 | | | 17.7 | | | | | | |
IRI Group Holdings, Inc., Circana, LLC and IRI-NPD Co-Invest Aggregator, L.P. (15) | | Market research company focused on the consumer packaged goods industry | | First lien senior secured revolving loan | | 12.50% | Base Rate (Q) | 4.00% | | 08/2022 | | 12/2027 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 10.34% | SOFR (M) | 5.00% | | 08/2022 | | 12/2027 | | | 8.6 | | | 8.6 | | | 8.6 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 10.85% (2.00% PIK) | SOFR (Q) | 5.50% | | 08/2022 | | 12/2028 | | | 219.1 | | | 219.1 | | | 219.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 228.4 | | | 228.4 | | | | | | |
ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P. (15) | | Provider of commercial and industrial waste processing and disposal services | | First lien senior secured revolving loan | | 13.50% | Base Rate (Q) | 5.00% | | 08/2022 | | 08/2028 | | | 2.5 | | | 2.5 | | | 2.5 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.38% | SOFR (M) | 6.00% | | 08/2022 | | 08/2029 | | | 4.5 | | | 4.5 | | | 4.5 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 09/2022 | | | | 12,501 | | | 12.5 | | | 19.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 19.5 | | | 26.0 | | | | | | |
Kellermeyer Bergensons Services, LLC and KBS TopCo, LLC (15) | | Provider of janitorial and facilities management services | | First lien senior secured loan | | 10.73% (3.50% PIK) | SOFR (S) | 5.25% | | 11/2019 | | 11/2028 | | | 39.9 | | | 39.9 | | | 39.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.48% (7.00% PIK) | SOFR (Q) | 8.00% | | 12/2023 | | 11/2028 | | | 12.9 | | | 12.0 | | | 12.9 | | (2)(11) | | | | |
| | | | Preferred units | | | | | | 03/2024 | | | | 4,042,767 | | | 7.7 | | | 4.5 | | (2) | | | | |
| | | | Class A common units | | | | | | 03/2024 | | | | 4,042,767 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 59.6 | | | 57.3 | | | | | | |
Kings Buyer, LLC (15) | | Provider of comprehensive outsourced waste management consolidation services | | First lien senior secured revolving loan | | 12.50% | Base Rate (Q) | 4.00% | | 09/2023 | | 10/2027 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.43% | SOFR (Q) | 5.00% | | 09/2023 | | 10/2027 | | | 16.4 | | | 16.4 | | | 16.4 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 16.8 | | | 16.8 | | | | | | |
KPS Global LLC and Cool Group LLC | | Manufacturer of walk-in cooler and freezer systems | | First lien senior secured loan | | 11.43% | SOFR (M) | 5.99% | | 04/2017 | | 09/2024 | | | 7.1 | | | 7.1 | | | 7.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.43% | SOFR (M) | 5.99% | | 11/2018 | | 09/2024 | | | 1.7 | | | 1.7 | | | 1.7 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 09/2018 | | | | 13,292 | | | 1.1 | | | 6.4 | | | | | | |
| | | | | | | | | | | | | | | | | 9.9 | | | 15.2 | | | | | | |
Laboratories Bidco LLC and Laboratories Topco LLC (15) | | Lab testing services for nicotine containing products | | First lien senior secured revolving loan | | 12.23% (2.75% PIK) | SOFR (Q) | 6.75% | | 07/2021 | | 07/2027 | | | 0.6 | | | 0.6 | | | 0.5 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 14.25% (2.75% PIK) | Base Rate (Q) | 5.75% | | 07/2021 | | 07/2027 | | | 17.8 | | | 17.8 | | | 15.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.43% (2.75% PIK) | CORRA (Q) | 2.75% | | 10/2019 | | 07/2027 | | | 23.5 | | | 24.3 | | | 19.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.23% (2.75% PIK) | SOFR (Q) | 6.75% | | 10/2019 | | 07/2027 | | | 16.8 | | | 16.8 | | | 14.1 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
25
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 12.23% (2.75% PIK) | SOFR (Q) | 6.75% | | 10/2020 | | 07/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.23% (2.75% PIK) | SOFR (Q) | 6.75% | | 07/2021 | | 07/2027 | | | 4.5 | | | 4.5 | | | 3.7 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 07/2021 | | | | 3,099,335 | | | 4.6 | | | 0.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 68.7 | | | 53.7 | | | | | | |
Lightbeam Bidco, Inc. (15) | | Provider of yard management services | | First lien senior secured revolving loan | | | | | | 05/2023 | | 05/2029 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.33% | SOFR (Q) | 5.00% | | 05/2023 | | 05/2030 | | | 5.3 | | | 5.3 | | | 5.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.33% | SOFR (Q) | 5.00% | | 11/2023 | | 05/2030 | | | 3.3 | | | 3.3 | | | 3.3 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 8.6 | | | 8.6 | | | | | | |
LJP Purchaser, Inc. and LJP Topco, LP (15) | | Provider of non-hazardous solid waste and recycling services | | First lien senior secured loan | | 11.69% | SOFR (M) | 6.25% | | 09/2022 | | 09/2028 | | | 9.6 | | | 9.6 | | | 9.6 | | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 09/2022 | | | | 5,098,000 | | | 5.9 | | | 6.7 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 15.5 | | | 16.3 | | | | | | |
Marmic Purchaser, LLC and Marmic Topco, L.P. (15) | | Provider of recurring fire protection services | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 03/2021 | | 03/2027 | | | 0.2 | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.74% | SOFR (Q) | 6.25% | | 02/2022 | | 03/2027 | | | 5.0 | | | 5.0 | | | 5.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 02/2022 | | 03/2027 | | | 2.5 | | | 2.5 | | | 2.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.74% | SOFR (Q) | 5.25% | | 03/2024 | | 03/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.74% | SOFR (Q) | 5.25% | | 03/2024 | | 03/2027 | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(11) | | | | |
| | | | Limited partnership units | | 8.00% PIK | | | | 03/2021 | | | | 1,929,237 | | | 2.6 | | | 7.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 10.9 | | | 16.1 | | | | | | |
Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc. | | Keg management solutions provider | | Second lien senior secured loan | | 14.33% | SOFR (Q) | 9.00% | | 08/2020 | | 07/2025 | | | 168.3 | | | 168.3 | | | 168.3 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.33% | SOFR (Q) | 9.00% | | 08/2023 | | 07/2025 | | | 20.4 | | | 20.4 | | | 20.4 | | (2)(11) | | | | |
| | | | Series A preferred stock | | 20.00% PIK | | | | 08/2020 | | | | 1,507 | | | 1.8 | | | 3.2 | | (2) | | | | |
| | | | Series B preferred stock | | 19.00% PIK | | | | 09/2023 | | | | 12,000 | | | 13.6 | | | 13.6 | | (2) | | | | |
| | | | Common stock | | | | | | 12/2012 | | | | 54,710 | | | 4.9 | | | 7.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 209.0 | | | 212.9 | | | | | | |
Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc. (15) | | Provider of lawn care, tree care and pest control services | | First lien senior secured loan | | 10.33% | SOFR (S) | 5.00% | | 06/2024 | | 06/2031 | | | 18.9 | | | 18.9 | | | 18.7 | | (2)(11) | | | | |
NAS, LLC and Nationwide Marketing Group, LLC (15) | | Buying and marketing services organization for appliance, furniture and consumer electronics dealers | | First lien senior secured revolving loan | | 11.98% | SOFR (Q) | 6.50% | | 11/2020 | | 06/2025 | | | 1.5 | | | 1.5 | | | 1.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 11/2020 | | 06/2025 | | | 6.2 | | | 6.2 | | | 6.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 12/2021 | | 06/2025 | | | 2.3 | | | 2.3 | | | 2.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 05/2022 | | 06/2025 | | | 1.3 | | | 1.3 | | | 1.3 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 11.3 | | | 11.3 | | | | | | |
See accompanying notes to consolidated financial statements
26
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P. (15) | | Provider of audience insights, data and analytics to entertainment industry | | First lien senior secured revolving loan | | | | | | 10/2022 | | 10/2027 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.16% | SOFR (Q) | 4.75% | | 10/2022 | | 10/2028 | | | 81.1 | | | 76.0 | | | 76.0 | | (2)(11)(18) | | | | |
| | | | First lien senior secured loan | | 10.41% | SOFR (Q) | 5.00% | | 10/2022 | | 04/2029 | | | 98.3 | | | 91.6 | | | 92.3 | | (2)(11)(18) | | | | |
| | | | First lien senior secured note | | 9.29% | | | | 11/2022 | | 04/2029 | | | 52.8 | | | 51.6 | | | 50.6 | | (2)(18) | | | | |
| | | | Second lien senior secured loan | | 15.16% | SOFR (Q) | 9.75% | | 10/2022 | | 10/2029 | | | 227.5 | | | 227.4 | | | 225.2 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 10/2022 | | | | 4,040,000 | | | 4.1 | | | 5.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 450.7 | | | 449.9 | | | | | | |
Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1 | | Operator of multiple franchise concepts primarily related to home maintenance or repairs | | Senior subordinated loan | | 16.00% | Base Rate (Q) | 7.50% | | 09/2021 | | 08/2029 | | | 119.1 | | | 119.1 | | | 119.1 | | (2)(11) | | | | |
| | | | Limited partner interest | | | | | | 09/2021 | | | | 9,725,000 | | | 9.7 | | | 12.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 128.8 | | | 131.1 | | | | | | |
North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC (15) | | Provider of fire safety and life safety services | | First lien senior secured revolving loan | | 11.24% | SOFR (Q) | 5.75% | | 05/2021 | | 05/2027 | | | 1.7 | | | 1.7 | | | 1.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 05/2021 | | 05/2027 | | | 19.7 | | | 19.7 | | | 19.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.24% | SOFR (Q) | 5.75% | | 03/2022 | | 05/2027 | | | 6.8 | | | 6.8 | | | 6.8 | | (2)(11) | | | | |
| | | | Common units | | | | | | 05/2021 | | | | 884,916 | | | 0.9 | | | 3.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 29.1 | | | 32.0 | | | | | | |
North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC (15) | | Provider of lawncare services | | First lien senior secured revolving loan | | 11.82% | SOFR (Q) | 6.50% | | 12/2022 | | 05/2028 | | | 1.9 | | | 1.9 | | | 1.9 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 14.00% | Base Rate (Q) | 5.50% | | 12/2022 | | 05/2028 | | | 3.4 | | | 3.4 | | | 3.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.83% | SOFR (Q) | 6.50% | | 12/2022 | | 05/2028 | | | 16.9 | | | 16.8 | | | 16.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 22.1 | | | 22.2 | | | | | | |
North Haven Stack Buyer, LLC (15) | | Provider of environmental testing services | | First lien senior secured revolving loan | | 10.58% | SOFR (M) | 5.25% | | 07/2021 | | 07/2027 | | | 0.7 | | | 0.6 | | | 0.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 07/2021 | | 07/2027 | | | 8.3 | | | 8.3 | | | 8.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.60% | SOFR (Q) | 5.25% | | 07/2021 | | 07/2027 | | | 1.4 | | | 1.4 | | | 1.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.59% | SOFR (Q) | 5.25% | | 08/2023 | | 07/2027 | | | 4.1 | | | 4.0 | | | 4.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.33% | SOFR (S) | 5.00% | | 06/2024 | | 07/2027 | | | 2.2 | | | 2.2 | | | 2.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.50% | SOFR (Q) | 5.00% | | 06/2024 | | 07/2027 | | | 1.2 | | | 1.1 | | | 1.2 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 17.6 | | | 17.9 | | | | | | |
Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC | | Solid waste services provider | | First lien senior secured loan | | 13.31% (4.00% PIK) | SOFR (Q) | 8.00% | | 08/2023 | | 08/2029 | | | 34.0 | | | 33.5 | | | 31.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.33% (4.00% PIK) | SOFR (S) | 8.00% | | 06/2024 | | 08/2029 | | | 10.9 | | | 10.1 | | | 10.0 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
27
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | Warrant to purchase units of Class A common units | | | | | | 08/2023 | | 08/2036 | | 38,235 | | | 0.6 | | | 5.4 | | (2) | | | | |
| | | | Warrant to purchase units of Class A common units | | | | | | 06/2024 | | 06/2036 | | 6,400 | | | 0.9 | | | 0.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 45.1 | | | 47.5 | | | | | | |
Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC (15) | | Provider of janitorial and facilities management services | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 10/2021 | | 10/2027 | | | 67.4 | | | 67.4 | | | 66.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.51% | SOFR (S) | 6.00% | | 11/2023 | | 10/2027 | | | 12.2 | | | 12.2 | | | 12.2 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 10/2021 | | | | 8,749,201 | | | 9.0 | | | 6.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 88.6 | | | 85.1 | | | | | | |
PS Operating Company LLC and PS Op Holdings LLC (5)(15) | | Specialty distributor and solutions provider to the swine and poultry markets | | First lien senior secured revolving loan | | | | | | 12/2021 | | 12/2026 | | | 5.3 | | | 5.0 | | | 2.5 | | (2)(10) | | | | |
| | | | First lien senior secured loan | | | | | | 12/2021 | | 12/2026 | | | 16.2 | | | 15.5 | | | 7.6 | | (2)(10) | | | | |
| | | | Common unit | | | | | | 12/2021 | | | | 279,200 | | | 7.4 | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.9 | | | 10.1 | | | | | | |
PSC Parent, Inc. (15) | | Provider of operational services for US petrochemical and refining companies | | First lien senior secured revolving loan | | 10.58% | SOFR (M) | 5.25% | | 04/2024 | | 04/2030 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.58% | SOFR (M) | 5.25% | | 04/2024 | | 04/2031 | | | 42.4 | | | 42.4 | | | 42.0 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 43.0 | | | 42.6 | | | | | | |
PYE-Barker Fire & Safety, LLC (15) | | Provider of fire protection services and products | | First lien senior secured revolving loan | | 9.85% | SOFR (M) | 4.50% | | 05/2024 | | 05/2030 | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 9.85% | SOFR (M) | 4.50% | | 05/2024 | | 05/2031 | | | 70.4 | | | 70.4 | | | 70.4 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 70.9 | | | 70.9 | | | | | | |
R2 Acquisition Corp. | | Marketing services | | Common stock | | | | | | 05/2007 | | | | 250,000 | | | 0.2 | | | 0.2 | | (2) | | | | |
RC V Tecmo Investor LLC | | Technology based aggregator for facility maintenance services | | Common member units | | | | | | 08/2020 | | | | 9,624,000 | | | 8.3 | | | 12.9 | | (2) | | | | |
RE Community Holdings GP, LLC and RE Community Holdings, LP | | Operator of municipal recycling facilities | | Limited partnership interest | | | | | | 03/2011 | | | | 2.49% | | | — | | | — | | (2) | | | | |
| | | | Limited partnership interest | | | | | | 03/2011 | | | | 2.86% | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P. (15) | | Provider of FDA registration and consulting services | | First lien senior secured revolving loan | | 10.41% | SOFR (M) | 5.00% | | 08/2021 | | 08/2027 | | | 2.0 | | | 2.0 | | | 1.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.57% | SOFR (Q) | 5.00% | | 08/2021 | | 08/2027 | | | 2.7 | | | 2.7 | | | 2.6 | | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 08/2021 | | | | 1.13% | | | 2.7 | | | 2.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.4 | | | 6.8 | | | | | | |
Rodeo AcquisitionCo LLC (15) | | Provider of food inspection and recovery services | | First lien senior secured revolving loan | | 11.49% | SOFR (Q) | 6.00% | | 07/2021 | | 07/2027 | | | 1.7 | | | 1.7 | | | 1.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.49% | SOFR (Q) | 6.00% | | 07/2021 | | 07/2027 | | | 16.7 | | | 16.7 | | | 16.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 18.4 | | | 18.4 | | | | | | |
Saturn Purchaser Corp. | | Private aviation management company | | First lien senior secured loan | | 10.53% | SOFR (M) | 5.25% | | 07/2023 | | 07/2029 | | | 1.8 | | | 1.8 | | | 1.8 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
28
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P. (15)(16) | | Provider of landscape design and planning, and snow removal services | | First lien senior secured revolving loan | | 11.19% | SOFR (M) | 5.75% | | 12/2021 | | 12/2027 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.19% | SOFR (M) | 5.75% | | 12/2021 | | 12/2027 | | | 3.5 | | | 3.5 | | | 3.5 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2021 | | | | 8,464 | | | 21.5 | | | 30.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 25.7 | | | 35.1 | | | | | | |
Shermco Intermediate Holdings, Inc. (15) | | Provider of electrician services | | First lien senior secured revolving loan | | 10.59% | SOFR (M) | 5.25% | | 05/2022 | | 06/2026 | | | 2.3 | | | 2.2 | | | 2.3 | | (2) | | | | |
| | | | First lien senior secured revolving loan | | 12.75% | Base Rate (Q) | 4.25% | | 05/2022 | | 06/2026 | | | 0.9 | | | 0.9 | | | 0.9 | | (2) | | | | |
| | | | First lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 05/2022 | | 06/2026 | | | 5.2 | | | 5.2 | | | 5.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.58% | SOFR (M) | 5.25% | | 09/2023 | | 06/2026 | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 8.8 | | | 8.9 | | | | | | |
SSE Buyer, Inc., Supply Source Enterprises, Inc., Impact Products LLC, The Safety Zone, LLC and SSE Parent, LP | | Manufacturer and distributor of personal protection equipment, commercial cleaning, maintenance and safety products | | Limited partnership class A-1 units | | | | | | 06/2020 | | | | 2,173 | | | 1.1 | | | — | | (2) | | | | |
| | | | Limited partnership class A-2 units | | | | | | 06/2020 | | | | 2,173 | | | 1.1 | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 2.2 | | | — | | | | | | |
Startec Equity, LLC (5) | | Communication services | | Member interest | | | | | | 04/2010 | | | | 190,581 | | | — | | | — | | | | | | |
Stealth Holding LLC and UCIT Online Security Inc. | | Live video monitoring solutions provider | | First lien senior secured loan | | 12.21% | SOFR (Q) | 6.75% | | 03/2021 | | 03/2026 | | | 52.2 | | | 52.2 | | | 52.2 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 14.25% | Base Rate (Q) | 5.75% | | 03/2021 | | 03/2026 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.22% | SOFR (Q) | 6.75% | | 03/2022 | | 03/2026 | | | 5.1 | | | 5.1 | | | 5.1 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.22% | SOFR (Q) | 6.75% | | 06/2023 | | 03/2026 | | | 12.3 | | | 12.3 | | | 12.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.18% | SOFR (S) | 6.75% | | 06/2024 | | 03/2026 | | | 3.1 | | | 3.1 | | | 3.1 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 73.5 | | | 73.5 | | | | | | |
SV Newco 2, Inc. and Site 2020 Incorporated (15) | | Provider of outsourced traffic control safety services | | First lien senior secured loan | | 10.10% | SOFR (Q) | 4.75% | | 05/2024 | | 06/2031 | | | 24.5 | | | 24.5 | | | 24.1 | | (2)(6)(11) | | | | |
Systems Planning and Analysis, Inc. (15) | | Provider of systems engineering and technical assistance to the US DoD | | First lien senior secured loan | | 11.16% | SOFR (Q) | 5.75% | | 05/2022 | | 08/2027 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(11) | | | | |
The Hiller Companies, LLC (15) | | Provider of fire protection and life safety products | | First lien senior secured revolving loan | | 10.34% | SOFR (Q) | 5.00% | | 06/2024 | | 06/2030 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.34% | SOFR (Q) | 5.00% | | 06/2024 | | 06/2030 | | | 38.9 | | | 38.9 | | | 38.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 39.0 | | | 38.6 | | | | | | |
Thermostat Purchaser III, Inc. (15) | | Provider of commercial HVAC equipment maintenance and repair services | | First lien senior secured revolving loan | | | | | | 08/2021 | | 08/2028 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | Second lien senior secured loan | | 12.74% | SOFR (Q) | 7.25% | | 08/2021 | | 08/2029 | | | 23.0 | | | 23.0 | | | 23.0 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 23.0 | | | 23.0 | | | | | | |
See accompanying notes to consolidated financial statements
29
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
UP Intermediate II LLC and UPBW Blocker LLC (15) | | Provider of essential mechanical, electrical and plumbing services to commercial customers | | First lien senior secured revolving loan | | | | | | 03/2024 | | 03/2030 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 03/2024 | | 03/2031 | | | 4.8 | | | 4.8 | | | 4.7 | | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2024 | | | | 60,470 | | | 6.0 | | | 6.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 10.8 | | | 10.7 | | | | | | |
Valcourt Holdings II, LLC and Jobs Holdings, Inc. (15) | | Provider of window cleaning and building facade maintenance and restoration services | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 11/2023 | | 11/2029 | | | 52.3 | | | 52.3 | | | 52.3 | | (2)(11) | | | | |
Visual Edge Technology, Inc. (5)(15) | | Provider of outsourced office solutions with a focus on printer and copier equipment and other parts and supplies | | First lien senior secured loan | | 12.48% (1.25% PIK) | SOFR (Q) | 7.00% | | 07/2023 | | 12/2025 | | | 33.6 | | | 33.0 | | | 33.6 | | (2)(11) | | | | |
| | | | Senior preferred stock | | 10.00% PIK | | | | 07/2023 | | | | 4,737 | | | 44.5 | | | 39.2 | | (2) | | | | |
| | | | Junior preferred stock | | | | | | 07/2023 | | | | 6,600 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 08/2017 | | 08/2030 | | 10,358,572 | | | 3.9 | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 81.4 | | | 72.8 | | | | | | |
VRC Companies, LLC (15) | | Provider of records and information management services | | Senior subordinated loan | | 12.00% (2.00% PIK) | | | | 05/2022 | | 06/2028 | | | 5.2 | | | 5.2 | | | 5.1 | | (2) | | | | |
W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC (15) | | Provider of agronomics products for landscapers, contractors and golf course end users | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 05/2024 | | 05/2030 | | | 14.0 | | | 14.0 | | | 13.7 | | (2)(11) | | | | |
| | | | Class A preferred units | | 10.00% PIK | | | | 05/2024 | | | | 9,260 | | | 0.9 | | | 0.9 | | | | | | |
| | | | Class A common units | | | | | | 05/2024 | | | | 862 | | | — | | | — | | | | | | |
| | | | | | | | | | | | | | | | | 14.9 | | | 14.6 | | | | | | |
Wash Encore Holdings, LLC | | Provider of outsourced healthcare linen management solutions | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 07/2021 | | 07/2027 | | | 97.0 | | | 97.0 | | | 97.0 | | (2)(11) | | | | |
XIFIN, Inc. and ACP Charger Co-Invest LLC (15) | | Revenue cycle management provider to labs | | First lien senior secured revolving loan | | 12.23% (4.25% PIK) | SOFR (Q) | 6.75% | | 02/2020 | | 02/2026 | | | 5.7 | | | 5.7 | | | 5.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.23% (4.25% PIK) | SOFR (Q) | 6.75% | | 07/2021 | | 02/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.23% (4.25% PIK) | SOFR (Q) | 6.75% | | 12/2021 | | 02/2026 | | | 37.4 | | | 37.0 | | | 35.5 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 02/2020 | | | | 180,000 | | | 1.8 | | | 1.9 | | (2) | | | | |
| | | | Class B units | | | | | | 12/2021 | | | | 46,363 | | | 0.9 | | | 0.5 | | (2) | | | | |
| | | | Class C units | | | | | | 06/2024 | | | | 238 | | | 0.2 | | | 0.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 45.7 | | | 43.6 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,608.1 | | | 2,649.5 | | | 21.43% | | | |
Financial Services | | | | | | | | | | | | | | | | | | | | | | | | |
AQ Sage Buyer, LLC (15) | | Provider of actuarial consulting and comprehensive wealth management services | | First lien senior secured revolving loan | | 11.51% | SOFR (Q) | 6.00% | | 05/2022 | | 01/2026 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.51% | SOFR (S) | 6.00% | | 05/2022 | | 01/2027 | | | 3.6 | | | 3.6 | | | 3.5 | | (2)(6)(11) | | | | |
See accompanying notes to consolidated financial statements
30
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 3.8 | | | 3.7 | | | | | | |
BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLC | | Provider of comprehensive suite of investment management and wealth planning solutions | | First lien senior secured loan | | 12.24% | SOFR (Q) | 6.75% | | 09/2021 | | 09/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 9.30% PIK | | | | 09/2021 | | 09/2026 | | | 5.7 | | | 5.7 | | | 5.7 | | (2) | | | | |
| | | | Common units | | | | | | 09/2021 | | | | 6,022,942 | | | 6.0 | | | 5.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.9 | | | 10.9 | | | | | | |
Beacon Pointe Harmony, LLC (15) | | Provider of comprehensive wealth management services | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 12/2021 | | 12/2028 | | | 19.8 | | | 19.8 | | | 19.8 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 07/2023 | | 12/2028 | | | 3.9 | | | 3.9 | | | 3.9 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 23.7 | | | 23.7 | | | | | | |
Cliffwater LLC (15) | | Provider of alternative investment advisory services | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 10/2023 | | 10/2030 | | | 4.1 | | | 4.1 | | | 4.1 | | (2)(6)(11) | | | | |
Convera International Holdings Limited and Convera International Financial S.A R.L. (15) | | Provider of B2B international payment and FX risk management solutions | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 03/2022 | | 03/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 06/2023 | | 03/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.2 | | | 0.2 | | | | | | |
Corient Holdings, Inc. | | Global wealth management firm | | Series A preferred stock | | | | | | 05/2023 | | | | 41,427 | | | 41.4 | | | 48.7 | | (2) | | | | |
CrossCountry Mortgage, LLC and CrossCountry Holdco, LLC | | Mortgage company originating loans in the retail and consumer direct channels | | Series D preferred units | | | | | | 11/2023 | | | | 90,577 | | | 24.9 | | | 27.5 | | | | | | |
DFC Global Facility Borrower III LLC (15) | | Non-bank provider of alternative financial services | | First lien senior secured revolving loan | | 12.93% | SOFR (M) | 7.50% | | 04/2023 | | 04/2028 | | | 96.0 | | | 98.3 | | | 96.0 | | (2)(6)(9)(11) | | | | |
eCapital Finance Corp. | | Consolidator of commercial finance businesses | | Senior subordinated loan | | 13.18% | SOFR (M) | 7.75% | | 01/2020 | | 12/2025 | | | 56.0 | | | 56.0 | | | 56.0 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.18% | SOFR (M) | 7.75% | | 11/2020 | | 12/2025 | | | 5.4 | | | 5.4 | | | 5.4 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.18% | SOFR (M) | 7.75% | | 01/2022 | | 12/2025 | | | 24.3 | | | 24.3 | | | 24.3 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.18% | SOFR (M) | 7.75% | | 04/2022 | | 12/2025 | | | 55.8 | | | 55.8 | | | 55.8 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.18% | SOFR (M) | 7.75% | | 10/2023 | | 12/2025 | | | 12.3 | | | 12.3 | | | 12.3 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 153.8 | | | 153.8 | | | | | | |
EP Wealth Advisors, LLC | | Wealth management and financial planning firm | | First lien senior secured loan | | 10.48% | SOFR (Q) | 5.00% | | 11/2022 | | 09/2026 | | | 13.2 | | | 13.2 | | | 13.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.50% | SOFR (Q) | 5.00% | | 09/2020 | | 09/2029 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 13.8 | | | 13.8 | | | | | | |
GTCR F Buyer Corp. and GTCR (D) Investors LP (15)(16) | | Provider of end-to-end tech-enabled administrative services to private foundations | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 09/2023 | | 09/2030 | | | 5.0 | | | 5.0 | | | 5.0 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 09/2023 | | | | 4,588,148 | | | 4.6 | | | 5.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.6 | | | 10.2 | | | | | | |
HighTower Holding, LLC | | Provider of investment, financial and retirement planning services | | Senior subordinated loan | | 6.75% | | | | 06/2022 | | 04/2029 | | | 8.1 | | | 7.0 | | | 7.5 | | (2)(6)(18) | | | | |
See accompanying notes to consolidated financial statements
31
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Ivy Hill Asset Management, L.P. (5) | | Asset management services | | Subordinated revolving loan | | 11.99% | SOFR (S) | 6.50% | | 02/2018 | | 01/2030 | | | 23.0 | | | 23.0 | | | 23.0 | | (6)(11) | | | | |
| | | | Member interest | | | | | | 06/2009 | | | | 100.00% | | | 1,700.5 | | | 1,932.7 | | (6) | | | | |
| | | | | | | | | | | | | | | | | 1,723.5 | | | 1,955.7 | | | | | | |
Lido Advisors, LLC (15) | | Wealth management and financial planning firm | | First lien senior secured revolving loan | | 10.96% | SOFR (Q) | 5.50% | | 06/2021 | | 06/2027 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.87% | SOFR (Q) | 5.50% | | 06/2023 | | 06/2027 | | | 2.2 | | | 2.2 | | | 2.2 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 2.9 | | | 2.9 | | | | | | |
LS DE LLC and LM LSQ Investors LLC | | Asset based lender | | Senior subordinated loan | | 12.00% (1.50% PIK) | | | | 06/2015 | | 03/2025 | | | 37.8 | | | 37.8 | | | 37.8 | | (2)(6) | | | | |
| | | | Senior subordinated loan | | 12.00% (1.50% PIK) | | | | 06/2017 | | 03/2025 | | | 3.1 | | | 3.1 | | | 3.1 | | (2)(6) | | | | |
| | | | Membership units | | | | | | 06/2015 | | | | 3,275,000 | | | 3.3 | | | 1.6 | | (6) | | | | |
| | | | | | | | | | | | | | | | | 44.2 | | | 42.5 | | | | | | |
Monica Holdco (US) Inc. (15) | | Investment technology and advisory firm | | First lien senior secured revolving loan | | 11.74% | SOFR (Q) | 6.25% | | 01/2021 | | 01/2026 | | | 3.6 | | | 3.6 | | | 3.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 01/2021 | | 01/2028 | | | 2.5 | | | 2.5 | | | 2.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 6.1 | | | 6.1 | | | | | | |
Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. (15)(16) | | Provider of comprehensive wealth management services and registered investment advisor | | First lien senior secured loan | | 10.42% | SOFR (Q) | 5.00% | | 05/2023 | | 05/2029 | | | 4.9 | | | 4.9 | | | 4.9 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.44% | SOFR (M) | 5.00% | | 06/2024 | | 05/2029 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.42% | SOFR (M) | 5.00% | | 09/2023 | | 05/2029 | | | 8.0 | | | 8.0 | | | 8.0 | | (2)(6)(11) | | | | |
| | | | Limited partnership interests | | | | | | 09/2023 | | | | 1,783,935 | | | 1.8 | | | 1.8 | | (6) | | | | |
| | | | | | | | | | | | | | | | | 15.0 | | | 15.0 | | | | | | |
PCIA SPV-3, LLC and ASE Royal Aggregator, LLC (15) | | Provider of comprehensive wealth management services | | First lien senior secured loan | | 11.58% | SOFR (Q) | 6.25% | | 08/2023 | | 08/2029 | | | 6.9 | | | 6.9 | | | 6.9 | | (2)(6)(11) | | | | |
| | | | Preferred units | | | | | | 07/2023 | | | | 6,431,667 | | | 6.5 | | | 7.1 | | (6) | | | | |
| | | | | | | | | | | | | | | | | 13.4 | | | 14.0 | | | | | | |
PCS MidCo, Inc. and PCS Parent, L.P. (15) | | Provider of 401K recordkeeping software solutions | | First lien senior secured revolving loan | | 11.09% | SOFR (Q) | 5.75% | | 03/2024 | | 03/2030 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.75% | | 03/2024 | | 03/2030 | | | 7.6 | | | 7.6 | | | 7.5 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 03/2024 | | | | 785,000 | | | 0.8 | | | 0.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.2 | | | 9.1 | | | | | | |
Perigon Wealth Management, LLC, Perigon Wealth Advisors Holdings Company, LLC and CWC Fund I Co-Invest (Prism) LP (15) | | Wealth management and financial planning firm | | First lien senior secured loan | | 11.09% | SOFR (M) | 5.75% | | 03/2024 | | 03/2031 | | | 2.1 | | | 2.1 | | | 2.1 | | (2)(6)(11) | | | | |
| | | | Limited partnership interest | | | | | | 03/2024 | | | | 2,374,000 | | | 2.4 | | | 2.4 | | (6) | | | | |
| | | | | | | | | | | | | | | | | 4.5 | | | 4.5 | | | | | | |
Petrus Buyer, Inc. (15) | | Provider of REIT research data and analytics | | First lien senior secured loan | | 10.68% | SOFR (Q) | 5.25% | | 11/2022 | | 10/2029 | | | 5.0 | | | 5.0 | | | 5.0 | | (2)(11) | | | | |
Priority Holdings, LLC and Priority Technology Holdings, Inc. | | Provider of merchant acquiring and payment processing solutions | | Senior preferred stock | | 17.33% (7.00% PIK) | SOFR (Q) | 12.00% | | 04/2021 | | | | 25,739 | | | 31.3 | | | 31.8 | | (2)(6)(11) | | | | |
See accompanying notes to consolidated financial statements
32
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 04/2021 | | 04/2031 | | 527,226 | | | 4.0 | | | 2.8 | | (2)(6)(18) | | | | |
| | | | | | | | | | | | | | | | | 35.3 | | | 34.6 | | | | | | |
RFS Opco LLC | | Provider of wealth management services | | First lien senior secured loan | | 10.33% | SOFR (Q) | 5.00% | | 04/2024 | | 04/2031 | | | 29.6 | | | 29.6 | | | 29.3 | | (2)(6)(11) | | | | |
Rialto Management Group, LLC (15) | | Investment and asset management platform focused on real estate | | First lien senior secured revolving loan | | | | | | 11/2018 | | 12/2025 | | | — | | | — | | | — | | (2)(6)(13) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 11/2018 | | 12/2025 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 04/2021 | | 12/2025 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 12/2021 | | 12/2025 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.5 | | | 0.5 | | | | | | |
Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC (15) | | Wealth management platform | | First lien senior secured loan | | 10.99% | SOFR (Q) | 5.50% | | 12/2023 | | 10/2028 | | | 2.5 | | | 2.3 | | | 2.5 | | (2)(6)(11) | | | | |
The Edelman Financial Center, LLC | | Provider of investment, financial and retirement planning services | | Second lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 05/2024 | | 10/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(18) | | | | |
The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC (15) | | Provider of comprehensive wealth management services | | First lien senior secured revolving loan | | 13.50% | Base Rate (Q) | 5.00% | | 03/2022 | | 03/2028 | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (S) | 6.00% | | 03/2022 | | 03/2028 | | | 3.9 | | | 3.9 | | | 3.8 | | (2)(6)(11) | | | | |
| | | | Senior subordinated loan | | 12.00% PIK | | | | 03/2022 | | 03/2029 | | | 3.6 | | | 3.6 | | | 3.4 | | (2)(6) | | | | |
| | | | Series A preferred units | | | | | | 03/2022 | | | | 7,199 | | | 7.2 | | | 3.6 | | (2)(6) | | | | |
| | | | Common units | | | | | | 03/2022 | | | | 7,199 | | | — | | | — | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 15.2 | | | 11.3 | | | | | | |
The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP (15) | | Provider of asset-servicing capabilities for fund managers | | First lien senior secured loan | | 10.93% | SOFR (Q) | 5.50% | | 03/2024 | | 03/2031 | | | 20.8 | | | 20.8 | | | 20.6 | | (2)(11) | | | | |
| | | | Class A preferred units | | 8.00% PIK | | | | 09/2019 | | | | 1,443 | | | 2.2 | | | 2.2 | | | | | | |
| | | | Class A common units | | | | | | 02/2019 | | | | 245 | | | 0.2 | | | 1.7 | | | | | | |
| | | | Class B common units | | | | | | 02/2019 | | | | 2,167,424 | | | — | | | — | | | | | | |
| | | | Class B common units | | | | | | 02/2019 | | | | 245,194 | | | — | | | — | | | | | | |
| | | | | | | | | | | | | | | | | 23.2 | | | 24.5 | | | | | | |
Waverly Advisors, LLC and WAAM Topco, LLC (15) | | Wealth management and financial planning firm | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 03/2022 | | 03/2028 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 03/2024 | | 03/2028 | | | 0.9 | | | 0.9 | | | 0.9 | | (2)(6)(11) | | | | |
| | | | Class A units | | | | | | 06/2023 | | | | 1,432,867 | | | 1.7 | | | 2.3 | | (6) | | | | |
| | | | | | | | | | | | | | | | | 3.3 | | | 3.9 | | | | | | |
Wealth Enhancement Group, LLC (15) | | Wealth management and financial planning firm | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 10/2019 | | 10/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.84% | SOFR (Q) | 5.50% | | 11/2020 | | 10/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 06/2021 | | 10/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 08/2021 | | 10/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
33
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 10.82% | SOFR (Q) | 5.50% | | 02/2024 | | 10/2027 | | | 2.6 | | | 2.6 | | | 2.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 3.0 | | | 3.0 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,328.8 | | | 2,564.6 | | | 20.75% | | | |
Insurance Services | | | | | | | | | | | | | | | | | | | | | | | | |
Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc. (15) | | Insurance broker | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 11/2019 | | 11/2029 | | | 37.8 | | | 37.8 | | | 37.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.34% | SOFR (B) | 6.00% | | 08/2023 | | 11/2029 | | | 8.8 | | | 8.8 | | | 8.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 11/2023 | | 11/2029 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 46.9 | | | 46.9 | | | | | | |
Acrisure, LLC | | Independent property and casualty insurance brokerage | | First lien senior secured loan | | 8.59% | SOFR (Q) | 3.25% | | 10/2023 | | 11/2030 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(18) | | | | |
Alera Group, Inc. (15) | | Insurance service provider | | First lien senior secured loan | | 10.59% | SOFR (M) | 5.25% | | 09/2021 | | 10/2028 | | | 46.2 | | | 46.2 | | | 46.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.09% | SOFR (M) | 5.75% | | 11/2023 | | 10/2028 | | | 2.0 | | | 2.0 | | | 2.0 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 48.2 | | | 48.2 | | | | | | |
Amynta Agency Borrower Inc. and Amynta Warranty Borrower Inc. | | Insurance service provider | | First lien senior secured loan | | 9.19% | SOFR (M) | 3.75% | | 02/2023 | | 02/2028 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(18) | | | | |
AQ Sunshine, Inc. (15) | | Specialized insurance broker | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 04/2019 | | 04/2027 | | | 8.4 | | | 8.4 | | | 8.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 10/2020 | | 04/2027 | | | 5.5 | | | 5.5 | | | 5.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 06/2021 | | 04/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 01/2022 | | 04/2027 | | | 8.8 | | | 8.8 | | | 8.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.74% | SOFR (Q) | 6.25% | | 05/2022 | | 04/2027 | | | 3.7 | | | 3.7 | | | 3.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 12/2023 | | 04/2027 | | | 6.4 | | | 6.4 | | | 6.4 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 32.9 | | | 32.9 | | | | | | |
Ardonagh Midco 3 PLC, Ardonagh Group Finco Pty Limited, Ardonagh Finco LLC and Ardonagh Finco B.V. (15) | | Insurance broker and underwriting servicer | | First lien senior secured loan | | 9.16% | BBSY (Q) | 4.75% | | 02/2024 | | 02/2031 | | | 9.8 | | | 9.5 | | | 9.8 | | (2)(6) | | | | |
| | | | First lien senior secured loan | | 8.67% | Euribor (S) | 4.75% | | 02/2024 | | 02/2031 | | | 34.8 | | | 35.0 | | | 34.8 | | (2)(6) | | | | |
| | | | First lien senior secured loan | | 10.04% | SOFR (S) | 4.75% | | 02/2024 | | 02/2031 | | | 170.5 | | | 170.5 | | | 170.5 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 215.0 | | | 215.1 | | | | | | |
Benecon Midco II LLC and Benecon Holdings, LLC (15) | | Employee benefits provider for small and mid-size employers | | First lien senior secured loan | | 10.84% | SOFR (Q) | 5.50% | | 01/2024 | | 01/2031 | | | 83.3 | | | 83.3 | | | 82.5 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 01/2024 | | | | 7,796,550 | | | 27.1 | | | 30.2 | | | | | | |
| | | | | | | | | | | | | | | | | 110.4 | | | 112.7 | | | | | | |
Captive Resources Midco, LLC (15) | | Provider of independent consulting services to member-owned group captives | | First lien senior secured loan | | 10.59% (2.63% PIK) | SOFR (M) | 5.25% | | 07/2022 | | 07/2029 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
Daylight Beta Parent LLC and CFCo, LLC (4) | | Health insurance sales platform provider | | First lien senior secured loan | | | | | | 09/2023 | | 09/2033 | | | 12.6 | | | 12.0 | | | 2.5 | | (2)(10) | | | | |
| | | | First lien senior secured loan | | | | | | 09/2023 | | 09/2038 | | | 20.8 | | | 0.5 | | | — | | (2) | | | | |
| | | | Class B units | | | | | | 09/2023 | | | | 32,391,330 | | | — | | | — | | (2) | | | | |
See accompanying notes to consolidated financial statements
34
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 12.5 | | | 2.5 | | | | | | |
DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP (15)(16) | | Managing general agent insurance distribution platform | | First lien senior secured loan | | 10.84% | SOFR (Q) | 5.50% | | 12/2023 | | 12/2030 | | | 15.8 | | | 15.8 | | | 15.8 | | (2)(6)(11) | | | | |
| | | | Limited partnership interest | | | | | | 03/2024 | | | | 1,348,309 | | | 1.3 | | | 1.8 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 17.1 | | | 17.6 | | | | | | |
Foundation Risk Partners, Corp. (15) | | Full service independent insurance agency | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 10/2021 | | 10/2030 | | | 79.0 | | | 79.0 | | | 79.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 04/2022 | | 10/2030 | | | 49.5 | | | 49.5 | | | 49.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 11/2023 | | 10/2030 | | | 7.9 | | | 7.9 | | | 7.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 136.4 | | | 136.4 | | | | | | |
Galway Borrower LLC (15) | | Insurance service provider | | First lien senior secured revolving loan | | 10.69% | SOFR (Q) | 5.25% | | 09/2021 | | 09/2028 | | | 1.5 | | | 1.5 | | | 1.5 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 10.68% | SOFR (Q) | 5.25% | | 09/2021 | | 09/2028 | | | 34.7 | | | 34.7 | | | 34.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 36.2 | | | 36.2 | | | | | | |
Gestion ABS Bidco Inc. / ABS Bidco Holdings Inc. (15) | | Insurance broker | | First lien senior secured loan | | 10.27% | CORRA (Q) | 5.25% | | 03/2024 | | 03/2031 | | | 9.8 | | | 9.9 | | | 9.7 | | (2)(6)(11) | | | | |
Higginbotham Insurance Agency, Inc. (15) | | Independent retail insurance broker | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 08/2023 | | 11/2028 | | | 5.4 | | | 5.3 | | | 5.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.08% | SOFR (M) | 4.75% | | 03/2024 | | 11/2028 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 5.9 | | | 6.0 | | | | | | |
High Street Buyer, Inc. and High Street Holdco LLC (15)(16) | | Insurance brokerage platform | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 04/2021 | | 04/2028 | | | 22.5 | | | 22.5 | | | 22.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.58% | SOFR (Q) | 5.25% | | 08/2021 | | 04/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.56% | SOFR (Q) | 5.25% | | 02/2022 | | 04/2028 | | | 21.4 | | | 21.4 | | | 21.4 | | (2)(11) | | | | |
| | | | Series A preferred units | | 10.00% PIK | | | | 04/2021 | | | | 172,211,694 | | | 213.8 | | | 198.8 | | (2) | | | | |
| | | | Series A preferred units | | 10.00% PIK | | | | 12/2023 | | | | 20,106,667 | | | 21.3 | | | 19.8 | | (2) | | | | |
| | | | Series A preferred units | | 10.00% PIK | | | | 04/2024 | | | | 1,386,667 | | | 1.4 | | | 1.3 | | (2) | | | | |
| | | | Series A common units | | 10.00% PIK | | | | 04/2021 | | | | 4,649,000 | | | 6.0 | | | 12.1 | | (2) | | | | |
| | | | Series C common units | | 10.00% PIK | | | | 04/2021 | | | | 9,818,034 | | | 1.6 | | | 25.6 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 288.1 | | | 301.6 | | | | | | |
Inszone Mid, LLC and INSZ Holdings, LLC (15) | | Insurance brokerage firm | | First lien senior secured loan | | 11.01% | SOFR (Q) | 5.75% | | 12/2023 | | 11/2029 | | | 18.3 | | | 18.3 | | | 18.3 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 11/2022 | | | | 2,146,088 | | | 1.7 | | | 2.3 | | | | | | |
| | | | Common units | | | | | | 11/2023 | | | | 8,473,000 | | | 8.5 | | | 8.9 | | | | | | |
| | | | | | | | | | | | | | | | | 28.5 | | | 29.5 | | | | | | |
Keystone Agency Partners LLC (15) | | Insurance brokerage platform | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 12/2023 | | 05/2027 | | | 3.3 | | | 3.2 | | | 3.3 | | (2)(11) | | | | |
OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP (15) | | Insurance brokerage platform | | First lien senior secured loan | | 10.83% | SOFR (M) | 5.50% | | 11/2023 | | 11/2029 | | | 7.4 | | | 7.4 | | | 7.4 | | (2)(11) | | | | |
| | | | Class A2 units | | | | | | 11/2023 | | | | 115,928 | | | 2.3 | | | 2.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.7 | | | 9.7 | | | | | | |
See accompanying notes to consolidated financial statements
35
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
OneDigital Borrower LLC (15) | | Benefits broker and outsourced workflow automation platform provider for brokers | | First lien senior secured revolving loan | | 11.25% | Base Rate (Q) | 2.75% | | 11/2020 | | 05/2027 | | | 4.3 | | | 4.2 | | | 4.3 | | (2)(14) | | | | |
Patriot Growth Insurance Services, LLC (15) | | National retail insurance agency | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 10/2021 | | 10/2028 | | | 15.7 | | | 15.6 | | | 15.7 | | (2)(11) | | | | |
People Corporation (15) | | Provider of group benefits, group retirement and human resources services | | First lien senior secured loan | | 11.52% | CDOR (Q) | 6.25% | | 02/2021 | | 02/2028 | | | 37.9 | | | 41.2 | | | 37.9 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.02% | CDOR (Q) | 5.75% | | 09/2021 | | 02/2028 | | | 21.9 | | | 22.6 | | | 21.9 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.21% | CDOR (Q) | 6.00% | | 09/2023 | | 02/2028 | | | 8.5 | | | 8.6 | | | 8.5 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 72.4 | | | 68.3 | | | | | | |
Riser Topco II, LLC (15) | | Insurance program administrator | | First lien senior secured loan | | 11.33% | SONIA (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 1.1 | | | 1.0 | | | 1.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.33% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 7.6 | | | 7.6 | | | 7.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.34% | SOFR (S) | 5.00% | | 05/2024 | | 10/2029 | | | 2.1 | | | 2.1 | | | 2.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 10.7 | | | 10.8 | | | | | | |
SageSure Holdings, LLC and SageSure LLC (15) | | Insurance service provider | | First lien senior secured loan | | 11.35% | SOFR (Q) | 5.75% | | 01/2022 | | 01/2028 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | Series A units | | | | | | 02/2022 | | | | 886 | | | 19.6 | | | 58.2 | | | | | | |
| | | | | | | | | | | | | | | | | 19.9 | | | 58.5 | | | | | | |
SCM Insurance Services Inc. (15) | | Provider of claims management, claims investigation & support and risk management solutions for the Canadian property and casualty insurance industry | | First lien senior secured loan | | 11.22% | CDOR (Q) | 6.25% | | 06/2022 | | 08/2025 | | | 24.1 | | | 24.4 | | | 24.1 | | (2)(6)(11) | | | | |
SelectQuote, Inc. | | Direct to consumer insurance distribution platform | | First lien senior secured loan | | 14.94% (3.00% PIK) | SOFR (M) | 9.50% | | 02/2021 | | 05/2025 | | | 21.7 | | | 21.7 | | | 19.9 | | (2)(11) | | | | |
SG Acquisition, Inc. (15) | | Provider of insurance solutions for car sales | | First lien senior secured loan | | 10.30% | SOFR (S) | 5.00% | | 04/2024 | | 04/2030 | | | 48.4 | | | 48.4 | | | 47.9 | | (2)(11) | | | | |
Spring Insurance Solutions, LLC | | Technology-based direct to consumer sales and marketing platform for insurance products | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 11/2020 | | 11/2025 | | | 21.9 | | | 21.7 | | | 19.9 | | (2)(11) | | | | |
THG Acquisition, LLC (15) | | Multi-line insurance broker | | First lien senior secured revolving loan | | 11.19% | SOFR (M) | 5.75% | | 12/2019 | | 12/2025 | | | 2.1 | | | 2.1 | | | 2.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.19% | SOFR (M) | 5.75% | | 12/2019 | | 12/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.19% | SOFR (M) | 5.75% | | 12/2020 | | 12/2026 | | | 14.6 | | | 14.6 | | | 14.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 12/2021 | | 12/2026 | | | 26.7 | | | 26.7 | | | 26.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 43.5 | | | 43.5 | | | | | | |
Truist Insurance Holdings, LLC and McGriff Insurance Services, LLC (15) | | Insurance brokerage firm | | First lien senior secured revolving loan | | 8.58% | SOFR (M) | 3.25% | | 05/2024 | | 05/2029 | | | 0.5 | | | 0.3 | | | 0.5 | | (2) | | | | |
| | | | First lien senior secured loan | | 8.58% | SOFR (Q) | 3.25% | | 03/2024 | | 05/2031 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(18) | | | | |
| | | | | | | | | | | | | | | | | 0.6 | | | 0.8 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,285.3 | | | 1,323.3 | | | 10.70% | | | |
Investment Funds and Vehicles | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements
36
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
ACAS Equity Holdings Corporation (5) | | Investment company | | Common stock | | | | | | 01/2017 | | | | 589 | | | 0.4 | | | 0.4 | | (6) | | | | |
Constellation Wealth Capital Fund, L.P. (16) | | Specialist alternative asset management platform | | Limited partner interests | | | | | | 01/2024 | | | | 2,901,041 | | | 2.9 | | | 2.9 | | (6)(18) | | | | |
CREST Exeter Street Solar 2004-1 | | Investment vehicle | | Preferred shares | | | | | | 01/2017 | | 06/2039 | | 3,500,000 | | | — | | | — | | (6) | | | | |
CWC Fund I Co-Invest (ALTI) LP | | Global wealth and alternatives manager | | Limited partnership interest | | | | | | 03/2024 | | | | 6,224,000 | | | 6.2 | | | 6.2 | | (2)(6) | | | | |
European Capital UK SME Debt LP (4)(16) | | Investment partnership | | Limited partnership interest | | | | | | 01/2017 | | | | 45.00% | | | 8.2 | | | 16.1 | | (6) | | | | |
HCI Equity, LLC (5) | | Investment company | | Member interest | | | | | | 04/2010 | | | | 100.00% | | | — | | | — | | (6)(18) | | | | |
Partnership Capital Growth Investors III, L.P. | | Investment partnership | | Limited partnership interest | | | | | | 10/2011 | | | | 2.50% | | | 1.8 | | | 4.0 | | (2)(6)(18) | | | | |
PCG-Ares Sidecar Investment II, L.P. (4)(16) | | Investment partnership | | Limited partnership interest | | | | | | 10/2014 | | | | 100.00% | | | 7.2 | | | 15.9 | | (2)(6) | | | | |
PCG-Ares Sidecar Investment, L.P. (4)(16) | | Investment partnership | | Limited partnership interest | | | | | | 05/2014 | | | | 100.00% | | | 4.3 | | | 0.7 | | (6) | | | | |
Piper Jaffray Merchant Banking Fund I, L.P. | | Investment partnership | | Limited partnership interest | | | | | | 08/2012 | | | | | | | 0.1 | | | 0.5 | | (6)(18) | | | | |
Senior Direct Lending Program, LLC (5)(17) | | Co-investment vehicle | | Subordinated certificates | | 13.32% | SOFR (Q) | 8.00% | | 07/2016 | | 12/2036 | | | 1,299.9 | | | 1,271.3 | | | 1,241.4 | | (6)(12) | | | | |
| | Membership interest | | | | | | | | | | | | 87.50% | | | — | | | — | | (6) | | | | |
| | | | | | | | | | | | | | | | | 1,271.3 | | | 1,241.4 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,302.4 | | | 1,288.1 | | | 10.42% | | | |
Consumer Services | | | | | | | | | | | | | | | | | | | | | | | | |
ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc. (5) | | Restaurant owner and operator | | First lien senior secured loan | | | | | | 12/2016 | | 08/2022 | | | 11.8 | | | — | | | — | | (2)(10) | | | | |
Aimbridge Acquisition Co., Inc. | | Hotel operator | | Second lien senior secured loan | | 12.94% | SOFR (M) | 7.50% | | 02/2019 | | 02/2027 | | | 22.5 | | | 22.4 | | | 22.3 | | (2) | | | | |
American Residential Services L.L.C. and Aragorn Parent Holdings LP (15) | | Heating, ventilation and air conditioning services provider | | First lien senior secured revolving loan | | 8.94% | SOFR (M) | 3.50% | | 10/2020 | | 10/2025 | | | 0.6 | | | 0.6 | | | 0.6 | | (2) | | | | |
| | | | First lien senior secured revolving loan | | 11.00% | Base Rate (Q) | 2.50% | | 10/2020 | | 10/2025 | | | 0.8 | | | 0.8 | | | 0.8 | | (2) | | | | |
| | | | Second lien senior secured loan | | 13.96% | SOFR (M) | 8.50% | | 10/2020 | | 10/2028 | | | 56.4 | | | 56.4 | | | 56.4 | | (2)(11) | | | | |
| | | | Series A preferred units | | 10.00% PIK | | | | 10/2020 | | | | 2,531,500 | | | 3.4 | | | 4.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 61.2 | | | 62.6 | | | | | | |
Apex Service Partners, LLC and Apex Service Partners Holdings, LLC (15) | | Provider of residential HVAC, plumbing, and electrical maintenance and repair services | | First lien senior secured revolving loan | | 11.83% | SOFR (Q) | 6.50% | | 10/2023 | | 10/2029 | | | 3.8 | | | 3.8 | | | 3.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.33% (2.00% PIK) | SOFR (Q) | 7.00% | | 10/2023 | | 10/2030 | | | 172.7 | | | 172.7 | | | 172.7 | | (2)(11) | | | | |
| | | | Series B common units | | | | | | 10/2023 | | | | 262,165 | | | 7.2 | | | 9.0 | | | | | | |
| | | | | | | | | | | | | | | | | 183.7 | | | 185.5 | | | | | | |
ATI Restoration, LLC (15) | | Provider of disaster recovery services | | First lien senior secured revolving loan | | 10.98% | SOFR (Q) | 5.50% | | 07/2020 | | 07/2026 | | | 9.1 | | | 9.1 | | | 9.1 | | (2)(11)(14) | | | | |
See accompanying notes to consolidated financial statements
37
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 10.97% | SOFR (Q) | 5.50% | | 07/2020 | | 07/2026 | | | 32.5 | | | 32.5 | | | 32.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.99% | SOFR (Q) | 5.50% | | 05/2022 | | 07/2026 | | | 48.1 | | | 48.1 | | | 48.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 09/2023 | | 07/2026 | | | 10.5 | | | 10.5 | | | 10.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 100.2 | | | 100.2 | | | | | | |
Belfor Holdings, Inc. (15) | | Disaster recovery services provider | | First lien senior secured revolving loan | | | | | | 11/2023 | | 11/2028 | | | — | | | — | | | — | | (2)(13) | | | | |
Clarion Home Services Group, LLC and LBC Breeze Holdings LLC (15) | | Provider of HVAC and plumbing services to residential and commercial customers | | First lien senior secured revolving loan | | 11.42% | SOFR (Q) | 6.00% | | 12/2021 | | 12/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.42% (7.00% PIK) | SOFR (Q) | 8.00% | | 12/2021 | | 12/2027 | | | 3.2 | | | 3.2 | | | 2.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.69% (7.25% PIK) | SOFR (Q) | 8.25% | | 03/2023 | | 12/2027 | | | 6.2 | | | 6.2 | | | 5.7 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2021 | | | | 4,296 | | | 4.3 | | | 1.1 | | | | | | |
| | | | | | | | | | | | | | | | | 13.8 | | | 9.8 | | | | | | |
CMG HoldCo, LLC and CMG Buyer Holdings, Inc. (15) | | Provider of commercial HVAC equipment maintenance and repair services | | First lien senior secured revolving loan | | 10.08% | SOFR (Q) | 4.75% | | 05/2022 | | 05/2028 | | | 1.4 | | | 1.4 | | | 1.4 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.08% | SOFR (Q) | 4.75% | | 05/2022 | | 05/2028 | | | 4.3 | | | 4.3 | | | 4.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.08% | SOFR (Q) | 4.75% | | 05/2022 | | 05/2028 | | | 24.9 | | | 24.9 | | | 24.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.08% | SOFR (Q) | 4.75% | | 05/2022 | | 05/2028 | | | 5.9 | | | 5.9 | | | 5.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.09% | SOFR (S) | 4.75% | | 11/2023 | | 05/2028 | | | 1.4 | | | 1.4 | | | 1.4 | | (2)(11) | | | | |
| | | | Common stock | | | | | | 05/2022 | | | | 302 | | | 3.1 | | | 10.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 41.0 | | | 48.0 | | | | | | |
CST Holding Company (15) | | Provider of ignition interlock devices | | First lien senior secured revolving loan | | 12.50% | Base Rate (Q) | 4.00% | | 11/2022 | | 11/2028 | | | 10.0 | | | 10.0 | | | 10.0 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.44% | SOFR (M) | 5.00% | | 11/2022 | | 11/2028 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.44% | SOFR (M) | 5.00% | | 11/2022 | | 11/2028 | | | 11.6 | | | 11.6 | | | 11.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 21.8 | | | 21.8 | | | | | | |
Equinox Holdings, Inc. | | Operator of luxury, full-service health fitness clubs | | First lien senior secured loan | | 13.58% (4.13% PIK) | SOFR (Q) | 8.25% | | 03/2024 | | 03/2029 | | | 43.4 | | | 42.3 | | | 42.3 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 16.00% PIK | | | | 03/2024 | | 06/2027 | | | 3.6 | | | 3.5 | | | 3.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 45.8 | | | 45.8 | | | | | | |
Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC (15) | | Provider of plumbing and HVAC services | | First lien senior secured loan | | 10.33% | SOFR (M) | 5.00% | | 06/2024 | | 06/2031 | | | 151.5 | | | 151.5 | | | 150.0 | | (2)(11) | | | | |
| | | | Preferred units | | 15.00% PIK | | | | 07/2023 | | | | 421 | | | 4.9 | | | 4.9 | | (2) | | | | |
| | | | Class A units | | | | | | 11/2020 | | | | 6,447 | | | 22.9 | | | 39.6 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 179.3 | | | 194.5 | | | | | | |
Eternal Aus Bidco Pty Ltd (15) | | Operator of cemetery, crematoria and funeral services | | First lien senior secured loan | | 10.64% | BBSY (Q) | 6.25% | | 11/2023 | | 11/2029 | | | 7.2 | | | 7.1 | | | 7.2 | | (2)(6)(11) | | | | |
See accompanying notes to consolidated financial statements
38
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Excel Fitness Consolidator LLC, Health Buyer LLC and Excel Fitness Holdings, Inc. (15) | | Fitness facility operator | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 08/2023 | | 04/2029 | | | 5.1 | | | 5.0 | | | 5.1 | | (2)(11) | | | | |
Flint OpCo, LLC (15) | | Provider of residential HVAC and plumbing services | | First lien senior secured loan | | 10.59% | SOFR (Q) | 5.25% | | 08/2023 | | 08/2030 | | | 7.0 | | | 7.0 | | | 7.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.10% | SOFR (M) | 4.75% | | 05/2024 | | 08/2030 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 7.1 | | | 7.1 | | | | | | |
GS SEER Group Borrower LLC and GS SEER Group Holdings LLC (15) | | Provider of commercial and residential HVAC, electrical, and plumbing services | | First lien senior secured loan | | 12.08% | SOFR (Q) | 6.75% | | 04/2023 | | 04/2030 | | | 21.4 | | | 21.4 | | | 21.4 | | (2)(11) | | | | |
| | | | Class A common units | | | | | | 04/2023 | | | | 4,424 | | | 4.4 | | | 3.7 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 25.8 | | | 25.1 | | | | | | |
Helios Service Partners, LLC and Astra Service Partners, LLC (15) | | Critical HVAC, refrigeration, and plumbing services for commercial businesses | | First lien senior secured loan | | 11.85% | SOFR (Q) | 6.25% | | 08/2023 | | 03/2027 | | | 9.5 | | | 9.5 | | | 9.5 | | (2)(11) | | | | |
Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P. (15) | | Provider of residential roofing and exterior repair and replacement services | | First lien senior secured revolving loan | | 14.25% | Base Rate (Q) | 5.75% | | 12/2022 | | 12/2028 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 12.20% | CAD Base Rate (Q) | 5.00% | | 11/2023 | | 12/2028 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.19% | SOFR (Q) | 6.75% | | 12/2022 | | 12/2028 | | | 14.8 | | | 14.8 | | | 14.8 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.01% | CDOR (M) | 6.00% | | 11/2023 | | 12/2028 | | | 1.3 | | | 1.3 | | | 1.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.43% | SOFR (Q) | 6.00% | | 11/2023 | | 12/2028 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(6)(11) | | | | |
| | | | Class A units | | | | | | 12/2022 | | | | 9,524,000 | | | 9.5 | | | 12.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.2 | | | 29.7 | | | | | | |
Jenny C Acquisition, Inc. | | Health club franchisor | | Senior subordinated loan | | 8.00% PIK | | | | 04/2019 | | 04/2025 | | | 1.8 | | | 1.8 | | | 1.8 | | (2) | | | | |
Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. (15) | | Franchising platform offering adolescent development programs | | First lien senior secured loan | | 12.98% | SOFR (Q) | 7.50% | | 12/2022 | | 12/2027 | | | 30.4 | | | 30.4 | | | 30.4 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 12/2022 | | | | 2,149,690 | | | 2.1 | | | 2.9 | | | | | | |
| | | | | | | | | | | | | | | | | 32.5 | | | 33.3 | | | | | | |
ME Equity LLC | | Franchisor in the massage industry | | Common stock | | | | | | 09/2012 | | | | 3,000,000 | | | 3.0 | | | 4.4 | | (2) | | | | |
Modigent, LLC and OMERS PMC Investment Holdings LLC (15) | | Provider of commercial HVAC services | | First lien senior secured revolving loan | | 14.00% | Base Rate (Q) | 5.50% | | 08/2022 | | 08/2027 | | | 2.2 | | | 2.2 | | | 2.1 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 11.83% | SOFR (Q) | 6.50% | | 08/2022 | | 08/2027 | | | 3.3 | | | 3.3 | | | 3.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.83% | SOFR (Q) | 6.50% | | 08/2022 | | 08/2028 | | | 3.5 | | | 3.5 | | | 3.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.80% | SOFR (Q) | 6.50% | | 09/2023 | | 08/2028 | | | 2.8 | | | 2.8 | | | 2.8 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 08/2022 | | | | 1,001 | | | 9.7 | | | 8.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 21.5 | | | 20.0 | | | | | | |
Northwinds Holding, Inc. and Northwinds Services Group LLC (15) | | Provider of HVAC and plumbing services | | First lien senior secured revolving loan | | 14.25% | Base Rate (Q) | 5.75% | | 05/2023 | | 05/2029 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 12.28% | SOFR (Q) | 6.75% | | 05/2023 | | 05/2029 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
39
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 12.22% | SOFR (Q) | 6.75% | | 05/2023 | | 05/2029 | | | 3.6 | | | 3.6 | | | 3.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.23% | SOFR (Q) | 6.75% | | 05/2023 | | 05/2029 | | | 21.4 | | | 21.4 | | | 21.4 | | (2)(11) | | | | |
| | | | Common units | | | | | | 05/2023 | | | | 2,911,607 | | | 4.0 | | | 4.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 30.8 | | | 31.1 | | | | | | |
OTG Concessions Management, LLC and Octa Parent Holdings, LLC | | Airport restaurant operator | | Second lien notes | | 10.00% | | | | 02/2024 | | 02/2031 | | | 8.0 | | | 8.0 | | | 7.2 | | (2) | | | | |
| | | | Participation rights | | | | | | 02/2024 | | 02/2054 | | 1 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 8.0 | | | 7.2 | | | | | | |
PestCo Holdings, LLC and PestCo, LLC (15) | | Provider of pest control services to the residential and commercial markets | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 02/2023 | | 02/2028 | | | 1.9 | | | 1.9 | | | 1.9 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 01/2023 | | | | 134 | | | 1.7 | | | 2.4 | | | | | | |
| | | | | | | | | | | | | | | | | 3.6 | | | 4.3 | | | | | | |
Premiere Buyer, LLC (15) | | Third-party residential property manager for multi-family residential properties in the United States | | First lien senior secured loan | | 10.08% | SOFR (Q) | 4.75% | | 05/2024 | | 05/2031 | | | 38.6 | | | 38.6 | | | 38.0 | | (2)(11) | | | | |
Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC (15) | | Hotel operator | | First lien senior secured loan | | 12.33% | SOFR (Q) | 7.00% | | 01/2023 | | 01/2028 | | | 7.6 | | | 7.6 | | | 7.6 | | (2)(11) | | | | |
| | | | Preferred membership units | | | | | | 07/2016 | | | | 996,833 | | | 1.0 | | | 2.1 | | | | | | |
| | | | | | | | | | | | | | | | | 8.6 | | | 9.7 | | | | | | |
Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P. (15) | | Car wash operator | | First lien senior secured loan | | 10.09% | SOFR (M) | 4.75% | | 05/2024 | | 06/2031 | | | 43.2 | | | 43.2 | | | 42.6 | | (2)(11) | | | | |
| | | | Limited partnership interest | | | | | | 06/2024 | | | | 11,184,000 | | | 11.2 | | | 11.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 54.4 | | | 53.8 | | | | | | |
Radiant Intermediate Holding, LLC | | Provider of HVAC, plumbing and electrical services | | First lien senior secured loan | | 11.20% | SOFR (Q) | 5.75% | | 04/2023 | | 11/2026 | | | 2.0 | | | 2.0 | | | 1.9 | | (2)(11) | | | | |
Redwood Services, LLC and Redwood Services Holdco, LLC (15) | | Provider of residential HVAC and plumbing services | | First lien senior secured revolving loan | | 11.98% | SOFR (Q) | 6.50% | | 05/2024 | | 12/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 12/2020 | | 12/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 12/2021 | | 12/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 09/2022 | | 12/2027 | | | 5.0 | | | 5.0 | | | 5.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 05/2023 | | 12/2027 | | | 8.7 | | | 8.7 | | | 8.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 03/2024 | | 12/2027 | | | 6.0 | | | 6.0 | | | 6.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 05/2024 | | 12/2027 | | | 1.5 | | | 1.5 | | | 1.5 | | (2)(11) | | | | |
| | | | Series D units | | 8.00% PIK | | | | 12/2020 | | | | 19,592,999 | | | 22.4 | | | 60.8 | | | | | | |
| | | | | | | | | | | | | | | | | 44.1 | | | 82.5 | | | | | | |
Safe Home Security, Inc., Security Systems Inc., Safe Home Monitoring, Inc., National Protective Services, Inc., Bright Integrations LLC and Medguard Alert, Inc. | | Provider of safety systems for business and residential customers | | First lien senior secured loan | | 12.71% | SOFR (M) | 7.25% | | 08/2020 | | 08/2024 | | | 47.1 | | | 47.1 | | | 47.1 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
40
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P. (15) | | Planet Fitness franchisee | | First lien senior secured revolving loan | | 10.66% | CDOR (M) | 5.38% | | 07/2018 | | 07/2026 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.82% | SOFR (M) | 5.38% | | 07/2018 | | 07/2026 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.82% | SOFR (M) | 5.50% | | 01/2024 | | 07/2026 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.78% | SOFR (M) | 5.33% | | 03/2020 | | 07/2026 | | | 1.4 | | | 1.4 | | | 1.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.94% | SOFR (M) | 5.50% | | 01/2024 | | 07/2026 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 07/2018 | | | | 37,020 | | | 3.8 | | | 8.4 | | | | | | |
| | | | | | | | | | | | | | | | | 6.0 | | | 10.6 | | | | | | |
The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc. (15) | | Premier health club operator | | First lien senior secured loan | | 11.95% | SOFR (M) | 6.50% | | 12/2019 | | 06/2025 | | | 12.3 | | | 12.3 | | | 12.3 | | (2)(11) | | | | |
The Arcticom Group, LLC and AMCP Mechanical Holdings, LP (15) | | Refrigeration, heating, ventilation and air conditioning services provider | | First lien senior secured revolving loan | | 11.74% | SOFR (Q) | 6.25% | | 12/2021 | | 12/2027 | | | 8.2 | | | 8.2 | | | 8.2 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 13.75% | Base Rate (Q) | 5.25% | | 12/2021 | | 12/2027 | | | 2.1 | | | 2.1 | | | 2.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 12/2021 | | 12/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 08/2022 | | 12/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.25% | SOFR (Q) | 6.75% | | 04/2023 | | 12/2027 | | | 1.6 | | | 1.6 | | | 1.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.71% | SOFR (Q) | 6.25% | | 10/2023 | | 12/2027 | | | 5.3 | | | 5.3 | | | 5.3 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2021 | | | | 7,765,119 | | | 7.8 | | | 11.1 | | | | | | |
| | | | Class C units | | | | | | 03/2023 | | | | 333,510 | | | — | | | 0.5 | | | | | | |
| | | | | | | | | | | | | | | | | 25.4 | | | 29.2 | | | | | | |
Triwizard Holdings, Inc. and Triwizard Parent, LP (15) | | Parking management and hospitality services provider | | First lien senior secured revolving loan | | 11.58% | SOFR (Q) | 6.25% | | 06/2023 | | 06/2029 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 13.75% | Base Rate (Q) | 5.25% | | 06/2023 | | 06/2029 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(11) | | | | |
| | | | Class A-2 common units | | | | | | 06/2023 | | | | 30,000 | | | 3.0 | | | 3.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 4.8 | | | 4.9 | | | | | | |
TSS Buyer, LLC (15) | | Provider of outsourced testing, inspection, certification, and compliance services to healthcare and life sciences end markets | | First lien senior secured loan | | 10.92% | SOFR (Q) | 5.50% | | 07/2023 | | 06/2029 | | | 2.1 | | | 2.0 | | | 2.1 | | (2)(11) | | | | |
Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC (15) | | Provider of residential roofing repair & replacement | | First lien senior secured revolving loan | | 10.83% | SOFR (M) | 5.50% | | 11/2023 | | 11/2030 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.82% | SOFR (Q) | 5.50% | | 11/2023 | | 11/2030 | | | 12.5 | | | 12.5 | | | 12.5 | | (2)(11) | | | | |
| | | | Class B common units | | | | | | 11/2023 | | | | 212 | | | 0.2 | | | 0.4 | | | | | | |
| | | | | | | | | | | | | | | | | 12.9 | | | 13.1 | | | | | | |
YE Brands Holdings, LLC (15) | | Sports camp operator | | First lien senior secured loan | | 10.93% | SOFR (Q) | 5.50% | | 10/2021 | | 10/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.18% | SOFR (Q) | 5.75% | | 06/2022 | | 10/2027 | | | 8.0 | | | 8.0 | | | 8.0 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
41
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.18% | SOFR (Q) | 5.75% | | 09/2023 | | 10/2027 | | | 3.7 | | | 3.7 | | | 3.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.18% | SOFR (Q) | 5.75% | | 01/2024 | | 10/2027 | | | 2.0 | | | 2.0 | | | 2.0 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 13.8 | | | 13.8 | | | | | | |
ZBS Mechanical Group Co-Invest Fund 2, LLC | | Provider of residential HVAC and plumbing services | | Membership interest | | | | | | 10/2021 | | | | 2,771,000 | | | 1.4 | | | 12.1 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,125.5 | | | 1,207.4 | | | 9.77% | | | |
Power Generation | | | | | | | | | | | | | | | | | | | | | | | | |
Apex Clean Energy TopCo, LLC (4) | | Developer, builder and owner of utility-scale wind and solar power facilities | | Class A common units | | | | | | 11/2021 | | | | 1,335,610 | | | 134.7 | | | 201.3 | | | | | | |
Ferrellgas, L.P. and Ferrellgas Partners, L.P. | | Distributor of propane and related accessories | | Senior preferred units | | 8.96% | | | | 03/2021 | | | | 64,155 | | | 64.2 | | | 64.8 | | | | | | |
| | | | Class B units | | | | | | 09/2022 | | | | 95,354 | | | 15.4 | | | 19.7 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 79.6 | | | 84.5 | | | | | | |
Opal Fuels Intermediate HoldCo LLC, and Opal Fuels Inc. (15) | | Owner of natural gas facilities | | Class A common stock | | | | | | 07/2022 | | | | 3,059,533 | | | 23.3 | | | 12.5 | | (6)(18) | | | | |
PosiGen, Inc. | | Seller and leaser of solar power systems for residential and commercial customers | | Warrant to purchase shares of series D-1 preferred stock | | | | | | 06/2021 | | 06/2028 | | 7,616 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 01/2020 | | 01/2027 | | 5,560 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
Potomac Intermediate Holdings II LLC (5) | | Gas turbine power generation facilities operator | | Series A units | | | | | | 11/2021 | | | | 241,384,442 | | | 200.2 | | | 124.2 | | | | | | |
Sunrun Atlas Depositor 2019-2, LLC and Sunrun Atlas Holdings 2019-2, LLC | | Residential solar energy provider | | First lien senior secured loan | | 3.61% | | | | 10/2019 | | 02/2055 | | | 0.1 | | | 0.1 | | | 0.1 | | (2) | | | | |
| | | | Senior subordinated loan | | 12.23% (8.63% PIK) | SOFR (Q) | 6.90% | | 11/2019 | | 11/2025 | | | 166.5 | | | 166.5 | | | 166.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 166.6 | | | 166.6 | | | | | | |
Sunrun Luna Holdco 2021, LLC | | Residential solar energy provider | | Senior subordinated loan | | 12.08% | SOFR (Q) | 6.75% | | 03/2022 | | 04/2027 | | | 150.0 | | | 150.0 | | | 147.0 | | (2)(6)(11) | | | | |
Sunrun Xanadu Issuer 2019-1, LLC and Sunrun Xanadu Holdings 2019-1, LLC | | Residential solar energy provider | | First lien senior secured loan | | 3.98% | | | | 06/2019 | | 06/2054 | | | 0.3 | | | 0.3 | | | 0.3 | | (2) | | | | |
| | | | Senior subordinated loan | | 10.00% (6.00% PIK) | SOFR (Q) | 6.90% | | 06/2019 | | 07/2030 | | | 77.7 | | | 77.7 | | | 74.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 78.0 | | | 74.9 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 832.4 | | | 811.0 | | | 6.56% | | | |
Retailing and Distribution | | | | | | | | | | | | | | | | | | | | | | | | |
Bamboo Purchaser, Inc. | | Provider of nursery, garden, and greenhouse products | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 11/2021 | | 11/2027 | | | 17.7 | | | 17.7 | | | 16.6 | | (2)(11) | | | | |
BradyPlus Holdings, LLC (15) | | Distributor of foodservice disposables and janitorial sanitation products | | First lien senior secured loan | | 11.33% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 127.3 | | | 127.3 | | | 127.3 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
42
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc. (15) | | Provider of visual communications solutions | | First lien senior secured loan | | 11.44% | SOFR (M) | 6.00% | | 03/2019 | | 03/2026 | | | 15.4 | | | 15.4 | | | 15.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.44% | SOFR (M) | 6.00% | | 08/2019 | | 03/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.44% | SOFR (M) | 6.00% | | 06/2021 | | 03/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.44% | SOFR (M) | 6.00% | | 01/2024 | | 03/2026 | | | 8.1 | | | 8.1 | | | 8.1 | | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2019 | | | | 600 | | | 0.6 | | | 1.7 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 24.3 | | | 25.4 | | | | | | |
GPM Investments, LLC and ARKO Corp. | | Convenience store operator | | Common stock | | | | | | 12/2020 | | | | 2,088,478 | | | 19.8 | | | 13.1 | | (2)(18) | | | | |
| | | | Warrant to purchase common stock | | | | | | 12/2020 | | 12/2025 | | 1,088,780 | | | 1.6 | | | 0.5 | | (2)(18) | | | | |
| | | | | | | | | | | | | | | | | 21.4 | | | 13.6 | | | | | | |
Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP (15) | | Distributor of HVAC, plumbing, and water heater equipment, parts, supplies and fixtures | | First lien senior secured revolving loan | | 9.83% | SOFR (M) | 4.50% | | 11/2023 | | 11/2029 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.33% | SOFR (M) | 6.00% | | 11/2023 | | 11/2029 | | | 3.5 | | | 3.5 | | | 3.5 | | (2)(11) | | | | |
| | | | Limited partnership interest | | 8.00% PIK | | | | 11/2023 | | | | 5,441,000 | | | 5.4 | | | 5.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.0 | | | 9.1 | | | | | | |
Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLC | | Distributor of OEM appliance aftermarket parts | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 06/2021 | | 06/2028 | | | 0.4 | | | 0.4 | | | 0.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 12/2021 | | 06/2028 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | Class A common units | | | | | | 06/2021 | | | | 5,796 | | | 6.1 | | | 3.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 6.7 | | | 3.6 | | | | | | |
Mavis Tire Express Services Topco Corp., Metis HoldCo, Inc., and Metis TopCo, LP (15) | | Auto parts retailer | | First lien senior secured revolving loan | | 8.83% | SOFR (Q) | 3.25% | | 05/2021 | | 05/2026 | | | 5.3 | | | 5.3 | | | 5.3 | | (2)(14) | | | | |
| | | | First lien senior secured revolving loan | | 9.02% | SOFR (M) | 3.50% | | 05/2021 | | 05/2026 | | | 4.9 | | | 4.9 | | | 4.9 | | (2)(14) | | | | |
| | | | Series A preferred stock | | 7.00% PIK | | | | 05/2021 | | | | 68,601 | | | 85.4 | | | 85.4 | | (2) | | | | |
| | | | Class A-1 units | | | | | | 05/2021 | | | | 24,586 | | | 24.6 | | | 34.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 120.2 | | | 129.6 | | | | | | |
McKenzie Creative Brands, LLC (15) | | Designer, manufacturer and distributor of hunting-related supplies | | First lien senior secured revolving loan | | 12.19% | SOFR (M) | 6.75% | | 09/2014 | | 09/2025 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.19% | SOFR (M) | 6.75% | | 09/2014 | | 09/2025 | | | 84.5 | | | 84.5 | | | 84.5 | | (2)(8)(11) | | | | |
| | | | First lien senior secured loan | | 12.19% | SOFR (M) | 6.75% | | 09/2014 | | 09/2025 | | | 5.5 | | | 5.5 | | | 5.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 90.6 | | | 90.6 | | | | | | |
Monolith Brands Group, Inc. | | E-commerce platform focused on consolidating DTC branded businesses | | Series A-1 preferred stock | | | | | | 04/2022 | | | | 701,255 | | | 15.5 | | | 3.5 | | (2) | | | | |
See accompanying notes to consolidated financial statements
43
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Moon Valley Nursery of Arizona Retail, LLC, Moon Valley Nursery Farm Holdings, LLC, Moon Valley Nursery RE Holdings LLC, and Stonecourt IV Partners, LP | | Operator of retail and wholesale tree and plant nurseries | | Limited partnership interests | | | | | | 10/2021 | | | | 21,939,152 | | | 20.8 | | | 29.3 | | | | | | |
North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLC | | Manufacturer of aftermarket golf cart parts and accessories | | First lien senior secured loan | | 13.33% (5.00% PIK) | SOFR (Q) | 8.00% | | 05/2021 | | 05/2027 | | | 27.0 | | | 27.0 | | | 21.6 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 05/2021 | | | | 50,000 | | | 5.0 | | | — | | | | | | |
| | | | | | | | | | | | | | | | | 32.0 | | | 21.6 | | | | | | |
Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc. (15) | | Distributor and marketer of personal care products | | First lien senior secured loan | | 10.35% | SOFR (S) | 5.00% | | 05/2024 | | 05/2030 | | | 59.8 | | | 59.8 | | | 58.6 | | (2)(6)(11) | | | | |
| | | | Class B common stock | | 8.00% PIK | | | | 05/2024 | | | | 2,215 | | | 2.2 | | | 2.2 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 62.0 | | | 60.8 | | | | | | |
Reddy Ice LLC (15) | | Packaged ice manufacturer and distributor | | First lien senior secured revolving loan | | 10.08% | SOFR (M) | 4.75% | | 04/2024 | | 04/2029 | | | 5.7 | | | 5.7 | | | 5.6 | | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 12.25% | Base Rate (Q) | 3.75% | | 04/2024 | | 04/2029 | | | 1.7 | | | 1.7 | | | 1.6 | | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 12.25% | Base Rate (Q) | 3.75% | | 04/2024 | | 04/2029 | | | 1.7 | | | 1.7 | | | 1.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.07% | SOFR (M) | 4.75% | | 04/2024 | | 04/2029 | | | 225.2 | | | 225.2 | | | 221.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 234.3 | | | 230.8 | | | | | | |
Trader Corporation and Project Auto Finco Corp. (15) | | Digital Automotive marketplace and software solution provider to automotive industry | | First lien senior secured loan | | 11.74% | CDOR (M) | 6.75% | | 12/2022 | | 12/2029 | | | 11.9 | | | 12.0 | | | 11.9 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.28% | CORRA (M) | 5.50% | | 06/2024 | | 12/2029 | | | 5.8 | | | 5.8 | | | 5.8 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 17.8 | | | 17.7 | | | | | | |
US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P. (15) | | Producer and packager of compressed, household, and packaged salt | | First lien senior secured loan | | 10.73% | SOFR (Q) | 5.25% | | 07/2021 | | 07/2028 | | | 26.0 | | | 26.0 | | | 26.0 | | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 07/2021 | | | | 0.42% | | | 0.8 | | | 1.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 26.8 | | | 27.0 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 826.4 | | | 806.5 | | | 6.52% | | | |
Media and Entertainment | | | | | | | | | | | | | | | | | | | | | | | | |
22 HoldCo Limited (15) | | Sports and entertainment platform | | Senior subordinated loan | | 12.96% PIK | SONIA (S) | 7.50% | | 08/2023 | | 08/2033 | | | 42.5 | | | 42.5 | | | 42.5 | | (2)(6)(11) | | | | |
3 Step Sports LLC (15) | | Provider of integrated youth sports solutions | | First lien senior secured loan | | 13.34% (1.50% PIK) | SOFR (Q) | 8.00% | | 10/2023 | | 10/2029 | | | 12.4 | | | 12.4 | | | 11.8 | | (2)(11) | | | | |
Aventine Intermediate LLC & Aventine Holdings II LLC | | Media and production company | | First lien senior secured loan | | 11.43% (4.00% PIK) | SOFR (Q) | 6.00% | | 12/2021 | | 06/2027 | | | 10.2 | | | 10.2 | | | 10.0 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 10.25% PIK | | | | 12/2021 | | 12/2030 | | | 45.8 | | | 45.8 | | | 38.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 56.0 | | | 48.4 | | | | | | |
Axiomatic, LLC | | Premiere e-sports and video game investment platform | | Class A-1 units | | | | | | 05/2022 | | | | 500,000 | | | 5.0 | | | 5.9 | | | | | | |
See accompanying notes to consolidated financial statements
44
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Broadcast Music, Inc. (15) | | Music rights management company | | First lien senior secured loan | | 11.07% | SOFR (Q) | 5.75% | | 02/2024 | | 02/2030 | | | 21.3 | | | 21.3 | | | 21.3 | | (2)(11) | | | | |
CFC Funding LLC | | SME-related SPV | | Loan instrument units | | 9.75% PIK | | | | 07/2023 | | | | 16,680 | | | 17.5 | | | 17.5 | | (6) | | | | |
CMW Parent LLC (fka Black Arrow, Inc.) | | Multiplatform media firm | | Series A units | | | | | | 09/2015 | | | | 32 | | | — | | | — | | | | | | |
Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited | | Multi-club sports platform | | Senior subordinated loan | | 17.00% PIK | | | | 12/2022 | | 12/2028 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(6) | | | | |
| | | | Senior subordinated loan | | 17.00% PIK | | | | 12/2022 | | 12/2028 | | | 26.4 | | | 26.4 | | | 26.4 | | (2)(6) | | | | |
| | | | Senior subordinated loan | | 13.31% PIK | SOFR (S) | 8.00% | | 12/2022 | | 12/2028 | | | 50.5 | | | 50.5 | | | 49.5 | | (2)(6)(11) | | | | |
| | | | Ordinary shares | | | | | | 09/2023 | | | | 494 | | | 4.4 | | | 3.5 | | (2)(6) | | | | |
| | | | Warrant to purchase shares of ordinary shares | | | | | | 12/2022 | | 11/2028 | | 180 | | | — | | | 4.2 | | (2)(6) | | | | |
| | | | Warrant to purchase shares of ordinary shares | | | | | | 12/2022 | | 11/2028 | | 199 | | | — | | | 1.5 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 81.9 | | | 85.7 | | | | | | |
Fever Labs, Inc. (15) | | Technology led marketing and ticketing platform for live events | | First lien senior secured loan | | 11.00% | | | | 05/2024 | | 11/2028 | | | 14.0 | | | 13.0 | | | 13.7 | | (2) | | | | |
Global Music Rights, LLC (15) | | Music right management company | | First lien senior secured loan | | 10.93% | SOFR (Q) | 5.50% | | 08/2021 | | 08/2030 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 04/2024 | | 08/2030 | | | 51.6 | | | 51.6 | | | 51.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 51.7 | | | 51.7 | | | | | | |
League One Volleyball, Inc. | | Operator of youth volleyball clubs | | Series B preferred stock | | | | | | 07/2023 | | | | 194 | | | — | | | — | | (2) | | | | |
LiveBarn Inc. | | Provider of Live & On Demand broadcasting of amateur and youth sporting events | | Middle preferred shares | | | | | | 08/2023 | | | | 4,902,988 | | | 17.3 | | | 19.4 | | (2)(6) | | | | |
MailSouth, Inc. | | Provider of shared mail marketing services | | First lien senior secured loan | | | | | | 05/2022 | | 04/2024 | | | 6.9 | | | — | | | — | | (2)(10) | | | | |
Miami Beckham United LLC | | American professional soccer club | | Class A preferred units | | 9.50% PIK | | | | 09/2021 | | | | 85,000 | | | 108.5 | | | 108.5 | | | | | | |
| | | | Class B preferred units | | 9.50% PIK | | | | 06/2023 | | | | 42,500 | | | 46.7 | | | 46.7 | | | | | | |
| | | | | | | | | | | | | | | | | 155.2 | | | 155.2 | | | | | | |
OUTFRONT Media Inc. | | Provider of out-of-home advertising | | Series A convertible perpetual preferred stock | | 7.00% | | | | 04/2020 | | | | 25,000 | | | 25.0 | | | 27.0 | | (2)(6) | | | | |
Production Resource Group, L.L.C. and PRG III, LLC (4) | | Provider of rental equipment, labor, production management, scenery, and other products to various entertainment end-markets | | First lien senior secured loan | | 19.25% (10.83% PIK) | SOFR (Q) | 8.50% | | 08/2018 | | 08/2029 | | | 46.4 | | | 46.4 | | | 46.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.56% (3.13% PIK) | SOFR (M) | 8.13% | | 07/2020 | | 08/2024 | | | 15.3 | | | 15.3 | | | 15.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.56% (3.13% PIK) | SOFR (M) | 8.13% | | 06/2021 | | 08/2029 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.56% (3.13% PIK) | SOFR (M) | 8.13% | | 08/2021 | | 08/2029 | | | 7.6 | | | 7.6 | | | 7.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.56% (3.13% PIK) | SOFR (M) | 8.13% | | 05/2024 | | 08/2029 | | | 26.1 | | | 25.9 | | | 26.2 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 10/2020 | | | | 113,617 | | | 4.9 | | | 30.0 | | (2) | | | | |
See accompanying notes to consolidated financial statements
45
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 100.9 | | | 126.3 | | | | | | |
Professional Fighters League, LLC and PFL MMA, Inc. | | Mixed martial arts league | | First lien senior secured loan | | 14.00% PIK | | | | 01/2021 | | 01/2026 | | | 20.6 | | | 20.1 | | | 20.6 | | (2) | | | | |
| | | | Second lien senior secured loan | | 16.00% PIK | | | | 11/2022 | | 01/2026 | | | 0.2 | | | 0.1 | | | 0.2 | | (2) | | | | |
| | | | Series E preferred stock | | | | | | 04/2022 | | | | 219,035 | | | 0.7 | | | 0.7 | | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 01/2021 | | 01/2027 | | 3,223,122 | | | 1.7 | | | 1.0 | | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 11/2022 | | 11/2029 | | 68,787 | | | 0.2 | | | 0.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 22.8 | | | 22.7 | | | | | | |
Sandlot Action Sports, LLC | | Youth sports platform | | Common units | | | | | | 05/2024 | | | | 3,384 | | | — | | | — | | | | | | |
Storm Investment S.a.r.l. | | Spanish futbol club | | First lien senior secured loan | | 3.75% | | | | 06/2021 | | 06/2029 | | | 66.1 | | | 73.6 | | | 66.1 | | (2)(6) | | | | |
| | | | Class A redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Class B redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Class C redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Class D redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Class E redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Class F redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Class G redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Class H redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Class I redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | | 4.6 | | (2)(6) | | | | |
| | | | Ordinary shares | | | | | | 06/2021 | | | | 3,958 | | | — | | | 0.2 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 88.0 | | | 107.7 | | | | | | |
The Teaching Company Holdings, Inc. | | Education publications provider | | Preferred stock | | | | | | 09/2006 | | | | 10,663 | | | 1.1 | | | 2.5 | | (2) | | | | |
| | | | Common stock | | | | | | 09/2006 | | | | 15,393 | | | — | | | 0.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 1.1 | | | 2.7 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 711.6 | | | 759.5 | | | 6.14% | | | |
Consumer Durables and Apparel | | | | | | | | | | | | | | | | | | | | | | | | |
Bowhunter Holdings, LLC | | Provider of branded archery and bowhunting accessories | | Common units | | | | | | 04/2014 | | | | 421 | | | 4.2 | | | — | | | | | | |
Centric Brands LLC, Centric Brands TopCo, LLC, and Centric Brands L.P. (4) | | Designer, marketer and distributor of licensed and owned apparel | | First lien senior secured loan | | 10.84% | SOFR (Q) | 5.50% | | 02/2024 | | 08/2029 | | | 28.4 | | | 26.6 | | | 28.4 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.34% PIK | SOFR (Q) | 8.00% | | 02/2024 | | 02/2031 | | | 55.1 | | | 51.8 | | | 55.1 | | (2)(11) | | | | |
| | | | Class A LP interests | | | | | | 02/2024 | | | | 6.27% | | | 2.9 | | | 10.6 | | (2) | | | | |
See accompanying notes to consolidated financial statements
46
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 81.3 | | | 94.1 | | | | | | |
DRS Holdings III, Inc. and DRS Holdings I, Inc. (15) | | Footwear and orthopedic foot-care brand | | First lien senior secured loan | | 11.73% | SOFR (M) | 6.25% | | 11/2019 | | 11/2025 | | | 26.9 | | | 26.9 | | | 26.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (M) | 6.25% | | 06/2021 | | 11/2025 | | | 24.8 | | | 24.8 | | | 24.2 | | (2)(11) | | | | |
| | | | Common stock | | | | | | 11/2019 | | | | 8,549 | | | 8.5 | | | 6.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 60.2 | | | 57.4 | | | | | | |
Implus Footcare, LLC | | Provider of footwear and other accessories | | First lien senior secured loan | | 13.24% | SOFR (Q) | 7.75% | | 06/2016 | | 07/2025 | | | 1.3 | | | 1.3 | | | 1.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.24% | SOFR (Q) | 7.75% | | 06/2017 | | 07/2025 | | | 117.1 | | | 115.5 | | | 106.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.24% | SOFR (Q) | 7.75% | | 07/2018 | | 07/2025 | | | 5.0 | | | 4.9 | | | 4.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 121.7 | | | 112.3 | | | | | | |
Johnnie-O Inc. and Johnnie-O Holdings Inc. | | Apparel retailer | | First lien senior secured loan | | 11.70% | SOFR (Q) | 6.25% | | 03/2022 | | 03/2027 | | | 18.9 | | | 18.4 | | | 18.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.70% | SOFR (Q) | 6.25% | | 02/2023 | | 03/2027 | | | 4.0 | | | 3.6 | | | 4.0 | | (2)(11) | | | | |
| | | | Series A convertible preferred stock | | | | | | 03/2022 | | | | 144,210 | | | 4.2 | | | 4.8 | | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 03/2022 | | 03/2032 | | 93,577 | | | 1.5 | | | 3.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.7 | | | 30.8 | | | | | | |
Lew's Intermediate Holdings, LLC (15) | | Outdoor brand holding company | | First lien senior secured loan | | 10.35% | SOFR (Q) | 5.00% | | 02/2021 | | 02/2028 | | | 1.0 | | | 1.0 | | | 0.9 | | (2)(11) | | | | |
Pelican Products, Inc. (15) | | Flashlights manufacturer | | First lien senior secured revolving loan | | 9.50% | SOFR (S) | 4.00% | | 12/2021 | | 12/2026 | | | 1.2 | | | 1.2 | | | 1.1 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 13.35% | SOFR (Q) | 7.75% | | 12/2021 | | 12/2029 | | | 60.0 | | | 60.0 | | | 55.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 61.2 | | | 56.9 | | | | | | |
Rawlings Sporting Goods Company, Inc. and SEP Diamond Fund, L.P. (16) | | Sports equipment manufacturing company | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 12/2020 | | 12/2026 | | | 49.0 | | | 49.0 | | | 49.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 11/2021 | | 12/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.72% | SOFR (Q) | 6.25% | | 02/2024 | | 12/2026 | | | 5.7 | | | 5.7 | | | 5.7 | | (2)(11) | | | | |
| | | | Limited partnership interest | | | | | | 06/2024 | | | | 10,873,450 | | | 10.9 | | | 10.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 65.7 | | | 65.7 | | | | | | |
Reef Lifestyle, LLC (15) | | Apparel retailer | | First lien senior secured revolving loan | | 15.33% (4.25% PIK) | SOFR (Q) | 10.00% | | 10/2018 | | 10/2027 | | | 27.7 | | | 27.7 | | | 26.0 | | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 15.35% (4.25% PIK) | SOFR (Q) | 10.00% | | 07/2020 | | 10/2027 | | | 3.3 | | | 3.3 | | | 3.1 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 15.35% (4.25% PIK) | SOFR (Q) | 10.00% | | 10/2018 | | 10/2027 | | | 21.7 | | | 21.7 | | | 20.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 15.35% (4.25% PIK) | SOFR (Q) | 10.00% | | 07/2020 | | 10/2027 | | | 3.0 | | | 3.0 | | | 2.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 55.7 | | | 52.3 | | | | | | |
S Toys Holdings LLC (fka The Step2 Company, LLC) (5) | | Toy manufacturer | | Common units | | | | | | 04/2011 | | | | 1,116,879 | | | — | | | — | | | | | | |
| | | | Class B common units | | | | | | 10/2014 | | | | 126,278,000 | | | — | | | — | | | | | | |
| | | | Warrant to purchase units | | | | | | 04/2010 | | 12/2050 | | 3,157,895 | | | — | | | — | | | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
See accompanying notes to consolidated financial statements
47
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Shoes For Crews Global, LLC and Shoes For Crews Holdings, LLC (4)(15) | | Manufacturer and distributor of slip resistant footwear | | First lien senior secured loan | | 11.85% | SOFR (M) | 6.50% | | 06/2024 | | 07/2029 | | | 7.8 | | | 7.8 | | | 7.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.35% (5.00% PIK) | SOFR (M) | 7.00% | | 06/2024 | | 07/2029 | | | 3.6 | | | 3.6 | | | 3.6 | | (2)(11) | | | | |
| | | | Class A common units | | | | | | 06/2024 | | | | 8,474 | | | 10.5 | | | 10.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 21.9 | | | 21.9 | | | | | | |
St Athena Global LLC and St Athena Global Holdings Limited (15) | | Designer and manufacturer of branded premium-quality tableware | | First lien senior secured revolving loan | | 10.59% | SOFR (S) | 5.25% | | 06/2024 | | 06/2029 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.59% | SOFR (S) | 5.25% | | 06/2024 | | 06/2030 | | | 28.7 | | | 28.7 | | | 28.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.59% | SONIA (S) | 5.25% | | 06/2024 | | 06/2030 | | | 17.3 | | | 17.2 | | | 17.0 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 46.1 | | | 45.5 | | | | | | |
SVP-Singer Holdings Inc. and SVP-Singer Holdings LP | | Manufacturer of consumer sewing machines | | Class A common units | | | | | | 07/2021 | | | | 6,264,706 | | | 26.1 | | | — | | (2) | | | | |
Team Acquisition Corporation (15) | | Provider of team uniforms and athletic wear | | First lien senior secured loan | | 11.83% | SOFR (Q) | 6.50% | | 01/2024 | | 11/2029 | | | 34.7 | | | 34.1 | | | 34.0 | | (2)(11) | | | | |
Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP | | Leading manufacturer and distributor of textiles, apparel & luxury goods | | Second lien senior secured loan | | 15.71% (2.00% PIK) | SOFR (M) | 10.25% | | 07/2018 | | 04/2027 | | | 147.8 | | | 147.8 | | | 147.8 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 07/2018 | | | | 1,400 | | | 1.4 | | | 3.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 149.2 | | | 151.0 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 756.1 | | | 722.8 | | | 5.85% | | | |
Capital Goods | | | | | | | | | | | | | | | | | | | | | | | | |
AI Aqua Merger Sub, Inc. | | End to end provider of water solutions to a wide range of customer bases | | First lien senior secured loan | | 8.83% | SOFR (M) | 3.50% | | 06/2021 | | 07/2028 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(11)(18) | | | | |
Airx Climate Solutions, Inc. (15) | | Provider of commercial HVAC equipment and services | | First lien senior secured revolving loan | | 11.58% | SOFR (M) | 6.25% | | 11/2023 | | 11/2029 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.53% | SOFR (Q) | 6.25% | | 11/2023 | | 11/2029 | | | 9.9 | | | 9.9 | | | 9.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 10.6 | | | 10.6 | | | | | | |
API Commercial Inc., API Military Inc., and API Space Intermediate, Inc. | | Provider of military aircraft aftermarket parts and distribution, repair and logistics services | | First lien senior secured loan | | 10.48% | SOFR (Q) | 5.00% | | 05/2022 | | 08/2025 | | | 6.6 | | | 2.4 | | | 4.9 | | (2) | | | | |
Arrowhead Holdco Company and Arrowhead GS Holdings, Inc. | | Distributor of non-discretionary, mission-critical aftermarket replacement parts | | First lien senior secured loan | | 10.75% (2.75% PIK) | SOFR (Q) | 5.25% | | 08/2021 | | 08/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | Common stock | | | | | | 08/2021 | | | | 5,054 | | | 5.1 | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 5.2 | | | 0.1 | | | | | | |
See accompanying notes to consolidated financial statements
48
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
BGIF IV Fearless Utility Services, Inc. (15) | | Maintenance and installation service provider for electric transmission and distribution infrastructure | | First lien senior secured loan | | 10.33% | SOFR (M) | 5.00% | | 06/2024 | | 06/2031 | | | 35.3 | | | 35.3 | | | 35.0 | | (2)(11) | | | | |
BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC (15) | | Provides products and services to the Department of Defense and Intelligence Community | | First lien senior secured revolving loan | | 10.09% | SOFR (Q) | 4.75% | | 05/2022 | | 10/2025 | | | 0.9 | | | 0.9 | | | 0.9 | | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 12.25% | Base Rate (Q) | 3.75% | | 05/2022 | | 10/2025 | | | 0.6 | | | 0.6 | | | 0.6 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 10.09% | SOFR (Q) | 4.75% | | 05/2022 | | 10/2025 | | | 1.1 | | | 1.1 | | | 1.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 2.6 | | | 2.6 | | | | | | |
Burgess Point Purchaser Corporation | | Remanufacturer of mission-critical and non-discretionary aftermarket vehicle, industrial, energy storage, and solar replacement parts | | First lien senior secured loan | | 10.69% | SOFR (M) | 5.25% | | 07/2022 | | 07/2029 | | | 22.0 | | | 20.7 | | | 21.2 | | (2)(11)(18) | | | | |
CPIG Holdco Inc. | | Distributor of engineered fluid power and complex machined solutions | | First lien senior secured loan | | 12.40% | SOFR (Q) | 7.00% | | 04/2023 | | 04/2028 | | | 14.7 | | | 14.7 | | | 14.7 | | (2)(11) | | | | |
Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc. (15) | | Manufacturer of pumps, valves, and fluid control components for industrial markets | | First lien senior secured revolving loan | | | | | | 10/2023 | | 10/2029 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.33% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2030 | | | 38.7 | | | 38.7 | | | 38.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 38.7 | | | 38.7 | | | | | | |
DFS Holding Company, Inc. (15) | | Distributor of maintenance, repair, and operations parts, supplies, and equipment to the foodservice industry | | First lien senior secured loan | | 12.44% | SOFR (M) | 7.00% | | 01/2023 | | 01/2029 | | | 2.0 | | | 2.0 | | | 2.0 | | (2)(11) | | | | |
Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP (15) | | Provider of aerospace technology and equipment | | First lien senior secured revolving loan | | 11.95% | SOFR (Q) | 6.50% | | 12/2020 | | 12/2025 | | | 4.5 | | | 4.5 | | | 4.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.95% | SOFR (Q) | 6.50% | | 12/2020 | | 12/2026 | | | 21.0 | | | 21.0 | | | 21.0 | | (2)(11) | | | | |
| | | | Common units | | | | | | 12/2020 | | | | 9,773,000 | | | 9.8 | | | 10.2 | | | | | | |
| | | | | | | | | | | | | | | | | 35.3 | | | 35.7 | | | | | | |
ESCP PPG Holdings, LLC (4) | | Distributor of new equipment and aftermarket parts to the heavy-duty truck industry | | Class A-1 units | | | | | | 08/2022 | | | | 96,897 | | | 2.3 | | | 1.6 | | (2) | | | | |
| | | | Class A-2 units | | | | | | 12/2016 | | | | 3,500 | | | 3.5 | | | 2.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 5.8 | | | 4.0 | | | | | | |
Harvey Tool Company, LLC (15) | | Manufacturer of cutting tools used in the metalworking industry | | First lien senior secured loan | | 10.99% | SOFR (Q) | 5.50% | | 10/2021 | | 10/2027 | | | 3.6 | | | 3.6 | | | 3.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (S) | 5.50% | | 04/2024 | | 10/2027 | | | 79.1 | | | 79.1 | | | 79.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 82.7 | | | 82.7 | | | | | | |
Helix Acquisition Holdings, Inc. | | Manufacturer of springs, fasteners and custom components | | First lien senior secured loan | | 12.43% | SOFR (Q) | 7.00% | | 03/2023 | | 03/2030 | | | 11.9 | | | 11.9 | | | 11.9 | | (2)(11) | | | | |
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation (5) | | Provider of high-speed intelligent document scanning hardware and software | | Senior subordinated loan | | 14.00% (7.00% PIK) | | | | 01/2017 | | 12/2028 | | | 17.8 | | | 17.6 | | | 17.8 | | (2) | | | | |
| | | | Class A common stock | | | | | | 01/2017 | | | | 48,544 | | | 13.5 | | | 54.8 | | | | | | |
See accompanying notes to consolidated financial statements
49
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 31.1 | | | 72.6 | | | | | | |
Kene Acquisition, Inc. and Kene Holdings, L.P. (15) | | National utility services firm providing engineering and consulting services to natural gas, electric power and other energy and industrial end markets | | First lien senior secured loan | | 10.57% | SOFR (B) | 5.25% | | 02/2024 | | 02/2031 | | | 16.3 | | | 16.3 | | | 15.9 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 08/2019 | | | | 4,549,000 | | | 0.5 | | | 8.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 16.8 | | | 24.7 | | | | | | |
LTG Acquisition, Inc. | | Designer and manufacturer of display, lighting and passenger communication systems for mass transportation markets | | Class A membership units | | | | | | 01/2017 | | | | 5,000 | | | 5.1 | | | — | | | | | | |
Maverick Acquisition, Inc. | | Manufacturer of precision machined components for defense and high-tech industrial platforms | | First lien senior secured loan | | 11.58% | SOFR (Q) | 6.25% | | 06/2021 | | 06/2027 | | | 27.2 | | | 27.2 | | | 22.0 | | (2)(11) | | | | |
NCWS Intermediate, Inc. and NCWS Holdings LP | | Manufacturer and supplier of car wash equipment, parts and supplies to the conveyorized car wash market | | Class A-2 common units | | | | | | 12/2020 | | | | 12,296,000 | | | 12.9 | | | 23.8 | | (2) | | | | |
Osmose Utilities Services, Inc. and Pine Intermediate Holding LLC | | Provider of structural integrity management services to transmission and distribution infrastructure | | Second lien senior secured loan | | 12.21% | SOFR (M) | 6.75% | | 06/2021 | | 06/2029 | | | 55.3 | | | 55.3 | | | 54.7 | | (2)(11) | | | | |
Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP. | | Manufacturer of high-tolerance precision machined components and assemblies for the aerospace and defense industry | | First lien senior secured loan | | 11.43% | SOFR (M) | 6.00% | | 08/2021 | | 08/2027 | | | 11.5 | | | 11.5 | | | 11.5 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.43% | SOFR (M) | 6.00% | | 04/2022 | | 08/2027 | | | 3.9 | | | 3.9 | | | 3.9 | | (2)(6)(11) | | | | |
| | | | Class A units | | | | | | 08/2021 | | | | 88,420 | | | 13.4 | | | 33.6 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 28.8 | | | 49.0 | | | | | | |
Prime Buyer, L.L.C. (15) | | Provider of track systems, cabs, hulls, doors, and various armored components for defense/military vehicle applications | | First lien senior secured revolving loan | | 10.68% | SOFR (M) | 5.25% | | 05/2022 | | 12/2026 | | | 0.8 | | | 0.4 | | | 0.7 | | (2)(11) | | | | |
Qnnect, LLC and Connector TopCo, LP (15) | | Manufacturer of highly engineered hermetic packaging products | | First lien senior secured loan | | 11.92% | SOFR (S) | 6.75% | | 11/2022 | | 11/2029 | | | 10.6 | | | 10.6 | | | 10.6 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 11/2022 | | | | 992,500 | | | 9.9 | | | 12.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 20.5 | | | 22.9 | | | | | | |
Radius Aerospace, Inc. and Radius Aerospace Europe Limited (15) | | Metal fabricator in the aerospace industry | | First lien senior secured revolving loan | | 11.47% (0.25% PIK) | SOFR (M) | 6.00% | | 03/2019 | | 03/2027 | | | 1.4 | | | 1.4 | | | 1.4 | | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 11.20% (0.25% PIK) | SONIA (M) | 6.00% | | 11/2019 | | 03/2027 | | | 2.0 | | | 2.0 | | | 2.0 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% (0.25% PIK) | SOFR (Q) | 6.00% | | 06/2024 | | 03/2027 | | | 10.7 | | | 10.7 | | | 10.7 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 14.1 | | | 14.1 | | | | | | |
See accompanying notes to consolidated financial statements
50
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Radwell Parent, LLC (15) | | Distributor of maintenance, repair, and operations parts | | First lien senior secured revolving loan | | 10.83% | SOFR (Q) | 5.50% | | 12/2022 | | 04/2029 | | | 1.0 | | | 0.9 | | | 1.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 12/2022 | | 04/2029 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.0 | | | 1.1 | | | | | | |
Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation (15) | | Manufacturer of metal castings, precision machined components and sub-assemblies in the electrical products, power transmission and distribution and general industrial markets | | First lien senior secured revolving loan | | | | | | 10/2017 | | 10/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 04/2024 | | 10/2025 | | | 3.8 | | | 3.8 | | | 3.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 3.8 | | | 3.8 | | | | | | |
Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P. (15) | | Provider of aircraft component maintenance, repair, and overhaul services | | First lien senior secured loan | | 10.35% | SOFR (S) | 5.00% | | 05/2024 | | 05/2031 | | | 36.1 | | | 36.1 | | | 35.5 | | (2)(11) | | | | |
| | | | Series A common units | | | | | | 05/2024 | | | | 1,042 | | | 1.0 | | | 1.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 37.1 | | | 36.5 | | | | | | |
Two Six Labs, LLC (15) | | Provider of information operations, cyber, and data analytics products and services for government and defense contracts | | First lien senior secured loan | | 11.33% | SOFR (Q) | 6.00% | | 10/2023 | | 08/2027 | | | 8.6 | | | 8.6 | | | 8.6 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 531.6 | | | 599.6 | | | 4.85% | | | |
Food and Beverage | | | | | | | | | | | | | | | | | | | | | | | | |
American Seafoods Group LLC and American Seafoods Partners LLC | | Harvester and processor of seafood | | Class A units | | | | | | 08/2015 | | | | 77,922 | | | 0.1 | | | 0.1 | | (2) | | | | |
| | | | Warrant to purchase units of Class A units | | | | | | 08/2015 | | 08/2035 | | 7,422,078 | | | 7.4 | | | 12.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.5 | | | 12.1 | | | | | | |
Berner Food & Beverage, LLC (15) | | Supplier of dairy-based food and beverage products | | First lien senior secured revolving loan | | 10.95% | SOFR (M) | 5.50% | | 07/2021 | | 07/2026 | | | 1.1 | | | 1.1 | | | 1.1 | | (2)(11) | | | | |
Bragg Live Food Products, LLC and SPC Investment Co., L.P. (4)(15) | | Health food company | | First lien senior secured loan | | 11.43% | SOFR (Q) | 6.00% | | 12/2020 | | 12/2025 | | | 24.4 | | | 24.4 | | | 24.4 | | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2019 | | | | 14,850 | | | 11.5 | | | 30.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 35.9 | | | 54.7 | | | | | | |
CHG PPC Parent LLC & PPC CHG Blocker LLC | | Diversified food products manufacturer | | Second lien senior secured loan | | 12.21% | SOFR (M) | 6.75% | | 12/2021 | | 12/2029 | | | 94.6 | | | 94.6 | | | 94.6 | | (2)(11) | | | | |
| | | | Common units | | | | | | 12/2021 | | | | 59 | | | 3.0 | | | 3.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 97.6 | | | 98.5 | | | | | | |
Demakes Borrower, LLC (15) | | Value-added protein manufacturer | | First lien senior secured loan | | 11.55% | SOFR (Q) | 6.25% | | 12/2023 | | 12/2029 | | | 6.3 | | | 6.3 | | | 6.3 | | (2)(11) | | | | |
Florida Food Products, LLC | | Provider of plant extracts and juices | | First lien senior secured loan | | 10.46% | SOFR (M) | 5.00% | | 10/2021 | | 10/2028 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.34% | SOFR (M) | 5.00% | | 06/2022 | | 10/2028 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 13.46% | SOFR (M) | 8.00% | | 10/2021 | | 10/2029 | | | 71.8 | | | 71.8 | | | 63.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 72.6 | | | 64.7 | | | | | | |
See accompanying notes to consolidated financial statements
51
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
GF Parent LLC | | Producer of low-acid, aseptic food and beverage products | | Class A preferred units | | | | | | 05/2015 | | | | 2,940 | | | 2.9 | | | — | | (2) | | | | |
| | | | Class A common units | | | | | | 05/2015 | | | | 60,000 | | | 0.1 | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 3.0 | | | — | | | | | | |
Gotham Greens Holdings, PBC | | Producer of vegetables and culinary herbs for restaurants and retailers | | First lien senior secured loan | | 14.69% (2.00% PIK) | SOFR (M) | 9.25% | | 06/2022 | | 12/2026 | | | 37.4 | | | 37.4 | | | 37.4 | | (11) | | | | |
| | | | Series E-1 preferred stock | | 6.00% PIK | | | | 06/2022 | | | | 186,995 | | | 14.2 | | | 16.0 | | (2) | | | | |
| | | | Series E-1 preferred stock | | | | | | 06/2022 | | | | 1,610 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase shares of Series E-1 preferred stock | | | | | | 06/2022 | | 06/2032 | | 78,216 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 51.6 | | | 53.4 | | | | | | |
KNPC HoldCo, LLC | | Producer of trail mix and mixed nut snack products | | First lien senior secured loan | | 10.78% | SOFR (Q) | 5.50% | | 04/2022 | | 10/2029 | | | 5.5 | | | 5.5 | | | 5.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.03% | SOFR (Q) | 6.75% | | 12/2022 | | 10/2029 | | | 1.3 | | | 1.3 | | | 1.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.28% | SOFR (S) | 6.00% | | 11/2023 | | 10/2029 | | | 2.8 | | | 2.8 | | | 2.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 9.6 | | | 9.6 | | | | | | |
Manna Pro Products, LLC (15) | | Manufacturer and supplier of specialty nutrition and care products for animals | | First lien senior secured revolving loan | | 11.44% | SOFR (M) | 6.00% | | 12/2020 | | 12/2026 | | | 5.1 | | | 5.1 | | | 4.5 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 13.50% | Base Rate (Q) | 5.00% | | 12/2020 | | 12/2026 | | | 0.9 | | | 0.9 | | | 0.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 6.0 | | | 5.3 | | | | | | |
Max US Bidco Inc. | | Manufacturer of premium dry dog food | | First lien senior secured loan | | 10.34% | SOFR (M) | 5.00% | | 10/2023 | | 10/2030 | | | 1.0 | | | 0.9 | | | 0.9 | | (2)(18) | | | | |
RB Holdings InterCo, LLC (15) | | Manufacturer of pet food and treats | | First lien senior secured revolving loan | | 10.48% | SOFR (Q) | 5.00% | | 05/2022 | | 05/2028 | | | 1.5 | | | 1.5 | | | 1.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.47% | SOFR (Q) | 5.00% | | 05/2022 | | 05/2028 | | | 11.3 | | | 11.3 | | | 11.2 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 12.8 | | | 12.7 | | | | | | |
RF HP SCF Investor, LLC | | Branded specialty food company | | Member interest | | | | | | 12/2016 | | | | 10.08% | | | 12.5 | | | 31.3 | | (2)(6) | | | | |
Sugar PPC Buyer LLC | | Manufacturer and distributor of food products | | First lien senior secured loan | | 11.33% | SOFR (M) | 6.00% | | 10/2023 | | 10/2030 | | | 15.8 | | | 15.8 | | | 15.8 | | (2)(11) | | | | |
Teasdale Foods, Inc. and Familia Group Holdings Inc. | | Provider of beans, sauces and hominy to the retail, foodservice and wholesale channels | | First lien senior secured loan | | 12.69% (1.00% PIK) | SOFR (M) | 7.25% | | 12/2020 | | 12/2025 | | | 76.1 | | | 76.1 | | | 73.0 | | (2)(11) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 02/2019 | | 02/2034 | | 57,827 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 76.1 | | | 73.0 | | | | | | |
Triton Water Holdings, Inc. | | Producer and provider of bottled water brands | | First lien senior secured loan | | 8.85% | SOFR (Q) | 3.25% | | 03/2021 | | 03/2028 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(11)(18) | | | | |
| | | | Senior subordinated loan | | 6.25% | | | | 03/2021 | | 04/2029 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(18) | | | | |
| | | | | | | | | | | | | | | | | 1.1 | | | 1.1 | | | | | | |
Watermill Express, LLC and Watermill Express Holdings, LLC (15) | | Owner and operator of self-service water and ice stations | | First lien senior secured revolving loan | | 11.22% | SOFR (M) | 5.75% | | 04/2021 | | 07/2029 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 13.25% | Base Rate (Q) | 4.75% | | 04/2021 | | 07/2029 | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
52
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 04/2021 | | 07/2029 | | | 20.8 | | | 20.8 | | | 20.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 01/2024 | | 07/2029 | | | 5.6 | | | 5.6 | | | 5.6 | | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 04/2021 | | | | 282,200 | | | 2.9 | | | 4.7 | | | | | | |
| | | | | | | | | | | | | | | | | 30.1 | | | 31.9 | | | | | | |
Winebow Holdings, Inc. and The Vintner Group, Inc. | | Importer and distributor of wine | | First lien senior secured loan | | 11.69% | SOFR (M) | 6.25% | | 04/2021 | | 07/2025 | | | 27.6 | | | 27.6 | | | 25.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 468.1 | | | 498.1 | | | 4.03% | | | |
Consumer Staples Distribution and Retail | | | | | | | | | | | | | | | | | | | | | | | | |
Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P. | | Manufacturer and distributor of specialty bakery ingredients | | First lien senior secured loan | | 9.96% | SOFR (M) | 4.50% | | 07/2023 | | 09/2028 | | | 16.4 | | | 16.4 | | | 16.4 | | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 12.46% | SOFR (M) | 7.00% | | 09/2021 | | 09/2029 | | | 29.5 | | | 29.5 | | | 29.2 | | (2)(11) | | | | |
| | | | Class A preferred units | | 8.00% PIK | | | | 09/2021 | | 08/2051 | | 5,484 | | | 6.9 | | | 11.9 | | (2) | | | | |
| | | | Series A preferred shares | | 11.00% PIK | | | | 09/2021 | | 08/2051 | | 21,921 | | | 29.9 | | | 29.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 82.7 | | | 87.4 | | | | | | |
BGI Purchaser, Inc. (15) | | Developer and manufacturer of customized natural and clean flavorings for the food & beverage end market | | First lien senior secured revolving loan | | 9.35% | SOFR (Q) | 4.00% | | 05/2024 | | 05/2030 | | | 10.9 | | | 10.9 | | | 10.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.35% | SOFR (Q) | 5.00% | | 05/2024 | | 06/2031 | | | 41.4 | | | 41.4 | | | 40.7 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 52.3 | | | 51.4 | | | | | | |
BR PJK Produce, LLC (15) | | Specialty produce distributor | | First lien senior secured loan | | 11.46% | SOFR (Q) | 6.00% | | 12/2023 | | 11/2027 | | | 1.9 | | | 1.8 | | | 1.9 | | (2)(11) | | | | |
City Line Distributors LLC and City Line Investments LLC (15) | | Specialty food distributor | | First lien senior secured loan | | 11.45% | SOFR (M) | 6.00% | | 08/2023 | | 08/2028 | | | 4.4 | | | 4.4 | | | 4.4 | | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 08/2023 | | | | 4,172,852 | | | 4.4 | | | 4.7 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 8.8 | | | 9.1 | | | | | | |
Continental Café, LLC and Infinity Ovation Yacht Charters, LLC (15) | | Diversified contract food service provider | | First lien senior secured revolving loan | | 11.44% | SOFR (M) | 6.00% | | 11/2021 | | 11/2027 | | | 1.3 | | | 1.3 | | | 1.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.44% | SOFR (M) | 6.00% | | 11/2021 | | 11/2027 | | | 6.3 | | | 6.3 | | | 6.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.44% | SOFR (M) | 6.00% | | 04/2023 | | 11/2027 | | | 1.3 | | | 1.3 | | | 1.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.69% | SOFR (M) | 6.25% | | 06/2023 | | 11/2027 | | | 1.6 | | | 1.6 | | | 1.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 05/2024 | | 11/2027 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 11.3 | | | 11.3 | | | | | | |
DecoPac, Inc. and KCAKE Holdings Inc. (15) | | Supplier of cake decorating solutions and products to in-store bakeries | | First lien senior secured revolving loan | | 11.47% | SOFR (M) | 6.00% | | 05/2021 | | 05/2026 | | | 4.9 | | | 4.9 | | | 4.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 05/2021 | | 05/2028 | | | 146.4 | | | 146.4 | | | 146.4 | | (2)(11) | | | | |
| | | | Common stock | | | | | | 05/2021 | | | | 9,599 | | | 9.6 | | | 11.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 160.9 | | | 162.3 | | | | | | |
FS Squared Holding Corp. and FS Squared, LLC (15) | | Provider of on-site vending and micro market solutions | | First lien senior secured revolving loan | | | | | | 03/2019 | | 03/2026 | | | — | | | — | | | — | | (2)(13) | | | | |
See accompanying notes to consolidated financial statements
53
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 10.69% | SOFR (M) | 5.25% | | 03/2019 | | 03/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 03/2019 | | | | 113,219 | | | 11.1 | | | 36.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.2 | | | 36.2 | | | | | | |
JWC/KI Holdings, LLC | | Foodservice sales and marketing agency | | Membership units | | | | | | 11/2015 | | | | 5,000 | | | 5.0 | | | 11.5 | | (2) | | | | |
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. (15)(16) | | Distributor of specialty foods | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 10/2022 | | 10/2028 | | | 39.8 | | | 39.8 | | | 38.5 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 10/2022 | | | | 9,683,991 | | | 9.7 | | | 5.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 49.5 | | | 43.9 | | | | | | |
Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC (15) | | Produce distribution platform | | First lien senior secured revolving loan | | | | | | 05/2023 | | 05/2029 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.68% | SOFR (M) | 6.25% | | 05/2023 | | 05/2029 | | | 9.7 | | | 9.7 | | | 9.7 | | (2)(11) | | | | |
| | | | Class B limited liability company interest | | | | | | 05/2023 | | | | 3.64% | | | 9.6 | | | 9.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 19.3 | | | 18.9 | | | | | | |
SFE Intermediate Holdco LLC | | Provider of outsourced foodservice to K-12 school districts | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 07/2017 | | 07/2026 | | | 6.1 | | | 6.1 | | | 6.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 09/2018 | | 07/2026 | | | 9.9 | | | 9.9 | | | 9.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 03/2022 | | 07/2026 | | | 0.4 | | | 0.4 | | | 0.4 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 16.4 | | | 16.4 | | | | | | |
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. (15)(16) | | Fresh and specialty food distributor | | First lien senior secured revolving loan | | | | | | 02/2023 | | 01/2029 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.58% | SOFR (Q) | 6.25% | | 02/2023 | | 01/2029 | | | 8.2 | | | 8.2 | | | 8.1 | | (2)(11) | | | | |
| | | | Common units | | | | | | 01/2023 | | | | 1,673,000 | | | 1.7 | | | 1.1 | | | | | | |
| | | | | | | | | | | | | | | | | 9.9 | | | 9.2 | | | | | | |
ZB Holdco LLC and ZB TopCo LLC (15) | | Distributor of Mediterranean food and beverages | | First lien senior secured revolving loan | | 10.99% | SOFR (Q) | 5.50% | | 02/2022 | | 02/2028 | | | 2.6 | | | 2.6 | | | 2.6 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 02/2022 | | 02/2028 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 08/2023 | | 02/2028 | | | 8.0 | | | 8.0 | | | 8.0 | | (2)(11) | | | | |
| | | | Series A units | | | | | | 06/2023 | | | | 4,699 | | | 4.0 | | | 6.6 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 14.8 | | | 17.4 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 443.9 | | | 476.9 | | | 3.86% | | | |
Energy | | | | | | | | | | | | | | | | | | | | | | | | |
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC (15) | | Private oil exploration and production company | | First lien senior secured loan | | 14.43% | SOFR (Q) | 9.00% | | 11/2022 | | 11/2026 | | | 46.9 | | | 46.9 | | | 46.9 | | (2)(11) | | | | |
GNZ Energy Bidco Limited and Galileo Co-investment Trust I (15) | | Independent fuel provider in New Zealand | | First lien senior secured loan | | 11.68% | BKBM (Q) | 6.00% | | 05/2022 | | 07/2027 | | | 29.6 | | | 30.5 | | | 29.6 | | (2)(6)(11) | | | | |
| | | | Common units | | | | | | 07/2022 | | | | 17,616,667 | | | 5.9 | | | 10.8 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 36.4 | | | 40.4 | | | | | | |
See accompanying notes to consolidated financial statements
54
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Halcon Holdings, LLC | | Operator of development, exploration, and production oil company | | First lien senior secured loan | | 12.98% | SOFR (Q) | 7.50% | | 11/2021 | | 11/2025 | | | 4.7 | | | 4.6 | | | 4.7 | | (2) | | | | |
| | | | First lien senior secured loan | | 12.98% | SOFR (Q) | 7.50% | | 11/2021 | | 11/2025 | | | 4.5 | | | 4.4 | | | 4.5 | | | | | | |
| | | | | | | | | | | | | | | | | 9.0 | | | 9.2 | | | | | | |
HighPeak Energy, Inc. | | Oil and gas exploration and production company | | First lien senior secured loan | | 12.98% | SOFR (Q) | 7.50% | | 09/2023 | | 09/2026 | | | 87.3 | | | 85.6 | | | 87.3 | | (2)(6)(11) | | | | |
Murchison Oil and Gas, LLC and Murchison Holdings, LLC | | Exploration and production company | | First lien senior secured loan | | 13.74% | SOFR (Q) | 8.25% | | 06/2022 | | 06/2026 | | | 63.0 | | | 63.0 | | | 63.0 | | (2)(11) | | | | |
| | | | Preferred units | | 8.00% | | | | 06/2022 | | | | 41,000 | | | 41.0 | | | 55.3 | | | | | | |
| | | | | | | | | | | | | | | | | 104.0 | | | 118.3 | | | | | | |
Offen, Inc. | | Distributor of fuel, lubricants, diesel exhaust fluid, and premium additives | | First lien senior secured loan | | 10.46% | SOFR (M) | 5.00% | | 05/2022 | | 06/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2) | | | | |
SilverBow Resources, Inc. | | Oil and gas producer | | Common stock | | | | | | 06/2022 | | | | 73,889 | | | 2.0 | | | 2.8 | | (2)(6)(18) | | | | |
VPROP Operating, LLC and V SandCo, LLC (5) | | Sand-based proppant producer and distributor to the oil and natural gas industry | | First lien senior secured loan | | 15.09% | SOFR (M) | 9.50% | | 03/2017 | | 11/2024 | | | 27.3 | | | 27.3 | | | 27.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 15.09% | SOFR (M) | 9.50% | | 06/2020 | | 11/2024 | | | 6.0 | | | 6.0 | | | 6.0 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 15.09% | SOFR (M) | 9.50% | | 11/2020 | | 11/2024 | | | 5.0 | | | 5.0 | | | 5.0 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 11/2020 | | | | 347,900 | | | 32.8 | | | 61.7 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 71.1 | | | 100.0 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 355.1 | | | 405.0 | | | 3.28% | | | |
Pharmaceuticals, Biotechnology and Life Sciences | | | | | | | | | | | | | | | | | | | | | | | | |
Abzena Holdings, Inc. and Astro Group Holdings Ltd. | | Organization providing discovery, development and manufacturing services to the pharmaceutical and biotechnology industries | | A ordinary shares | | | | | | 05/2021 | | | | 2,476,744 | | | 5.7 | | | 4.5 | | (2)(6) | | | | |
ADMA Biologics Inc. | | Biopharmaceutical company | | First lien senior secured loan | | 11.84% | SOFR (Q) | 6.50% | | 12/2023 | | 12/2027 | | | 6.5 | | | 6.4 | | | 6.5 | | (2)(6)(11) | | | | |
Alcami Corporation and ACM Note Holdings, LLC (15) | | Outsourced drug development services provider | | First lien senior secured loan | | 12.49% | SOFR (Q) | 7.00% | | 12/2022 | | 12/2028 | | | 10.1 | | | 10.1 | | | 10.1 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 10.00% PIK | | | | 12/2022 | | 06/2029 | | | 21.0 | | | 21.0 | | | 21.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 31.1 | | | 31.1 | | | | | | |
Athyrium Buffalo LP | | Biotechnology company engaging in the development, manufacture, and commercialization of novel neuromodulators | | Limited partnership interests | | | | | | 06/2022 | | | | 7,628,966 | | | 7.6 | | | 7.4 | | (2)(6) | | | | |
| | | | Limited partnership interests | | | | | | 08/2023 | | | | 3,756,395 | | | 3.8 | | | 3.6 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 11.4 | | | 11.0 | | | | | | |
Bamboo US BidCo LLC (15) | | Biopharmaceutical company | | First lien senior secured loan | | 12.08% (3.38% PIK) | SOFR (Q) | 6.75% | | 09/2023 | | 09/2030 | | | 30.3 | | | 30.3 | | | 30.3 | | (2)(11) | | | | |
Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc. (15) | | Provider of biological products to life science and pharmaceutical companies | | First lien senior secured revolving loan | | 11.46% | SOFR (M) | 6.00% | | 10/2021 | | 10/2027 | | | 4.0 | | | 4.0 | | | 4.0 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
55
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.46% | SOFR (M) | 6.00% | | 10/2021 | | 10/2028 | | | 31.3 | | | 31.3 | | | 31.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.46% | SOFR (M) | 6.00% | | 06/2023 | | 10/2028 | | | 11.5 | | | 11.5 | | | 11.5 | | (2)(11) | | | | |
| | | | Preferred units | | | | | | 10/2021 | | 10/2051 | | 3,020 | | | 3.6 | | | 3.6 | | (2) | | | | |
| | | | Series A preferred shares | | 15.59% PIK | SOFR (Q) | 10.00% | | 10/2021 | | | | 60,236 | | | 87.6 | | | 88.6 | | (2) | | | | |
| | | | Class A common units | | | | | | 10/2021 | | | | 30,500 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 138.0 | | | 139.0 | | | | | | |
NMC Skincare Intermediate Holdings II, LLC (15) | | Developer, manufacturer and marketer of skincare products | | First lien senior secured revolving loan | | 11.43% (1.00% PIK) | SOFR (M) | 6.00% | | 10/2018 | | 11/2026 | | | 4.2 | | | 4.2 | | | 3.9 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 11.42% (1.00% PIK) | SOFR (M) | 6.00% | | 05/2022 | | 11/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.43% (1.00% PIK) | SOFR (M) | 6.00% | | 10/2018 | | 11/2026 | | | 30.5 | | | 30.5 | | | 28.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.43% (1.00% PIK) | SOFR (M) | 6.00% | | 05/2022 | | 11/2026 | | | 4.5 | | | 4.5 | | | 4.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 39.3 | | | 36.2 | | | | | | |
North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P. (15) | | Contract research organization providing research and development and testing of medical devices | | First lien senior secured revolving loan | | 10.00% | SOFR (Q) | 4.50% | | 09/2021 | | 03/2027 | | | 2.1 | | | 2.1 | | | 2.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.24% | SOFR (Q) | 5.75% | | 09/2020 | | 09/2027 | | | 46.8 | | | 46.8 | | | 46.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.24% | SOFR (Q) | 5.75% | | 12/2020 | | 09/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.24% | SOFR (Q) | 5.75% | | 02/2021 | | 09/2027 | | | 2.5 | | | 2.5 | | | 2.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.24% | SOFR (Q) | 5.75% | | 09/2021 | | 09/2027 | | | 9.3 | | | 9.3 | | | 9.3 | | (2)(11) | | | | |
| | | | Senior subordinated loan | | 11.00% PIK | | | | 03/2023 | | 03/2025 | | | 1.6 | | | 1.6 | | | 1.6 | | (2) | | | | |
| | | | Class A preferred units | | 8.00% PIK | | | | 09/2020 | | | | 13,528 | | | 18.2 | | | 38.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 80.6 | | | 101.2 | | | | | | |
Verista, Inc. (15) | | Provides systems consulting for compliance, automation, validation, and packaging solutions to the healthcare sector | | First lien senior secured revolving loan | | 11.60% | SOFR (Q) | 6.00% | | 05/2022 | | 02/2027 | | | 0.7 | | | 0.4 | | | 0.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.10% (0.50% PIK) | SOFR (Q) | 6.50% | | 05/2022 | | 02/2027 | | | 0.8 | | | 0.8 | | | 0.8 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.2 | | | 1.4 | | | | | | |
Vertice Pharma UK Parent Limited | | Manufacturer and distributor of generic pharmaceutical products | | Preferred shares | | | | | | 12/2015 | | | | 40,662 | | | — | | | — | | (6) | | | | |
WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P. (15) | | Manufacturer of monoclonal antibodies | | First lien senior secured loan | | 11.59% | SOFR (Q) | 6.25% | | 11/2023 | | 11/2030 | | | 5.0 | | | 5.0 | | | 5.0 | | (2)(11) | | | | |
| | | | Limited partnership interest | | | | | | 11/2023 | | | | 1,529,000 | | | 1.5 | | | 1.5 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 6.5 | | | 6.5 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 350.5 | | | 367.7 | | | 2.97% | | | |
Materials | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements
56
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP (15) | | Manufacturer and supplier of printed packaging and trimmings | | First lien senior secured revolving loan | | 11.44% | SOFR (M) | 6.00% | | 12/2021 | | 12/2027 | | | 2.6 | | | 2.6 | | | 2.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.59% | SOFR (Q) | 6.00% | | 12/2021 | | 12/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2021 | | | | 195,990 | | | 19.6 | | | 12.1 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 22.3 | | | 14.7 | | | | | | |
Halex Holdings, Inc. (5) | | Manufacturer of flooring installation products | | Common stock | | | | | | 01/2017 | | | | 51,853 | | | — | | | — | | | | | | |
H-Food Holdings, LLC and Matterhorn Parent, LLC | | Food contract manufacturer | | First lien senior secured loan | | 10.61% | SOFR (Q) | 5.00% | | 12/2021 | | 05/2025 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11)(18) | | | | |
| | | | First lien senior secured loan | | 9.30% | SOFR (Q) | 3.69% | | 06/2022 | | 05/2025 | | | 26.0 | | | 25.0 | | | 18.9 | | (2)(18) | | | | |
| | | | First lien senior secured loan | | 9.61% | SOFR (Q) | 4.00% | | 07/2022 | | 05/2025 | | | 3.3 | | | 3.2 | | | 2.4 | | (2)(18) | | | | |
| | | | Second lien senior secured loan | | | | | | 11/2018 | | 03/2026 | | | 73.0 | | | 68.4 | | | 16.4 | | (2)(10) | | | | |
| | | | Common units | | | | | | 11/2018 | | | | 5,827 | | | 5.8 | | | — | | | | | | |
| | | | | | | | | | | | | | | | | 102.5 | | | 37.8 | | | | | | |
Meyer Laboratory, LLC and Meyer Parent, LLC (15) | | Provider of industrial and institutional cleaning chemicals and application systems | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 02/2024 | | 02/2030 | | | 27.1 | | | 27.1 | | | 26.5 | | (2)(11) | | | | |
| | | | Common units | | | | | | 02/2024 | | | | 440,000 | | | 0.4 | | | 0.4 | | | | | | |
| | | | | | | | | | | | | | | | | 27.5 | | | 26.9 | | | | | | |
Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V. (15) | | Manufacturer of thermoformed packaging for medical devices | | First lien senior secured revolving loan | | 10.84% | SOFR (M) | 5.50% | | 03/2024 | | 03/2031 | | | 1.0 | | | 1.0 | | | 1.0 | | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 9.18% | Euribor (M) | 5.50% | | 03/2024 | | 03/2031 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 03/2024 | | 03/2031 | | | 16.6 | | | 16.6 | | | 16.3 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 9.22% | Euribor (Q) | 5.50% | | 03/2024 | | 03/2031 | | | 33.4 | | | 33.7 | | | 32.9 | | (2)(6)(11) | | | | |
| | | | Class A units | | | | | | 07/2019 | | | | 6,762,668 | | | 6.8 | | | 8.1 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 58.3 | | | 58.5 | | | | | | |
Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C. | | Developer and manufacturer of absorbent pads for food products | | First lien senior secured loan | | 13.69% (1.00% PIK) | SOFR (M) | 8.25% | | 12/2020 | | 12/2026 | | | 22.2 | | | 22.2 | | | 20.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.69% (1.00% PIK) | SOFR (M) | 8.25% | | 12/2022 | | 12/2026 | | | 0.3 | | | 0.3 | | | 0.2 | | (2)(11) | | | | |
| | | | Class A preferred units | | | | | | 12/2020 | | | | 4,772 | | | 4.6 | | | 2.5 | | (2) | | | | |
| | | | Class C units | | | | | | 12/2020 | | | | 4,772 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.1 | | | 23.1 | | | | | | |
Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC | | Manufacturer of specialized acrylic and polycarbonate sheets | | First lien senior secured loan | | 9.46% | SOFR (M) | 4.00% | | 12/2018 | | 12/2025 | | | 22.3 | | | 21.7 | | | 21.6 | | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 12.69% | SOFR (M) | 7.25% | | 12/2018 | | 12/2026 | | | 55.0 | | | 55.0 | | | 53.9 | | (2)(11) | | | | |
| | | | Preferred units | | 15.00% PIK | | | | 10/2023 | | | | 841 | | | 0.1 | | | — | | (2) | | | | |
| | | | Co-Invest units | | | | | | 12/2018 | | | | 5,969 | | | 0.6 | | | 0.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 77.4 | | | 75.8 | | | | | | |
See accompanying notes to consolidated financial statements
57
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Precision Concepts International LLC and Precision Concepts Canada Corporation (15) | | Manufacturer of diversified packaging solutions and plastic injection molded products | | First lien senior secured revolving loan | | 13.75% | Base Rate (Q) | 5.25% | | 01/2019 | | 01/2026 | | | 2.9 | | | 2.9 | | | 2.9 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.68% | SOFR (Q) | 6.25% | | 01/2019 | | 01/2026 | | | 11.5 | | | 11.5 | | | 11.5 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.68% | SOFR (Q) | 6.25% | | 06/2021 | | 01/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.68% | SOFR (Q) | 6.25% | | 05/2022 | | 01/2026 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 14.6 | | | 14.6 | | | | | | |
Reagent Chemical & Research, LLC (15) | | Supplier of liquid hydrochloric acid | | First lien senior secured loan | | 10.58% | SOFR (M) | 5.25% | | 04/2024 | | 04/2031 | | | 53.6 | | | 53.6 | | | 52.5 | | (2)(11) | | | | |
SCI PH Parent, Inc. | | Industrial container manufacturer, reconditioner and servicer | | Series B shares | | | | | | 08/2018 | | | | 11 | | | 1.1 | | | 1.8 | | (2) | | | | |
Vobev, LLC and Vobev Holdings, LLC (15) | | Producer and filler of aluminum beverage cans | | First lien senior secured loan | | 9.18% | SOFR (Q) | 3.75% | | 04/2023 | | 04/2028 | | | 62.6 | | | 62.6 | | | 49.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 9.18% | SOFR (S) | 3.75% | | 01/2024 | | 04/2028 | | | 5.6 | | | 5.6 | | | 4.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 9.19% | SOFR (B) | 3.75% | | 05/2024 | | 04/2028 | | | 5.0 | | | 5.0 | | | 3.9 | | (2)(11) | | | | |
| | | | Warrant to purchase shares of ordinary shares | | | | | | 04/2023 | | 11/2033 | | 4,378 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase units of class B units | | | | | | 11/2023 | | 04/2028 | | 59,450 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 73.2 | | | 57.8 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 457.6 | | | 363.5 | | | 2.94% | | | |
Automobiles and Components | | | | | | | | | | | | | | | | | | | | | | | | |
Automotive Keys Group, LLC and Automotive Keys Investor, LLC | | Provider of replacement wireless keys for automotive market | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 12/2021 | | 11/2025 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.98% | SOFR (Q) | 6.50% | | 12/2022 | | 11/2025 | | | 4.9 | | | 4.9 | | | 4.7 | | (2)(11) | | | | |
| | | | Preferred units | | | | | | 11/2020 | | | | 4,113,113 | | | 5.1 | | | 1.9 | | (2) | | | | |
| | | | Preferred units | | | | | | 11/2020 | | | | 1,095,046 | | | 1.1 | | | 0.5 | | (2) | | | | |
| | | | Class A common units | | | | | | 11/2020 | | | | 5,208,159 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.2 | | | 7.2 | | | | | | |
Collision SP Subco, LLC (15) | | Provider of auto body collision repair services | | First lien senior secured revolving loan | | 10.83% | SOFR (Q) | 5.50% | | 01/2024 | | 01/2030 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 01/2024 | | 01/2030 | | | 5.6 | | | 5.6 | | | 5.5 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 5.7 | | | 5.6 | | | | | | |
Continental Acquisition Holdings, Inc. | | Distributor of aftermarket batteries to the electric utility vehicle, automotive, commercial, marine and industrial markets | | First lien senior secured loan | | 12.48% (4.07% PIK) | SOFR (Q) | 7.00% | | 01/2021 | | 01/2027 | | | 37.0 | | | 37.0 | | 29.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.48% (4.07% PIK) | SOFR (Q) | 7.00% | | 12/2021 | | 01/2027 | | | 5.5 | | | 5.5 | | | 4.3 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 42.5 | | | 33.6 | | | | | | |
Eckler Purchaser LLC (5) | | Restoration parts and accessories provider for classic automobiles | | Class A common units | | | | | | 07/2012 | | | | 67,972 | | | — | | | — | | (2) | | | | |
Faraday Buyer, LLC (15) | | Manufacturer and supplier for the power utility and automotive markets worldwide | | First lien senior secured loan | | 11.33% | SOFR (Q) | 6.00% | | 10/2022 | | 10/2028 | | | 55.1 | | | 55.1 | | | 55.1 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
58
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.33% | SOFR (Q) | 6.00% | | 11/2023 | | 10/2028 | | | 7.9 | | | 7.9 | | | 7.9 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 63.0 | | | 63.0 | | | | | | |
Faraday&Future Inc., FF Inc., Faraday SPE, LLC and Faraday Future Intelligent Electric Inc. | | Electric vehicle manufacturer | | Warrant to purchase shares of Class A common stock | | | | | | 08/2021 | | 08/2027 | | 27,824,527 | | | 2.3 | | | — | | (2) | | | | |
Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC (15) | | Manufacturer and distributor of automotive fluids | | First lien senior secured revolving loan | | | | | | 11/2020 | | 11/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | Second lien senior secured loan | | 13.48% | SOFR (Q) | 8.00% | | 11/2020 | | 11/2028 | | | 70.4 | | | 70.4 | | | 70.4 | | (2)(11) | | | | |
| | | | Co-invest units | | | | | | 11/2020 | | | | 59,230 | | | 5.9 | | | 8.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 76.3 | | | 78.7 | | | | | | |
New ChurcHill HoldCo LLC and Victory Topco, LP (15) | | Operator of collision repair centers | | First lien senior secured revolving loan | | 10.77% | SOFR (S) | 5.50% | | 11/2023 | | 11/2029 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 11/2023 | | 11/2029 | | | 11.8 | | | 11.8 | | | 11.8 | | (2)(11) | | | | |
| | | | Class A-2 common units | | | | | | 11/2023 | | | | 20,170 | | | 2.0 | | | 2.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 14.0 | | | 14.8 | | | | | | |
Sun Acquirer Corp. and Sun TopCo, LP (15) | | Automotive parts and repair services retailer | | First lien senior secured revolving loan | | 13.25% | Base Rate (Q) | 4.75% | | 09/2021 | | 09/2027 | | | 3.0 | | | 3.0 | | | 3.0 | | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 09/2021 | | 09/2028 | | | 51.5 | | | 51.5 | | | 51.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 11/2021 | | 09/2028 | | | 5.3 | | | 5.3 | | | 5.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 06/2022 | | 09/2028 | | | 1.2 | | | 1.2 | | | 1.2 | | (2)(11) | | | | |
| | | | Class A units | | | | | | 09/2021 | | | | 79,688 | | | 8.0 | | | 11.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 69.0 | | | 72.0 | | | | | | |
Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC (15) | | Provider of global transportation safety and productivity applications | | First lien senior secured revolving loan | | 11.08% | SOFR (M) | 5.75% | | 02/2024 | | 02/2030 | | | 0.3 | | | 0.3 | | | 0.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.07% | SOFR (Q) | 5.75% | | 02/2024 | | 02/2031 | | | 81.3 | | | 81.3 | | | 79.6 | | (2)(11) | | | | |
| | | | Class A common units | | | | | | 02/2024 | | | | 2,501 | | | 6.2 | | | 6.2 | | | | | | |
| | | | | | | | | | | | | | | | | 87.8 | | | 86.1 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 371.8 | | | 361.0 | | | 2.92% | | | |
Household and Personal Products | | | | | | | | | | | | | | | | | | | | | | | | |
Beacon Wellness Brands, Inc. and CDI Holdings I Corp. (15) | | Provider of personal care appliances | | First lien senior secured loan | | 11.69% (0.50% PIK) | SOFR (M) | 6.25% | | 12/2021 | | 12/2027 | | | 3.7 | | | 3.7 | | | 3.5 | | (2)(11) | | | | |
| | | | Common stock | | | | | | 12/2021 | | | | 6,149 | | | 6.1 | | | 4.2 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.8 | | | 7.7 | | | | | | |
Foundation Consumer Brands, LLC | | Pharmaceutical holding company of over the counter brands | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 02/2021 | | 02/2027 | | | 13.3 | | | 13.2 | | | 13.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 06/2023 | | 02/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 13.4 | | | 13.5 | | | | | | |
See accompanying notes to consolidated financial statements
59
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
LifeStyles Bidco Ltd., Lifestyles US Holdco, Inc. and LifeStyles Parent, L.P. | | Provider of intimate wellness products | | First lien senior secured loan | | 12.08% | SOFR (Q) | 6.75% | | 11/2022 | | 11/2028 | | | 18.4 | | | 18.4 | | | 18.4 | | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.83% | SOFR (Q) | 6.50% | | 12/2023 | | 11/2028 | | | 8.6 | | | 8.8 | | | 8.6 | | (2)(6)(11) | | | | |
| | | | Preferred units | | 8.00% PIK | | | | 11/2022 | | | | 3,178 | | | 3.6 | | | 3.6 | | (2)(6) | | | | |
| | | | Class B common units | | | | | | 11/2022 | | | | 32,105 | | | — | | | 1.1 | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 30.8 | | | 31.7 | | | | | | |
Premier Specialties, Inc. and RMCF V CIV XLIV, L.P. (15) | | Manufacturer and supplier of natural fragrance materials and cosmeceuticals | | First lien senior secured revolving loan | | 12.44% | SOFR (M) | 7.00% | | 08/2021 | | 08/2027 | | | 1.2 | | | 1.2 | | | 1.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.44% (3.50% PIK) | SOFR (M) | 7.00% | | 08/2021 | | 08/2027 | | | 27.6 | | | 27.6 | | | 24.9 | | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 08/2021 | | | | 3.61% | | | 5.0 | | | 1.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 33.8 | | | 27.9 | | | | | | |
RD Holdco Inc. (5) | | Manufacturer and marketer of carpet cleaning machines | | Senior subordinated loan | | | | | | 01/2017 | | 10/2026 | | | 30.2 | | | 22.0 | | | 13.0 | | (2)(10) | | | | |
| | | | Senior subordinated loan | | | | | | 04/2023 | | 10/2026 | | | 1.1 | | | 0.9 | | | 0.5 | | (2)(10) | | | | |
| | | | Common stock | | | | | | 01/2017 | | | | 458,596 | | | 14.0 | | | — | | | | | | |
| | | | | | | | | | | | | | | | | 36.9 | | | 13.5 | | | | | | |
Silk Holdings III Corp. and Silk Holdings I Corp. (15) | | Producer of personal care products | | First lien senior secured revolving loan | | 9.26% | SOFR (S) | 4.00% | | 05/2023 | | 05/2029 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.76% | SOFR (S) | 5.50% | | 05/2023 | | 05/2029 | | | 16.6 | | | 16.6 | | | 16.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.76% | SOFR (S) | 5.50% | | 05/2024 | | 05/2029 | | | 56.2 | | | 56.2 | | | 55.0 | | (2)(11) | | | | |
| | | | Common stock | | | | | | 05/2023 | | | | 14,199 | | | 14.2 | | | 35.8 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 87.1 | | | 107.5 | | | | | | |
Walnut Parent, Inc. | | Manufacturer of natural solution pest and animal control products | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 11/2020 | | 11/2027 | | | 14.4 | | | 14.4 | | | 14.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 04/2022 | | 11/2027 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 14.5 | | | 14.2 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 226.3 | | | 216.0 | | | 1.75% | | | |
Technology Hardware and Equipment | | | | | | | | | | | | | | | | | | | | | | | | |
Chariot Buyer LLC (15) | | Provider of smart access solutions across residential and commercial properties | | First lien senior secured loan | | 8.84% | SOFR (M) | 3.50% | | 01/2024 | | 11/2028 | | | 0.1 | | | 0.1 | | | 0.1 | | (2)(11)(18) | | | | |
Everspin Technologies, Inc. | | Designer and manufacturer of computer memory solutions | | Warrant to purchase shares of common stock | | | | | | 10/2016 | | 10/2026 | | 18,461 | | | 0.4 | | | — | | | | | | |
Excelitas Technologies Corp. (15) | | Provider of photonic solutions | | First lien senior secured loan | | 10.58% | SOFR (B) | 5.25% | | 05/2024 | | 08/2029 | | | 27.1 | | | 27.1 | | | 27.1 | | (2)(11) | | | | |
ITI Holdings, Inc. (15) | | Provider of innovative software and equipment for motor vehicle agencies | | First lien senior secured revolving loan | | 10.94% | SOFR (M) | 5.50% | | 03/2022 | | 03/2028 | | | 2.7 | | | 2.7 | | | 2.7 | | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 03/2022 | | 03/2028 | | | 1.9 | | | 1.9 | | | 1.9 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 03/2022 | | 03/2028 | | | 34.5 | | | 34.5 | | | 34.5 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
60
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 39.1 | | | 39.1 | | | | | | |
Micromeritics Instrument Corp. (15) | | Scientific instrument manufacturer | | First lien senior secured loan | | 10.01% | SOFR (Q) | 4.50% | | 12/2019 | | 12/2025 | | | 15.1 | | | 15.1 | | | 15.1 | | (2)(11) | | | | |
PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P. (15) | | Provider of analytical instrumentation and testing equipment and services | | First lien senior secured loan | | 10.34% | SOFR (M) | 5.00% | | 03/2023 | | 03/2029 | | | 17.3 | | | 17.3 | | | 17.3 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.34% | SOFR (M) | 5.00% | | 10/2023 | | 03/2029 | | | 2.8 | | | 2.8 | | | 2.8 | | (2)(11) | | | | |
| | | | Class A-2 units | | | | | | 01/2022 | | | | 34,832 | | | 4.8 | | | 5.1 | | | | | | |
| | | | Limited partnership interests | | | | | | 03/2023 | | | | 0.55% | | | 9.9 | | | 14.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 34.8 | | | 39.5 | | | | | | |
Repairify, Inc. and Repairify Holdings, LLC (15) | | Provider of automotive diagnostics scans and solutions | | First lien senior secured revolving loan | | 10.47% | SOFR (Q) | 5.00% | | 06/2021 | | 06/2027 | | | 7.3 | | | 7.3 | | | 7.3 | | (2)(11) | | | | |
| | | | Class A common units | | | | | | 06/2021 | | | | 163,820 | | | 4.9 | | | 4.0 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 12.2 | | | 11.3 | | | | | | |
Wildcat BuyerCo, Inc. and Wildcat Parent, LP (15) | | Provider and supplier of electrical components for commercial and industrial applications | | First lien senior secured revolving loan | | | | | | 02/2020 | | 02/2027 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 02/2020 | | 02/2027 | | | 18.4 | | | 18.4 | | | 18.4 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 11/2021 | | 02/2027 | | | 2.5 | | | 2.5 | | | 2.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 05/2022 | | 02/2027 | | | 0.2 | | | 0.2 | | | 0.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 11/2023 | | 02/2027 | | | 4.8 | | | 4.8 | | | 4.8 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.08% | SOFR (Q) | 5.75% | | 11/2023 | | 02/2027 | | | 0.7 | | | 0.7 | | | 0.7 | | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 02/2020 | | | | 17,655 | | | 1.5 | | | 6.4 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 28.1 | | | 33.0 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 156.9 | | | 165.2 | | | 1.34% | | | |
Transportation | | | | | | | | | | | | | | | | | | | | | | | | |
Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc. | | Provider of tarp systems and accessories for trucks, trailers, carts, and specialty equipment used in the agriculture, construction and flatbed markets | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 06/2021 | | 07/2030 | | | 31.6 | | | 31.6 | | | 31.6 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 06/2022 | | 07/2030 | | | 0.5 | | | 0.5 | | | 0.5 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.84% | SOFR (M) | 5.50% | | 03/2023 | | 07/2030 | | | 6.1 | | | 6.1 | | 6.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (S) | 5.50% | | 05/2024 | | 07/2030 | | | 12.8 | | | 12.8 | | 12.8 | (2)(11) | | | | |
| | | | Common stock | | | | | | 06/2021 | | | | 75,990 | | | 7.6 | | | 17.9 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 58.6 | | | 68.9 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 58.6 | | | 68.9 | | | 0.56% | | | |
Education | | | | | | | | | | | | | | | | | | | | | | | | |
Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc. (15) | | Distributor of instructional products, services and resources | | First lien senior secured revolving loan | | 10.87% | SOFR (M) | 5.50% | | 08/2018 | | 04/2026 | | | 6.3 | | | 6.3 | | | 6.3 | | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
61
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2024
(dollar amounts in millions)
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.50% | | 07/2017 | | 08/2024 | | | 29.2 | | | 29.2 | | | 29.2 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.50% | | 08/2018 | | 04/2026 | | | 1.1 | | | 1.1 | | | 1.1 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.84% | SOFR (Q) | 5.50% | | 06/2024 | | 04/2026 | | | 7.5 | | | 7.5 | | | 7.5 | | (2)(11) | | | | |
| | | | Series A preferred stock | | | | | | 10/2014 | | | | 1,272 | | | 0.7 | | | 1.3 | | (2) | | | | |
| | | | | | | | | | | | | | | | | 44.8 | | | 45.4 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 44.8 | | | 45.4 | | | 0.37% | | | |
Telecommunication Services | | | | | | | | | | | | | | | | | | | | | | | | |
Emergency Communications Network, LLC (15) | | Provider of mission critical emergency mass notification solutions | | First lien senior secured revolving loan | | | | | | 06/2017 | | 07/2024 | | | 7.5 | | | 7.1 | | | 4.7 | | (2)(10) | | | | |
| | | | First lien senior secured loan | | | | | | 06/2017 | | 07/2024 | | | 53.5 | | | 51.4 | | | 33.7 | | (2)(10) | | | | |
| | | | | | | | | | | | | | | | | 58.5 | | | 38.4 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 58.5 | | | 38.4 | | | 0.31% | | | |
Real Estate Management and Development | | | | | | | | | | | | | | | | | | | | | | | | |
OPH NEP Investment, LLC (4) | | Provider of energy services for multi-family property owners, developers, and managers | | Senior subordinated loan | | 10.00% (7.00% PIK) | | | | 05/2024 | | 05/2032 | | | 29.3 | | | 27.8 | | | 28.5 | | (2) | | | | |
| | | | Class B common units | | | | | | 05/2024 | | | | 6.62 | | | 1.5 | | | 2.3 | | | | | | |
| | | | | | | | | | | | | | | | | 29.3 | | | 30.8 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 29.3 | | | 30.8 | | | 0.25% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Investments | | | | | | | | | | | | | | | | | $ | 24,706.7 | | | $ | 24,973.4 | | (19) | 202.01% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements
62
Derivative Instruments
Foreign currency forward contracts
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | Notional Amount to be Purchased | Notional Amount to be Sold | Counterparty | Settlement Date | Unrealized Appreciation / (Depreciation) | | | |
Foreign currency forward contract | $ | 151 | | € | 141 | | CANADIAN IMPERIAL BANK OF COMMERCE | July 26, 2024 | $ | — | | | | |
Foreign currency forward contract | $ | 124 | | CAD | 168 | | CANADIAN IMPERIAL BANK OF COMMERCE | July 26, 2024 | — | | | | |
Foreign currency forward contract | $ | 112 | | CAD | 153 | | ROYAL BANK OF CANADA | July 18, 2024 | — | | | | |
Foreign currency forward contract | $ | 98 | | € | 91 | | ROYAL BANK OF CANADA | July 26, 2024 | — | | | | |
Foreign currency forward contract | $ | 78 | | £ | 64 | | CANADIAN IMPERIAL BANK OF COMMERCE | August 21, 2026 | (1) | | | | |
Foreign currency forward contract | $ | 74 | | £ | 60 | | CANADIAN IMPERIAL BANK OF COMMERCE | July 26, 2024 | (1) | | | | |
Foreign currency forward contract | $ | 69 | | £ | 55 | | ROYAL BANK OF CANADA | July 26, 2024 | (1) | | | | |
Foreign currency forward contract | $ | 46 | | CAD | 63 | | CANADIAN IMPERIAL BANK OF COMMERCE | July 10, 2024 | — | | | | |
Foreign currency forward contract | $ | 38 | | NZD | 64 | | ROYAL BANK OF CANADA | July 26, 2024 | (1) | | | | |
Foreign currency forward contract | $ | 26 | | CAD | 35 | | ROYAL BANK OF CANADA | July 26, 2024 | — | | | | |
Foreign currency forward contract | $ | 14 | | AUD | 21 | | CANADIAN IMPERIAL BANK OF COMMERCE | November 17, 2026 | — | | | | |
Foreign currency forward contract | $ | 10 | | AUD | 15 | | CANADIAN IMPERIAL BANK OF COMMERCE | July 26, 2024 | — | | | | |
Foreign currency forward contract | $ | 6 | | NOK | 63 | | CANADIAN IMPERIAL BANK OF COMMERCE | July 26, 2024 | — | | | | |
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Total | | | | | | | $ | (4) | | | | |
Interest rate swaps
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Description | Hedged Item | Company Receives | Company Pays | Counterparty | Maturity Date | Notional Amount | Fair Value | Upfront Payments/Receipts | Change in Unrealized Appreciation / (Depreciation) |
Interest rate swap | January 2027 Notes | 7.000 | % | SOFR +2.581% | Wells Fargo Bank, N.A. | 01/15/2027 | $ | 900 | | $ | (2) | | $ | — | | $ | (2) | |
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Interest rate swap | March 2029 Notes | 5.875 | % | SOFR +2.023% | Wells Fargo Bank, N.A. | 03/01/2029 | 1,000 | | (13) | | — | | (13) | |
Interest rate swap | July 2029 Notes | 5.950 | % | SOFR +1.643% | Wells Fargo Bank, N.A. | 07/15/2029 | 850 | | 7 | | — | | 7 | |
Total | | | | | | $ | 2,750 | | $ | (8) | | $ | — | | $ | (8) | |
______________________________________________
(1)Other than the Company’s investments listed in footnote 5 below (subject to the limitations set forth therein), the Company does not “Control” any of its portfolio companies, for the purposes of the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”). In general, under the Investment Company Act, the Company would “Control” a portfolio company if the Company owned more than 25% of its outstanding voting securities (i.e., securities with the right to elect directors) and/or had the power to exercise control over the management or policies of such portfolio company. All of the Company’s portfolio company investments, which as of June 30, 2024 represented 202% of the Company’s net assets or 96% of the Company’s total assets, are subject to legal restrictions on sales.
(2)These assets are pledged as collateral under the Company’s or the Company’s consolidated subsidiaries’ various revolving credit facilities and debt securitization and, as a result, are not directly available to the creditors of the Company to satisfy any obligations of the Company other than the obligations under each of the respective facilities and debt securitization (see Note 5).
(3)Investments without an interest rate are non-income producing.
See accompanying notes to consolidated financial statements
63
(4)As defined in the Investment Company Act, the Company is deemed to be an “Affiliated Person” because it owns 5% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the six months ended June 30, 2024 in which the issuer was an Affiliated Person of the Company (but not a portfolio company that the Company is deemed to Control) are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six Months Ended June 30, 2024 | | As of June 30, 2024 |
(in millions) Company | | Purchases (cost) | | Redemptions (cost) | | Sales (cost) | | Interest income | | Capital structuring service fees | | Dividend income | | Other income | | Net realized gains (losses) | | Net unrealized gains (losses) | | Fair Value |
Apex Clean Energy TopCo, LLC | | $ | 3.2 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 10.2 | | | $ | 201.3 | |
APG Intermediate Holdings Corporation and APG Holdings, LLC | | — | | | 0.1 | | | — | | | 0.7 | | | — | | | — | | | — | | | — | | | (2.0) | | | 21.6 | |
Bragg Live Food Products, LLC and SPC Investment Co., L.P. | | — | | | 2.1 | | | — | | | 1.5 | | | — | | | — | | | — | | | — | | | 13.0 | | | 54.7 | |
Centric Brands LLC, Centric Brands TopCo, LLC, and Centric Brands L.P. | | — | | | — | | | — | | | 4.2 | | | — | | | — | | | — | | | — | | | 12.9 | | | 94.1 | |
Daylight Beta Parent LLC and CFCo, LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (9.7) | | | 2.5 | |
ESCP PPG Holdings, LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (0.4) | | | 4.0 | |
European Capital UK SME Debt LP | | — | | | — | | | — | | | — | | | — | | | 1.0 | | | — | | | — | | | (0.4) | | | 16.1 | |
OPH NEP Investment, LLC | | 29.0 | | | — | | | — | | | 0.5 | | | 0.7 | | | — | | | — | | | — | | | 1.3 | | | 30.8 | |
PCG-Ares Sidecar Investment, L.P. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 0.7 | |
PCG-Ares Sidecar Investment II, L.P. | | — | | | — | | | — | | | — | | | — | | | 0.1 | | | — | | | — | | | (2.2) | | | 15.9 | |
Production Resource Group, L.L.C. and PRG III, LLC | | 26.1 | | | 1.2 | | | — | | | 6.4 | | | 1.3 | | | — | | | 1.4 | | | — | | | (15.8) | | | 126.3 | |
Shoes For crews Global, LLC and Shoes for crews Holdings, LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 21.9 | |
Totes Isotoner Corporation and Totes Ultimate Holdco, Inc. | | — | | | 3.8 | | | 6.0 | | | 0.2 | | | — | | | — | | | — | | | (6.0) | | | 6.1 | | | — | |
| | $ | 58.3 | | | $ | 7.2 | | | $ | 6.0 | | | $ | 13.5 | | | $ | 2.0 | | | $ | 1.1 | | | $ | 1.4 | | | $ | (6.0) | | | $ | 13.0 | | | $ | 589.9 | |
See accompanying notes to consolidated financial statements
64
(5)As defined in the Investment Company Act, the Company is deemed to be both an “Affiliated Person” and “Control” this portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the six months ended June 30, 2024 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Six Months Ended June 30, 2024 | | As of June 30, 2024 |
(in millions) Company | | Purchases (cost) | | Redemptions (cost) | | Sales (cost) | | Interest income | | Capital structuring service fees | | Dividend income | | Other income | | Net realized gains (losses) | | Net unrealized gains (losses) | | Fair Value |
Absolute Dental Group LLC and Absolute Dental Equity, LLC | | $ | 15.6 | | | $ | 14.2 | | | $ | — | | | $ | 4.8 | | | $ | — | | | $ | — | | | $ | 0.1 | | | $ | — | | | $ | (6.8) | | | $ | 69.1 | |
ACAS Equity Holdings Corporation | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 0.4 | |
ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC | | 4.0 | | | — | | | — | | | 2.5 | | | — | | | — | | | — | | | — | | | (0.1) | | | 71.6 | |
CoLTs 2005-1 Ltd. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Eckler Industries, Inc. and Eckler Purchaser LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Halex Holdings, Inc. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
HCI Equity, LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC | | — | | | 91.0 | | | 80.8 | | | 3.5 | | | — | | | — | | | — | | | 146.2 | | | (114.2) | | | — | |
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation | | — | | | — | | | — | | | 0.6 | | | — | | | — | | | 0.3 | | | — | | | 6.5 | | | 72.6 | |
Ivy Hill Asset Management, L.P. | | 263.0 | | | 302.0 | | | — | | | 1.3 | | | — | | | 135.0 | | | — | | | — | | | 8.1 | | | 1,955.7 | |
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC | | — | | | — | | | — | | | 0.3 | | | — | | | — | | | 0.1 | | | — | | | (0.3) | | | 42.9 | |
Potomac Intermediate Holdings II LLC | | 14.5 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 30.2 | | | 124.2 | |
PS Operating Company LLC and PS Op Holdings LLC | | 2.1 | | | 1.5 | | | — | | | 0.2 | | | — | | | — | | | — | | | — | | | (12.6) | | | 10.1 | |
RD Holdco Inc. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (0.4) | | | 13.5 | |
S Toys Holdings LLC (fka The Step2 Company, LLC) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 0.6 | | | — | |
Senior Direct Lending Program, LLC | | 63.2 | | | 108.0 | | | — | | | 88.1 | | | 2.3 | | | — | | | 2.2 | | | 1.2 | | | (1.6) | | | 1,241.4 | |
SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc. | | 1.3 | | | 118.5 | | | — | | | (1.1) | | | 0.1 | | | — | | | — | | | (119.3) | | | 87.8 | | | — | |
Startec Equity, LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Visual Edge Technology, Inc. | | — | | | 0.2 | | | — | | | 2.4 | | | — | | | 2.2 | | | — | | | — | | | (7.5) | | | 72.8 | |
VPROP Operating, LLC and V SandCo, LLC | | — | | | — | | | — | | | 2.9 | | | — | | | — | | | — | | | — | | | 0.6 | | | 100.0 | |
| | $ | 363.7 | | | $ | 635.4 | | | $ | 80.8 | | | $ | 105.5 | | | $ | 2.4 | | | $ | 137.2 | | | $ | 2.7 | | | $ | 28.1 | | | $ | (9.7) | | | $ | 3,774.3 | |
______________________________________________________________________
* Together with Varagon Capital Partners (“Varagon”) and its clients, the Company has co-invested through the Senior Direct Lending Program LLC (d/b/a the “Senior Direct Lending Program” or the “SDLP”). The SDLP has been capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of the Company and Varagon (with approval from a representative of each required); therefore, although the Company owns more than 25% of the voting securities of the SDLP, the Company does not believe that it has control over the SDLP (for purposes of the Investment Company Act or otherwise) because, among other things, these “voting securities” do not afford the Company the right to elect directors of the SDLP or any other special rights (see Note 4 to the consolidated financial statements).
See accompanying notes to consolidated financial statements
65
(6)This portfolio company is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets. Pursuant to Section 55(a) of the Investment Company Act, 23% of the Company's total assets are represented by investments at fair value and other assets that are considered “non-qualifying assets” as of June 30, 2024.
(7)Variable rate loans to the Company’s portfolio companies bear interest at a rate that may be determined by reference to the Secured Overnight Financing Rate (“SOFR”) or an alternate base rate (commonly based on the Federal Funds Rate or the Prime Rate), at the borrower’s option, which reset annually (A), semi-annually (S), quarterly (Q), bi-monthly (B), monthly (M) or daily (D). For each such loan, the Company has provided the interest rate in effect on the date presented. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.
(8)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.00% on $39.4 in aggregate principal amount of a “first out” tranche of the portfolio company’s senior term debt previously syndicated by the Company into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.
(9)The Company sold a participating interest of approximately $33.6 in aggregate principal amount outstanding of the portfolio company’s first lien senior secured revolving loan. As the transaction did not qualify as a “true sale” in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company recorded a corresponding $33.6 secured borrowing, at fair value, included in “secured borrowings” in the accompanying consolidated balance sheet. As of June 30, 2024, the interest rate in effect for the secured borrowing was 12.93%.
(10)Loan was on non-accrual status as of June 30, 2024.
(11)Loan includes interest rate floor feature.
(12)In addition to the interest earned based on the stated contractual interest rate of this security, the certificates entitle the holders thereof to receive a portion of the excess cash flow from the SDLP’s loan portfolio, after expenses, which may result in a return to the Company greater than the contractual stated interest rate.
(13)As of June 30, 2024, no amounts were funded by the Company under this first lien senior secured revolving loan; however, there were letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.
(14)As of June 30, 2024, in addition to the amounts funded by the Company under this first lien senior secured revolving loan, there were also letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.
(15)As of June 30, 2024, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 7 for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies.
See accompanying notes to consolidated financial statements
66
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
22 HoldCo Limited | $ | 12.3 | | $ | — | | $ | 12.3 | | $ | — | | $ | — | | $ | 12.3 | | | | | | |
3 Step Sports LLC | 10.4 | | — | | 10.4 | | — | | (10.0) | | 0.4 | | | | | | |
Absolute Dental Group LLC and Absolute Dental Equity, LLC | 15.2 | | (11.3) | | 3.9 | | — | | — | | 3.9 | | | | | | |
Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc. | 2.6 | | — | | 2.6 | | — | | — | | 2.6 | | | | | | |
Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC | 4.1 | | — | | 4.1 | | — | | — | | 4.1 | | | | | | |
Actfy Buyer, Inc. | 24.8 | | — | | 24.8 | | — | | — | | 24.8 | | | | | | |
Activate Holdings (US) Corp. and CrossPoint Capital AS SPV, LP | 3.6 | | — | | 3.6 | | — | | — | | 3.6 | | | | | | |
ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC | 16.0 | | — | | 16.0 | | — | | — | | 16.0 | | | | | | |
| | | | | | | | | | | |
Advarra Holdings, Inc. | 0.4 | | — | | 0.4 | | — | | — | | 0.4 | | | | | | |
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC | 24.5 | | — | | 24.5 | | — | | — | | 24.5 | | | | | | |
AI Fire Buyer, Inc. and AI Fire Parent LLC | 11.3 | | (1.5) | | 9.8 | | — | | — | | 9.8 | | | | | | |
AIM Acquisition, LLC | 1.8 | | — | | 1.8 | | — | | — | | 1.8 | | | | | | |
Airx Climate Solutions, Inc. | 5.2 | | (0.7) | | 4.5 | | — | | — | | 4.5 | | | | | | |
Alcami Corporation and ACM Note Holdings, LLC | 1.9 | | — | | 1.9 | | — | | — | | 1.9 | | | | | | |
Alera Group, Inc. | 10.1 | | — | | 10.1 | | — | | — | | 10.1 | | | | | | |
American Residential Services L.L.C. and Aragorn Parent Holdings LP | 4.5 | | (1.4) | | 3.1 | | — | | — | | 3.1 | | | | | | |
Amerivet Partners Management, Inc. and AVE Holdings LP | 6.3 | | — | | 6.3 | | — | | — | | 6.3 | | | | | | |
Anaplan, Inc. | 1.4 | | — | | 1.4 | | — | | — | | 1.4 | | | | | | |
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Apex Service Partners, LLC and Apex Service Partners Holdings, LLC | 12.1 | | (3.8) | | 8.3 | | — | | — | | 8.3 | | | | | | |
APG Intermediate Holdings Corporation and APG Holdings, LLC | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Applied Technical Services, LLC | 9.6 | | (4.5) | | 5.1 | | — | | — | | 5.1 | | | | | | |
Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Aptean, Inc. and Aptean Acquiror Inc. | 2.8 | | — | | 2.8 | | — | | — | | 2.8 | | | | | | |
AQ Sage Buyer, LLC | 0.7 | | (0.2) | | 0.5 | | — | | — | | 0.5 | | | | | | |
AQ Sunshine, Inc. | 10.3 | | — | | 10.3 | | — | | — | | 10.3 | | | | | | |
Ardonagh Midco 3 PLC, Ardonagh Group Finco Pty Limited, Ardonagh Finco LLC and Ardonagh Finco B.V. | 27.7 | | — | | 27.7 | | — | | — | | 27.7 | | | | | | |
Argenbright Holdings V, LLC, Amberstone Security Group Limited, Unifi Aviation North America LLC and Unifi Aviation Canada, Inc. | 13.0 | | — | | 13.0 | | — | | — | | 13.0 | | | | | | |
Artifact Bidco, Inc. | 29.7 | | — | | 29.7 | | — | | — | | 29.7 | | | | | | |
Artivion, Inc. | 7.8 | | (0.9) | | 6.9 | | — | | — | | 6.9 | | | | | | |
ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP | 6.2 | | (2.6) | | 3.6 | | — | | — | | 3.6 | | | | | | |
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP | 9.0 | | — | | 9.0 | | — | | — | | 9.0 | | | | | | |
ATI Restoration, LLC | 45.4 | | (10.6) | | 34.8 | | — | | — | | 34.8 | | | | | | |
Avalara, Inc. | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
Avalign Holdings, Inc. and Avalign Technologies, Inc. | 5.3 | | — | | 5.3 | | — | | — | | 5.3 | | | | | | |
| | | | | | | | | | | |
Bamboo US BidCo LLC | 13.8 | | — | | 13.8 | | — | | — | | 13.8 | | | | | | |
Banyan Software Holdings, LLC and Banyan Software, LP | 51.5 | | (1.3) | | 50.2 | | — | | — | | 50.2 | | | | | | |
Beacon Pointe Harmony, LLC | 12.1 | | — | | 12.1 | | — | | — | | 12.1 | | | | | | |
Beacon Wellness Brands, Inc. and CDI Holdings I Corp. | 0.5 | | — | | 0.5 | | — | | — | | 0.5 | | | | | | |
Belfor Holdings, Inc. | 58.5 | | (6.2) | | 52.3 | | — | | — | | 52.3 | | | | | | |
Benecon Midco II LLC and Benecon Holdings, LLC | 8.7 | | — | | 8.7 | | — | | — | | 8.7 | | | | | | |
Berner Food & Beverage, LLC | 1.7 | | (1.1) | | 0.6 | | — | | — | | 0.6 | | | | | | |
BGI Purchaser, Inc. | 35.3 | | (10.9) | | 24.4 | | — | | — | | 24.4 | | | | | | |
BGIF IV Fearless Utility Services, Inc. | 15.2 | | — | | 15.2 | | — | | — | | 15.2 | | | | | | |
BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC | 3.0 | | (1.6) | | 1.4 | | — | | — | | 1.4 | | | | | | |
Bobcat Purchaser, LLC and Bobcat Topco, L.P. | 2.5 | | — | | 2.5 | | — | | — | | 2.5 | | | | | | |
Borrower R365 Holdings LLC | 1.5 | | — | | 1.5 | | — | | — | | 1.5 | | | | | | |
Bottomline Technologies, Inc. and Legal Spend Holdings, LLC | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
BR PJK Produce, LLC | 2.2 | | — | | 2.2 | | — | | — | | 2.2 | | | | | | |
BradyPlus Holdings, LLC | 12.7 | | — | | 12.7 | | — | | — | | 12.7 | | | | | | |
Bragg Live Food Products, LLC and SPC Investment Co., L.P. | 4.4 | | — | | 4.4 | | — | | — | | 4.4 | | | | | | |
Broadcast Music, Inc. | 4.2 | | — | | 4.2 | | — | | — | | 4.2 | | | | | | |
See accompanying notes to consolidated financial statements
67
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
Businessolver.com, Inc. | 1.5 | | — | | 1.5 | | — | | — | | 1.5 | | | | | | |
Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP | 15.3 | | (9.6) | | 5.7 | | — | | — | | 5.7 | | | | | | |
Captive Resources Midco, LLC | 1.2 | | — | | 1.2 | | — | | — | | 1.2 | | | | | | |
Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc. | 5.0 | | — | | 5.0 | | — | | — | | 5.0 | | | | | | |
Center for Autism and Related Disorders, LLC | 9.5 | | (9.5) | | — | | — | | — | | — | | | | | | |
Centralsquare Technologies, LLC and Supermoose Newco, Inc. | 15.8 | | — | | 15.8 | | — | | — | | 15.8 | | | | | | |
Chariot Buyer LLC | 12.3 | | — | | 12.3 | | — | | — | | 12.3 | | | | | | |
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC | 9.5 | | — | | 9.5 | | — | | — | | 9.5 | | | | | | |
City Line Distributors LLC and City Line Investments LLC | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
Clarion Home Services Group, LLC and LBC Breeze Holdings LLC | 8.0 | | (0.1) | | 7.9 | | — | | — | | 7.9 | | | | | | |
Cliffwater LLC | 1.0 | | — | | 1.0 | | — | | — | | 1.0 | | | | | | |
Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P. | 19.0 | | — | | 19.0 | | — | | — | | 19.0 | | | | | | |
CMG HoldCo, LLC and CMG Buyer Holdings, Inc. | 28.7 | | (5.7) | | 23.0 | | — | | — | | 23.0 | | | | | | |
Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc. | 6.3 | | (4.0) | | 2.3 | | — | | — | | 2.3 | | | | | | |
Collision SP Subco, LLC | 3.4 | | (0.1) | | 3.3 | | — | | — | | 3.3 | | | | | | |
Community Brands ParentCo, LLC | 2.4 | | — | | 2.4 | | — | | — | | 2.4 | | | | | | |
Compex Legal Services, Inc. | 3.6 | | (2.5) | | 1.1 | | — | | — | | 1.1 | | | | | | |
Comprehensive EyeCare Partners, LLC | 2.0 | | (2.0) | | — | | — | | — | | — | | | | | | |
Computer Services, Inc. | 38.5 | | — | | 38.5 | | — | | — | | 38.5 | | | | | | |
Concert Golf Partners Holdco LLC | 71.7 | | — | | 71.7 | | — | | — | | 71.7 | | | | | | |
Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P. | 18.5 | | (9.4) | | 9.1 | | — | | — | | 9.1 | | | | | | |
| | | | | | | | | | | |
Continental Café, LLC and Infinity Ovation Yacht Charters, LLC | 1.8 | | (1.3) | | 0.5 | | — | | — | | 0.5 | | | | | | |
Convera International Holdings Limited and Convera International Financial S.A R.L. | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
CoreLogic, Inc. and T-VIII Celestial Co-Invest LP | 38.9 | | — | | 38.9 | | — | | — | | 38.9 | | | | | | |
Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc. | 38.7 | | (5.7) | | 33.0 | | — | | — | | 33.0 | | | | | | |
Coupa Holdings, LLC and Coupa Software Incorporated | 0.9 | | — | | 0.9 | | — | | — | | 0.9 | | | | | | |
| | | | | | | | | | | |
Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
CST Holding Company | 10.2 | | (10.2) | | — | | — | | — | | — | | | | | | |
Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc. | 5.1 | | (1.0) | | 4.1 | | — | | — | | 4.1 | | | | | | |
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC | 56.4 | | — | | 56.4 | | — | | — | | 56.4 | | | | | | |
Datix Bidco Limited and RL Datix Holdings (USA), Inc. | 47.1 | | — | | 47.1 | | — | | — | | 47.1 | | | | | | |
DecoPac, Inc. and KCAKE Holdings Inc. | 16.5 | | (4.9) | | 11.6 | | — | | — | | 11.6 | | | | | | |
Demakes Borrower, LLC | 1.8 | | — | | 1.8 | | — | | — | | 1.8 | | | | | | |
Denali Holdco LLC and Denali Apexco LP | 10.5 | | — | | 10.5 | | — | | — | | 10.5 | | | | | | |
DFC Global Facility Borrower III LLC | 73.6 | | (62.4) | | 11.2 | | — | | — | | 11.2 | | | | | | |
DFS Holding Company, Inc. | 0.3 | | — | | 0.3 | | — | | — | | 0.3 | | | | | | |
Diligent Corporation and Diligent Preferred Issuer, Inc. | 5.4 | | — | | 5.4 | | — | | — | | 5.4 | | | | | | |
Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc. | 9.3 | | — | | 9.3 | | — | | — | | 9.3 | | | | | | |
DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP | 16.5 | | — | | 16.5 | | — | | — | | 16.5 | | | | | | |
DRS Holdings III, Inc. and DRS Holdings I, Inc. | 10.8 | | — | | 10.8 | | — | | — | | 10.8 | | | | | | |
Duraserv LLC | 9.2 | | — | | 9.2 | | — | | — | | 9.2 | | | | | | |
Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP | 7.1 | | (4.5) | | 2.6 | | — | | — | | 2.6 | | | | | | |
Echo Purchaser, Inc. | 3.9 | | — | | 3.9 | | — | | — | | 3.9 | | | | | | |
Edmunds Govtech, Inc. | 24.7 | | (1.7) | | 23.0 | | — | | — | | 23.0 | | | | | | |
Elemica Parent, Inc. & EZ Elemica Holdings, Inc. | 7.3 | | (5.4) | | 1.9 | | — | | — | | 1.9 | | | | | | |
Elevation Services Parent Holdings, LLC | 3.5 | | (1.9) | | 1.6 | | — | | — | | 1.6 | | | | | | |
Emergency Communications Network, LLC | 7.5 | | (7.5) | | — | | — | | — | | — | | | | | | |
Empower Payments Investor, LLC | 6.4 | | — | | 6.4 | | — | | — | | 6.4 | | | | | | |
Enverus Holdings, Inc. and Titan DI Preferred Holdings, Inc. | 16.7 | | — | | 16.7 | | — | | — | | 16.7 | | | | | | |
EpiServer Inc. and Episerver Sweden Holdings AB | 9.5 | | — | | 9.5 | | — | | — | | 9.5 | | | | | | |
eResearch Technology, Inc. and Astorg VII Co-Invest ERT | 15.0 | | (7.1) | | 7.9 | | — | | — | | 7.9 | | | | | | |
See accompanying notes to consolidated financial statements
68
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
ESHA Research, LLC and RMCF VI CIV XLVIII, L.P. | 1.1 | | (0.9) | | 0.2 | | — | | — | | 0.2 | | | | | | |
Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC | 49.3 | | — | | 49.3 | | — | | — | | 49.3 | | | | | | |
Eternal Aus Bidco Pty Ltd | 1.4 | | — | | 1.4 | | — | | — | | 1.4 | | | | | | |
| | | | | | | | | | | |
Excel Fitness Consolidator LLC, Health Buyer LLC and Excel Fitness Holdings, Inc. | 4.8 | | — | | 4.8 | | — | | — | | 4.8 | | | | | | |
Excelitas Technologies Corp. | 27.1 | | — | | 27.1 | | — | | — | | 27.1 | | | | | | |
Extrahop Networks, Inc. | 12.1 | | — | | 12.1 | | — | | — | | 12.1 | | | | | | |
Faraday Buyer, LLC | 5.1 | | — | | 5.1 | | — | | — | | 5.1 | | | | | | |
Fever Labs, Inc. | 9.2 | | — | | 9.2 | | — | | — | | 9.2 | | | | | | |
Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L. | 17.9 | | — | | 17.9 | | — | | — | | 17.9 | | | | | | |
FL Hawk Intermediate Holdings, Inc. | 0.5 | | — | | 0.5 | | — | | — | | 0.5 | | | | | | |
Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc. | 17.5 | | (6.3) | | 11.2 | | — | | — | | 11.2 | | | | | | |
Flint OpCo, LLC | 6.0 | | — | | 6.0 | | — | | — | | 6.0 | | | | | | |
FlyWheel Acquireco, Inc. | 8.2 | | (5.5) | | 2.7 | | — | | — | | 2.7 | | | | | | |
Forescout Technologies, Inc. | 2.4 | | — | | 2.4 | | — | | — | | 2.4 | | | | | | |
| | | | | | | | | | | |
Foundation Risk Partners, Corp. | 53.8 | | — | | 53.8 | | — | | — | | 53.8 | | | | | | |
FS Squared Holding Corp. and FS Squared, LLC | 9.6 | | (0.5) | | 9.1 | | — | | — | | 9.1 | | | | | | |
Galway Borrower LLC | 27.4 | | (1.9) | | 25.5 | | — | | — | | 25.5 | | | | | | |
GC Waves Holdings, Inc. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Gestion ABS Bidco Inc. / ABS Bidco Holdings Inc. | 6.4 | | — | | 6.4 | | — | | — | | 6.4 | | | | | | |
GI Ranger Intermediate LLC | 3.6 | | — | | 3.6 | | — | | — | | 3.6 | | | | | | |
Global Music Rights, LLC | 5.5 | | — | | 5.5 | | — | | — | | 5.5 | | | | | | |
GNZ Energy Bidco Limited and Galileo Co-investment Trust I | 3.0 | | — | | 3.0 | | — | | — | | 3.0 | | | | | | |
GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC | 26.4 | | — | | 26.4 | | — | | — | | 26.4 | | | | | | |
GS SEER Group Borrower LLC and GS SEER Group Holdings LLC | 7.5 | | — | | 7.5 | | — | | — | | 7.5 | | | | | | |
GTCR F Buyer Corp. and GTCR (D) Investors LP | 0.9 | | — | | 0.9 | | — | | — | | 0.9 | | | | | | |
Guidepoint Security Holdings, LLC | 3.4 | | — | | 3.4 | | — | | — | | 3.4 | | | | | | |
Hanger, Inc. | 18.3 | | (5.9) | | 12.4 | | — | | — | | 12.4 | | | | | | |
Harvey Tool Company, LLC | 66.7 | | — | | 66.7 | | — | | — | | 66.7 | | | | | | |
HealthEdge Software, Inc. | 7.2 | | (0.3) | | 6.9 | | — | | — | | 6.9 | | | | | | |
Heavy Construction Systems Specialists, LLC | 4.0 | | — | | 4.0 | | — | | — | | 4.0 | | | | | | |
Helios Service Partners, LLC and Astra Service Partners, LLC | 5.4 | | — | | 5.4 | | — | | — | | 5.4 | | | | | | |
Help/Systems Holdings, Inc. | 15.0 | | — | | 15.0 | | — | | — | | 15.0 | | | | | | |
HGC Holdings, LLC | 7.5 | | — | | 7.5 | | — | | — | | 7.5 | | | | | | |
HH-Stella, Inc. and Bedrock Parent Holdings, LP | 27.1 | | (1.8) | | 25.3 | | — | | — | | 25.3 | | | | | | |
Higginbotham Insurance Agency, Inc. | 4.7 | | — | | 4.7 | | — | | — | | 4.7 | | | | | | |
High Street Buyer, Inc. and High Street Holdco LLC | 44.2 | | — | | 44.2 | | — | | — | | 44.2 | | | | | | |
Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC | 9.5 | | (0.2) | | 9.3 | | — | | — | | 9.3 | | | | | | |
Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP | 2.2 | | (0.1) | | 2.1 | | — | | — | | 2.1 | | | | | | |
HP RSS Buyer, Inc. | 6.1 | | — | | 6.1 | | — | | — | | 6.1 | | | | | | |
HuFriedy Group Acquisition LLC | 20.5 | | — | | 20.5 | | — | | — | | 20.5 | | | | | | |
Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP | 13.3 | | (10.9) | | 2.4 | | — | | — | | 2.4 | | | | | | |
Hyland Software, Inc. | 2.0 | | — | | 2.0 | | — | | — | | 2.0 | | | | | | |
Icefall Parent, Inc. | 1.1 | | — | | 1.1 | | — | | — | | 1.1 | | | | | | |
Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P. | 14.1 | | (1.0) | | 13.1 | | — | | — | | 13.1 | | | | | | |
Inszone Mid, LLC and INSZ Holdings, LLC | 11.2 | | — | | 11.2 | | — | | — | | 11.2 | | | | | | |
Internet Truckstop Group LLC | 1.2 | | — | | 1.2 | | — | | — | | 1.2 | | | | | | |
IQN Holding Corp. | 2.3 | | (0.3) | | 2.0 | | — | | — | | 2.0 | | | | | | |
IRI Group Holdings, Inc., Circana, LLC and IRI-NPD Co-Invest Aggregator, L.P. | 14.4 | | (9.5) | | 4.9 | | — | | — | | 4.9 | | | | | | |
ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P. | 8.7 | | (2.7) | | 6.0 | | — | | — | | 6.0 | | | | | | |
ITI Holdings, Inc. | 5.7 | | (4.6) | | 1.1 | | — | | — | | 1.1 | | | | | | |
| | | | | | | | | | | |
Kaseya Inc. and Knockout Intermediate Holdings I Inc. | 29.9 | | (6.9) | | 23.0 | | — | | — | | 23.0 | | | | | | |
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) | 5.0 | | (3.7) | | 1.3 | | — | | — | | 1.3 | | | | | | |
See accompanying notes to consolidated financial statements
69
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
Kellermeyer Bergensons Services, LLC and KBS TopCo, LLC | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
Kene Acquisition, Inc. and Kene Holdings, L.P. | 8.0 | | — | | 8.0 | | — | | — | | 8.0 | | | | | | |
Keystone Agency Partners LLC | 9.9 | | — | | 9.9 | | — | | — | | 9.9 | | | | | | |
Kings Buyer, LLC | 1.6 | | (0.4) | | 1.2 | | — | | — | | 1.2 | | | | | | |
Laboratories Bidco LLC and Laboratories Topco LLC | 19.8 | | (18.4) | | 1.4 | | — | | — | | 1.4 | | | | | | |
LeanTaaS Holdings, Inc. | 26.4 | | — | | 26.4 | | — | | — | | 26.4 | | | | | | |
Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. | 1.5 | | — | | 1.5 | | — | | — | | 1.5 | | | | | | |
Lew's Intermediate Holdings, LLC | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
Lido Advisors, LLC | 4.5 | | (0.7) | | 3.8 | | — | | — | | 3.8 | | | | | | |
| | | | | | | | | | | |
Lightbeam Bidco, Inc. | 3.7 | | (0.2) | | 3.5 | | — | | — | | 3.5 | | | | | | |
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. | 5.6 | | — | | 5.6 | | — | | — | | 5.6 | | | | | | |
LJP Purchaser, Inc. and LJP Topco, LP | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
Majesco and Magic Topco, L.P. | 2.0 | | — | | 2.0 | | — | | — | | 2.0 | | | | | | |
Manna Pro Products, LLC | 7.0 | | (6.0) | | 1.0 | | — | | — | | 1.0 | | | | | | |
Marmic Purchaser, LLC and Marmic Topco, L.P. | 4.5 | | — | | 4.5 | | — | | — | | 4.5 | | | | | | |
Mavis Tire Express Services Topco Corp., Metis HoldCo, Inc., and Metis TopCo, LP | 32.9 | | (13.8) | | 19.1 | | — | | — | | 19.1 | | | | | | |
McKenzie Creative Brands, LLC | 4.5 | | (0.6) | | 3.9 | | — | | — | | 3.9 | | | | | | |
Medline Borrower, LP | 6.9 | | (0.2) | | 6.7 | | — | | — | | 6.7 | | | | | | |
Meyer Laboratory, LLC and Meyer Parent, LLC | 11.6 | | — | | 11.6 | | — | | — | | 11.6 | | | | | | |
Micromeritics Instrument Corp. | 4.1 | | — | | 4.1 | | — | | — | | 4.1 | | | | | | |
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp | 15.8 | | — | | 15.8 | | — | | — | | 15.8 | | | | | | |
Ministry Brands Holdings, LLC and RCP MB Investments B, L.P. | 8.0 | | — | | 8.0 | | — | | — | | 8.0 | | | | | | |
Modigent, LLC and OMERS PMC Investment Holdings LLC | 12.6 | | (5.4) | | 7.2 | | — | | — | | 7.2 | | | | | | |
Monica Holdco (US) Inc. | 3.6 | | (3.6) | | — | | — | | — | | — | | | | | | |
Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC | 1.2 | | (0.4) | | 0.8 | | — | | — | | 0.8 | | | | | | |
Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC | 6.3 | | (0.2) | | 6.1 | | — | | — | | 6.1 | | | | | | |
MRI Software LLC | 5.7 | | — | | 5.7 | | — | | — | | 5.7 | | | | | | |
Mustang Prospects Purchaser, LLC and Senske Acquisition, Inc. | 10.6 | | — | | 10.6 | | — | | — | | 10.6 | | | | | | |
NAS, LLC and Nationwide Marketing Group, LLC | 3.0 | | (1.5) | | 1.5 | | — | | — | | 1.5 | | | | | | |
Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V. | 23.7 | | (1.2) | | 22.5 | | — | | — | | 22.5 | | | | | | |
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P. | 12.6 | | (0.3) | | 12.3 | | — | | — | | 12.3 | | | | | | |
New ChurcHill HoldCo LLC and Victory Topco, LP | 12.5 | | (0.2) | | 12.3 | | — | | — | | 12.3 | | | | | | |
Next Holdco, LLC | 2.4 | | — | | 2.4 | | — | | — | | 2.4 | | | | | | |
NMC Skincare Intermediate Holdings II, LLC | 12.8 | | (4.3) | | 8.5 | | — | | — | | 8.5 | | | | | | |
NMN Holdings III Corp. and NMN Holdings LP | 12.5 | | (2.8) | | 9.7 | | — | | — | | 9.7 | | | | | | |
North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC | 2.7 | | (1.7) | | 1.0 | | — | | — | | 1.0 | | | | | | |
North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P. | 2.5 | | (2.1) | | 0.4 | | — | | — | | 0.4 | | | | | | |
North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC | 13.0 | | (5.4) | | 7.6 | | — | | — | | 7.6 | | | | | | |
North Haven Stack Buyer, LLC | 12.4 | | (0.7) | | 11.7 | | — | | — | | 11.7 | | | | | | |
North Star Acquisitionco, LLC and Toucan Bidco Limited | 8.9 | | (0.4) | | 8.5 | | — | | — | | 8.5 | | | | | | |
Northwinds Holding, Inc. and Northwinds Services Group LLC | 9.1 | | (1.8) | | 7.3 | | — | | — | | 7.3 | | | | | | |
OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP | 4.8 | | — | | 4.8 | | — | | — | | 4.8 | | | | | | |
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC | 0.9 | | — | | 0.9 | | — | | — | | 0.9 | | | | | | |
OMH-HealthEdge Holdings, LLC | 7.2 | | — | | 7.2 | | — | | — | | 7.2 | | | | | | |
OneDigital Borrower LLC | 16.4 | | (5.0) | | 11.4 | | — | | — | | 11.4 | | | | | | |
Opal Fuels Intermediate HoldCo LLC, and Opal Fuels Inc. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Packaging Coordinators Midco, Inc. | 15.0 | | — | | 15.0 | | — | | — | | 15.0 | | | | | | |
Paragon 28, Inc. and Paragon Advanced Technologies, Inc. | 8.1 | | (0.1) | | 8.0 | | — | | — | | 8.0 | | | | | | |
Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. | 2.6 | | — | | 2.6 | | — | | — | | 2.6 | | | | | | |
Pathway Vet Alliance LLC and Jedi Group Holdings LLC | 1.9 | | (0.2) | | 1.7 | | — | | — | | 1.7 | | | | | | |
Patriot Growth Insurance Services, LLC | 2.2 | | — | | 2.2 | | — | | — | | 2.2 | | | | | | |
PCIA SPV-3, LLC and ASE Royal Aggregator, LLC | 2.5 | | — | | 2.5 | | — | | — | | 2.5 | | | | | | |
See accompanying notes to consolidated financial statements
70
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
PCS MidCo, Inc. and PCS Parent, L.P. | 6.7 | | (0.8) | | 5.9 | | — | | — | | 5.9 | | | | | | |
PDDS HoldCo, Inc. | 2.8 | | (0.2) | | 2.6 | | — | | — | | 2.6 | | | | | | |
PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC | 14.5 | | — | | 14.5 | | — | | — | | 14.5 | | | | | | |
Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC | 11.6 | | — | | 11.6 | | — | | — | | 11.6 | | | | | | |
Pelican Products, Inc. | 2.3 | | (1.2) | | 1.1 | | — | | — | | 1.1 | | | | | | |
People Corporation | 11.1 | | — | | 11.1 | | — | | — | | 11.1 | | | | | | |
Perforce Software, Inc. | 7.5 | | — | | 7.5 | | — | | — | | 7.5 | | | | | | |
Perigon Wealth Management, LLC, Perigon Wealth Advisors Holdings Company, LLC and CWC Fund I Co-Invest (Prism) LP | 1.9 | | — | | 1.9 | | — | | — | | 1.9 | | | | | | |
PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P. | 4.3 | | — | | 4.3 | | — | | — | | 4.3 | | | | | | |
PestCo Holdings, LLC and PestCo, LLC | 0.7 | | — | | 0.7 | | — | | — | | 0.7 | | | | | | |
Petrus Buyer, Inc. | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
PetVet Care Centers, LLC | 49.4 | | — | | 49.4 | | — | | — | | 49.4 | | | | | | |
Petvisor Holdings, LLC | 57.5 | | (1.5) | | 56.0 | | — | | — | | 56.0 | | | | | | |
Phoenix YW Buyer, Inc. and Phoenix YW Parent, Inc. | 4.7 | | — | | 4.7 | | — | | — | | 4.7 | | | | | | |
Ping Identity Holding Corp. | 0.2 | | — | | 0.2 | | — | | — | | 0.2 | | | | | | |
Pluralsight, Inc. | 0.3 | | (0.3) | | — | | — | | — | | — | | | | | | |
PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC | 11.8 | | (0.5) | | 11.3 | | — | | — | | 11.3 | | | | | | |
Precision Concepts International LLC and Precision Concepts Canada Corporation | 14.4 | | (2.9) | | 11.5 | | — | | — | | 11.5 | | | | | | |
Premier Specialties, Inc. and RMCF V CIV XLIV, L.P. | 3.5 | | (1.2) | | 2.3 | | — | | — | | 2.3 | | | | | | |
Premiere Buyer, LLC | 8.5 | | — | | 8.5 | | — | | — | | 8.5 | | | | | | |
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP | 5.0 | | (0.1) | | 4.9 | | — | | — | | 4.9 | | | | | | |
Prime Buyer, L.L.C. | 15.9 | | (0.8) | | 15.1 | | — | | — | | 15.1 | | | | | | |
| | | | | | | | | | | |
Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC | 20.1 | | — | | 20.1 | | — | | — | | 20.1 | | | | | | |
ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P. | 12.5 | | (0.7) | | 11.8 | | — | | — | | 11.8 | | | | | | |
Project Essential Bidco, Inc. and Project Essential Super Parent, Inc. | 1.1 | | — | | 1.1 | | — | | — | | 1.1 | | | | | | |
Project Potter Buyer, LLC and Project Potter Parent, L.P. | 5.5 | | (2.1) | | 3.4 | | — | | — | | 3.4 | | | | | | |
Proofpoint, Inc. | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
PS Operating Company LLC and PS Op Holdings LLC | 6.3 | | (5.3) | | 1.0 | | — | | — | | 1.0 | | | | | | |
PSC Parent, Inc. | 21.9 | | (0.6) | | 21.3 | | — | | — | | 21.3 | | | | | | |
PushPay USA Inc. | 3.6 | | — | | 3.6 | | — | | — | | 3.6 | | | | | | |
PYE-Barker Fire & Safety, LLC | 29.7 | | (0.5) | | 29.2 | | — | | — | | 29.2 | | | | | | |
Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC | 1.6 | | — | | 1.6 | | — | | — | | 1.6 | | | | | | |
QF Holdings, Inc. | 1.1 | | (0.4) | | 0.7 | | — | | — | | 0.7 | | | | | | |
Qnnect, LLC and Connector TopCo, LP | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
Quick Quack Car Wash Holdings, LLC and KKR Game Changer Co-Invest Feeder II L.P. | 22.3 | | — | | 22.3 | | — | | — | | 22.3 | | | | | | |
Radius Aerospace, Inc. and Radius Aerospace Europe Limited | 5.6 | | (3.4) | | 2.2 | | — | | — | | 2.2 | | | | | | |
Radwell Parent, LLC | 4.4 | | (1.0) | | 3.4 | | — | | — | | 3.4 | | | | | | |
Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC | 4.4 | | — | | 4.4 | | — | | — | | 4.4 | | | | | | |
| | | | | | | | | | | |
RB Holdings InterCo, LLC | 2.1 | | (1.5) | | 0.6 | | — | | — | | 0.6 | | | | | | |
Reagent Chemical & Research, LLC | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
Reddy Ice LLC | 70.8 | | (12.0) | | 58.8 | | — | | — | | 58.8 | | | | | | |
Redwood Services, LLC and Redwood Services Holdco, LLC | 21.7 | | (0.2) | | 21.5 | | — | | — | | 21.5 | | | | | | |
Reef Lifestyle, LLC | 47.5 | | (33.3) | | 14.2 | | — | | — | | 14.2 | | | | | | |
Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P. | 6.9 | | (2.0) | | 4.9 | | — | | — | | 4.9 | | | | | | |
Relativity ODA LLC | 3.8 | | — | | 3.8 | | — | | — | | 3.8 | | | | | | |
Repairify, Inc. and Repairify Holdings, LLC | 7.3 | | (7.3) | | — | | — | | — | | — | | | | | | |
Revalize, Inc. | 0.9 | | (0.3) | | 0.6 | | — | | — | | 0.6 | | | | | | |
Rialto Management Group, LLC | 1.3 | | (0.3) | | 1.0 | | — | | — | | 1.0 | | | | | | |
Riser Topco II, LLC | 13.6 | | — | | 13.6 | | — | | — | | 13.6 | | | | | | |
RMS HoldCo II, LLC & RMS Group Holdings, Inc. | 2.9 | | — | | 2.9 | | — | | — | | 2.9 | | | | | | |
Rodeo AcquisitionCo LLC | 2.5 | | (1.7) | | 0.8 | | — | | — | | 0.8 | | | | | | |
RTI Surgical, Inc. and Pioneer Surgical Technology, Inc. | 15.9 | | (8.1) | | 7.8 | | — | | — | | 7.8 | | | | | | |
See accompanying notes to consolidated financial statements
71
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
SageSure Holdings, LLC and SageSure LLC | 11.4 | | — | | 11.4 | | — | | — | | 11.4 | | | | | | |
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P. | 15.2 | | (0.7) | | 14.5 | | — | | — | | 14.5 | | | | | | |
SCIH Salt Holdings Inc. | 22.5 | | — | | 22.5 | | — | | — | | 22.5 | | | | | | |
SCM Insurance Services Inc. | 3.9 | | — | | 3.9 | | — | | — | | 3.9 | | | | | | |
SG Acquisition, Inc. | 2.0 | | — | | 2.0 | | — | | — | | 2.0 | | | | | | |
Shermco Intermediate Holdings, Inc. | 6.3 | | (3.2) | | 3.1 | | — | | — | | 3.1 | | | | | | |
Shoes For Crews Global, LLC and Shoes For Crews Holdings, LLC | 0.7 | | — | | 0.7 | | — | | — | | 0.7 | | | | | | |
Silk Holdings III Corp. and Silk Holdings I Corp. | 0.1 | | (0.1) | | — | | — | | — | | — | | | | | | |
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC | 2.1 | | — | | 2.1 | | — | | — | | 2.1 | | | | | | |
SM Wellness Holdings, Inc. and SM Holdco, LLC | 3.8 | | — | | 3.8 | | — | | — | | 3.8 | | | | | | |
Smarsh Inc. and Skywalker TopCo, LLC | 2.0 | | (0.3) | | 1.7 | | — | | — | | 1.7 | | | | | | |
Spark Purchaser, Inc. | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp | 2.5 | | (0.3) | | 2.2 | | — | | — | | 2.2 | | | | | | |
St Athena Global LLC and St Athena Global Holdings Limited | 5.5 | | (0.2) | | 5.3 | | — | | — | | 5.3 | | | | | | |
Star US Bidco LLC | 15.5 | | — | | 15.5 | | — | | — | | 15.5 | | | | | | |
| | | | | | | | | | | |
Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC | 2.5 | | — | | 2.5 | | — | | — | | 2.5 | | | | | | |
Sun Acquirer Corp. and Sun TopCo, LP | 18.4 | | (3.5) | | 14.9 | | — | | — | | 14.9 | | | | | | |
Sundance Group Holdings, Inc. | 3.0 | | (1.8) | | 1.2 | | — | | — | | 1.2 | | | | | | |
Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation | 7.6 | | (0.7) | | 6.9 | | — | | — | | 6.9 | | | | | | |
Sunvair Aerospace Group, Inc. and GB Helios Holdings, L.P. | 37.9 | | — | | 37.9 | | — | | — | | 37.9 | | | | | | |
SV Newco 2, Inc. & Site 2020 Incorporated | 19.0 | | — | | 19.0 | | — | | — | | 19.0 | | | | | | |
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc. | 10.0 | | (0.4) | | 9.6 | | — | | — | | 9.6 | | | | | | |
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC | 4.2 | | — | | 4.2 | | — | | — | | 4.2 | | | | | | |
Systems Planning and Analysis, Inc. | 4.0 | | — | | 4.0 | | — | | — | | 4.0 | | | | | | |
Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C. | 7.5 | | — | | 7.5 | | — | | — | | 7.5 | | | | | | |
Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P. | 2.5 | | (0.7) | | 1.8 | | — | | — | | 1.8 | | | | | | |
TCP Hawker Intermediate LLC | 12.8 | | (2.8) | | 10.0 | | — | | — | | 10.0 | | | | | | |
Team Acquisition Corporation | 6.1 | | — | | 6.1 | | — | | — | | 6.1 | | | | | | |
The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc. | 3.0 | | — | | 3.0 | | — | | — | | 3.0 | | | | | | |
The Arcticom Group, LLC and AMCP Mechanical Holdings, LP | 13.7 | | (10.3) | | 3.4 | | — | | — | | 3.4 | | | | | | |
The Hiller Companies, LLC | 14.6 | | (0.1) | | 14.5 | | — | | — | | 14.5 | | | | | | |
The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC | 1.3 | | (0.5) | | 0.8 | | — | | — | | 0.8 | | | | | | |
The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP | 5.6 | | — | | 5.6 | | — | | — | | 5.6 | | | | | | |
Thermostat Purchaser III, Inc. | 7.7 | | (0.4) | | 7.3 | | — | | — | | 7.3 | | | | | | |
THG Acquisition, LLC | 6.0 | | (2.1) | | 3.9 | | — | | — | | 3.9 | | | | | | |
Trader Corporation and Project Auto Finco Corp. | 0.6 | | — | | 0.6 | | — | | — | | 0.6 | | | | | | |
Triwizard Holdings, Inc. and Triwizard Parent, LP | 11.0 | | (1.8) | | 9.2 | | — | | — | | 9.2 | | | | | | |
Truck-Lite Co., LLC, Ecco Holdings Corp. and Clarience Technologies, LLC | 18.4 | | (0.3) | | 18.1 | | — | | — | | 18.1 | | | | | | |
Truist Insurance Holdings, LLC and McGriff Insurance Services, LLC | 5.4 | | (0.5) | | 4.9 | | — | | — | | 4.9 | | | | | | |
TSS Buyer, LLC | 0.5 | | — | | 0.5 | | — | | — | | 0.5 | | | | | | |
Two Six Labs, LLC | 36.5 | | — | | 36.5 | | — | | — | | 36.5 | | | | | | |
United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP | 4.6 | | (0.8) | | 3.8 | | — | | — | | 3.8 | | | | | | |
UP Intermediate II LLC and UPBW Blocker LLC | 4.2 | | (0.1) | | 4.1 | | — | | — | | 4.1 | | | | | | |
US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P. | 9.9 | | — | | 9.9 | | — | | — | | 9.9 | | | | | | |
Valcourt Holdings II, LLC and Jobs Holdings, Inc. | 7.3 | | — | | 7.3 | | — | | — | | 7.3 | | | | | | |
Verista, Inc. | 8.0 | | (0.7) | | 7.3 | | — | | — | | 7.3 | | | | | | |
Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC | 4.4 | | (0.2) | | 4.2 | | — | | — | | 4.2 | | | | | | |
Visual Edge Technology, Inc. | 18.9 | | — | | 18.9 | | — | | — | | 18.9 | | | | | | |
Vobev, LLC and Vobev Holdings, LLC | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P. | 13.2 | | — | | 13.2 | | — | | — | | 13.2 | | | | | | |
VRC Companies, LLC | 5.4 | | — | | 5.4 | | — | | — | | 5.4 | | | | | | |
W.S. Connelly & Co., LLC and WSC Ultimate Holdings, LLC | 12.6 | | — | | 12.6 | | — | | — | | 12.6 | | | | | | |
See accompanying notes to consolidated financial statements
72
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
Watermill Express, LLC and Watermill Express Holdings, LLC | 0.8 | | (0.8) | | — | | — | | — | | — | | | | | | |
Waverly Advisors, LLC and WAAM Topco, LLC | 4.2 | | — | | 4.2 | | — | | — | | 4.2 | | | | | | |
WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P. | 0.7 | | — | | 0.7 | | — | | — | | 0.7 | | | | | | |
Wealth Enhancement Group, LLC | 16.9 | | — | | 16.9 | | — | | — | | 16.9 | | | | | | |
WebPT, Inc. and WPT Intermediate Holdco, Inc. | 0.9 | | (0.1) | | 0.8 | | — | | — | | 0.8 | | | | | | |
Wellington Bidco Inc. and Wellington TopCo LP | 16.6 | | (0.6) | | 16.0 | | — | | — | | 16.0 | | | | | | |
Wellness AcquisitionCo, Inc. | 2.2 | | — | | 2.2 | | — | | — | | 2.2 | | | | | | |
Wellpath Holdings, Inc. | 12.0 | | (11.7) | | 0.3 | | — | | — | | 0.3 | | | | | | |
Wildcat BuyerCo, Inc. and Wildcat Parent, LP | 6.3 | | (0.2) | | 6.1 | | — | | — | | 6.1 | | | | | | |
WorkWave Intermediate II, LLC | 11.6 | | — | | 11.6 | | — | | — | | 11.6 | | | | | | |
World Insurance Associates, LLC and World Associates Holdings, LLC | 13.3 | | — | | 13.3 | | — | | — | | 13.3 | | | | | | |
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. | 1.8 | | (0.1) | | 1.7 | | — | | — | | 1.7 | | | | | | |
WSHP FC Acquisition LLC and WSHP FC Holdings LLC | 16.3 | | (16.3) | | — | | — | | — | | — | | | | | | |
XIFIN, Inc. and ACP Charger Co-Invest LLC | 5.7 | | (5.7) | | — | | — | | — | | — | | | | | | |
YE Brands Holdings, LLC | 3.8 | | — | | 3.8 | | — | | — | | 3.8 | | | | | | |
ZB Holdco LLC and ZB TopCo LLC | 23.6 | | (3.9) | | 19.7 | | — | | — | | 19.7 | | | | | | |
ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP | 12.8 | | — | | 12.8 | | — | | — | | 12.8 | | | | | | |
| $ | 3,556.0 | | $ | (517.8) | | $ | 3,038.2 | | $ | — | | $ | (10.0) | | $ | 3,028.2 | | | | | | |
(16)As of June 30, 2024, the Company was party to agreements to fund equity investment commitments as follows:
| | | | | | | | | | | | | | | | | |
(in millions) Company | Total equity commitments | Less: funded equity commitments | Total unfunded equity commitments | Less: equity commitments substantially at the discretion of the Company | Total net unfunded equity commitments |
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP | $ | 1.2 | | $ | — | | $ | 1.2 | | $ | — | | $ | 1.2 | |
Constellation Wealth Capital Fund, L.P. | 5.5 | | (2.9) | | 2.6 | | — | | 2.6 | |
DOXA Insurance Holdings LLC and Rocket Co-Invest, SLP | 0.1 | | — | | 0.1 | | — | | 0.1 | |
European Capital UK SME Debt LP | 56.9 | | (51.5) | | 5.4 | | (5.4) | | — | |
GTCR F Buyer Corp. and GTCR (D) Investors LP | 1.6 | | — | | 1.6 | | — | | 1.6 | |
HFCP XI (Parallel - A), L.P. | 7.5 | | — | | 7.5 | | — | | 7.5 | |
High Street Buyer, Inc. and High Street Holdco LLC | 43.5 | | — | | 43.5 | | — | | 43.5 | |
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. | 11.6 | | (9.7) | | 1.9 | | — | | 1.9 | |
Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. | 0.3 | | — | | 0.3 | | — | | 0.3 | |
PCG-Ares Sidecar Investment, L.P. and PCG-Ares Sidecar Investment II, L.P. | 50.0 | | (12.4) | | 37.6 | | (37.6) | | — | |
Rawlings Sporting Goods Company, Inc. and SEP Diamond Fund, L.P. | 12.2 | | (10.9) | | 1.3 | | — | | 1.3 | |
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P. | 2.5 | | — | | 2.5 | | — | | 2.5 | |
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. | 0.2 | | — | | 0.2 | | — | | 0.2 | |
| $ | 193.1 | | $ | (87.4) | | $ | 105.7 | | $ | (43.0) | | $ | 62.7 | |
(17)As of June 30, 2024, the Company had commitments to co-invest in the SDLP for its portion of the SDLP’s commitment to fund delayed draw loans of up to $56. See Note 4 to the consolidated financial statements for more information on the SDLP.
(18)Other than the investments noted by this footnote, the fair value of the Company’s investments is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 8 to the consolidated financial statements for more information regarding the fair value of the Company’s investments.
(19)As of June 30, 2024, the estimated net unrealized gain for federal tax purposes was $20 million based on a tax cost basis of $24.5 billion. As of June 30, 2024, the estimated aggregate gross unrealized gain for federal income tax purposes was $1.4 billion and the estimated aggregate gross unrealized loss for federal income tax purposes was $1.4 billion.
See accompanying notes to consolidated financial statements
73
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Software and Services | | | | | | | | | | | | | | | | | | | | | | | | |
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC (15) | | Payment processing solution provider | | First lien senior secured loan | | 10.88% | SOFR (Q) | 5.50% | | 02/2020 | | 06/2028 | | | $ | 62.7 | | | $ | 62.7 | | | $ | 62.7 | | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.87% | SOFR (M) | 5.50% | | 06/2022 | | 06/2028 | | | 99.5 | | | 98.2 | | 99.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.88% | SOFR (S) | 5.50% | | 11/2023 | | 06/2028 | | | 2.2 | | | 2.2 | | 2.2 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 15.39% PIK | SOFR (Q) | 10.00% | | 02/2020 | | 06/2030 | | | 65.7 | | | 65.7 | | 65.7 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 228.8 | | 230.1 | | | | | |
Anaplan, Inc. (15) | | Provider of cloud-based connected planning platforms for business analytics | | First lien senior secured loan | | 11.85% | SOFR (Q) | 6.50% | | 06/2022 | | 06/2029 | | | 1.8 | | | 1.8 | | 1.8 | (2)(11) | | | | |
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua (15) | | Provider of intellectual property management lifecycle software | | First lien senior secured loan | | 9.45% | Euribor (Q) | 5.50% | | 04/2019 | | 04/2026 | | | 4.4 | | | 4.5 | | 4.4 | (2) | | | | |
| | | | First lien senior secured loan | | 10.88% | SOFR (S) | 5.25% | | 06/2021 | | 04/2026 | | | 2.3 | | | 2.3 | | 2.3 | (2)(11) | | | | |
| | | | Limited partnership units | | | | | | 06/2019 | | | | 4,400,000 | | | 4.2 | | 10.6 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 11.0 | | 17.3 | | | | | |
APG Intermediate Holdings Corporation and APG Holdings, LLC (4)(15) | | Aircraft performance software provider | | First lien senior secured loan | | 10.76% | SOFR (Q) | 5.25% | | 01/2020 | | 01/2025 | | | 13.2 | | | 13.2 | | 13.2 | (2)(11) | | | | |
| | | | Class A membership units | | | | | | 01/2020 | | | | 9,750,000 | | | 9.8 | | 10.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 23.0 | | 23.7 | | | | | |
Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc. (15) | | Software platform for identification, prevention and management of substance use disorder | | First lien senior secured loan | | 12.32% | SOFR (Q) | 6.75% | | 05/2021 | | 05/2027 | | | 5.6 | | | 5.6 | | 5.6 | (2)(11) | | | | |
| | | | Series A preferred shares | | 11.00% PIK | | | | 05/2021 | | | | 32,236 | | | 43.2 | | 39.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 48.8 | | 45.3 | | | | | |
Aptean, Inc. and Aptean Acquiror Inc. | | Provider of CRM, ERP and supply chain software application | | First lien senior secured loan | | 9.71% | SOFR (M) | 4.25% | | 05/2022 | | 04/2026 | | | 7.1 | | | 7.0 | | 7.1 | (2)(18) | | | | |
Auctane, Inc. | | Provider of mailing and shipping solutions | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 10/2021 | | 10/2028 | | | 145.3 | | | 145.3 | | 138.0 | (2)(11) | | | | |
Avalara, Inc. (15) | | Provider of cloud-based solutions for transaction tax compliance worldwide | | First lien senior secured loan | | 12.60% | SOFR (Q) | 7.25% | | 10/2022 | | 10/2028 | | | 72.2 | | | 72.2 | | 72.2 | (2)(11) | | | | |
Avetta, LLC (15) | | Supply chain risk management SaaS platform for global enterprise clients | | First lien senior secured loan | | 11.15% | SOFR (Q) | 5.75% | | 10/2023 | | 10/2030 | | | 33.0 | | | 33.0 | | 32.3 | (2)(11) | | | | |
Banyan Software Holdings, LLC and Banyan Software, LP (15) | | Vertical software businesses holding company | | First lien senior secured revolving loan | | 10.96% | SOFR (M) | 5.50% | | 01/2023 | | 10/2025 | | | 1.4 | | | 1.4 | | 1.4 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.46% | SOFR (M) | 7.00% | | 10/2020 | | 10/2026 | | | 1.0 | | | 1.0 | | 1.0 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.46% | SOFR (M) | 7.00% | | 12/2021 | | 10/2026 | | | 0.2 | | | 0.2 | | 0.2 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.71% | SOFR (M) | 7.25% | | 01/2023 | | 10/2026 | | | 5.2 | | | 5.2 | | 5.2 | (2)(6)(11) | | | | |
| | | | Preferred units | | | | | | 01/2022 | | | | 120,999 | | | 4.1 | | 8.7 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 11.9 | | 16.5 | | | | | |
BCTO Ignition Purchaser, Inc. | | Enterprise software provider | | First lien senior secured loan | | 14.40% PIK | SOFR (Q) | 9.00% | | 04/2023 | | 10/2030 | | | 3.5 | | | 3.5 | | 3.4 | (2)(6)(11) | | | | |
See accompanying notes to consolidated financial statements
74
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Bobcat Purchaser, LLC and Bobcat Topco, L.P. (15) | | Healthcare software provider | | First lien senior secured loan | | 11.59% | SOFR (Q) | 6.25% | | 06/2023 | | 06/2030 | | | 15.8 | | | 15.8 | | 15.8 | (2)(11) | | | | |
| | | | Class A-1 units | | | | | | 06/2023 | | | | 1,523,000 | | | 1.5 | | 1.5 | | | | | |
| | | | | | | | | | | | | | | | | 17.3 | | 17.3 | | | | | |
Borrower R365 Holdings LLC (15) | | Provider of restaurant enterprise resource planning systems | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 06/2021 | | 06/2027 | | | 16.0 | | | 15.9 | | 16.0 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 01/2022 | | 06/2027 | | | 2.0 | | | 1.9 | | 2.0 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 17.8 | | 18.0 | | | | | |
Bottomline Technologies, Inc. and Legal Spend Holdings, LLC (15) | | Provider of payment automation solutions | | First lien senior secured loan | | 10.61% | SOFR (M) | 5.25% | | 05/2022 | | 05/2029 | | | 8.1 | | | 8.1 | | 8.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.11% | SOFR (M) | 5.75% | | 10/2023 | | 05/2029 | | | 4.2 | | | 4.2 | | 4.2 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 12.3 | | 12.3 | | | | | |
Businessolver.com, Inc. (15) | | Provider of SaaS-based benefits solutions for employers and employees | | First lien senior secured loan | | 10.93% | SOFR (M) | 5.50% | | 12/2021 | | 12/2027 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
CallMiner, Inc. | | Provider of cloud-based conversational analytics solutions | | Warrant to purchase shares of Series 1 preferred stock | | | | | | 07/2014 | | 07/2024 | | 2,350,636 | | | — | | | — | | | | | | |
Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc. (15) | | Provider of software and technology-enabled content and analytical solutions to insurance brokers | | First lien senior secured revolving loan | | 12.00% | Base Rate (Q) | 3.50% | | 11/2020 | | 11/2025 | | | 2.6 | | | 2.6 | | 2.6 | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 9.96% | SOFR (M) | 4.50% | | 11/2020 | | 11/2025 | | | 1.4 | | | 1.4 | | 1.4 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 13.25% | SOFR (Q) | 7.75% | | 11/2020 | | 11/2028 | | | 64.3 | | | 64.3 | | 63.0 | (2)(11) | | | | |
| | | | Series A preferred shares | | 11.00% PIK | | | | 11/2020 | | | | 24,898 | | | 35.2 | | 30.9 | (2) | | | | |
| | | | Series A-2 preferred shares | | 11.00% PIK | | | | 12/2020 | | | | 8,963 | | | 12.5 | | 10.7 | (2) | | | | |
| | | | Series A-3 preferred shares | | 11.00% PIK | | | | 11/2021 | | | | 11,952 | | | 15.1 | | 13.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 131.1 | | 121.9 | | | | | |
Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P. (15) | | Provider of server, application and desktop virtualization, networking, software as a service, and cloud computing technologies | | First lien senior secured notes | | 6.50% | | | | 09/2022 | | 03/2029 | | | 88.9 | | | 86.8 | | 84.7 | (2)(18) | | | | |
| | | | First lien senior secured loan | | 9.99% | SOFR (Q) | 4.50% | | 09/2022 | | 03/2029 | | | 15.7 | | | 15.1 | | 15.3 | (2)(11)(18) | | | | |
| | | | Second lien senior secured notes | | 9.00% | | | | 04/2023 | | 09/2029 | | | 121.0 | | | 112.5 | | 115.2 | (2)(18) | | | | |
| | | | Series A preferred stock | | 17.35% PIK | SOFR (Q) | 12.00% | | 09/2022 | | | | 117,813 | | | 123.5 | | 127.6 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 09/2022 | | | | 12,250,000 | | | 12.3 | | 18.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 350.2 | | 361.5 | | | | | |
Community Brands ParentCo, LLC (15) | | Software and payment services provider to non-profit institutions | | First lien senior secured loan | | 10.96% | SOFR (M) | 5.50% | | 02/2022 | | 02/2028 | | | 10.5 | | | 10.5 | | 10.3 | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2016 | | | | 500,000 | | | 5.0 | | 6.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 15.5 | | 16.4 | | | | | |
Computer Services, Inc. | | Infrastructure software provider to community banks | | First lien senior secured loan | | 12.13% | SOFR (Q) | 6.75% | | 11/2022 | | 11/2029 | | | 33.8 | | | 33.8 | | 33.8 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
75
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P. (15) | | Provider of sales software for the interior design industry | | First lien senior secured revolving loan | | 11.25% | SOFR (Q) | 5.75% | | 05/2021 | | 05/2028 | | | 3.9 | | | 3.9 | | 3.9 | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.15% | Euribor (Q) | 6.25% | | 11/2021 | | 05/2028 | | | 0.9 | | | 0.9 | | 0.9 | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 11.25% | SOFR (Q) | 5.75% | | 11/2021 | | 05/2028 | | | 0.3 | | | 0.3 | | 0.3 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 05/2021 | | 05/2028 | | | 74.1 | | | 74.1 | | 72.6 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.19% | Euribor (Q) | 6.25% | | 11/2021 | | 05/2028 | | | 0.5 | | | 0.4 | | 0.5 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.19% | Euribor (Q) | 6.25% | | 11/2021 | | 05/2028 | | | 30.0 | | | 30.1 | | 29.7 | (2)(6) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 06/2022 | | 05/2028 | | | 11.6 | | | 11.6 | | 11.4 | (2)(6)(11) | | | | |
| | | | Common units | | | | | | 05/2021 | | | | 483,584 | | | 4.8 | | 9.0 | (2)(6) | | | | |
| | | | Series A common units | | | | | | 09/2022 | | | | 23,340 | | | 0.2 | | 0.4 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 126.3 | | 128.7 | | | | | |
CoreLogic, Inc. and T-VIII Celestial Co-Invest LP (15) | | Provider of information, insight, analytics, software and other outsourced services primarily to the mortgage, real estate and insurance sectors | | Second lien senior secured loan | | 11.97% | SOFR (M) | 6.50% | | 06/2021 | | 06/2029 | | | 155.7 | | | 155.7 | | 143.2 | (2)(11) | | | | |
| | | | Limited partnership units | | | | | | 04/2021 | | | | 59,665,989 | | | 59.7 | | 36.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 215.4 | | 179.4 | | | | | |
Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc. (15) | | Provider of environmental, health and safety software to track compliance data | | First lien senior secured loan | | 10.39% | SOFR (Q) | 5.00% | | 07/2019 | | 07/2026 | | | 6.2 | | | 6.2 | | 6.2 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.39% | SOFR (Q) | 5.00% | | 10/2019 | | 07/2026 | | | 4.3 | | | 4.3 | | 4.3 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.39% | SOFR (Q) | 7.00% | | 09/2020 | | 07/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.50% | | 09/2022 | | 07/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.39% | SOFR (Q) | 6.00% | | 09/2022 | | 07/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.39% | SOFR (Q) | 6.00% | | 04/2023 | | 07/2026 | | | 7.7 | | | 7.7 | | 7.7 | (2)(6)(11) | | | | |
| | | | Preferred equity | | 9.00% PIK | | | | 07/2019 | | | | 198 | | | 0.3 | | 0.8 | (2)(6) | | | | |
| | | | Common equity | | | | | | 07/2019 | | | | 190,143 | | | — | | | — | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 18.8 | | 19.3 | | | | | |
Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc. (15) | | Provider of a cloud-based, SaaS platform for talent management | | First lien senior secured revolving loan | | | | | | 10/2021 | | 10/2026 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | Second lien senior secured loan | | 11.97% | SOFR (M) | 6.50% | | 10/2021 | | 10/2029 | | | 137.5 | | | 137.5 | | 132.0 | (2)(11) | | | | |
| | | | Series A preferred shares | | 10.50% PIK | | | | 10/2021 | | | | 116,413 | | | 146.0 | | 127.1 | (2) | | | | |
| | | | Class A-1 common stock | | | | | | 10/2021 | | | | 1,360,100 | | | 13.6 | | 16.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 297.1 | | 275.3 | | | | | |
Coupa Holdings, LLC and Coupa Software Incorporated (15) | | Provider of Business Spend Management software | | First lien senior secured loan | | 12.86% | SOFR (M) | 7.50% | | 03/2023 | | 02/2030 | | | 9.0 | | | 9.0 | | 9.0 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
76
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Crosspoint Capital AS SPV, LP (15) | | Provider of software services that support the management and security of computing devices, applications, data, and networks | | First lien senior secured revolving loan | | 12.10% | SOFR (Q) | 6.75% | | 07/2023 | | 07/2029 | | | 0.7 | | | 0.7 | | 0.7 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.10% | SOFR (Q) | 6.75% | | 07/2023 | | 07/2030 | | | 42.9 | | | 42.9 | | 42.5 | (2)(6)(11) | | | | |
| | | | Limited partnership interest | | 8.00% PIK | | | | 10/2023 | | | | 9,249,000 | | | 9.5 | | 9.0 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 53.1 | | 52.2 | | | | | |
Datix Bidco Limited | | Global healthcare software company that provides software solutions for patient safety and risk management | | First lien senior secured loan | | 9.94% | SOFR (S) | 4.50% | | 10/2019 | | 04/2025 | | | 4.4 | | | 4.2 | | 4.4 | (2)(6) | | | | |
| | | | Second lien senior secured loan | | 13.19% | SOFR (S) | 7.75% | | 11/2022 | | 04/2026 | | | 0.7 | | | 0.7 | | 0.7 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 4.9 | | 5.1 | | | | | |
Dcert Buyer, Inc., DCert Preferred Holdings, Inc. and Destiny Digital Holdings, L.P. | | Provider of internet security tools and solutions | | Second lien senior secured loan | | 12.36% | SOFR (M) | 7.00% | | 05/2022 | | 02/2029 | | | 11.0 | | | 10.4 | | 10.9 | (2) | | | | |
| | | | Series A preferred shares | | 10.50% PIK | | | | 05/2021 | | | | 129,822 | | | 169.5 | | 150.8 | (2) | | | | |
| | | | Series A units | | | | | | 05/2021 | | | | 817,194 | | | 13.3 | | 9.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 193.2 | | 170.8 | | | | | |
Denali Holdco LLC and Denali Apexco LP (15) | | Provider of cybersecurity audit and assessment services | | First lien senior secured loan | | 10.96% | SOFR (M) | 5.50% | | 09/2021 | | 09/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.03% | SOFR (M) | 5.50% | | 07/2022 | | 09/2027 | | | 1.1 | | | 1.1 | | 1.1 | (2)(11) | | | | |
| | | | Class A units | | | | | | 02/2022 | | | | 2,549,000 | | | 2.5 | | 3.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 3.7 | | 4.4 | | | | | |
Diligent Corporation and Diligent Preferred Issuer, Inc. (15) | | Provider of secure SaaS solutions for board and leadership team documents | | First lien senior secured revolving loan | | 11.76% | SOFR (Q) | 6.25% | | 08/2020 | | 08/2025 | | | 1.2 | | | 1.2 | | 1.2 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.78% | SOFR (Q) | 6.25% | | 08/2020 | | 08/2025 | | | 14.6 | | | 14.5 | | 14.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.78% | SOFR (Q) | 6.25% | | 08/2020 | | 08/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.28% | SOFR (Q) | 5.75% | | 03/2021 | | 08/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.28% | SOFR (Q) | 5.75% | | 04/2021 | | 08/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.78% | SOFR (Q) | 6.25% | | 07/2021 | | 08/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Preferred stock | | 10.50% PIK | | | | 04/2021 | | | | 13,140 | | | 16.7 | | 15.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 32.8 | | 31.8 | | | | | |
DS Admiral Bidco, LLC (15) | | Tax return software provider for government institutions | | First lien senior secured loan | | 11.85% | SOFR (Q) | 6.50% | | 03/2021 | | 03/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
Dye & Durham Corporation (15) | | Provider of cloud-based software and technology solutions for the legal industry | | First lien senior secured revolving loan | | 11.20% | CDOR (Q) | 5.75% | | 12/2021 | | 12/2026 | | | 3.8 | | | 3.8 | | 3.8 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.21% | CDOR (Q) | 5.75% | | 12/2021 | | 12/2027 | | | 8.7 | | | 8.6 | | 8.7 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 12.4 | | 12.5 | | | | | |
See accompanying notes to consolidated financial statements
77
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Echo Purchaser, Inc. (15) | | Software provider of mission critical security, supply chain, and collaboration solutions for highly regulated end markets | | First lien senior secured revolving loan | | 10.86% | SOFR (Q) | 5.50% | | 11/2023 | | 11/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.87% | SOFR (S) | 5.50% | | 11/2023 | | 11/2029 | | | 10.7 | | | 10.7 | | 10.4 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 10.8 | | 10.5 | | | | | |
Elemica Parent, Inc. & EZ Elemica Holdings, Inc. (15) | | SaaS based supply chain management software provider focused on chemical markets | | First lien senior secured revolving loan | | 11.02% | SOFR (Q) | 5.50% | | 09/2019 | | 09/2025 | | | 4.1 | | | 4.1 | | 4.0 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.03% | SOFR (Q) | 5.50% | | 09/2019 | | 09/2025 | | | 60.7 | | | 60.7 | | 58.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.03% | SOFR (Q) | 5.50% | | 12/2020 | | 09/2025 | | | 5.7 | | | 5.7 | | 5.5 | (2)(11) | | | | |
| | | | Preferred equity | | | | | | 09/2019 | | | | 4,599 | | | 4.6 | | 5.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 75.1 | | 74.2 | | | | | |
Enverus Holdings, Inc. and Titan DI Preferred Holdings, Inc. (15) | | SaaS based business analytics company focused on oil and gas industry | | First lien senior secured loan | | 10.86% | SOFR (S) | 5.50% | | 12/2023 | | 12/2029 | | | 134.9 | | | 134.9 | | 132.2 | (2)(11) | | | | |
| | | | Preferred stock | | 13.50% PIK | | | | 02/2020 | | | | 30 | | | 48.5 | | 48.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 183.4 | | 180.7 | | | | | |
EP Purchaser, LLC and TPG VIII EP Co-Invest II, L.P. | | Provider of entertainment workforce and production management solutions | | First lien senior secured loan | | 10.11% | SOFR (Q) | 4.50% | | 06/2023 | | 11/2028 | | | 8.4 | | | 8.1 | | 8.4 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 12.11% | SOFR (Q) | 6.50% | | 11/2021 | | 11/2029 | | | 177.9 | | | 177.9 | | 172.6 | (2)(11) | | | | |
| | | | Partnership units | | | | | | 05/2019 | | | | 5,034,483 | | | 3.2 | | 12.1 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 189.2 | | 193.1 | | | | | |
EpiServer Inc. and Episerver Sweden Holdings AB (15) | | Provider of web content management and digital commerce solutions | | First lien senior secured loan | | 10.75% | SOFR (Q) | 5.25% | | 10/2018 | | 04/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 9.43% | Euribor (Q) | 5.50% | | 03/2019 | | 04/2026 | | | 5.7 | | | 5.8 | | 5.7 | (2)(6) | | | | |
| | | | First lien senior secured loan | | 10.75% | SOFR (Q) | 5.25% | | 12/2021 | | 04/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 6.0 | | 5.9 | | | | | |
eResearch Technology, Inc. and Astorg VII Co-Invest ERT | | Provider of mission-critical, software-enabled clinical research solutions | | First lien senior secured loan | | 9.97% | SOFR (M) | 4.50% | | 11/2023 | | 02/2027 | | | 1.0 | | | 1.0 | | 1.0 | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 13.46% | SOFR (M) | 8.00% | | 02/2020 | | 02/2028 | | | 17.2 | | | 16.9 | | 17.2 | (2) | | | | |
| | | | Second lien senior secured loan | | 13.46% | SOFR (M) | 8.00% | | 04/2021 | | 02/2028 | | | 30.6 | | | 29.9 | | 30.6 | (2) | | | | |
| | | | Limited partnership interest | | | | | | 01/2020 | | | | 3,988,000 | | | 4.5 | | 5.5 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 52.3 | | 54.3 | | | | | |
ESHA Research, LLC and RMCF VI CIV XLVIII, L.P. (15) | | Provider of nutritional information and software as a services (SaaS) compliance solutions | | First lien senior secured revolving loan | | 11.74% | SOFR (S) | 6.25% | | 06/2022 | | 06/2028 | | | 0.8 | | | 0.8 | | 0.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.76% | SOFR (Q) | 6.25% | | 06/2022 | | 06/2028 | | | 6.8 | | | 6.8 | | 6.6 | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 06/2022 | | | | 6,246,801 | | | 6.2 | | 5.5 | | | | | |
See accompanying notes to consolidated financial statements
78
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 13.8 | | 12.8 | | | | | |
Extrahop Networks, Inc. (15) | | Provider of real-time wire data analytics solutions for application and infrastructure monitoring | | First lien senior secured loan | | 12.96% | SOFR (M) | 7.50% | | 07/2021 | | 07/2027 | | | 22.9 | | | 22.9 | | 22.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.96% | SOFR (M) | 7.50% | | 03/2023 | | 07/2027 | | | 3.9 | | | 3.9 | | 3.9 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 26.8 | | 26.8 | | | | | |
Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L. (15) | | Provider of back-office software services for the banking sector | | First lien senior secured loan | | 12.71% | SOFR (Q) | 7.25% | | 09/2023 | | 09/2029 | | | 190.5 | | | 186.8 | | 188.6 | (2)(6)(11) | | | | |
First Insight, Inc. | | Software company providing merchandising and pricing solutions to companies worldwide | | Warrant to purchase shares of Series C preferred stock | | | | | | 03/2014 | | 03/2024 | | 122,827 | | | — | | | — | | | | | | |
Forescout Technologies, Inc. (15) | | Network access control solutions provider | | First lien senior secured loan | | 13.45% | SOFR (Q) | 8.00% | | 08/2020 | | 08/2026 | | | 9.6 | | | 9.5 | | 9.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.45% | SOFR (Q) | 8.00% | | 07/2022 | | 08/2026 | | | 13.8 | | | 13.8 | | 13.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 23.3 | | 23.4 | | | | | |
Genesis Acquisition Co. and Genesis Ultimate Holding Co. (15) | | Child care management software and services provider | | First lien senior secured revolving loan | | 10.39% | SOFR (Q) | 5.00% | | 07/2018 | | 07/2025 | | | 1.5 | | | 1.5 | | 1.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.39% | SOFR (Q) | 5.00% | | 07/2018 | | 07/2025 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.35% | SOFR (Q) | 5.00% | | 11/2021 | | 07/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.47% | SOFR (Q) | 9.00% | | 07/2018 | | 07/2026 | | | 32.4 | | | 32.4 | | 32.4 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.47% | SOFR (Q) | 9.00% | | 06/2021 | | 07/2026 | | | 7.5 | | | 7.5 | | 7.5 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.47% | SOFR (Q) | 9.00% | | 11/2021 | | 07/2026 | | | 21.1 | | | 21.1 | | 21.1 | (2)(11) | | | | |
| | | | Class A common stock | | | | | | 07/2018 | | | | 8 | | | 0.8 | | 2.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 63.6 | | 65.2 | | | | | |
GI Ranger Intermediate LLC (15) | | Provider of payment processing services and software to healthcare providers | | First lien senior secured revolving loan | | 11.21% | SOFR (Q) | 5.75% | | 10/2021 | | 10/2027 | | | 2.2 | | | 2.2 | | 2.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 10/2021 | | 10/2028 | | | 10.1 | | | 10.1 | | 10.0 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 03/2022 | | 10/2028 | | | 1.8 | | | 1.8 | | 1.7 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 14.1 | | 13.8 | | | | | |
GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC (15) | | Provider of data analysis, statistics, and visualization software solutions for scientific research applications | | First lien senior secured revolving loan | | 13.50% | Base Rate (Q) | 5.00% | | 12/2017 | | 04/2027 | | | 0.6 | | | 0.6 | | 0.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.72% | SOFR (S) | 6.00% | | 12/2017 | | 04/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.19% | SOFR (Q) | 5.50% | | 04/2021 | | 04/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.22% | SOFR (Q) | 5.50% | | 10/2021 | | 04/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.13% | SOFR (Q) | 5.50% | | 11/2021 | | 04/2027 | | | 3.9 | | | 3.9 | | 3.9 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 10.50% PIK | | | | 04/2021 | | 04/2032 | | | 48.3 | | | 48.3 | | 44.9 | (2) | | | | |
| | | | Preferred units | | 14.00% PIK | | | | 04/2021 | | | | 1,828,645 | | | 65.6 | | 65.6 | | | | | |
See accompanying notes to consolidated financial statements
79
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 118.8 | | 115.4 | | | | | |
Guidepoint Security Holdings, LLC (15) | | Cybersecurity solutions provider | | First lien senior secured loan | | 11.38% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 6.8 | | | 6.8 | | 6.6 | (2)(11) | | | | |
Heavy Construction Systems Specialists, LLC (15) | | Provider of construction software | | First lien senior secured loan | | 10.86% | SOFR (M) | 5.50% | | 11/2021 | | 11/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP (15) | | Insurance software provider | | First lien senior secured revolving loan | | 11.00% | SOFR (Q) | 5.50% | | 11/2021 | | 11/2027 | | | 13.3 | | | 13.3 | | 12.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 11/2021 | | 11/2028 | | | 59.8 | | | 59.8 | | 54.4 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 10.00% PIK | | | | 11/2021 | | 11/2031 | | | 109.8 | | | 109.8 | | 89.0 | (2) | | | | |
| | | | Company units | | | | | | 11/2021 | | | | 4,246,457 | | | 8.8 | | 4.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 191.7 | | 160.2 | | | | | |
Hyland Software, Inc. (15) | | Enterprise content management software provider | | First lien senior secured loan | | 11.36% | SOFR (M) | 6.00% | | 09/2023 | | 09/2030 | | | 97.5 | | | 96.2 | | 96.1 | (2)(11) | | | | |
Imprivata, Inc. | | Provider of identity and access management solutions to the healthcare industry | | Second lien senior secured loan | | 11.60% | SOFR (Q) | 6.25% | | 04/2022 | | 12/2028 | | | 16.1 | | | 16.0 | | 15.8 | (2)(11) | | | | |
Inmar, Inc. | | Technology-driven solutions provider for retailers, wholesalers and manufacturers | | First lien senior secured loan | | 10.85% | SOFR (M) | 5.50% | | 06/2023 | | 05/2026 | | | 13.4 | | | 12.9 | | 13.2 | (2)(11)(18) | | | | |
IQN Holding Corp. (15) | | Provider of extended workforce management software | | First lien senior secured loan | | 10.64% | SOFR (Q) | 5.25% | | 05/2022 | | 05/2029 | | | 1.4 | | | 1.4 | | 1.4 | (2)(11) | | | | |
IV Rollover Holdings, LLC | | Provider of cloud based IT solutions, infrastructure and services | | Class B units | | | | | | 05/2017 | | | | 170,490 | | | — | | | — | | (2) | | | | |
| | | | Class X units | | | | | | 05/2017 | | | | 5,000,000 | | | 1.9 | | 2.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 1.9 | | 2.1 | | | | | |
Kaseya Inc. and Knockout Intermediate Holdings I Inc. (15) | | Provider of cloud-based software and technology solutions for small and medium sized businesses | | First lien senior secured revolving loan | | 11.36% (2.50% PIK) | SOFR (M) | 6.00% | | 06/2022 | | 06/2029 | | | 4.9 | | | 4.9 | | 4.9 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.38% (2.50% PIK) | SOFR (Q) | 6.00% | | 06/2022 | | 06/2029 | | | 169.1 | | | 168.9 | | 169.1 | (2)(11) | | | | |
| | | | Preferred stock | | 11.75% PIK | | | | 06/2022 | | | | 38,798 | | | 46.2 | | 45.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 220.0 | | 219.7 | | | | | |
LeanTaaS Holdings, Inc. (15) | | Provider of SaaS tools to optimize healthcare asset utilization | | First lien senior secured loan | | 12.86% | SOFR (M) | 7.50% | | 07/2022 | | 07/2028 | | | 42.3 | | | 42.3 | | 42.3 | (2)(11) | | | | |
Majesco and Magic Topco, L.P. (15) | | Insurance software provider | | First lien senior secured loan | | 12.60% | SOFR (Q) | 7.25% | | 09/2020 | | 09/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Class A units | | 9.00% PIK | | | | 09/2020 | | | | 2,539 | | | 3.4 | | 5.9 | (2) | | | | |
| | | | Class B units | | | | | | 09/2020 | | | | 570,625 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 3.5 | | 6.0 | | | | | |
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp (15)(16) | | Cybersecurity solutions provider | | First lien senior secured loan | | 10.94% | SONIA (Q) | 5.75% | | 05/2022 | | 05/2029 | | | 36.3 | | | 35.2 | | 36.3 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 05/2022 | | 05/2029 | | | 79.2 | | | 79.2 | | 79.2 | (2)(6)(11) | | | | |
| | | | Limited partnership interest | | | | | | 05/2022 | | | | 3,975 | | | 38.8 | | 43.6 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 153.2 | | 159.1 | | | | | |
See accompanying notes to consolidated financial statements
80
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Ministry Brands Holdings, LLC and RCP MB Investments B, L.P. (15) | | Software and payment services provider to faith-based institutions | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 12/2021 | | 12/2027 | | | 0.7 | | | 0.7 | | 0.6 | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 10.96% | SOFR (M) | 5.50% | | 12/2021 | | 12/2027 | | | 3.6 | | | 3.6 | | 3.4 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 10.96% | SOFR (M) | 5.50% | | 12/2021 | | 12/2028 | | | 39.4 | | | 39.4 | | 37.4 | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 12/2021 | | | | 9,574,000 | | | 9.6 | | 7.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 53.3 | | 49.2 | | | | | |
Mitchell International, Inc. | | Provider of technology, connectivity, and information solutions to the property and casualty insurance industry | | First lien senior secured loan | | 9.40% | SOFR (Q) | 3.75% | | 06/2023 | | 10/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 12.15% | SOFR (Q) | 6.50% | | 10/2021 | | 10/2029 | | | 98.1 | | | 96.4 | | 96.1 | (2)(11)(18) | | | | |
| | | | | | | | | | | | | | | | | 96.5 | | 96.2 | | | | | |
Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC (15) | | Leading technology solution provider for casing and auditioning to the entertainment industry | | First lien senior secured revolving loan | | 11.36% | SOFR (Q) | 6.00% | | 08/2022 | | 08/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.36% | SOFR (M) | 6.00% | | 08/2022 | | 08/2028 | | | 24.9 | | | 24.9 | | 24.9 | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 08/2022 | | | | 45,320 | | | 4.9 | | 3.9 | | | | | |
| | | | | | | | | | | | | | | | | 29.9 | | 28.9 | | | | | |
MRI Software LLC (15) | | Provider of real estate and investment management software | | First lien senior secured loan | | 10.95% | SOFR (Q) | 5.50% | | 02/2020 | | 02/2027 | | | 51.0 | | | 51.0 | | 50.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.95% | SOFR (Q) | 5.50% | | 08/2020 | | 02/2027 | | | 24.2 | | | 24.2 | | 23.9 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 75.2 | | 74.4 | | | | | |
Netsmart, Inc. and Netsmart Technologies, Inc. | | Developer and operator of health care software and technology solutions | | First lien senior secured loan | | 9.22% | SOFR (M) | 3.75% | | 06/2022 | | 10/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11)(18) | | | | |
OpenMarket Inc. | | Provider of cloud-based mobile engagement platform | | First lien senior secured loan | | 11.86% | SOFR (Q) | 6.25% | | 09/2021 | | 09/2026 | | | 14.8 | | | 14.8 | | 14.8 | (2)(6)(11) | | | | |
PDDS HoldCo, Inc. (15) | | Provider of cloud-based dental practice management software | | First lien senior secured revolving loan | | 13.10% | SOFR (S) | 7.50% | | 07/2022 | | 07/2028 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.96% | SOFR (S) | 7.50% | | 07/2022 | | 07/2028 | | | 10.8 | | | 10.8 | | 10.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 11.0 | | 11.0 | | | | | |
PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC (15) | | Provider of enterprise management software for the convenience retail and petroleum wholesale market | | First lien senior secured revolving loan | | 10.02% | SOFR (Q) | 4.50% | | 03/2019 | | 10/2024 | | | 7.6 | | | 7.6 | | 7.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.07% | SOFR (Q) | 4.50% | | 03/2019 | | 10/2024 | | | 52.4 | | | 52.4 | | 51.8 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.02% | SOFR (Q) | 8.50% | | 03/2019 | | 10/2025 | | | 70.1 | | | 70.1 | | 70.1 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.02% | SOFR (Q) | 8.50% | | 12/2020 | | 10/2025 | | | 8.3 | | | 8.3 | | 8.3 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
81
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | Second lien senior secured loan | | 14.05% | SOFR (Q) | 8.53% | | 04/2021 | | 10/2025 | | | 8.7 | | | 8.7 | | 8.7 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.23% | SOFR (Q) | 8.71% | | 12/2021 | | 10/2025 | | | 7.2 | | | 7.2 | | 7.2 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.02% | SOFR (Q) | 8.50% | | 08/2023 | | 10/2025 | | | 6.9 | | | 6.9 | | 6.9 | (2)(11) | | | | |
| | | | Series A preferred stock | | 13.25% PIK | | | | 03/2019 | | | | 13,656 | | | 25.4 | | 24.2 | (2) | | | | |
| | | | Class A units | | | | | | 03/2019 | | | | 2,062,493 | | | 2.1 | | 3.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 188.7 | | 188.1 | | | | | |
Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC (15) | | Provider of plant maintenance and scheduling software | | First lien senior secured loan | | 10.75% | SOFR (Q) | 5.25% | | 05/2019 | | 05/2025 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.36% | SOFR (Q) | 5.75% | | 06/2020 | | 05/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 10/2020 | | 05/2025 | | | 0.3 | | | 0.3 | | 0.3 | (2)(11) | | | | |
| | | | Class A units | | | | | | 05/2019 | | | | 5,000 | | | 5.0 | | 12.3 | | | | | |
| | | | | | | | | | | | | | | | | 5.6 | | 12.9 | | | | | |
Perforce Software, Inc. (15) | | Developer of software used for application development | | First lien senior secured revolving loan | | 9.86% | SOFR (M) | 4.50% | | 07/2019 | | 07/2026 | | | 1.0 | | | 1.0 | | 1.0 | (2)(14) | | | | |
Petvisor Holdings, LLC (15) | | Provider of veterinarian-focused SaaS solutions | | First lien senior secured loan | | 11.13% | SOFR (Q) | 5.75% | | 06/2022 | | 11/2029 | | | 6.0 | | | 6.0 | | 6.0 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.02% | SOFR (M) | 5.75% | | 11/2023 | | 11/2029 | | | 3.7 | | | 3.7 | | 3.7 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 9.7 | | 9.7 | | | | | |
Ping Identity Holding Corp. (15) | | Provider of identity and access management solutions | | First lien senior secured loan | | 12.36% | SOFR (M) | 7.00% | | 10/2022 | | 10/2029 | | | 11.3 | | | 11.3 | | 11.3 | (2)(11) | | | | |
Pluralsight, Inc. (15) | | Online education learning platform | | First lien senior secured revolving loan | | 13.52% | SOFR (Q) | 8.00% | | 04/2021 | | 04/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.56% | SOFR (Q) | 8.00% | | 04/2021 | | 04/2027 | | | 106.2 | | | 106.2 | | 94.5 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 106.4 | | 94.7 | | | | | |
Poplicus Incorporated | | Business intelligence and market analytics platform for companies that sell to the public sector | | Warrant to purchase shares of Series C preferred stock | | | | | | 06/2015 | | 06/2025 | | 2,402,991 | | | 0.1 | | — | | | | | | |
PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC (15) | | Software provider for medical practitioners | | First lien senior secured revolving loan | | 9.86% | SOFR (M) | 4.50% | | 08/2023 | | 08/2029 | | | 0.5 | | | 0.5 | | 0.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.36% | SOFR (M) | 6.00% | | 08/2023 | | 08/2029 | | | 36.4 | | | 36.4 | | 35.5 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 14.00% PIK | | | | 08/2023 | | 08/2030 | | | 40.6 | | | 40.6 | | 39.4 | (2) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 03/2021 | | | | 33,220,282 | | | 23.5 | | 33.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 101.0 | | 108.5 | | | | | |
ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P. (15) | | Provider of practice management software to law firms | | First lien senior secured loan | | 10.46% | SOFR (M) | 5.00% | | 03/2021 | | 03/2027 | | | 9.8 | | | 9.8 | | 9.8 | (2)(11) | | | | |
| | | | Limited partnership units | | | | | | 03/2021 | | | | 1,624,000 | | | 1.6 | | 2.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.4 | | 11.9 | | | | | |
See accompanying notes to consolidated financial statements
82
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Project Alpha Intermediate Holding, Inc. and Qlik Parent, Inc. | | Provider of data visualization software for data analytics | | Class A common stock | | | | | | 08/2016 | | | | 7,445 | | | 7.4 | | 17.5 | (2) | | | | |
| | | | Class B common stock | | | | | | 08/2016 | | | | 1,841,609 | | | 0.1 | | 0.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.5 | | 17.7 | | | | | |
Project Essential Bidco, Inc. and Project Essential Super Parent, Inc. (15) | | Saas provider of automated crew callout and scheduling software for the utility industry | | First lien senior secured loan | | 11.78% (3.25% PIK) | SOFR (Q) | 6.25% | | 04/2021 | | 04/2028 | | | 36.6 | | | 36.6 | | 33.7 | (2)(11) | | | | |
| | | | Preferred shares | | 14.85% PIK | SOFR (Q) | 9.50% | | 04/2021 | | | | 26,436 | | | 37.0 | | 34.0 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 73.6 | | 67.7 | | | | | |
Project Potter Buyer, LLC and Project Potter Parent, L.P. (15) | | Software solutions provider to the ready-mix concrete industry | | First lien senior secured revolving loan | | 12.11% | SOFR (M) | 6.75% | | 04/2020 | | 04/2026 | | | 2.1 | | | 2.0 | | 2.1 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 12.11% | SOFR (M) | 6.75% | | 04/2020 | | 04/2027 | | | 43.2 | | | 43.2 | | 43.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.11% | SOFR (M) | 6.75% | | 10/2020 | | 04/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.11% | SOFR (M) | 6.75% | | 11/2020 | | 04/2027 | | | 11.9 | | | 11.9 | | 11.9 | (2)(11) | | | | |
| | | | Class B units | | | | | | 04/2020 | | | | 588,636 | | | — | | | 3.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 57.2 | | 60.8 | | | | | |
Proofpoint, Inc. (15) | | Cybersecurity solutions provider | | First lien senior secured loan | | 8.72% | SOFR (M) | 3.25% | | 06/2021 | | 08/2028 | | | 1.0 | | | 0.9 | | 1.0 | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 11.72% | SOFR (M) | 6.25% | | 06/2021 | | 08/2029 | | | 34.6 | | | 34.5 | | 34.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 35.4 | | 35.6 | | | | | |
PushPay USA Inc. (15) | | Provider of software and integrated payment solutions | | First lien senior secured loan | | 12.28% | SOFR (Q) | 6.75% | | 05/2023 | | 05/2030 | | | 12.7 | | | 12.7 | | 12.6 | (2)(11) | | | | |
QF Holdings, Inc. (15) | | SaaS based electronic health record software provider | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 09/2019 | | 12/2027 | | | 6.8 | | | 6.8 | | 6.8 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 08/2020 | | 12/2027 | | | 4.9 | | | 4.9 | | 4.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 12/2021 | | 12/2027 | | | 8.1 | | | 8.1 | | 8.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 12/2023 | | 12/2027 | | | 5.1 | | | 5.1 | | 5.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 24.9 | | 24.9 | | | | | |
Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC (15) | | Provider of SaaS-based safety and security software to the K-12 school market | | First lien senior secured loan | | 10.97% | SOFR (Q) | 5.63% | | 10/2021 | | 10/2028 | | | 8.5 | | | 8.5 | | 8.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.97% | SOFR (Q) | 5.63% | | 04/2023 | | 10/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Class A common units | | | | | | 12/2018 | | | | 2,880,582 | | | 3.5 | | 10.0 | | | | | |
| | | | | | | | | | | | | | | | | 12.1 | | 18.6 | | | | | |
RealPage, Inc. | | Provider of enterprise software solutions to the residential real estate industry | | Second lien senior secured loan | | 11.97% | SOFR (M) | 6.50% | | 04/2021 | | 04/2029 | | | 84.1 | | | 83.2 | | 84.1 | (2)(11) | | | | |
Regent Education, Inc. | | Provider of software solutions designed to optimize the financial aid and enrollment processes | | Warrant to purchase shares of common stock | | | | | | 12/2016 | | 12/2026 | | 5,393,194 | | | — | | | — | | | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 12/2016 | | 12/2026 | | 987 | | | — | | | — | | | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
See accompanying notes to consolidated financial statements
83
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Relativity ODA LLC (15) | | Electronic discovery document review software platform for use in litigations and investigations | | First lien senior secured loan | | 11.96% | SOFR (M) | 6.50% | | 05/2021 | | 05/2027 | | | 23.0 | | | 23.0 | | 23.0 | (2)(11) | | | | |
Revalize, Inc. (15) | | Developer and operator of software providing configuration, price and quote capabilities | | First lien senior secured revolving loan | | 11.23% | SOFR (M) | 5.75% | | 05/2022 | | 04/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 05/2022 | | 04/2027 | | | 0.7 | | | 0.7 | | 0.7 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.9 | | 0.9 | | | | | |
RMS HoldCo II, LLC & RMS Group Holdings, Inc. (15) | | Developer of revenue cycle management solutions, process automation, analytics and integration for the healthcare industry | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 12/2021 | | 12/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.60% | SOFR (Q) | 6.25% | | 08/2022 | | 12/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | Class A common stock | | | | | | 12/2021 | | | | 465 | | | 4.6 | | 4.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 4.9 | | 5.1 | | | | | |
Smarsh Inc. and Skywalker TopCo, LLC (15) | | SaaS based communication archival service provider | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.75% | | 02/2022 | | 02/2029 | | | 1.4 | | | 1.4 | | 1.4 | (2)(11) | | | | |
| | | | Common units | | | | | | 11/2020 | | | | 1,742,623 | | | 6.3 | | 10.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.7 | | 11.9 | | | | | |
SocialFlow, Inc. | | Social media optimization platform provider | | Warrant to purchase shares of Series C preferred stock | | | | | | 01/2016 | | 01/2026 | | 215,331 | | | — | | | — | | | | | | |
Sophia, L.P. | | Provider of ERP software and services for higher education institutions | | Second lien senior secured loan | | 13.46% | SOFR (M) | 8.00% | | 10/2020 | | 10/2028 | | | 105.9 | | | 105.9 | | 105.9 | (2)(11) | | | | |
SoundCloud Limited | | Platform for receiving, sending, and distributing music | | Common stock | | | | | | 08/2017 | | | | 73,422 | | | 0.4 | | 0.7 | (2)(6) | | | | |
Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp (15) | | Provider of data, analytics, news, and workflow tools to customers in the counter-cyclical distressed debt space | | First lien senior secured revolving loan | | 10.71% | SOFR (M) | 5.25% | | 09/2022 | | 09/2028 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.70% | SOFR (Q) | 5.25% | | 09/2022 | | 09/2028 | | | 2.5 | | | 2.5 | | 2.5 | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 09/2022 | | | | 1,010 | | | 10.2 | | 13.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 12.9 | | 15.9 | | | | | |
Storable, Inc. and EQT IX Co-Investment (E) SCSP | | Payment management system solutions and web services for the self-storage industry | | Second lien senior secured loan | | 11.93% | SOFR (S) | 6.75% | | 04/2021 | | 04/2029 | | | 42.8 | | | 42.8 | | 42.4 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 11.93% | SOFR (S) | 6.75% | | 03/2022 | | 04/2029 | | | 10.3 | | | 10.3 | | 10.2 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 04/2021 | | | | 614,950 | | | 6.2 | | 9.0 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 59.3 | | 61.6 | | | | | |
Sundance Group Holdings, Inc. (15) | | Provider of cloud-based document management and collaboration solutions | | First lien senior secured revolving loan | | 11.73% | SOFR (Q) | 6.25% | | 07/2021 | | 07/2027 | | | 1.5 | | | 1.4 | | 1.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.73% | SOFR (Q) | 6.25% | | 07/2021 | | 07/2027 | | | 20.1 | | | 19.9 | | 20.1 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
84
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.74% | SOFR (Q) | 6.25% | | 11/2022 | | 07/2027 | | | 0.8 | | | 0.8 | | 0.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 22.1 | | 22.4 | | | | | |
Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C. (15) | | Provider of environment, health, safety, and sustainability software | | First lien senior secured loan | | 11.28% | SOFR (Q) | 5.75% | | 03/2022 | | 03/2028 | | | 34.8 | | | 34.8 | | 34.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.27% | SOFR (Q) | 5.75% | | 10/2023 | | 03/2028 | | | 5.0 | | | 5.0 | | 4.9 | (2)(11) | | | | |
| | | | Class A-2 units | | | | | | 03/2022 | | | | 5,057 | | | 5.1 | | 4.6 | | | | | |
| | | | | | | | | | | | | | | | | 44.9 | | 43.9 | | | | | |
TCP Hawker Intermediate LLC (15) | | Workforce management solutions provider | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 08/2019 | | 08/2026 | | | 34.1 | | | 34.1 | | 34.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 12/2020 | | 08/2026 | | | 6.5 | | | 6.5 | | 6.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 10/2021 | | 08/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 10/2023 | | 08/2026 | | | 7.3 | | | 7.3 | | 7.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 48.0 | | 48.0 | | | | | |
UKG Inc. and H&F Unite Partners, L.P. (15) | | Provider of cloud based HCM solutions for businesses | | First lien senior secured revolving loan | | 9.11% | SOFR (M) | 3.75% | | 05/2019 | | 02/2026 | | | 1.4 | | | 1.4 | | 1.4 | (2)(6)(14) | | | | |
| | | | Limited partnership interests | | | | | | 05/2019 | | | | 12,583,556 | | | 12.6 | | 19.3 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 14.0 | | 20.7 | | | | | |
UserZoom Technologies, Inc. | | User experience research automation software | | First lien senior secured loan | | 12.99% | SOFR (Q) | 7.50% | | 02/2023 | | 04/2029 | | | 5.8 | | | 5.7 | | 5.8 | (2)(11) | | | | |
WebPT, Inc. (15) | | Electronic medical record software provider | | First lien senior secured revolving loan | | 12.22% | SOFR (Q) | 6.75% | | 08/2019 | | 01/2028 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.24% | SOFR (Q) | 6.75% | | 08/2019 | | 01/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.3 | | 0.3 | | | | | |
Wellness AcquisitionCo, Inc. (15) | | Provider of retail consumer insights and analytics for manufacturers and retailers in the natural, organic and specialty products industry | | First lien senior secured loan | | 10.99% | SOFR (Q) | 5.50% | | 01/2021 | | 01/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
WorkWave Intermediate II, LLC (15) | | Provider of cloud-based field services and fleet management solutions | | First lien senior secured loan | | 11.95% | SOFR (Q) | 6.50% | | 06/2021 | | 06/2027 | | | 51.6 | | | 51.6 | | 51.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.95% | SOFR (Q) | 6.50% | | 02/2022 | | 06/2027 | | | 18.8 | | | 18.8 | | 18.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 70.4 | | 70.4 | | | | | |
ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP (15) | | Provider of cloud-based customer support solutions | | First lien senior secured loan | | 11.61% (2.75% PIK) | SOFR (Q) | 6.25% | | 12/2022 | | 11/2028 | | | 43.6 | | | 43.6 | | 43.6 | (2)(11) | | | | |
| | | | Series A preferred stock | | 12.50% PIK | | | | 11/2022 | | | | 27,226 | | | 31.2 | | 30.6 | (2) | | | | |
| | | | Class A common units | | | | | | 11/2022 | | | | 269,100 | | | 2.7 | | 2.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 77.5 | | 77.0 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 5,362.2 | | | 5,293.6 | | | 47.26% | | | |
Health Care Services | | | | | | | | | | | | | | | | | | | | | | | | |
Absolute Dental Group LLC and Absolute Dental Equity, LLC (5)(15) | | Dental services provider | | First lien senior secured revolving loan | | 16.50% (7.00% PIK) | Base Rate (Q) | 8.00% | | 06/2021 | | 06/2026 | | | 0.8 | | | 0.8 | | 0.8 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
85
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured revolving loan | | 14.61% (7.00% PIK) | SOFR (Q) | 9.00% | | 06/2021 | | 06/2026 | | | 8.7 | | | 8.7 | | 8.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 14.61% (7.00% PIK) | SOFR (Q) | 9.00% | | 06/2021 | | 06/2026 | | | 54.9 | | | 54.9 | | 54.9 | (2)(11) | | | | |
| | | | Class A common units | | | | | | 06/2021 | | | | 6,580,219 | | | 4.7 | | 7.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 69.1 | | 72.0 | | | | | |
ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC (5)(15) | | Dental services provider | | First lien senior secured loan | | 9.50% (3.00% PIK) | SOFR (S) | 4.00% | | 09/2016 | | 09/2026 | | | 15.0 | | | 15.0 | | 15.0 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 10.00% PIK | | | | 06/2023 | | 03/2027 | | | 32.0 | | | 32.0 | | 32.0 | (2) | | | | |
| | | | Membership units | | | | | | 09/2016 | | | | 3,000,000 | | | — | | | — | | (2) | | | | |
| | | | Class A common units | | | | | | 06/2023 | | | | 10,000,000 | | | 29.4 | | 18.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 76.4 | | 65.6 | | | | | |
Advarra Holdings, Inc. (15) | | Provider of central institutional review boards over clinical trials | | First lien senior secured loan | | 10.61% | SOFR (M) | 5.25% | | 08/2022 | | 08/2029 | | | 4.0 | | | 4.0 | | 4.0 | (2)(11) | | | | |
AHR Funding Holdings, Inc. and AHR Parent Holdings, LP | | Provider of revenue cycle management solutions to hospitals | | Series A preferred shares | | 12.75% PIK | | | | 07/2022 | | 07/2028 | | 35,000 | | | 42.0 | | 42.0 | (2) | | | | |
| | | | Preferred units | | 8.00% PIK | | | | 07/2022 | | | | 9,900 | | | 11.1 | | 13.3 | (2) | | | | |
| | | | Class B common units | | | | | | 07/2022 | | | | 100,000 | | | 0.1 | | 0.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 53.2 | | 55.4 | | | | | |
Amerivet Partners Management, Inc. and AVE Holdings LP (15) | | Veterinary practice management platform | | Subordinated loan | | 16.50% PIK | | | | 11/2023 | | 12/2030 | | | 48.4 | | | 46.9 | | 45.5 | (2) | | | | |
| | | | Class C units | | | | | | 11/2023 | | | | 7,144 | | | 1.4 | | 1.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 48.3 | | 46.9 | | | | | |
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP (15)(16) | | Revenue cycle management provider to the physician practices and acute care hospitals | | First lien senior secured loan | | 8.61% | SOFR (M) | 3.25% | | 07/2023 | | 02/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11)(18) | | | | |
| | | | Series A preferred stock | | 10.75% PIK | | | | 02/2022 | | | | 198,505 | | | 242.8 | | 233.1 | (2) | | | | |
| | | | Class A units | | | | | | 02/2022 | | | | 10,487,951 | | | 10.5 | | 12.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 253.4 | | 246.0 | | | | | |
BAART Programs, Inc., MedMark Services, Inc., and Canadian Addiction Treatment Centres LP | | Opiod treatment provider | | First lien senior secured loan | | 10.61% | SOFR (Q) | 5.00% | | 05/2022 | | 06/2027 | | | 5.9 | | | 6.0 | | 5.8 | (2)(11) | | | | |
Bambino Group Holdings, LLC | | Dental services provider | | Class A preferred units | | | | | | 12/2016 | | | | 1,000,000 | | | 1.0 | | 0.9 | (2) | | | | |
Center for Autism and Related Disorders, LLC (15) | | Autism treatment and services provider specializing in applied behavior analysis therapy | | First lien senior secured revolving loan | | | | | | 11/2018 | | 11/2023 | | | 6.8 | | | — | | | — | | (2)(10)(14) | | | | |
| | | | First lien senior secured revolving loan | | | | | | 01/2022 | | 11/2023 | | | 1.0 | | | — | | | — | | (2)(10)(14) | | | | |
| | | | First lien senior secured loan | | | | | | 06/2023 | | 08/2023 | | | 2.4 | | | — | | | — | | (2)(10) | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
Color Intermediate, LLC | | Provider of pre-payment integrity software solution | | First lien senior secured loan | | 10.95% | SOFR (Q) | 5.50% | | 10/2022 | | 10/2029 | | | 20.2 | | | 20.2 | | 20.2 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
86
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Comprehensive EyeCare Partners, LLC (15) | | Vision care practice management company | | First lien senior secured revolving loan | | 12.11% (2.50% PIK) | SOFR (Q) | 6.50% | | 02/2018 | | 02/2025 | | | 1.9 | | | 1.9 | | 1.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.11% (2.50% PIK) | SOFR (Q) | 6.50% | | 02/2018 | | 02/2025 | | | 0.3 | | | 0.3 | | 0.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 2.2 | | 2.0 | | | | | |
Convey Health Solutions, Inc. | | Healthcare workforce management software provider | | First lien senior secured loan | | 10.70% | SOFR (Q) | 5.25% | | 09/2019 | | 09/2026 | | | 2.7 | | | 2.7 | | 2.3 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.70% | SOFR (Q) | 5.25% | | 02/2022 | | 09/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.70% | SOFR (Q) | 5.25% | | 10/2022 | | 09/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 2.9 | | 2.5 | | | | | |
Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC (15) | | Provider of medical devices and services for the treatment of positional plagiocephaly | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 03/2022 | | 03/2029 | | | 24.3 | | | 24.3 | | 23.1 | (2)(11) | | | | |
| | | | Class A shares | | | | | | 03/2022 | | | | 192 | | | 1.9 | | 1.2 | (2) | | | | |
| | | | Common units | | | | | | 03/2022 | | | | 31 | | | 0.3 | | 0.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 26.5 | | 24.5 | | | | | |
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC (15) | | Veterinary hospital operator | | First lien senior secured loan | | 11.85% | SOFR (M) | 6.40% | | 10/2019 | | 10/2025 | | | 32.1 | | | 32.1 | | 32.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.36% | SOFR (M) | 5.90% | | 04/2021 | | 10/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.36% | SOFR (M) | 5.90% | | 01/2022 | | 10/2025 | | | 40.1 | | | 40.1 | | 40.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.71% | SOFR (M) | 6.25% | | 10/2022 | | 10/2025 | | | 9.5 | | | 9.5 | | 9.5 | (2)(11) | | | | |
| | | | Class A preferred units | | 15.00% PIK | | | | 08/2023 | | | | 1,508 | | | 0.9 | | 0.9 | (2) | | | | |
| | | | Common stock | | | | | | 10/2019 | | | | 41,443 | | | 14.5 | | 24.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 97.2 | | 107.1 | | | | | |
Evolent Health LLC and Evolent Health, Inc. | | Medical technology company focused on value based care services and payment solutions | | Series A preferred shares | | 11.48% | SOFR (Q) | 6.00% | | 01/2023 | | 01/2029 | | 3,834 | | | 3.8 | | 4.3 | (2)(6)(11) | | | | |
GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC | | On-demand supply chain automation solutions provider to the healthcare industry | | Second lien senior secured loan | | 12.25% | SOFR (Q) | 6.75% | | 05/2021 | | 05/2029 | | | 114.0 | | | 114.0 | | 112.9 | (2)(11) | | | | |
| | | | Class A units | | | | | | 06/2017 | | | | 15,706,534 | | | 17.4 | | 31.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 131.4 | | 144.0 | | | | | |
Global Medical Response, Inc. and GMR Buyer Corp. | | Emergency air medical services provider | | First lien senior secured loan | | 9.93% | SOFR (Q) | 4.25% | | 06/2022 | | 10/2025 | | | 28.7 | | | 26.7 | | 22.4 | (2)(11)(18) | | | | |
| | | | First lien senior secured loan | | 9.89% | SOFR (Q) | 4.25% | | 06/2022 | | 03/2025 | | | 12.4 | | | 11.9 | | 9.6 | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 12.10% | SOFR (Q) | 6.75% | | 12/2021 | | 12/2029 | | | 95.4 | | | 95.4 | | 74.4 | (2)(11) | | | | |
| | | | Warrant to purchase units of common stock | | | | | | 03/2018 | | 03/2028 | | 115,733 | | | 0.9 | | 1.1 | (2) | | | | |
| | | | Warrant to purchase units of common stock | | | | | | 12/2021 | | 12/2031 | | 1,927 | | | 0.1 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 135.0 | | 107.5 | | | | | |
Hanger, Inc. (15) | | Provider of orthotic and prosthetic equipment and services | | First lien senior secured loan | | 11.61% | SOFR (M) | 6.25% | | 10/2022 | | 10/2028 | | | 53.7 | | | 53.7 | | 53.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.61% | SOFR (M) | 6.25% | | 10/2022 | | 10/2028 | | | 0.1 | | | 0.1 | | 0.1 | (11) | | | | |
See accompanying notes to consolidated financial statements
87
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.61% | SOFR (M) | 6.25% | | 07/2023 | | 10/2028 | | | 16.7 | | | 16.7 | | 16.7 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 15.11% | SOFR (M) | 9.75% | | 10/2022 | | 10/2029 | | | 110.6 | | | 110.6 | | 110.6 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 15.11% | SOFR (M) | 9.75% | | 07/2023 | | 10/2029 | | | 15.4 | | | 15.4 | | 15.4 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 196.5 | | 196.5 | | | | | |
HealthEdge Software, Inc. (15) | | Provider of financial, administrative and clinical software platforms to the healthcare industry | | First lien senior secured revolving loan | | | | | | 12/2021 | | 04/2026 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.71% | SOFR (M) | 6.25% | | 12/2021 | | 04/2026 | | | 95.5 | | | 95.5 | | 95.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.71% | SOFR (M) | 6.25% | | 12/2022 | | 04/2026 | | | 6.2 | | | 6.2 | | 6.2 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 101.7 | | 101.7 | | | | | |
Honor Technology, Inc. | | Nursing and home care provider | | First lien senior secured loan | | 15.46% | SOFR (M) | 10.00% | | 08/2021 | | 08/2026 | | | 2.5 | | | 2.4 | | 2.3 | (2)(11) | | | | |
| | | | Warrant to purchase shares of Series D-2 preferred stock | | | | | | 08/2021 | | 08/2031 | | 133,333 | | | 0.1 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 2.5 | | 2.3 | | | | | |
JDC Healthcare Management, LLC | | Dental services provider | | Senior subordinated loan | | | | | | 09/2023 | | 09/2029 | | | 12.2 | | | 0.7 | | 0.4 | (2)(10) | | | | |
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) (15) | | Provider of behavioral health services | | First lien senior secured revolving loan | | 12.02% (1.50% PIK) | SOFR (Q) | 6.50% | | 03/2017 | | 03/2026 | | | 3.2 | | | 3.2 | | 2.9 | (2)(11) | | | | |
Lifescan Global Corporation | | Provider of blood glucose monitoring systems for home and hospital use | | First lien senior secured loan | | 11.98% | SOFR (S) | 6.50% | | 05/2022 | | 12/2026 | | | 12.6 | | | 12.0 | | 9.3 | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | | | | | 05/2022 | | 03/2027 | | | 0.2 | | | 0.2 | | 0.1 | (2)(10)(18) | | | | |
| | | | | | | | | | | | | | | | | 12.2 | | 9.4 | | | | | |
Medline Borrower, LP (15) | | Manufacturer and distributor of medical supplies | | First lien senior secured revolving loan | | | | | | 10/2021 | | 10/2026 | | | — | | | — | | | — | | (2)(13) | | | | |
Napa Management Services Corporation and ASP NAPA Holdings, LLC | | Anesthesia management services provider | | Preferred units | | 15.00% PIK | | | | 06/2020 | | | | 1,842 | | | 0.2 | | 0.2 | (2) | | | | |
| | | | Senior preferred units | | 8.00% PIK | | | | 06/2020 | | | | 5,320 | | | 0.4 | | 0.4 | (2) | | | | |
| | | | Class A units | | | | | | 04/2016 | | | | 25,277 | | | 2.5 | | 3.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 3.1 | | 4.1 | | | | | |
Next Holdco, LLC (15) | | Provider of electronic medical record and practice management software | | First lien senior secured loan | | 11.37% | SOFR (M) | 6.00% | | 11/2023 | | 11/2030 | | | 6.5 | | | 6.5 | | 6.4 | (2)(11) | | | | |
NMN Holdings III Corp. and NMN Holdings LP (15) | | Provider of complex rehabilitation technology solutions for patients with mobility loss | | First lien senior secured revolving loan | | 11.25% | Base Rate (S) | 2.75% | | 11/2018 | | 08/2025 | | | 1.0 | | | 1.0 | | 1.0 | (2)(14) | | | | |
| | | | Partnership units | | | | | | 11/2018 | | | | 30,000 | | | 3.0 | | 5.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 4.0 | | 6.3 | | | | | |
Nomi Health, Inc. | | Provider of software payment services for healthcare industry | | First lien senior secured loan | | 13.64% | SOFR (S) | 8.25% | | 07/2023 | | 07/2028 | | | 11.4 | | | 11.4 | | 11.1 | (2)(11) | | | | |
| | | | Warrant to purchase shares of Series B preferred stock | | | | | | 07/2023 | | 07/2033 | | 9,941 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.4 | | 11.1 | | | | | |
See accompanying notes to consolidated financial statements
88
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
NSPC Intermediate Corp. and NSPC Holdings, LLC | | Acute and chronic pain treatment provider | | Common units | | | | | | 02/2023 | | | | 1,182 | | | — | | | — | | (2) | | | | |
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC (5)(15) | | Behavioral health and special education platform provider | | First lien senior secured loan | | | | | | 09/2019 | | 02/2027 | | | 56.9 | | | 49.3 | | 33.0 | (2)(10) | | | | |
| | | | First lien senior secured loan | | | | | | 02/2022 | | 02/2027 | | | 11.6 | | | 10.2 | | 6.7 | (2)(10) | | | | |
| | | | First lien senior secured loan | | 15.02% PIK | SOFR (Q) | 9.50% | | 01/2023 | | 02/2027 | | | 3.2 | | | 3.1 | | 3.2 | (2)(11) | | | | |
| | | | Preferred units | | | | | | 07/2021 | | 04/2024 | | 417,189 | | | 0.3 | | — | | (2) | | | | |
| | | | Preferred stock | | | | | | 02/2022 | | | | 7,983 | | | 3.1 | | — | | (2) | | | | |
| | | | Class A common units | | | | | | 09/2019 | | | | 9,549,000 | | | 9.5 | | — | | (2) | | | | |
| | | | Common units | | | | | | 02/2022 | | | | 7,584 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 75.5 | | 42.9 | | | | | |
OMH-HealthEdge Holdings, LLC (15) | | Revenue cycle management provider to the healthcare industry | | First lien senior secured loan | | 11.35% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 97.6 | | | 97.6 | | 95.2 | (2)(11) | | | | |
Paragon 28, Inc. and Paragon Advanced Technologies, Inc. (15) | | Medical device company | | First lien senior secured revolving loan | | 9.38% | SOFR (M) | 4.00% | | 11/2023 | | 11/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.13% (3.38% PIK) | SOFR (Q) | 6.75% | | 11/2023 | | 11/2028 | | | 24.0 | | | 24.0 | | 23.4 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 24.1 | | 23.5 | | | | | |
Pathway Vet Alliance LLC and Jedi Group Holdings LLC (15) | | Veterinary hospital operator | | First lien senior secured revolving loan | | | | | | 03/2020 | | 03/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | Second lien senior secured loan | | 13.22% | SOFR (M) | 7.75% | | 03/2020 | | 03/2028 | | | 76.3 | | | 76.3 | | 67.9 | (2)(11) | | | | |
| | | | Class R common units | | | | | | 03/2020 | | | | 6,004,768 | | | 6.0 | | 2.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 82.3 | | 70.6 | | | | | |
PetVet Care Centers, LLC (15) | | Veterinary hospital operator | | First lien senior secured loan | | 11.36% | SOFR (M) | 6.00% | | 11/2023 | | 11/2030 | | | 132.8 | | | 132.8 | | 130.1 | (2)(11) | | | | |
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP (15) | | Provider of employer-sponsored onsite health and wellness clinics and pharmacies | | First lien senior secured revolving loan | | | | | | 07/2018 | | 04/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 9.25% | SOFR (Q) | 3.75% | | 07/2018 | | 07/2025 | | | 8.5 | | | 8.5 | | 8.3 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 13.00% | SOFR (Q) | 7.50% | | 07/2018 | | 07/2026 | | | 67.1 | | | 66.9 | | 65.8 | (2) | | | | |
| | | | Class A units | | | | | | 07/2018 | | | | 9,775 | | | 9.8 | | 15.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 85.2 | | 89.2 | | | | | |
Project Ruby Ultimate Parent Corp. | | Provider of care coordination and transition management software solutions | | First lien senior secured loan | | 10.22% | SOFR (M) | 4.75% | | 10/2023 | | 03/2028 | | | 17.2 | | | 17.2 | | 17.2 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 11.97% | SOFR (M) | 6.50% | | 03/2021 | | 03/2029 | | | 193.1 | | | 193.1 | | 191.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 210.3 | | 208.3 | | | | | |
RTI Surgical, Inc. and Pioneer Surgical Technology, Inc. (15) | | Manufacturer of biologic, metal and synthetic implants/devices | | First lien senior secured revolving loan | | 12.21% | SOFR (M) | 6.75% | | 07/2020 | | 07/2026 | | | 12.4 | | | 12.4 | | 12.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.40% | SOFR (Q) | 6.75% | | 07/2020 | | 07/2026 | | | 22.3 | | | 22.3 | | 22.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 34.7 | | 34.7 | | | | | |
See accompanying notes to consolidated financial statements
89
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC (15) | | Outsourced anesthesia provider | | First lien senior secured loan | | 10.75% | SOFR (Q) | 5.25% | | 03/2018 | | 03/2025 | | | 8.2 | | | 8.2 | | 8.2 | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2018 | | | | 684,854 | | | 4.8 | | 1.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 13.0 | | 9.5 | | | | | |
SM Wellness Holdings, Inc. and SM Holdco, LLC (15) | | Breast cancer screening provider | | Series D units | | 8.00% PIK | | | | 03/2023 | | | | 1,127 | | | 1.2 | | 1.4 | (2) | | | | |
| | | | Series A units | | | | | | 08/2018 | | | | 8,041 | | | 8.0 | | 9.9 | (2) | | | | |
| | | | Series B units | | | | | | 08/2018 | | | | 916,795 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.2 | | 11.3 | | | | | |
SOC Telemed, Inc. and PSC Spark Holdings, LP | | Provider of acute care telemedicine | | First lien senior secured loan | | 13.85% PIK | SOFR (Q) | 8.50% | | 08/2022 | | 08/2027 | | | 96.0 | | | 92.6 | | 92.2 | (2)(11) | | | | |
| | | | Class A-2 units | | | | | | 08/2022 | | | | 4,812 | | | 4.9 | | 4.6 | (2) | | | | |
| | | | Warrant to purchase units of common stock | | | | | | 08/2022 | | 08/2029 | | 6,118 | | | 4.7 | | 3.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 102.2 | | 100.1 | | | | | |
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc. (15) | | SaaS based healthcare compliance platform provider | | First lien senior secured revolving loan | | 9.11% | SOFR (M) | 3.75% | | 12/2020 | | 12/2025 | | | 2.7 | | | 2.7 | | 2.3 | (2) | | | | |
| | | | First lien senior secured loan | | 9.98% | SOFR (Q) | 4.50% | | 02/2022 | | 12/2027 | | | 12.5 | | | 12.5 | | 11.2 | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 13.36% | SOFR (Q) | 7.88% | | 12/2020 | | 12/2028 | | | 76.2 | | | 76.2 | | 67.9 | (2)(11) | | | | |
| | | | Series C-1 preferred shares | | 11.00% PIK | | | | 06/2021 | | | | 75,939 | | | 105.9 | | 84.8 | (2) | | | | |
| | | | Series C-2 preferred shares | | 11.00% PIK | | | | 06/2021 | | | | 40,115 | | | 53.0 | | 42.4 | (2) | | | | |
| | | | Series C-3 preferred shares | | 11.00% PIK | | | | 10/2021 | | | | 16,201 | | | 20.7 | | 16.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 271.0 | | 225.1 | | | | | |
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC (15) | | Franchisor of private-pay home care for the elderly | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 04/2018 | | 04/2026 | | | 13.1 | | | 13.1 | | 13.1 | (2)(11) | | | | |
| | | | Common units | | | | | | 04/2018 | | | | 550 | | | 0.5 | | 1.2 | | | | | |
| | | | | | | | | | | | | | | | | 13.6 | | 14.3 | | | | | |
Tempus Labs, Inc. | | Provider of technology enabled precision medicine solutions | | First lien senior secured loan | | 13.65% (3.25% PIK) | SOFR (Q) | 8.25% | | 09/2022 | | 09/2027 | | | 72.6 | | | 72.6 | | 72.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.64% (3.25% PIK) | SOFR (Q) | 8.25% | | 04/2023 | | 09/2027 | | | 21.1 | | | 21.1 | | 21.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.66% (3.25% PIK) | SOFR (S) | 8.25% | | 10/2023 | | 09/2027 | | | 9.0 | | | 9.0 | | 9.0 | (2)(11) | | | | |
| | | | Series G-4 preferred stock | | | | | | 10/2023 | | | | 32,282 | | | 1.8 | | 1.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 104.5 | | 104.5 | | | | | |
Therapy Brands Holdings LLC | | Provider of software solutions for the mental and behavioral health market segments | | Second lien senior secured loan | | 12.22% | SOFR (M) | 6.75% | | 06/2021 | | 05/2029 | | | 29.1 | | | 28.9 | | 27.6 | (2)(11) | | | | |
Touchstone Acquisition, Inc. and Touchstone Holding, L.P. | | Manufacturer of consumable products in the dental, medical, cosmetic and consumer/industrial end-markets | | Class A preferred units | | 8.00% PIK | | | | 11/2018 | | | | 2,149 | | | 3.2 | | 4.3 | (2) | | | | |
U.S. Anesthesia Partners, Inc. & U.S. Anesthesia Partners Holdings, Inc. | | Anesthesiology service provider | | Second lien senior secured loan | | 12.96% | SOFR (M) | 7.50% | | 10/2021 | | 10/2029 | | | 147.8 | | | 147.8 | | 133.0 | (2)(11) | | | | |
| | | | Common stock | | | | | | 12/2021 | | | | 3,671,429 | | | 12.9 | | 9.6 | (2) | | | | |
See accompanying notes to consolidated financial statements
90
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 160.7 | | 142.6 | | | | | |
United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP (15) | | Gastroenterology physician group | | First lien senior secured loan | | 12.25% | SOFR (Q) | 6.75% | | 03/2023 | | 03/2029 | | | 10.3 | | | 10.3 | | 10.3 | (2)(11) | | | | |
| | | | Class A interests | | | | | | 03/2023 | | | | 4,623 | | | 4.6 | | 4.5 | | | | | |
| | | | | | | | | | | | | | | | | 14.9 | | 14.8 | | | | | |
Viant Medical Holdings, Inc. | | Manufacturer of plastic and rubber components for health care equipment | | First lien senior secured loan | | 9.22% | SOFR (M) | 3.75% | | 05/2022 | | 07/2025 | | | 3.9 | | | 3.8 | | 3.9 | (2)(18) | | | | |
VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P. (15) | | Veterinary hospital operator | | First lien senior secured loan | | 11.71% | SOFR (M) | 6.25% | | 12/2021 | | 12/2027 | | | 6.1 | | | 6.1 | | 6.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.96% | SOFR (M) | 6.50% | | 08/2022 | | 12/2027 | | | 9.2 | | | 9.2 | | 9.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.10% | SOFR (M) | 6.75% | | 08/2023 | | 12/2027 | | | 3.0 | | | 3.0 | | 3.0 | (2)(11) | | | | |
| | | | Class A-2 units | | | | | | 12/2021 | | | | 7,524 | | | 7.5 | | 10.8 | (2) | | | | |
| | | | Class A-2 units | | | | | | 03/2023 | | | | 45 | | | 0.1 | | 0.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 25.9 | | 29.2 | | | | | |
Wellpath Holdings, Inc. (15) | | Correctional facility healthcare operator | | First lien senior secured revolving loan | | 11.07% | SOFR (Q) | 5.25% | | 10/2018 | | 10/2024 | | | 6.2 | | | 6.2 | | 5.2 | (2)(14) | | | | |
| | | | First lien senior secured loan | | 11.32% | SOFR (Q) | 5.50% | | 09/2018 | | 10/2025 | | | 30.3 | | | 30.2 | | 25.4 | (2)(18) | | | | |
| | | | | | | | | | | | | | | | | 36.4 | | 30.6 | | | | | |
WSHP FC Acquisition LLC and WSHP FC Holdings LLC (15) | | Provider of biospecimen products for pharma research | | First lien senior secured revolving loan | | 12.00% | SOFR (Q) | 6.50% | | 03/2018 | | 03/2028 | | | 15.3 | | | 15.3 | | 14.5 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 03/2018 | | 03/2028 | | | 32.7 | | | 32.7 | | 31.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 02/2019 | | 03/2028 | | | 4.4 | | | 4.4 | | 4.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 08/2019 | | 03/2028 | | | 13.7 | | | 13.7 | | 13.0 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 10/2019 | | 03/2028 | | | 10.6 | | | 10.6 | | 10.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 10/2021 | | 03/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 11/2021 | | 03/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 07/2022 | | 03/2028 | | | 30.8 | | | 30.8 | | 29.2 | (2)(11) | | | | |
| | | | Common units | | | | | | 07/2022 | | | | 34,163 | | | 4.9 | | 4.5 | | | | | |
| | | | | | | | | | | | | | | | | 112.6 | | 106.8 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,914.8 | | | 2,768.9 | | | 24.72% | | | |
Financial Services | | | | | | | | | | | | | | | | | | | | | | | | |
AQ Sage Buyer, LLC (15) | | Provider of actuarial consulting and comprehensive wealth management services | | First lien senior secured loan | | 11.52% | SOFR (Q) | 6.00% | | 05/2022 | | 01/2027 | | | 3.0 | | | 3.0 | | 2.9 | (2)(6)(11) | | | | |
BCC Blueprint Holdings I, LLC and BCC Blueprint Investments, LLC | | Provider of comprehensive suite of investment management and wealth planning solutions | | First lien senior secured loan | | 12.28% | SOFR (Q) | 6.75% | | 09/2021 | | 09/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 9.30% PIK | | | | 09/2021 | | 09/2026 | | | 5.5 | | | 5.5 | | 5.5 | (2) | | | | |
| | | | Common units | | | | | | 09/2021 | | | | 5,503,959 | | | 5.5 | | 4.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.2 | | 10.2 | | | | | |
Beacon Pointe Harmony, LLC (15) | | Provider of comprehensive wealth management services | | First lien senior secured loan | | 10.86% | SOFR (M) | 5.50% | | 12/2021 | | 12/2028 | | | 19.8 | | | 19.8 | | 19.8 | (2)(6)(11) | | | | |
See accompanying notes to consolidated financial statements
91
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 10.86% | SOFR (M) | 5.50% | | 07/2023 | | 12/2028 | | | 1.0 | | | 1.0 | | 1.0 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.11% | SOFR (M) | 5.75% | | 07/2023 | | 12/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 20.9 | | 20.9 | | | | | |
Cliffwater LLC (15) | | Provider of alternative investment advisory services | | First lien senior secured loan | | 11.36% | SOFR (M) | 6.00% | | 10/2023 | | 10/2030 | | | 4.1 | | | 4.1 | | 4.0 | (2)(6)(11) | | | | |
Convera International Holdings Limited and Convera International Financial S.A R.L. (15) | | Provider of B2B international payment and FX risk management solutions | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 03/2022 | | 03/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 06/2023 | | 03/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.2 | | 0.2 | | | | | |
Corient Holdings, Inc. | | Global wealth management firm | | Series A preferred stock | | | | | | 05/2023 | | | | 41,427 | | | 41.4 | | 45.4 | (2) | | | | |
CrossCountry Mortgage, LLC and CrossCountry Holdco, LLC | | Mortgage company originating loans in the retail and consumer direct channels | | Series D preferred units | | | | | | 11/2023 | | | | 90,577 | | | 24.9 | | 24.9 | | | | | |
DFC Global Facility Borrower III LLC (15) | | Non-bank provider of alternative financial services | | First lien senior secured revolving loan | | 12.94% | SOFR (M) | 7.50% | | 04/2023 | | 04/2028 | | | 99.2 | | | 98.3 | | 99.2 | (2)(6)(9)(11) | | | | |
eCapital Finance Corp. | | Consolidator of commercial finance businesses | | Senior subordinated loan | | 13.19% | SOFR (M) | 7.75% | | 01/2020 | | 12/2025 | | | 56.0 | | | 56.0 | | 56.0 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.19% | SOFR (M) | 7.75% | | 11/2020 | | 12/2025 | | | 5.4 | | | 5.4 | | 5.4 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.19% | SOFR (M) | 7.75% | | 01/2022 | | 12/2025 | | | 24.3 | | | 24.3 | | 24.3 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.19% | SOFR (M) | 7.75% | | 04/2022 | | 12/2025 | | | 55.8 | | | 55.8 | | 55.8 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 13.19% | SOFR (M) | 7.75% | | 10/2023 | | 12/2025 | | | 12.3 | | | 12.3 | | 12.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 153.8 | | 153.8 | | | | | |
EP Wealth Advisors, LLC (15) | | Wealth management and financial planning firm | | First lien senior secured revolving loan | | 10.87% | SOFR (Q) | 5.38% | | 09/2020 | | 09/2026 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.87% | SOFR (Q) | 5.38% | | 09/2020 | | 09/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 09/2020 | | 09/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 11/2021 | | 09/2026 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.26% | SOFR (Q) | 5.75% | | 11/2022 | | 09/2026 | | | 5.7 | | | 5.7 | | 5.7 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 6.7 | | 6.7 | | | | | |
GTCR F Buyer Corp. and GTCR (D) Investors LP (15)(16) | | Provider of end-to-end tech-enabled administrative services to private foundations | | First lien senior secured loan | | 11.36% | SOFR (M) | 6.00% | | 09/2023 | | 09/2030 | | | 4.3 | | | 4.3 | | 4.2 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 09/2023 | | | | 4,588,148 | | | 4.6 | | 4.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 8.9 | | 9.0 | | | | | |
HighTower Holding, LLC | | Provider of investment, financial and retirement planning services | | Senior subordinated loan | | 6.75% | | | | 06/2022 | | 04/2029 | | | 8.1 | | | 6.9 | | 7.3 | (2)(6)(18) | | | | |
Ivy Hill Asset Management, L.P. (5) | | Asset management services | | Subordinated revolving loan | | 12.01% | SOFR (Q) | 6.50% | | 02/2018 | | 01/2030 | | | 62.0 | | | 62.0 | | 62.0 | (6)(11) | | | | |
| | | | Member interest (100.00% interest) | | | | | | 06/2009 | | | | 100.00% | | | 1,700.5 | | | 1,924.6 | | (6) | | | | |
| | | | | | | | | | | | | | | | | 1,762.5 | | | 1,986.6 | | | | | | |
See accompanying notes to consolidated financial statements
92
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Lido Advisors, LLC (15) | | Wealth management and financial planning firm | | First lien senior secured revolving loan | | 11.48% | SOFR (Q) | 6.00% | | 06/2021 | | 06/2027 | | | 0.6 | | | 0.6 | | 0.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.53% | SOFR (Q) | 6.00% | | 06/2023 | | 06/2027 | | | 1.6 | | | 1.6 | | 1.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 2.2 | | 2.2 | | | | | |
LS DE LLC and LM LSQ Investors LLC | | Asset based lender | | Senior subordinated loan | | 12.00% (0.50% PIK) | | | | 06/2015 | | 03/2025 | | | 37.1 | | | 37.1 | | 36.4 | (2)(6) | | | | |
| | | | Senior subordinated loan | | 12.00% (0.50% PIK) | | | | 06/2017 | | 03/2025 | | | 3.0 | | | 3.0 | | 3.0 | (2)(6) | | | | |
| | | | Membership units | | | | | | 06/2015 | | | | 3,275,000 | | | 3.3 | | 2.0 | (6) | | | | |
| | | | | | | | | | | | | | | | | 43.4 | | 41.4 | | | | | |
Monica Holdco (US) Inc. (15) | | Investment technology and advisory firm | | First lien senior secured revolving loan | | 12.28% | SOFR (Q) | 6.75% | | 01/2021 | | 01/2026 | | | 3.6 | | | 3.6 | | 3.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.25% | SOFR (Q) | 6.75% | | 01/2021 | | 01/2028 | | | 2.5 | | | 2.5 | | 2.5 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 6.1 | | 6.1 | | | | | |
Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. (15)(16) | | Provider of comprehensive wealth management services and registered investment advisor | | First lien senior secured loan | | 12.21% | SOFR (M) | 6.75% | | 05/2023 | | 05/2029 | | | 3.9 | | | 3.9 | | 3.9 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.11% | SOFR (M) | 6.75% | | 09/2023 | | 05/2029 | | | 8.0 | | | 8.0 | | 8.0 | (2)(6)(11) | | | | |
| | | | Limited partnership interests | | | | | | 09/2023 | | | | 1,644,799 | | | 1.6 | | 1.6 | (6) | | | | |
| | | | | | | | | | | | | | | | | 13.5 | | 13.5 | | | | | |
PCIA SPV-3, LLC and ASE Royal Aggregator, LLC (15) | | Provider of comprehensive wealth management services | | First lien senior secured loan | | 11.62% | SOFR (Q) | 6.25% | | 08/2023 | | 08/2029 | | | 6.7 | | | 6.7 | | 6.7 | (2)(6)(11) | | | | |
| | | | Preferred units | | | | | | 07/2023 | | | | 6,431,667 | | | 6.5 | | 6.4 | (6) | | | | |
| | | | | | | | | | | | | | | | | 13.2 | | 13.1 | | | | | |
Petrus Buyer, Inc. (15) | | Provider of REIT research data and analytics | | First lien senior secured loan | | 11.99% | SOFR (Q) | 6.50% | | 11/2022 | | 10/2029 | | | 5.0 | | | 5.0 | | 5.0 | (2)(11) | | | | |
Priority Holdings, LLC and Priority Technology Holdings, Inc. | | Provider of merchant acquiring and payment processing solutions | | First lien senior secured loan | | 11.22% | SOFR (M) | 5.75% | | 04/2021 | | 04/2027 | | | 9.0 | | | 9.0 | | 9.0 | (2)(6)(11) | | | | |
| | | | Senior preferred stock | | 17.59% (7.00% PIK) | SOFR (Q) | 12.00% | | 04/2021 | | | | 65,761 | | | 74.5 | | 78.5 | (2)(6)(11) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 04/2021 | | 04/2031 | | 527,226 | | | 4.0 | | 1.9 | (2)(6)(18) | | | | |
| | | | | | | | | | | | | | | | | 87.5 | | 89.4 | | | | | |
Rialto Management Group, LLC (15) | | Investment and asset management platform focused on real estate | | First lien senior secured revolving loan | | | | | | 11/2018 | | 12/2025 | | | — | | | — | | | — | | (2)(6)(13) | | | | |
| | | | First lien senior secured loan | | 10.96% | SOFR (M) | 5.50% | | 11/2018 | | 12/2025 | | | 0.3 | | | 0.3 | | 0.3 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.96% | SOFR (M) | 5.50% | | 04/2021 | | 12/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.86% | SOFR (M) | 5.50% | | 12/2021 | | 12/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.5 | | 0.5 | | | | | |
Steward Partners Global Advisory, LLC and Steward Partners Investment Advisory, LLC (15) | | Wealth management platform | | First lien senior secured loan | | 10.78% | SOFR (S) | 5.25% | | 12/2023 | | 10/2028 | | | 2.0 | | | 1.9 | | 1.9 | (2)(6)(11) | | | | |
TA/WEG Holdings, LLC (15) | | Wealth management and financial planning firm | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 10/2019 | | 10/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 11/2020 | | 10/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
93
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (Q) | 5.75% | | 06/2021 | | 10/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.12% | SOFR (A) | 5.75% | | 08/2021 | | 10/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.4 | | 0.4 | | | | | |
The Edelman Financial Center, LLC | | Provider of investment, financial and retirement planning services | | Second lien senior secured loan | | 12.22% | SOFR (M) | 6.75% | | 09/2022 | | 07/2026 | | | 19.3 | | | 17.9 | | 19.3 | (2)(6)(18) | | | | |
The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC (15) | | Provider of comprehensive wealth management services | | First lien senior secured revolving loan | | 13.50% | Base Rate (Q) | 5.00% | | 03/2022 | | 03/2028 | | | 0.2 | | | 0.2 | | 0.2 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 03/2022 | | 03/2028 | | | 3.9 | | | 3.9 | | 3.8 | (2)(6)(11) | | | | |
| | | | Senior subordinated loan | | 12.00% PIK | | | | 03/2022 | | 03/2029 | | | 3.4 | | | 3.4 | | 3.2 | (2)(6) | | | | |
| | | | Series A preferred units | | | | | | 03/2022 | | | | 7,199 | | | 7.2 | | 4.0 | (2)(6) | | | | |
| | | | Common units | | | | | | 03/2022 | | | | 7,199 | | | — | | | — | | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 14.7 | | 11.2 | | | | | |
The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP (15) | | Provider of asset-servicing capabilities for fund managers | | First lien senior secured revolving loan | | 10.50% | SOFR (Q) | 5.00% | | 02/2019 | | 02/2026 | | | 0.8 | | | 0.8 | | 0.8 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 9.95% | SOFR (Q) | 4.50% | | 02/2019 | | 02/2026 | | | 37.0 | | | 37.0 | | 36.6 | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 09/2019 | | | | 1,443 | | | 2.1 | | 2.8 | | | | | |
| | | | Class A units | | | | | | 02/2019 | | | | 245 | | | 0.2 | | — | | | | | | |
| | | | Class B units | | | | | | 02/2019 | | | | 2,167,424 | | | — | | | — | | | | | | |
| | | | Class B units | | | | | | 02/2019 | | | | 245,194 | | | — | | | — | | | | | | |
| | | | | | | | | | | | | | | | | 40.1 | | 40.2 | | | | | |
Waverly Advisors, LLC and WAAM Topco, LLC (15) | | Wealth management and financial planning firm | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 03/2022 | | 03/2028 | | | 0.7 | | | 0.7 | | 0.7 | (2)(6)(11) | | | | |
| | | | Class A units | | | | | | 06/2023 | | | | 1,432,867 | | | 1.7 | | 1.8 | (6) | | | | |
| | | | | | | | | | | | | | | | | 2.4 | | 2.5 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,391.6 | | | 2,617.8 | | | 23.37% | | | |
Commercial and Professional Services | | | | | | | | | | | | | | | | | | | | | | | | |
Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC (15) | | Provider of outsourced crew accommodations and logistics management solutions to the airline industry | | First lien senior secured revolving loan | | 12.25% | SOFR (Q) | 6.75% | | 05/2018 | | 05/2025 | | | 4.1 | | | 4.1 | | 4.1 | (2)(11) | | | | |
| | | | Class A common units | | | | | | 05/2018 | | | | 236,358 | | | 4.3 | | 35.5 | | | | | |
| | | | | | | | | | | | | | | | | 8.4 | | 39.6 | | | | | |
Aero Operating LLC | | Provider of snow removal and melting service for airports and marine terminals | | First lien senior secured loan | | 14.54% | SOFR (Q) | 9.00% | | 02/2020 | | 02/2026 | | | 35.8 | | | 35.8 | | 30.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 14.54% | SOFR (Q) | 9.00% | | 12/2021 | | 02/2026 | | | 1.1 | | | 1.1 | | 1.0 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 36.9 | | 31.4 | | | | | |
AI Fire Buyer, Inc. and AI Fire Parent LLC (15) | | Provider of fire safety and life safety services | | First lien senior secured loan | | 11.15% | SOFR (S) | 5.50% | | 03/2021 | | 03/2027 | | | 3.9 | | | 3.9 | | 3.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.50% | | 06/2022 | | 03/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.14% | SOFR (S) | 5.75% | | 11/2023 | | 03/2027 | | | 2.8 | | | 2.8 | | 2.8 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
94
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | Second lien senior secured loan | | 16.18% PIK | SOFR (Q) | 10.75% | | 03/2021 | | 09/2027 | | | 53.5 | | | 53.5 | | 53.5 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 16.18% PIK | SOFR (Q) | 10.75% | | 05/2022 | | 09/2027 | | | 12.1 | | | 12.1 | | 12.1 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 16.18% PIK | SOFR (Q) | 10.75% | | 06/2022 | | 09/2027 | | | 11.7 | | | 11.7 | | 11.7 | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2021 | | | | 46,990 | | | 4.7 | | 9.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 88.8 | | 93.8 | | | | | |
Applied Technical Services, LLC (15) | | Provider engineering, testing, and inspection services to various industrial, commercial and consumer customers | | First lien senior secured revolving loan | | 13.25% | Base Rate (Q) | 4.75% | | 05/2022 | | 12/2026 | | | 2.1 | | | 2.0 | | 2.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 05/2022 | | 12/2026 | | | 1.0 | | | 1.0 | | 1.0 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.52% | SOFR (Q) | 6.00% | | 09/2023 | | 12/2026 | | | 2.8 | | | 2.7 | | 2.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 5.7 | | 5.9 | | | | | |
Argenbright Holdings V, LLC and Amberstone Security Group Limited (15) | | Provider of outsourced security guard services, outsourced facilities management and outsourced aviation services | | First lien senior secured loan | | 12.78% | SOFR (Q) | 7.25% | | 11/2021 | | 11/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.78% | SOFR (Q) | 7.25% | | 08/2022 | | 11/2026 | | | 6.1 | | | 5.9 | | 6.2 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 6.0 | | 6.3 | | | | | |
BH-Sharp Holdings LP | | Provider of commercial knife sharpening and cutlery services in the restaurant industry | | Common units | | | | | | 03/2017 | | | | 2,950,000 | | | 3.0 | | 4.6 | (2) | | | | |
Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP (15) | | Outsourced supply chain solutions provider to operators of distribution centers | | First lien senior secured revolving loan | | | | | | 11/2020 | | 11/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.21% | SOFR (M) | 4.75% | | 11/2020 | | 11/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.21% | SOFR (M) | 8.75% | | 11/2020 | | 11/2028 | | | 68.3 | | | 68.3 | | 68.3 | (2)(11) | | | | |
| | | | Class A units | | | | | | 11/2020 | | | | 10,581 | | | 10.6 | | 19.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 79.1 | | 87.5 | | | | | |
Compex Legal Services, Inc. (15) | | Provider of outsourced litgated and non-litigated medical records retrieval services | | First lien senior secured revolving loan | | 10.94% | SOFR (Q) | 5.45% | | 05/2022 | | 02/2025 | | | 1.1 | | | 1.0 | | 1.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 07/2023 | | 02/2026 | | | 2.0 | | | 2.0 | | 2.0 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 3.0 | | 3.1 | | | | | |
DTI Holdco, Inc. and OPE DTI Holdings, Inc. | | Provider of legal process outsourcing and managed services | | Class A common stock | | | | | | 08/2014 | | | | 7,500 | | | 7.5 | | 8.6 | (2) | | | | |
| | | | Class B common stock | | | | | | 08/2014 | | | | 7,500 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.5 | | 8.6 | | | | | |
Elevation Services Parent Holdings, LLC (15) | | Elevator service platform | | First lien senior secured revolving loan | | 11.54% | SOFR (Q) | 6.00% | | 12/2020 | | 12/2026 | | | 2.6 | | | 2.6 | | 2.5 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.54% | SOFR (Q) | 6.00% | | 12/2020 | | 12/2026 | | | 10.1 | | | 10.1 | | 9.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.53% | SOFR (Q) | 6.00% | | 05/2022 | | 12/2026 | | | 9.1 | | | 9.1 | | 8.9 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 21.8 | | 21.3 | | | | | |
See accompanying notes to consolidated financial statements
95
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
FlyWheel Acquireco, Inc. (15) | | Professional employer organization offering human resources, compliance and risk management services | | First lien senior secured revolving loan | | 11.86% | SOFR (M) | 6.50% | | 05/2023 | | 05/2028 | | | 5.5 | | | 5.5 | | 5.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.86% | SOFR (M) | 6.50% | | 05/2023 | | 05/2030 | | | 52.5 | | | 52.5 | | 52.0 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 58.0 | | 57.4 | | | | | |
HH-Stella, Inc. and Bedrock Parent Holdings, LP (15) | | Provider of municipal solid waste transfer management services | | First lien senior secured revolving loan | | | | | | 04/2021 | | 04/2028 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 04/2021 | | 04/2028 | | | 8.9 | | | 8.9 | | 8.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 09/2023 | | 04/2028 | | | 13.9 | | | 13.9 | | 13.9 | (2)(11) | | | | |
| | | | Class A units | | | | | | 04/2021 | | | | 32,982 | | | 3.3 | | 3.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 26.1 | | 26.0 | | | | | |
HP RSS Buyer, Inc. (15) | | Provider of road striping, and road safety related services | | First lien senior secured loan | | 10.37% | SOFR (M) | 5.00% | | 12/2023 | | 12/2029 | | | 12.0 | | | 12.0 | | 11.7 | (2)(11) | | | | |
IRI Holdings, Inc., IRI Group Holdings, Inc. and IRI Parent, L.P. (15) | | Market research company focused on the consumer packaged goods industry | | First lien senior secured revolving loan | | 11.11% | SOFR (M) | 5.75% | | 08/2022 | | 12/2027 | | | 1.7 | | | 1.7 | | 1.7 | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 13.25% | Base Rate (M) | 4.75% | | 08/2022 | | 12/2027 | | | 0.9 | | | 0.9 | | 0.9 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.61% (2.75% PIK) | SOFR (M) | 6.25% | | 08/2022 | | 12/2028 | | | 217.6 | | | 217.6 | | 217.6 | (2)(11) | | | | |
| | | | Class A units | | | | | | 08/2022 | | | | 11,242 | | | 11.6 | | 18.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 231.8 | | 238.9 | | | | | |
ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P. (15) | | Provider of commercial and industrial waste processing and disposal services | | First lien senior secured revolving loan | | | | | | 08/2022 | | 08/2028 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.38% | SOFR (M) | 6.00% | | 08/2022 | | 08/2029 | | | 4.1 | | | 4.1 | | 4.1 | (2)(11) | | | | |
| | | | Class A units | | | | | | 09/2022 | | | | 12,501 | | | 12.5 | | 20.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 16.6 | | 24.7 | | | | | |
Kellermeyer Bergensons Services, LLC | | Provider of janitorial and facilities management services | | First lien senior secured loan | | 11.59% | SOFR (Q) | 6.00% | | 11/2019 | | 11/2026 | | | 25.5 | | | 25.4 | | 25.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | | | | | 11/2019 | | 11/2026 | | | 30.9 | | | 30.9 | | 20.9 | (2)(10) | | | | |
| | | | | | | | | | | | | | | | | 56.3 | | 46.4 | | | | | |
Kings Buyer, LLC (15) | | Provider of comprehensive outsourced waste management consolidation services | | First lien senior secured loan | | 11.99% | SOFR (S) | 6.50% | | 09/2023 | | 10/2027 | | | 16.4 | | | 16.4 | | 16.2 | (2)(11) | | | | |
KPS Global LLC and Cool Group LLC | | Manufacturer of walk-in cooler and freezer systems | | First lien senior secured loan | | 11.44% | SOFR (M) | 5.99% | | 04/2017 | | 06/2024 | | | 5.2 | | | 5.2 | | 5.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.44% | SOFR (M) | 5.99% | | 11/2018 | | 06/2024 | | | 1.4 | | | 1.4 | | 1.4 | (2)(11) | | | | |
| | | | Class A units | | | | | | 09/2018 | | | | 13,292 | | | 1.1 | | 5.7 | | | | | |
| | | | | | | | | | | | | | | | | 7.7 | | 12.3 | | | | | |
Laboratories Bidco LLC and Laboratories Topco LLC (15) | | Lab testing services for nicotine containing products | | First lien senior secured revolving loan | | 12.29% (2.75% PIK) | SOFR (Q) | 6.75% | | 07/2021 | | 07/2027 | | | 0.6 | | | 0.6 | | 0.5 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
96
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured revolving loan | | 14.25% (2.75% PIK) | Base Rate (Q) | 5.75% | | 07/2021 | | 07/2027 | | | 7.6 | | | 7.6 | | 6.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.27% (2.75% PIK) | CDOR (Q) | 6.75% | | 10/2019 | | 07/2027 | | | 24.0 | | | 23.9 | | 20.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.31% (2.75% PIK) | SOFR (Q) | 6.75% | | 10/2019 | | 07/2027 | | | 16.6 | | | 16.6 | | 14.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.31% (2.75% PIK) | SOFR (Q) | 6.75% | | 10/2020 | | 07/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.28% (2.75% PIK) | SOFR (Q) | 6.75% | | 07/2021 | | 07/2027 | | | 4.4 | | | 4.4 | | 3.8 | (2)(11) | | | | |
| | | | Class A units | | | | | | 07/2021 | | | | 3,099,335 | | | 4.6 | | 0.9 | (2) | | | | |
| | | | | | | | | | | | | | | | | 57.8 | | 47.2 | | | | | |
Lightbeam Bidco, Inc. (15) | | Provider of yard management services | | First lien senior secured revolving loan | | | | | | 05/2023 | | 05/2029 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.70% | SOFR (Q) | 6.25% | | 05/2023 | | 05/2030 | | | 5.3 | | | 5.3 | | 5.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.86% | SOFR (S) | 5.50% | | 11/2023 | | 05/2030 | | | 1.8 | | | 1.8 | | 1.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 7.1 | | 7.1 | | | | | |
LJP Purchaser, Inc. and LJP Topco, LP (15) | | Provider of non-hazardous solid waste and recycling services | | First lien senior secured loan | | 11.70% | SOFR (M) | 6.25% | | 09/2022 | | 09/2028 | | | 9.7 | | | 9.7 | | 9.7 | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 09/2022 | | | | 5,098,000 | | | 5.6 | | 7.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 15.3 | | 16.8 | | | | | |
Marmic Purchaser, LLC and Marmic Topco, L.P. (15) | | Provider of recurring fire protection services | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 03/2021 | | 03/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 02/2022 | | 03/2027 | | | 2.3 | | | 2.3 | | 2.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.26% | SOFR (Q) | 5.75% | | 02/2022 | | 03/2027 | | | 2.5 | | | 2.5 | | 2.5 | (2)(11) | | | | |
| | | | Limited partnership units | | 8.00% PIK | | | | 03/2021 | | | | 1,929,237 | | | 2.5 | | 4.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.5 | | 9.6 | | | | | |
Microstar Logistics LLC, Microstar Global Asset Management LLC, MStar Holding Corporation and Kegstar USA Inc. | | Keg management solutions provider | | Second lien senior secured loan | | 14.35% | SOFR (Q) | 9.00% | | 08/2020 | | 07/2025 | | | 168.3 | | | 168.3 | | 168.3 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 14.35% | SOFR (Q) | 9.00% | | 08/2023 | | 07/2025 | | | 8.6 | | | 8.6 | | 8.6 | (2)(11) | | | | |
| | | | Series A preferred stock | | 20.00% PIK | | | | 08/2020 | | | | 1,507 | | | 1.5 | | 3.3 | (2) | | | | |
| | | | Series B preferred stock | | 19.00% PIK | | | | 09/2023 | | | | 12,000 | | | 12.0 | | 12.0 | (2) | | | | |
| | | | Common stock | | | | | | 12/2012 | | | | 54,710 | | | 4.9 | | 6.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 195.3 | | 198.5 | | | | | |
NAS, LLC and Nationwide Marketing Group, LLC (15) | | Buying and marketing services organization for appliance, furniture and consumer electronics dealers | | First lien senior secured revolving loan | | 12.00% | SOFR (Q) | 6.50% | | 11/2020 | | 06/2024 | | | 0.6 | | | 0.6 | | 0.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 11/2020 | | 06/2024 | | | 6.2 | | | 6.2 | | 6.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 12/2021 | | 06/2024 | | | 2.3 | | | 2.3 | | 2.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 05/2022 | | 06/2024 | | | 1.3 | | | 1.3 | | 1.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 10.4 | | 10.4 | | | | | |
See accompanying notes to consolidated financial statements
97
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P. (15) | | Provider of audience insights, data and analytics to entertainment industry | | First lien senior secured revolving loan | | | | | | 10/2022 | | 10/2027 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.26% | SOFR (Q) | 4.75% | | 10/2022 | | 10/2028 | | | 81.5 | | | 76.0 | | 74.1 | (2)(11)(18) | | | | |
| | | | First lien senior secured loan | | 10.51% | SOFR (Q) | 5.00% | | 10/2022 | | 04/2029 | | | 98.8 | | | 91.5 | | 90.0 | (2)(11)(18) | | | | |
| | | | First lien senior secured note | | 9.29% | | | | 11/2022 | | 04/2029 | | | 52.8 | | | 51.6 | | 49.2 | (2)(18) | | | | |
| | | | Second lien senior secured loan | | 15.26% | SOFR (Q) | 9.75% | | 10/2022 | | 10/2029 | | | 221.3 | | | 221.3 | | 210.2 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 10/2022 | | | | 4,040,000 | | | 4.1 | | 5.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 444.5 | | 428.5 | | | | | |
Nest Topco Borrower Inc., KKR Nest Co-Invest L.P., and NBLY 2021-1 | | Operator of multiple franchise concepts primarily related to home maintenance or repairs | | Senior subordinated loan | | 16.00% | Base Rate (Q) | 7.50% | | 09/2021 | | 08/2029 | | | 119.1 | | | 119.1 | | 119.1 | (2)(11) | | | | |
| | | | Limited partner interest | | | | | | 09/2021 | | | | 9,725,000 | | | 9.7 | | 10.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 128.8 | | 129.6 | | | | | |
North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC (15) | | Provider of fire safety and life safety services | | First lien senior secured revolving loan | | 11.27% | SOFR (Q) | 5.75% | | 05/2021 | | 05/2027 | | | 1.2 | | | 1.2 | | 1.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 05/2021 | | 05/2027 | | | 19.8 | | | 19.8 | | 19.8 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.27% | SOFR (Q) | 5.75% | | 03/2022 | | 05/2027 | | | 6.8 | | | 6.8 | | 6.8 | (2)(11) | | | | |
| | | | Common units | | | | | | 05/2021 | | | | 884,916 | | | 0.9 | | 3.9 | (2) | | | | |
| | | | | | | | | | | | | | | | | 28.7 | | 31.7 | | | | | |
North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC (15) | | Provider of lawncare services | | First lien senior secured loan | | 11.86% | SOFR (Q) | 6.50% | | 12/2022 | | 05/2028 | | | 14.7 | | | 14.6 | | 14.7 | (2)(11) | | | | |
North Haven Stack Buyer, LLC (15) | | Provider of environmental testing services | | First lien senior secured revolving loan | | 11.03% | SOFR (Q) | 5.50% | | 07/2021 | | 07/2027 | | | 1.3 | | | 1.2 | | 1.3 | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 07/2021 | | 07/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.03% | SOFR (M) | 5.50% | | 07/2021 | | 07/2027 | | | 9.8 | | | 9.8 | | 9.8 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.01% | SOFR (Q) | 5.50% | | 08/2023 | | 07/2027 | | | 1.8 | | | 1.6 | | 1.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 12.7 | | 13.0 | | | | | |
Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC (15) | | Solid waste services provider | | First lien senior secured loan | | 13.39% (4.00% PIK) | SOFR (Q) | 8.00% | | 08/2023 | | 08/2029 | | | 25.6 | | | 25.1 | | 25.1 | (2)(11) | | | | |
| | | | Warrant to purchase units of Class A common units | | | | | | 08/2023 | | 08/2036 | | 35,347 | | | 0.6 | | 1.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 25.7 | | 26.2 | | | | | |
Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC (15) | | Provider of janitorial and facilities management services | | First lien senior secured loan | | 10.97% | SOFR (S) | 5.50% | | 10/2021 | | 10/2027 | | | 67.7 | | | 67.7 | | 66.3 | (2)(11) | | | | |
| | | | Class A units | | | | | | 10/2021 | | | | 7,900,000 | | | 7.9 | | 6.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 75.6 | | 72.6 | | | | | |
See accompanying notes to consolidated financial statements
98
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
PS Operating Company LLC and PS Op Holdings LLC (5)(15) | | Specialty distributor and solutions provider to the swine and poultry markets | | First lien senior secured revolving loan | | 11.61% PIK | SOFR (Q) | 6.00% | | 12/2021 | | 12/2026 | | | 4.5 | | | 4.5 | | 4.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.61% PIK | SOFR (Q) | 6.00% | | 12/2021 | | 12/2026 | | | 15.3 | | | 15.3 | | 15.3 | (2)(11) | | | | |
| | | | Common unit | | | | | | 12/2021 | | | | 279,200 | | | 7.4 | | 2.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.2 | | 21.9 | | | | | |
PSC Group LLC (15) | | Provider of operational services for US petrochemical and refining companies | | First lien senior secured revolving loan | | | | | | 07/2019 | | 07/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.53% | SOFR (Q) | 6.00% | | 07/2019 | | 07/2025 | | | 34.2 | | | 34.2 | | 34.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.29% | SOFR (Q) | 5.75% | | 12/2021 | | 07/2025 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.41% | SOFR (Q) | 6.00% | | 12/2021 | | 07/2025 | | | 11.3 | | | 11.3 | | 11.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.53% | SOFR (Q) | 6.00% | | 04/2022 | | 07/2025 | | | 2.4 | | | 2.4 | | 2.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.54% | SOFR (Q) | 6.00% | | 12/2023 | | 07/2025 | | | 6.6 | | | 6.6 | | 6.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 54.7 | | 54.7 | | | | | |
R2 Acquisition Corp. | | Marketing services | | Common stock | | | | | | 05/2007 | | | | 250,000 | | | 0.2 | | 0.3 | (2) | | | | |
RC V Tecmo Investor LLC | | Technology based aggregator for facility maintenance services | | Common member units | | | | | | 08/2020 | | | | 9,624,000 | | | 8.3 | | 19.4 | (2) | | | | |
RE Community Holdings GP, LLC and RE Community Holdings, LP | | Operator of municipal recycling facilities | | Limited partnership interest | | | | | | 03/2011 | | | | 2.49% | | | — | | | — | | (2) | | | | |
| | | | Limited partnership interest | | | | | | 03/2011 | | | | 2.86% | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P. (15) | | Provider of FDA registration and consulting services | | First lien senior secured loan | | 10.64% | SOFR (S) | 5.00% | | 08/2021 | | 08/2027 | | | 2.7 | | | 2.7 | | 2.6 | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 08/2021 | | | | 1.13% | | | 2.7 | | 2.9 | (2) | | | | |
| | | | | | | | | | | | | | | | | 5.4 | | 5.5 | | | | | |
Rodeo AcquisitionCo LLC (15) | | Provider of food inspection and recovery services | | First lien senior secured revolving loan | | 11.54% | SOFR (Q) | 6.00% | | 07/2021 | | 07/2027 | | | 1.7 | | | 1.7 | | 1.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.54% | SOFR (Q) | 6.00% | | 07/2021 | | 07/2027 | | | 16.8 | | | 16.8 | | 16.4 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 18.5 | | 18.1 | | | | | |
Saturn Purchaser Corp. | | Private aviation management company | | First lien senior secured loan | | 10.71% | SOFR (M) | 5.25% | | 07/2023 | | 07/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.01% | SOFR (Q) | 5.50% | | 07/2023 | | 07/2029 | | | 1.7 | | | 1.7 | | 1.7 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.8 | | 1.8 | | | | | |
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P. (15) | | Provider of landscape design and planning, and snow removal services | | First lien senior secured revolving loan | | 11.21% | SOFR (M) | 5.75% | | 12/2021 | | 12/2027 | | | 0.6 | | | 0.6 | | 0.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 12/2021 | | 12/2027 | | | 3.5 | | | 3.5 | | 3.4 | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2021 | | | | 5,868 | | | 14.8 | | 16.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 18.9 | | 20.8 | | | | | |
See accompanying notes to consolidated financial statements
99
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Shermco Intermediate Holdings, Inc. (15) | | Provider of electrician services | | First lien senior secured revolving loan | | 10.86% | SOFR (M) | 5.50% | | 05/2022 | | 06/2026 | | | 0.1 | | | — | | | 0.1 | (2) | | | | |
| | | | First lien senior secured loan | | 10.86% | SOFR (M) | 5.50% | | 05/2022 | | 06/2026 | | | 5.2 | | | 5.2 | | 5.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.95% | SOFR (Q) | 5.50% | | 09/2023 | | 06/2026 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 5.6 | | 5.7 | | | | | |
SSE Buyer, Inc., Supply Source Enterprises, Inc., Impact Products LLC, The Safety Zone, LLC and SSE Parent, LP | | Manufacturer and distributor of personal protection equipment, commercial cleaning, maintenance and safety products | | Second lien senior secured loan | | | | | | 06/2020 | | 06/2026 | | | 24.3 | | | 21.0 | | 0.7 | (2)(10) | | | | |
| | | | Limited partnership class A-1 units | | | | | | 06/2020 | | | | 2,173 | | | 1.1 | | — | | (2) | | | | |
| | | | Limited partnership class A-2 units | | | | | | 06/2020 | | | | 2,173 | | | 1.1 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 23.2 | | 0.7 | | | | | |
Startec Equity, LLC (5) | | Communication services | | Member interest | | | | | | 04/2010 | | | | 190,581 | | | — | | | — | | | | | | |
Stealth Holding LLC and UCIT Online Security Inc. | | Live video monitoring solutions provider | | First lien senior secured loan | | 12.29% | SOFR (Q) | 6.75% | | 03/2021 | | 03/2026 | | | 52.4 | | | 52.4 | | 52.4 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 14.25% | Base Rate (Q) | 5.75% | | 03/2021 | | 03/2026 | | | 0.8 | | | 0.8 | | 0.8 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.29% | SOFR (Q) | 6.75% | | 03/2022 | | 03/2026 | | | 5.1 | | | 5.1 | | 5.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.28% | SOFR (Q) | 6.75% | | 06/2023 | | 03/2026 | | | 12.4 | | | 12.4 | | 12.4 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 70.7 | | 70.7 | | | | | |
Systems Planning and Analysis, Inc. (15) | | Provider of systems engineering and technical assistance to the US DoD | | First lien senior secured loan | | 11.33% | SOFR (Q) | 6.00% | | 05/2022 | | 08/2027 | | | 1.0 | | | 1.0 | | 1.0 | (2)(11) | | | | |
Thermostat Purchaser III, Inc. (15) | | Provider of commercial HVAC equipment maintenance and repair services | | First lien senior secured revolving loan | | | | | | 08/2021 | | 08/2026 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | Second lien senior secured loan | | 12.79% | SOFR (Q) | 7.25% | | 08/2021 | | 08/2029 | | | 23.0 | | | 23.0 | | 22.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 23.0 | | 22.3 | | | | | |
Valcourt Holdings II, LLC and Jobs Holdings, Inc. (15) | | Provider of window cleaning and building facade maintenance and restoration services | | First lien senior secured revolving loan | | | | | | 11/2023 | | 01/2029 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.27% | SOFR (S) | 5.75% | | 11/2023 | | 11/2029 | | | 45.0 | | | 45.0 | | 44.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 45.0 | | 44.1 | | | | | |
Visual Edge Technology, Inc. (5)(15) | | Provider of outsourced office solutions with a focus on printer and copier equipment and other parts and supplies | | First lien senior secured loan | | 12.50% (1.25% PIK) | SOFR (Q) | 7.00% | | 07/2023 | | 12/2025 | | | 33.5 | | | 32.9 | | 33.5 | (2)(11) | | | | |
| | | | Senior preferred stock | | 10.00% PIK | | | | 07/2023 | | | | 4,737 | | | 42.1 | | 44.1 | (2) | | | | |
| | | | Junior preferred stock | | | | | | 07/2023 | | | | 6,600 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 08/2017 | | 08/2030 | | 10,358,572 | | | 3.9 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 78.9 | | 77.6 | | | | | |
VRC Companies, LLC (15) | | Provider of records and information management services | | Senior subordinated loan | | 12.00% (2.00% PIK) | | | | 05/2022 | | 06/2028 | | | 5.1 | | | 5.2 | | 4.9 | (2) | | | | |
See accompanying notes to consolidated financial statements
100
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Wash Encore Holdings, LLC | | Provider of outsourced healthcare linen management solutions | | First lien senior secured loan | | 11.44% | SOFR (Q) | 5.75% | | 07/2021 | | 07/2027 | | | 97.5 | | | 97.5 | | 97.5 | (2)(11) | | | | |
XIFIN, Inc. and ACP Charger Co-Invest LLC (15) | | Revenue cycle management provider to labs | | First lien senior secured revolving loan | | 11.25% | SOFR (Q) | 5.75% | | 02/2020 | | 02/2026 | | | 5.6 | | | 5.6 | | 5.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 07/2021 | | 02/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 12/2021 | | 02/2026 | | | 36.5 | | | 36.5 | | 34.7 | (2)(11) | | | | |
| | | | Class A units | | | | | | 02/2020 | | | | 180,000 | | | 1.8 | | 2.4 | (2) | | | | |
| | | | Class B units | | | | | | 12/2021 | | | | 46,363 | | | 0.9 | | 0.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 44.9 | | 43.1 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 2,239.1 | | | 2,251.7 | | | 20.10% | | | |
Investment Funds and Vehicles | | | | | | | | | | | | | | | | | | | | | | | | |
ACAS Equity Holdings Corporation (5) | | Investment company | | Common stock | | | | | | 01/2017 | | | | 589 | | | 0.4 | | 0.4 | (6) | | | | |
ARES 2007-3R | | Investment vehicle | | Subordinated notes | | | | | | 01/2017 | | 04/2021 | | 20,000,000 | | | — | | | 0.1 | (6) | | | | |
Blue Wolf Capital Fund II, L.P. (4) | | Investment partnership | | Limited partnership interest (8.50% interest) | | | | | | 01/2017 | | | | 8.50% | | | — | | | — | | (6)(18) | | | | |
CoLTs 2005-1 Ltd. (5) | | Investment vehicle | | Preferred shares | | | | | | 01/2017 | | 03/2015 | | 360 | | | — | | | — | | (6) | | | | |
CREST Exeter Street Solar 2004-1 | | Investment vehicle | | Preferred shares | | | | | | 01/2017 | | 06/2039 | | 3,500,000 | | | — | | | — | | (6) | | | | |
European Capital UK SME Debt LP (4)(16) | | Investment partnership | | Limited partnership interest | | | | | | 01/2017 | | | | 45.00% | | | 8.2 | | 16.4 | (6) | | | | |
HCI Equity, LLC (5) | | Investment company | | Member interest | | | | | | 04/2010 | | | | 100.00% | | | — | | | — | | (6)(18) | | | | |
Partnership Capital Growth Investors III, L.P. | | Investment partnership | | Limited partnership interest | | | | | | 10/2011 | | | | 2.50% | | | 1.8 | | 4.8 | (2)(6)(18) | | | | |
PCG-Ares Sidecar Investment II, L.P. (4)(16) | | Investment partnership | | Limited partnership interest | | | | | | 10/2014 | | | | 100.00% | | | 7.2 | | 18.1 | (2)(6) | | | | |
PCG-Ares Sidecar Investment, L.P. (4)(16) | | Investment partnership | | Limited partnership interest | | | | | | 05/2014 | | | | 100.00% | | | 4.3 | | 0.8 | (6) | | | | |
Piper Jaffray Merchant Banking Fund I, L.P. | | Investment partnership | | Limited partnership interest | | | | | | 08/2012 | | | | 2.00% | | | 0.1 | | 0.5 | (6)(18) | | | | |
Senior Direct Lending Program, LLC (5)(17) | | Co-investment vehicle | | Subordinated certificates | | 13.33% | SOFR (Q) | 8.00% | | 07/2016 | | 12/2036 | | | 1,327.9 | | 1,316.3 | | | 1,288.1 | | (6)(12) | | | | |
| | | | Membership interest | | | | | | | | | | 87.50% | | | — | | | — | | (6) | | | | |
| | | | | | | | | | | | | | | | | 1,316.3 | | | 1,288.1 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,338.3 | | | 1,329.2 | | | 11.87% | | | |
Insurance Services | | | | | | | | | | | | | | | | | | | | | | | | |
Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc. (15) | | Insurance broker | | First lien senior secured loan | | 11.03% | SOFR (Q) | 5.50% | | 11/2019 | | 11/2029 | | | 38.0 | | | 37.9 | | 37.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.35% | SOFR (Q) | 6.00% | | 08/2023 | | 11/2029 | | | 0.6 | | | 0.6 | | 0.6 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
101
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.41% | SOFR (M) | 6.00% | | 08/2023 | | 11/2029 | | | 1.3 | | | 1.3 | | 1.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.01% | SOFR (Q) | 5.50% | | 11/2023 | | 11/2029 | | | 0.3 | | | 0.3 | | 0.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 40.1 | | 39.4 | | | | | |
Acrisure, LLC | | Independent property and casualty insurance brokerage | | First lien senior secured loan | | 9.89% | SOFR (Q) | 4.50% | | 10/2023 | | 11/2030 | | | 0.2 | | | 0.2 | | 0.2 | (2)(18) | | | | |
Alera Group, Inc. (15) | | Insurance service provider | | First lien senior secured loan | | 11.46% | SOFR (M) | 6.00% | | 09/2021 | | 10/2028 | | | 46.5 | | | 46.5 | | 46.5 | (2)(11) | | | | |
Amynta Agency Borrower Inc. and Amynta Warranty Borrower Inc. | | Insurance service provider | | First lien senior secured loan | | 9.61% | SOFR (M) | 4.25% | | 02/2023 | | 02/2028 | | | 1.0 | | | 1.0 | | 1.0 | (2)(18) | | | | |
AQ Sunshine, Inc. (15) | | Specialized insurance broker | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 04/2019 | | 04/2027 | | | 8.4 | | | 8.4 | | 8.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 10/2020 | | 04/2027 | | | 5.5 | | | 5.5 | | 5.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 06/2021 | | 04/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 01/2022 | | 04/2027 | | | 8.9 | | | 8.9 | | 8.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.60% | SOFR (Q) | 6.25% | | 05/2022 | | 04/2027 | | | 1.2 | | | 1.2 | | 1.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.71% | SOFR (S) | 6.25% | | 12/2023 | | 04/2027 | | | 6.5 | | | 6.5 | | 6.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 30.6 | | 29.9 | | | | | |
Ardonagh Midco 2 plc and Ardonagh Midco 3 plc (15) | | Insurance broker and underwriting servicer | | First lien senior secured loan | | 12.81% | SONIA (S) | 7.25% | | 06/2020 | | 07/2026 | | | 79.2 | | | 79.5 | | 79.2 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.20% | Euribor (S) | 7.25% | | 06/2020 | | 07/2026 | | | 7.2 | | | 7.5 | | 7.2 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.90% | SOFR (S) | 6.00% | | 08/2021 | | 07/2026 | | | 90.0 | | | 90.0 | | 90.0 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 12.57% | SOFR (S) | 6.75% | | 08/2022 | | 07/2026 | | | 15.6 | | | 15.6 | | 15.6 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.70% | Euribor (S) | 6.75% | | 08/2022 | | 07/2026 | | | 68.9 | | | 64.5 | | 68.9 | (2)(6)(11) | | | | |
| | | | Senior subordinated loan | | 11.50% | | | | 06/2020 | | 01/2027 | | | 1.4 | | | 1.4 | | 1.4 | (2)(6)(18) | | | | |
| | | | | | | | | | | | | | | | | 258.5 | | 262.3 | | | | | |
Benecon Midco II LLC and Locutus Holdco LLC (15) | | Employee benefits provider for small and mid-size employers | | Common units | | | | | | 12/2020 | | | | 9,803,682 | | | 10.0 | | 52.2 | | | | | |
Captive Resources Midco, LLC (15) | | Provider of independent consulting services to member-owned group captives | | First lien senior secured loan | | 10.61% (2.63% PIK) | SOFR (M) | 5.25% | | 07/2022 | | 07/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
Daylight Beta Parent LLC and CFCo, LLC (4) | | Health insurance sales platform provider | | First lien senior secured loan | | 10.00% PIK | | | | 09/2023 | | 09/2033 | | | 12.0 | | | 12.0 | | 12.0 | (2) | | | | |
| | | | First lien senior secured loan | | | | | | 09/2023 | | 09/2038 | | | 20.8 | | | 0.5 | | 0.1 | (2) | | | | |
| | | | Class B units | | | | | | 09/2023 | | | | 32,391,330 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 12.5 | | 12.1 | | | | | |
DOXA Insurance Holdings LLC (15) | | Managing general agent insurance distribution platform | | First lien senior secured loan | | 10.87% | SOFR (S) | 5.50% | | 12/2023 | | 12/2030 | | | 9.0 | | | 9.0 | | 8.8 | (2)(6)(11) | | | | |
Foundation Risk Partners, Corp. (15) | | Full service independent insurance agency | | First lien senior secured loan | | 11.45% | SOFR (Q) | 6.00% | | 10/2021 | | 10/2028 | | | 79.5 | | | 79.5 | | 79.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.45% | SOFR (Q) | 6.00% | | 04/2022 | | 10/2028 | | | 42.8 | | | 42.8 | | 42.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 122.3 | | 122.3 | | | | | |
Galway Borrower LLC (15) | | Insurance service provider | | First lien senior secured revolving loan | | | | | | 09/2021 | | 09/2027 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.70% | SOFR (Q) | 5.25% | | 09/2021 | | 09/2028 | | | 34.8 | | | 34.8 | | 34.2 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
102
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 34.8 | | 34.2 | | | | | |
Higginbotham Insurance Agency, Inc. (15) | | Independent retail insurance broker | | First lien senior secured loan | | 10.96% | SOFR (M) | 5.50% | | 08/2023 | | 11/2028 | | | 3.6 | | | 3.6 | | 3.5 | (2)(11) | | | | |
High Street Buyer, Inc. and High Street Holdco LLC (15)(16) | | Insurance brokerage platform | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 04/2021 | | 04/2028 | | | 22.6 | | | 22.6 | | 22.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 08/2021 | | 04/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (M) | 5.50% | | 02/2022 | | 04/2028 | | | 18.5 | | | 18.5 | | 18.5 | (2)(11) | | | | |
| | | | Series A preferred units | | 10.00% PIK | | | | 04/2021 | | | | 172,211,694 | | | 203.7 | | 187.3 | (2) | | | | |
| | | | Series A preferred units | | 10.00% PIK | | | | 12/2023 | | | | 20,106,667 | | | 20.3 | | 18.7 | (2) | | | | |
| | | | Series A common units | | 10.00% PIK | | | | 04/2021 | | | | 4,649,000 | | | 6.0 | | 11.9 | (2) | | | | |
| | | | Series C common units | | 10.00% PIK | | | | 04/2021 | | | | 9,748,701 | | | 1.6 | | 24.9 | (2) | | | | |
| | | | | | | | | | | | | | | | | 272.8 | | 284.0 | | | | | |
Inszone Mid, LLC and INSZ Holdings, LLC (15) | | Insurance brokerage firm | | First lien senior secured loan | | 11.11% | SOFR (M) | 5.75% | | 12/2023 | | 11/2029 | | | 14.7 | | | 14.7 | | 14.4 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 11/2022 | | | | 2,146,088 | | | 1.7 | | 2.1 | | | | | |
| | | | Common units | | | | | | 11/2023 | | | | 8,473,000 | | | 8.5 | | 8.5 | | | | | |
| | | | | | | | | | | | | | | | | 24.9 | | 25.0 | | | | | |
Keystone Agency Partners LLC (15) | | Insurance brokerage platform | | First lien senior secured loan | | 10.96% | SOFR (S) | 5.50% | | 12/2023 | | 05/2027 | | | 2.8 | | | 2.7 | | 2.7 | (2)(11) | | | | |
OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP (15) | | Insurance brokerage platform | | First lien senior secured loan | | 11.09% | SOFR (M) | 5.75% | | 11/2023 | | 11/2029 | | | 7.5 | | | 7.5 | | 7.3 | (2)(11) | | | | |
| | | | Class A2 units | | | | | | 11/2023 | | | | 115,928 | | | 2.3 | | 2.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.8 | | 9.6 | | | | | |
OneDigital Borrower LLC (15) | | Benefits broker and outsourced workflow automation platform provider for brokers | | First lien senior secured revolving loan | | | | | | 11/2020 | | 05/2027 | | | — | | | — | | | — | | (2)(13) | | | | |
Patriot Growth Insurance Services, LLC (15) | | National retail insurance agency | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 10/2021 | | 10/2028 | | | 15.8 | | | 15.6 | | 15.5 | (2)(11) | | | | |
People Corporation (15) | | Provider of group benefits, group retirement and human resources services | | First lien senior secured revolving loan | | 11.74% | CDOR (Q) | 6.25% | | 02/2021 | | 02/2027 | | | 5.2 | | | 5.0 | | 5.2 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | CDOR (Q) | 6.25% | | 02/2021 | | 02/2028 | | | 39.4 | | | 41.5 | | 39.4 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.25% | CDOR (Q) | 5.75% | | 09/2021 | | 02/2028 | | | 22.8 | | | 22.7 | | 22.8 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | CDOR (Q) | 6.00% | | 09/2023 | | 02/2028 | | | 1.0 | | | 1.0 | | 1.0 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 70.2 | | 68.4 | | | | | |
Riser Interco, LLC (15) | | Insurance program administrator | | First lien senior secured loan | | 11.19% | SONIA (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 1.1 | | | 1.0 | | 1.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.35% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 7.6 | | | 7.6 | | 7.4 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 8.6 | | 8.5 | | | | | |
SageSure Holdings, LLC and SageSure LLC (15) | | Insurance service provider | | First lien senior secured loan | | 11.36% | SOFR (Q) | 5.75% | | 01/2022 | | 01/2028 | | | 0.3 | | | 0.3 | | 0.3 | (2)(11) | | | | |
| | | | Series A units | | | | | | 02/2022 | | | | 886 | | | 19.6 | | 34.2 | | | | | |
| | | | | | | | | | | | | | | | | 19.9 | | 34.5 | | | | | |
See accompanying notes to consolidated financial statements
103
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
SCM Insurance Services Inc. (15) | | Provider of claims management, claims investigation & support and risk management solutions for the Canadian property and casualty insurance industry | | First lien senior secured loan | | 11.70% | CDOR (Q) | 6.25% | | 06/2022 | | 08/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
SelectQuote, Inc. | | Direct to consumer insurance distribution platform | | First lien senior secured loan | | 14.96% (3.00% PIK) | SOFR (M) | 9.50% | | 11/2019 | | 11/2024 | | | 22.0 | | | 22.0 | | 20.3 | (2)(11) | | | | |
SG Acquisition, Inc. | | Provider of insurance solutions for car sales | | First lien senior secured loan | | 10.98% | SOFR (Q) | 5.50% | | 01/2020 | | 01/2027 | | | 33.8 | | | 33.8 | | 33.8 | (2)(11) | | | | |
Spring Insurance Solutions, LLC | | Technology-based direct to consumer sales and marketing platform for insurance products | | First lien senior secured loan | | 12.72% | SOFR (Q) | 7.00% | | 11/2020 | | 11/2025 | | | 21.8 | | | 21.8 | | 19.4 | (2)(11) | | | | |
THG Acquisition, LLC (15) | | Multi-line insurance broker | | First lien senior secured revolving loan | | 11.21% | SOFR (M) | 5.75% | | 12/2019 | | 12/2025 | | | 1.3 | | | 1.3 | | 1.3 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 12/2019 | | 12/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 12/2020 | | 12/2026 | | | 14.7 | | | 14.7 | | 14.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.96% | SOFR (M) | 5.50% | | 12/2021 | | 12/2026 | | | 25.9 | | | 25.9 | | 25.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 42.0 | | 41.7 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,113.4 | | | 1,176.0 | | | 10.50% | | | |
Consumer Services | | | | | | | | | | | | | | | | | | | | | | | | |
ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc. (5) | | Restaurant owner and operator | | First lien senior secured loan | | | | | | 12/2016 | | 08/2022 | | | 10.4 | | | — | | | — | | (2)(10) | | | | |
Aimbridge Acquisition Co., Inc. | | Hotel operator | | Second lien senior secured loan | | 12.96% | SOFR (M) | 7.50% | | 02/2019 | | 02/2027 | | | 22.5 | | | 22.3 | | 21.4 | (2) | | | | |
American Residential Services L.L.C. and Aragorn Parent Holdings LP (15) | | Heating, ventilation and air conditioning services provider | | First lien senior secured revolving loan | | 8.71% | SOFR (M) | 3.25% | | 10/2020 | | 10/2025 | | | 0.4 | | | 0.4 | | 0.4 | (2) | | | | |
| | | | First lien senior secured revolving loan | | 10.75% | Base Rate (Q) | 2.25% | | 10/2020 | | 10/2025 | | | 1.6 | | | 1.6 | | 1.6 | (2) | | | | |
| | | | Second lien senior secured loan | | 14.11% | SOFR (Q) | 8.50% | | 10/2020 | | 10/2028 | | | 56.4 | | | 56.4 | | 56.4 | (2)(11) | | | | |
| | | | Series A preferred units | | 10.00% PIK | | | | 10/2020 | | | | 2,531,500 | | | 3.4 | | 5.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 61.8 | | 63.9 | | | | | |
Apex Service Partners, LLC and Apex Service Partners Holdings, LLC (15) | | Provider of residential HVAC, plumbing, and electrical maintenance and repair services | | First lien senior secured revolving loan | | 14.00% | Base Rate (Q) | 5.50% | | 10/2023 | | 10/2029 | | | 0.3 | | | 0.3 | | 0.3 | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 11.87% | SOFR (Q) | 6.50% | | 10/2023 | | 10/2029 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.40% (2.00% PIK) | SOFR (Q) | 7.00% | | 10/2023 | | 10/2030 | | | 148.5 | | | 148.5 | | 144.8 | (2)(11) | | | | |
| | | | Series B common units | | | | | | 10/2023 | | | | 262,165 | | | 7.2 | | 7.2 | | | | | |
| | | | | | | | | | | | | | | | | 156.4 | | 152.7 | | | | | |
ATI Restoration, LLC (15) | | Provider of disaster recovery services | | First lien senior secured revolving loan | | 12.50% | Base Rate (Q) | 4.00% | | 07/2020 | | 07/2026 | | | 2.3 | | | 2.3 | | 2.3 | (2)(11)(14) | | | | |
See accompanying notes to consolidated financial statements
104
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured revolving loan | | 10.52% | SOFR (Q) | 5.00% | | 07/2020 | | 07/2026 | | | 5.0 | | | 5.0 | | 5.0 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 10.52% | SOFR (Q) | 5.00% | | 07/2020 | | 07/2026 | | | 32.7 | | | 32.7 | | 32.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.52% | SOFR (M) | 5.00% | | 05/2022 | | 07/2026 | | | 48.4 | | | 48.4 | | 48.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.54% | SOFR (Q) | 5.00% | | 09/2023 | | 07/2026 | | | 2.3 | | | 2.3 | | 2.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 90.7 | | 90.7 | | | | | |
Belfor Holdings, Inc. (15) | | Disaster recovery services provider | | First lien senior secured revolving loan | | | | | | 11/2023 | | 11/2028 | | | — | | | — | | | — | | (2)(13) | | | | |
Clarion Home Services Group, LLC and LBC Breeze Holdings LLC (15) | | Provider of HVAC and plumbing services to residential and commercial customers | | First lien senior secured revolving loan | | 11.48% | SOFR (Q) | 6.00% | | 12/2021 | | 12/2027 | | | 1.4 | | | 1.4 | | 1.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.99% | SOFR (Q) | 6.50% | | 12/2021 | | 12/2027 | | | 3.1 | | | 3.1 | | 2.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.22% | SOFR (Q) | 6.75% | | 03/2023 | | 12/2027 | | | 6.1 | | | 6.1 | | 5.6 | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2021 | | | | 4,296 | | | 4.3 | | 3.8 | | | | | |
| | | | | | | | | | | | | | | | | 14.9 | | 13.5 | | | | | |
CMG HoldCo, LLC and CMG Buyer Holdings, Inc. (15) | | Provider of commercial HVAC equipment maintenance and repair services | | First lien senior secured loan | | 10.37% | SOFR (Q) | 5.00% | | 05/2022 | | 05/2028 | | | 28.0 | | | 28.0 | | 28.0 | (2)(11) | | | | |
| | | | Common stock | | | | | | 05/2022 | | | | 290 | | | 2.9 | | 7.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 30.9 | | 35.7 | | | | | |
CST Holding Company (15) | | Provider of ignition interlock devices | | First lien senior secured revolving loan | | 11.96% | SOFR (M) | 6.50% | | 11/2022 | | 11/2028 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.96% | SOFR (M) | 6.50% | | 11/2022 | | 11/2028 | | | 11.6 | | | 11.6 | | 11.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 11.8 | | 11.8 | | | | | |
Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC (15) | | Provider of plumbing and HVAC services | | First lien senior secured revolving loan | | 11.28% | SOFR (Q) | 5.75% | | 11/2020 | | 11/2025 | | | 11.2 | | | 11.2 | | 11.2 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.29% | SOFR (Q) | 5.75% | | 11/2020 | | 11/2026 | | | 47.7 | | | 47.7 | | 47.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.29% | SOFR (Q) | 5.75% | | 04/2021 | | 11/2026 | | | 77.3 | | | 77.3 | | 77.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.29% | SOFR (Q) | 5.75% | | 11/2021 | | 11/2026 | | | 24.9 | | | 24.9 | | 24.9 | (2)(11) | | | | |
| | | | Preferred units | | 15.00% PIK | | | | 07/2023 | | | | 231 | | | 2.7 | | 2.7 | (2) | | | | |
| | | | Class A units | | | | | | 11/2020 | | | | 6,447 | | | 22.9 | | 43.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 186.7 | | 206.8 | | | | | |
Eternal Aus Bidco Pty Ltd (15) | | Operator of cemetery, crematoria and funeral services | | First lien senior secured loan | | 10.70% (2.50% PIK) | BBSY (Q) | 6.25% | | 11/2023 | | 10/2029 | | | 7.4 | | | 7.1 | | 7.4 | (2)(6)(11) | | | | |
Excel Fitness Consolidator LLC (15) | | Fitness facility operator | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 08/2023 | | 04/2029 | | | 3.6 | | | 3.5 | | 3.5 | (2)(11) | | | | |
Flint OpCo, LLC (15) | | Provider of residential HVAC and plumbing services | | First lien senior secured loan | | 10.60% | SOFR (Q) | 5.25% | | 08/2023 | | 08/2030 | | | 5.5 | | | 5.5 | | 5.4 | (2)(11) | | | | |
GroundWorks, LLC (15) | | Provider of residential foundation repair and water management services | | First lien senior secured loan | | 11.90% | SOFR (Q) | 6.50% | | 03/2023 | | 03/2030 | | | 11.3 | | | 11.0 | | 11.3 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
105
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
GS SEER Group Borrower LLC and GS SEER Group Holdings LLC (15) | | Provider of commercial and residential HVAC, electrical, and plumbing services | | First lien senior secured loan | | 12.10% | SOFR (Q) | 6.75% | | 04/2023 | | 04/2030 | | | 19.4 | | | 19.4 | | 19.4 | (2)(11) | | | | |
| | | | Class A common units | | | | | | 04/2023 | | | | 4,424 | | | 4.4 | | 4.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 23.8 | | 23.4 | | | | | |
Helios Service Partners, LLC and Astra Service Partners, LLC (15) | | Critical HVAC, refrigeration, and plumbing services for commercial businesses | | First lien senior secured revolving loan | | 11.62% | SOFR (Q) | 6.00% | | 08/2023 | | 03/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.87% | SOFR (Q) | 6.25% | | 08/2023 | | 03/2027 | | | 7.6 | | | 7.6 | | 7.4 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 7.8 | | 7.6 | | | | | |
Infinity Home Services HoldCo, Inc., D&S Amalco and IHS Parent Holdings, L.P. (15) | | Provider of residential roofing and exterior repair and replacement services | | First lien senior secured loan | | 12.20% | SOFR (Q) | 6.75% | | 12/2022 | | 12/2028 | | | 13.8 | | | 13.8 | | 13.8 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | CDOR (Q) | 6.00% | | 11/2023 | | 12/2028 | | | 1.1 | | | 1.1 | | 1.2 | (2)(6)(11) | | | | |
| | | | Class A units | | | | | | 12/2022 | | | | 9,524,000 | | | 9.5 | | 12.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 24.4 | | 27.4 | | | | | |
Jenny C Acquisition, Inc. | | Health club franchisor | | Senior subordinated loan | | 8.00% PIK | | | | 04/2019 | | 04/2025 | | | 1.7 | | | 1.7 | | 1.7 | (2) | | | | |
Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. (15) | | Franchising platform offering adolescent development programs | | First lien senior secured loan | | 13.00% | SOFR (Q) | 7.50% | | 12/2022 | | 12/2027 | | | 16.0 | | | 16.0 | | 16.0 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 12/2022 | | | | 1,972,732 | | | 2.0 | | 1.9 | | | | | |
| | | | | | | | | | | | | | | | | 18.0 | | 17.9 | | | | | |
ME Equity LLC | | Franchisor in the massage industry | | Common stock | | | | | | 09/2012 | | | | 3,000,000 | | | 3.0 | | 4.5 | (2) | | | | |
Modigent, LLC and OMERS PMC Investment Holdings LLC (15) | | Provider of commercial HVAC services | | First lien senior secured revolving loan | | 13.75% | Base Rate (Q) | 5.25% | | 08/2022 | | 08/2027 | | | 2.2 | | | 2.2 | | 2.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.63% | SOFR (Q) | 6.25% | | 08/2022 | | 08/2028 | | | 3.5 | | | 3.5 | | 3.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.64% | SOFR (Q) | 6.25% | | 09/2023 | | 08/2028 | | | 2.9 | | | 2.9 | | 2.9 | (2)(11) | | | | |
| | | | Class A units | | | | | | 08/2022 | | | | 1,001 | | | 9.7 | | 13.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 18.3 | | 22.1 | | | | | |
Movati Athletic (Group) Inc. | | Premier health club operator | | First lien senior secured loan | | 11.51% | CDOR (Q) | 6.00% | | 10/2017 | | 10/2024 | | | 4.7 | | | 4.9 | | 4.7 | (2)(6)(11) | | | | |
Northwinds Holding, Inc. and Northwinds Services Group LLC (15) | | Provider of HVAC and plumbing services | | First lien senior secured loan | | 12.18% | SOFR (Q) | 6.50% | | 05/2023 | | 05/2029 | | | 25.1 | | | 25.1 | | 25.1 | (2)(11) | | | | |
| | | | Common units | | | | | | 05/2023 | | | | 1,845,385 | | | 2.4 | | 2.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.5 | | 27.7 | | | | | |
OTG Management, LLC | | Airport restaurant operator | | Class A preferred units | | | | | | 08/2016 | | | | 3,000,000 | | | 25.3 | | 2.0 | (2) | | | | |
| | | | Common units | | | | | | 01/2011 | | | | 3,000,000 | | | 3.0 | | — | | (2) | | | | |
| | | | Warrant to purchase common units | | | | | | 06/2008 | | 06/2028 | | 7.73% | | | 0.1 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 28.4 | | 2.0 | | | | | |
PestCo Holdings, LLC and PestCo, LLC (15) | | Provider of pest control services to the residential and commercial markets | | First lien senior secured loan | | 12.03% | SOFR (Q) | 6.50% | | 02/2023 | | 02/2028 | | | 1.7 | | | 1.7 | | 1.7 | (2)(11) | | | | |
| | | | Class A units | | | | | | 01/2023 | | | | 134 | | | 1.7 | | 2.2 | | | | | |
| | | | | | | | | | | | | | | | | 3.4 | | 3.9 | | | | | |
See accompanying notes to consolidated financial statements
106
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC (15) | | Hotel operator | | First lien senior secured loan | | 12.41% | SOFR (Q) | 7.00% | | 01/2023 | | 01/2027 | | | 7.7 | | | 7.7 | | 7.7 | (2)(11) | | | | |
| | | | Preferred membership units | | | | | | 07/2016 | | | | 996,833 | | | 1.0 | | 1.0 | | | | | |
| | | | | | | | | | | | | | | | | 8.7 | | 8.7 | | | | | |
Radiant Intermediate Holding, LLC | | Provider of HVAC, plumbing and electrical services | | First lien senior secured loan | | 11.24% | SOFR (Q) | 5.75% | | 04/2023 | | 11/2026 | | | 2.0 | | | 2.0 | | 2.0 | (2)(11) | | | | |
Redwood Services, LLC and Redwood Services Holdco, LLC (15) | | Provider of residential HVAC and plumbing services | | First lien senior secured loan | | 12.14% | SOFR (Q) | 6.50% | | 12/2020 | | 12/2025 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.14% | SOFR (S) | 6.50% | | 12/2021 | | 12/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.06% | SOFR (Q) | 6.50% | | 09/2022 | | 12/2025 | | | 5.1 | | | 5.1 | | 5.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 05/2023 | | 12/2025 | | | 2.1 | | | 2.1 | | 2.1 | (2)(11) | | | | |
| | | | Series D units | | 8.00% PIK | | | | 12/2020 | | | | 19,592,999 | | | 22.1 | | 52.5 | | | | | |
| | | | | | | | | | | | | | | | | 29.6 | | 60.0 | | | | | |
Safe Home Security, Inc., Security Systems Inc., Safe Home Monitoring, Inc., National Protective Services, Inc., Bright Integrations LLC and Medguard Alert, Inc. | | Provider of safety systems for business and residential customers | | First lien senior secured loan | | 12.72% | SOFR (M) | 7.25% | | 08/2020 | | 08/2024 | | | 47.0 | | | 47.4 | | 47.4 | (2)(11) | | | | |
Service Logic Acquisition, Inc. and MSHC, Inc. | | Provider of aftermarket maintenance, repair, and replacement services for commercial HVAC equipments | | First lien senior secured loan | | 11.14% | SOFR (M) | 5.50% | | 10/2022 | | 10/1/2027 | | | 3.4 | | | 3.4 | | 3.4 | (2)(11) | | | | |
Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P. (15) | | Planet Fitness franchisee | | First lien senior secured revolving loan | | 10.81% | CDOR (Q) | 5.38% | | 07/2018 | | 7/1/2025 | | | 0.6 | | | 0.6 | | 0.6 | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.88% | SOFR (Q) | 5.38% | | 07/2018 | | 07/2025 | | | 0.5 | | | 0.5 | | 0.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.83% | SOFR (Q) | 5.33% | | 03/2020 | | 07/2025 | | | 1.4 | | | 1.4 | | 1.4 | (2)(11) | | | | |
| | | | Class A units | | | | | | 07/2018 | | | | 37,020 | | | 3.8 | | 7.7 | | | | | |
| | | | | | | | | | | | | | | | | 6.3 | | 10.2 | | | | | |
The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc. (15) | | Premier health club operator | | First lien senior secured loan | | 11.97% | SOFR (M) | 6.50% | | 12/2019 | | 12/2024 | | | 12.3 | | | 12.3 | | 12.3 | (2)(11) | | | | |
The Arcticom Group, LLC and AMCP Mechanical Holdings, LP (15) | | Refrigeration, heating, ventilation and air conditioning services provider | | First lien senior secured revolving loan | | 11.78% | SOFR (S) | 6.25% | | 12/2021 | | 12/2027 | | | 5.9 | | | 5.9 | | 5.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.82% | SOFR (S) | 6.25% | | 12/2021 | | 12/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.93% | SOFR (Q) | 6.25% | | 08/2022 | | 12/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.31% | SOFR (Q) | 6.75% | | 04/2023 | | 12/2027 | | | 1.6 | | | 1.6 | | 1.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.77% | SOFR (Q) | 6.25% | | 10/2023 | | 12/2027 | | | 5.3 | | | 5.3 | | 5.3 | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2021 | | | | 7,765,119 | | | 7.8 | | 13.4 | | | | | |
| | | | Class C units | | | | | | 03/2023 | | | | 333,510 | | | — | | | 0.6 | | | | | |
| | | | | | | | | | | | | | | | | 21.0 | | 27.2 | | | | | |
See accompanying notes to consolidated financial statements
107
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Triwizard Holdings, Inc. and Triwizard Parent, LP (15) | | Parking management and hospitality services provider | | Class A-2 common units | | | | | | 06/2023 | | | | 30,000 | | | 3.0 | | 3.2 | (2) | | | | |
TSS Buyer, LLC (15) | | Provider of outsourced testing, inspection, certification, and compliance services to healthcare and life sciences end markets | | First lien senior secured loan | | 11.00% | SOFR (S) | 5.50% | | 07/2023 | | 06/2029 | | | 1.8 | | | 1.8 | | 1.8 | (2)(11) | | | | |
Vertex Service Partners, LLC and Vertex Service Partners Holdings, LLC (15) | | Provider of residential roofing repair & replacement | | First lien senior secured loan | | 10.89% | SOFR (S) | 5.50% | | 11/2023 | | 11/2030 | | | 7.8 | | | 7.8 | | 7.6 | (2)(11) | | | | |
| | | | Class B common units | | | | | | 11/2023 | | | | 212 | | | 0.2 | | 0.2 | | | | | |
| | | | | | | | | | | | | | | | | 8.0 | | 7.8 | | | | | |
YE Brands Holdings, LLC (15) | | Sports camp operator | | First lien senior secured revolving loan | | 10.96% | SOFR (M) | 5.50% | | 10/2021 | | 10/2027 | | | 1.2 | | | 1.2 | | 1.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.95% | SOFR (Q) | 5.50% | | 10/2021 | | 10/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.20% | SOFR (Q) | 5.75% | | 06/2022 | | 10/2027 | | | 8.1 | | | 8.1 | | 8.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.20% | SOFR (Q) | 5.75% | | 09/2023 | | 10/2027 | | | 3.7 | | | 3.7 | | 3.7 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 13.1 | | 13.1 | | | | | |
ZBS Mechanical Group Co-Invest Fund 2, LLC | | Provider of residential HVAC and plumbing services | | Membership interest | | | | | | 10/2021 | | | | 2,771,000 | | | 1.4 | | 11.0 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 921.8 | | 975.1 | | 8.71% | | | |
Power Generation | | | | | | | | | | | | | | | | | | | | | | | | |
Apex Clean Energy TopCo, LLC (4)(16) | | Developer, builder and owner of utility-scale wind and solar power facilities | | Class A common units | | | | | | 11/2021 | | | | 1,335,610 | | | 131.6 | | 188.0 | | | | | |
Ferrellgas, L.P. and Ferrellgas Partners, L.P. | | Distributor of propane and related accessories | | Senior preferred units | | 8.96% | | | | 03/2021 | | | | 59,422 | | | 59.5 | | 60.0 | | | | | |
| | | | Class B units | | | | | | 09/2022 | | | | 59,428 | | | 12.6 | | 12.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 72.1 | | 72.6 | | | | | |
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC (5) | | Developer of utility scale solar systems | | First lien senior secured loan | | 11.00% PIK | | | | 04/2021 | | 04/2024 | | | 88.5 | | | 88.5 | | 88.5 | (2) | | | | |
| | | | Class A1 units | | | | | | 04/2021 | | | | 80,518,630 | | | 80.9 | | 216.9 | | | | | |
| | | | | | | | | | | | | | | | | 169.4 | | 305.4 | | | | | |
Opal Fuels Intermediate HoldCo LLC, and Opal Fuels Inc. (15) | | Owner of natural gas facilities | | Class A common stock | | | | | | 07/2022 | | | | 3,059,533 | | | 23.3 | | 16.9 | (6)(18) | | | | |
PosiGen, Inc. | | Seller and leaser of solar power systems for residential and commercial customers | | Warrant to purchase shares of series D-1 preferred stock | | | | | | 06/2021 | | 06/2028 | | 101,555 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 01/2020 | | 01/2027 | | 1,112,022 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
Potomac Intermediate Holdings II LLC (5) | | Gas turbine power generation facilities operator | | Series A units | | | | | | 11/2021 | | | | 226,884,442 | | | 185.7 | | 75.2 | | | | | |
Riverview Power LLC | | Operator of natural gas and oil fired power generation facilities | | First lien senior secured loan | | 14.50% | SOFR (Q) | 9.00% | | 08/2021 | | 06/2024 | | | 32.5 | | | 32.3 | | 32.5 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
108
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Sunrun Atlas Depositor 2019-2, LLC and Sunrun Atlas Holdings 2019-2, LLC | | Residential solar energy provider | | First lien senior secured loan | | 3.61% | | | | 10/2019 | | 02/2055 | | | 0.1 | | | 0.1 | | 0.1 | (2) | | | | |
| | | | Senior subordinated loan | | 12.29% (7.89% PIK) | SOFR (Q) | 6.90% | | 11/2019 | | 11/2025 | | | 159.2 | | | 159.2 | | 159.2 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 159.3 | | 159.3 | | | | | |
Sunrun Luna Holdco 2021, LLC (15) | | Residential solar energy provider | | Senior subordinated revolving loan | | 8.92% | SOFR (S) | 3.50% | | 03/2022 | | 04/2024 | | | 30.0 | | | 30.0 | | 28.2 | (2)(6) | | | | |
| | | | Senior subordinated revolving loan | | 13.51% | SOFR (Q) | 7.88% | | 03/2022 | | 04/2024 | | | 20.0 | | | 20.0 | | 18.8 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 50.0 | | 47.0 | | | | | |
Sunrun Xanadu Issuer 2019-1, LLC and Sunrun Xanadu Holdings 2019-1, LLC | | Residential solar energy provider | | First lien senior secured loan | | 3.98% | | | | 06/2019 | | 06/2054 | | | 0.3 | | | 0.3 | | 0.3 | (2) | | | | |
| | | | Senior subordinated loan | | 10.00% (6.00% PIK) | SOFR (Q) | 6.90% | | 06/2019 | | 07/2030 | | | 75.4 | | | 75.4 | | 73.2 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 75.7 | | 73.5 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 899.4 | | 970.4 | | 8.66% | | | |
Consumer Durables and Apparel | | | | | | | | | | | | | | | | | | | | | | | | |
Badger Sportswear Acquisition, LLC | | Provider of team uniforms and athletic wear | | Second lien senior secured loan | | 14.54% | SOFR (Q) | 9.00% | | 09/2016 | | 06/2024 | | | 56.8 | | | 56.8 | | 54.0 | (2)(11) | | | | |
Bowhunter Holdings, LLC | | Provider of branded archery and bowhunting accessories | | Common units | | | | | | 04/2014 | | | | 421 | | | 4.2 | | — | | | | | | |
Centric Brands LLC and Centric Brands GP LLC (15) | | Designer, marketer and distributor of licensed and owned apparel | | First lien senior secured loan | | 7.37% | SOFR (Q) | 2.00% | | 10/2018 | | 10/2025 | | | 80.6 | | | 76.6 | | 79.0 | (2)(11) | | | | |
| | | | Membership interests | | | | | | 10/2018 | | | | 279,392 | | | 2.9 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 79.5 | | 79.0 | | | | | |
DRS Holdings III, Inc. and DRS Holdings I, Inc. (15) | | Footwear and orthopedic foot-care brand | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 11/2019 | | 11/2025 | | | 27.1 | | | 27.1 | | 26.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (M) | 6.25% | | 06/2021 | | 11/2025 | | | 24.9 | | | 24.9 | | 24.5 | (2)(11) | | | | |
| | | | Common stock | | | | | | 11/2019 | | | | 8,549 | | | 8.5 | | 8.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 60.5 | | 59.3 | | | | | |
Implus Footcare, LLC | | Provider of footwear and other accessories | | First lien senior secured loan | | 13.25% | SOFR (Q) | 7.75% | | 06/2016 | | 07/2024 | | | 1.3 | | | 1.3 | | 1.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.25% | SOFR (Q) | 7.75% | | 06/2017 | | 07/2024 | | | 117.1 | | | 116.0 | | 106.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.25% | SOFR (Q) | 7.75% | | 07/2018 | | 07/2024 | | | 5.0 | | | 5.0 | | 4.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 122.3 | | 112.4 | | | | | |
Johnnie-O Inc. and Johnnie-O Holdings Inc. | | Apparel retailer | | First lien senior secured loan | | 11.79% | SOFR (Q) | 6.25% | | 03/2022 | | 03/2027 | | | 19.0 | | | 18.4 | | 19.0 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.79% | SOFR (Q) | 6.25% | | 02/2023 | | 03/2027 | | | 4.0 | | | 3.6 | | 4.0 | (2)(11) | | | | |
| | | | Series A convertible preferred stock | | | | | | 03/2022 | | | | 144,210 | | | 4.2 | | 4.5 | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 03/2022 | | 03/2032 | | 93,577 | | | 1.5 | | 2.9 | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.7 | | 30.4 | | | | | |
Lew's Intermediate Holdings, LLC (15) | | Outdoor brand holding company | | First lien senior secured loan | | 10.39% | SOFR (Q) | 5.00% | | 02/2021 | | 02/2028 | | | 1.0 | | | 1.0 | | 0.9 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
109
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Pelican Products, Inc. (15) | | Flashlights manufacturer | | First lien senior secured revolving loan | | 9.50% | SOFR (S) | 4.00% | | 12/2021 | | 12/2026 | | | 0.9 | | | 0.9 | | 0.8 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 13.36% | SOFR (Q) | 7.75% | | 12/2021 | | 12/2029 | | | 60.0 | | | 60.0 | | 55.2 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 60.9 | | 56.0 | | | | | |
Rawlings Sporting Goods Company, Inc. and Easton Diamond Sports, LLC | | Sports equipment manufacturing company | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 12/2020 | | 12/2026 | | | 49.2 | | | 49.2 | | 49.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 11/2021 | | 12/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 49.3 | | 49.3 | | | | | |
Reef Lifestyle, LLC (15) | | Apparel retailer | | First lien senior secured revolving loan | | 15.38% (4.25% PIK) | SOFR (M) | 10.00% | | 10/2018 | | 10/2027 | | | 23.6 | | | 23.6 | | 20.3 | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 15.39% (4.25% PIK) | SOFR (Q) | 10.00% | | 07/2020 | | 10/2027 | | | 2.6 | | | 2.6 | | 2.2 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 15.39% (4.25% PIK) | SOFR (Q) | 10.00% | | 10/2018 | | 10/2027 | | | 22.4 | | | 22.4 | | 19.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 15.39% (4.25% PIK) | SOFR (Q) | 10.00% | | 07/2020 | | 10/2027 | | | 2.4 | | | 2.4 | | 2.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 51.0 | | 43.8 | | | | | |
S Toys Holdings LLC (fka The Step2 Company, LLC) (5) | | Toy manufacturer | | Common units | | | | | | 04/2011 | | | | 1,116,879 | | | — | | | — | | | | | | |
| | | | Class B common units | | | | | | 10/2014 | | | | 126,278,000 | | | — | | | — | | | | | | |
| | | | Warrant to purchase units | | | | | | 04/2010 | | 12/2050 | | 3,157,895 | | | — | | | — | | | | | | |
| | | | | | | | | | | | | | | | | — | | | — | | | | | | |
SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc. (5) | | Manufacturer and distributor of slip resistant footwear | | First lien senior secured loan | | 10.78% PIK | SOFR (Q) | 5.25% | | 05/2023 | | 04/2024 | | | 19.2 | | | 19.2 | | 15.5 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 10.89% PIK | SOFR (Q) | 5.25% | | 10/2023 | | 04/2024 | | | 11.9 | | | 8.5 | | 9.7 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | | | | | 10/2015 | | 10/2024 | | | 135.5 | | | 112.5 | | 27.1 | (2)(10) | | | | |
| | | | Series A preferred stock | | | | | | 05/2023 | | | | 9,800 | | | — | | | — | | (2) | | | | |
| | | | Common stock | | | | | | 05/2023 | | | | 481,918 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 05/2023 | | 04/2024 | | 9,800 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 140.2 | | 52.3 | | | | | |
SVP-Singer Holdings Inc. and SVP-Singer Holdings LP | | Manufacturer of consumer sewing machines | | First lien senior secured loan | | | | | | 07/2021 | | 07/2028 | | | 44.0 | | | 39.0 | | 27.7 | (2)(10) | | | | |
| | | | Class A common units | | | | | | 07/2021 | | | | 6,264,706 | | | 26.1 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 65.1 | | 27.7 | | | | | |
Totes Isotoner Corporation and Totes Ultimate Holdco, Inc. (4) | | Designer, marketer, and distributor of rain and cold weather products | | First lien senior secured loan | | 9.47% | SOFR (M) | 4.00% | | 12/2019 | | 06/2024 | | | 1.6 | | | 1.6 | | 1.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.47% | SOFR (M) | 6.00% | | 12/2019 | | 12/2024 | | | 2.2 | | | 2.2 | | 2.1 | (2)(11) | | | | |
| | | | Common stock | | | | | | 12/2019 | | | | 861,000 | | | 6.0 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.8 | | 3.7 | | | | | |
Varsity Brands Holding Co., Inc., Hercules Achievement, Inc. and BCPE Hercules Holdings, LP | | Leading manufacturer and distributor of textiles, apparel & luxury goods | | First lien senior secured loan | | 10.47% | SOFR (M) | 5.00% | | 12/2017 | | 12/2026 | | | 2.0 | | | 1.9 | | 2.0 | (2)(11)(18) | | | | |
See accompanying notes to consolidated financial statements
110
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | Second lien senior secured loan | | 15.72% (2.00% PIK) | SOFR (M) | 10.25% | | 07/2018 | | 04/2027 | | | 146.3 | | | 146.3 | | 146.3 | (2)(11) | | | | |
| | | | Class A units | | | | | | 07/2018 | | | | 1,400 | | | 1.4 | | 1.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 149.6 | | 149.8 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 877.9 | | 718.6 | | 6.42% | | | |
Media and Entertainment | | | | | | | | | | | | | | | | | | | | | | | | |
22 HoldCo Limited (15) | | Sports and entertainment platform | | Senior subordinated loan | | 12.96% PIK | SONIA (S) | 7.50% | | 08/2023 | | 08/2033 | | | 38.8 | | | 38.4 | | 37.6 | (2)(6)(11) | | | | |
3 Step Sports LLC and 3 Step Holdings, LLC (15) | | Provider of integrated youth sports solutions | | First lien senior secured revolving loan | | 13.33% | SOFR (Q) | 8.00% | | 10/2023 | | 10/2028 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.46% (1.50% PIK) | SOFR (S) | 8.00% | | 10/2023 | | 10/2029 | | | 12.4 | | | 12.4 | | 11.9 | (2)(11) | | | | |
| | | | Series D preferred units | | | | | | 10/2023 | | | | 226,110 | | | 3.7 | | 3.7 | | | | | |
| | | | | | | | | | | | | | | | | 16.5 | | 16.0 | | | | | |
Aventine Intermediate LLC & Aventine Holdings II LLC | | Media and production company | | First lien senior secured loan | | 11.47% (4.00% PIK) | SOFR (Q) | 6.00% | | 12/2021 | | 06/2027 | | | 10.0 | | | 10.0 | | 9.4 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 10.25% PIK | | | | 12/2021 | | 12/2030 | | | 43.5 | | | 43.5 | | 34.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 53.5 | | 44.2 | | | | | |
Axiomatic, LLC | | Premiere e-sports and video game investment platform | | Class A-1 units | | | | | | 05/2022 | | | | 500,000 | | | 5.0 | | 5.7 | | | | | |
CFC Funding LLC | | SME-related SPV | | Loan instrument units | | 9.75% PIK | | | | 07/2023 | | | | 16,680 | | | 16.7 | | 16.2 | (6) | | | | |
CMW Parent LLC (fka Black Arrow, Inc.) | | Multiplatform media firm | | Series A units | | | | | | 09/2015 | | | | 32 | | | — | | | — | | | | | | |
Eagle Football Holdings BidCo Limited and Eagle Football Holdings Limited | | Multi-club sports platform | | Senior subordinated loan | | 16.00% PIK | | | | 12/2022 | | 12/2028 | | | 0.5 | | | 0.5 | | 0.5 | (2)(6) | | | | |
| | | | Senior subordinated loan | | 16.00% PIK | | | | 12/2022 | | 12/2028 | | | 24.3 | | | 24.3 | | 24.0 | (2)(6) | | | | |
| | | | Senior subordinated loan | | 13.33% (8.00% PIK) | SOFR (S) | 8.00% | | 12/2022 | | 12/2028 | | | 47.3 | | | 47.3 | | 45.0 | (2)(6)(11) | | | | |
| | | | Ordinary shares | | | | | | 09/2023 | | | | 494 | | | 4.4 | | 3.3 | (2)(6) | | | | |
| | | | Warrant to purchase shares of ordinary shares | | | | | | 12/2022 | | 11/2028 | | 180 | | | — | | | 3.9 | (2)(6) | | | | |
| | | | Warrant to purchase shares of ordinary shares | | | | | | 12/2022 | | 11/2028 | | 199 | | | — | | | 1.4 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 76.5 | | 78.1 | | | | | |
Global Music Rights, LLC (15) | | Music right management company | | First lien senior secured loan | | 11.20% | SOFR (Q) | 5.75% | | 08/2021 | | 08/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
League One Volleyball, Inc. | | Operator of youth volleyball clubs | | Series B preferred stock | | | | | | 07/2023 | | | | 194 | | | — | | | — | | (2) | | | | |
LiveBarn Inc. | | Provider of Live & On Demand broadcasting of amateur and youth sporting events | | Middle preferred shares | | | | | | 08/2023 | | | | 4,902,988 | | | 17.3 | | 17.3 | (2)(6) | | | | |
MailSouth, Inc. | | Provider of shared mail marketing services | | First lien senior secured loan | | | | | | 05/2022 | | 04/2024 | | | 8.7 | | | 5.8 | | 1.0 | (2)(10) | | | | |
Miami Beckham United LLC | | American professional soccer club | | Class A preferred units | | 9.50% PIK | | | | 09/2021 | | | | 85,000 | | | 103.2 | | 103.2 | | | | | |
| | | | Class B preferred units | | 9.50% PIK | | | | 06/2023 | | | | 42,500 | | | 44.6 | | 44.6 | | | | | |
| | | | | | | | | | | | | | | | | 147.8 | | 147.8 | | | | | |
See accompanying notes to consolidated financial statements
111
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
OUTFRONT Media Inc. | | Provider of out-of-home advertising | | Series A convertible perpetual preferred stock | | 7.00% | | | | 04/2020 | | | | 25,000 | | | 25.0 | | 29.6 | (2)(6) | | | | |
Production Resource Group, L.L.C. and PRG III, LLC (4) | | Provider of rental equipment, labor, production management, scenery, and other products to various entertainment end-markets | | First lien senior secured loan | | 13.96% (5.50% PIK) | SOFR (M) | 8.50% | | 08/2018 | | 08/2024 | | | 43.2 | | | 43.2 | | 43.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.96% (2.50% PIK) | SOFR (M) | 7.50% | | 07/2020 | | 08/2024 | | | 15.3 | | | 15.3 | | 15.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.96% (2.50% PIK) | SOFR (M) | 7.50% | | 06/2021 | | 08/2024 | | | 0.8 | | | 0.8 | | 0.8 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.96% (2.50% PIK) | SOFR (M) | 7.50% | | 08/2021 | | 08/2024 | | | 7.5 | | | 7.5 | | 7.5 | (2)(11) | | | | |
| | | | Class A units | | | | | | 10/2020 | | | | 113,617 | | | 4.9 | | 46.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 71.7 | | 112.9 | | | | | |
Professional Fighters League, LLC and PFL MMA, Inc. | | Mixed martial arts league | | First lien senior secured loan | | 12.00% PIK | | | | 01/2021 | | 01/2026 | | | 19.3 | | | 18.6 | | 19.3 | (2) | | | | |
| | | | Second lien senior secured loan | | 14.00% PIK | | | | 11/2022 | | 01/2026 | | | 0.2 | | | 0.1 | | 0.2 | (2) | | | | |
| | | | Series E preferred stock | | | | | | 04/2022 | | | | 219,035 | | | 0.7 | | 0.7 | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 01/2021 | | 01/2027 | | 3,223,122 | | | 1.7 | | 1.7 | (2) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 11/2022 | | 11/2029 | | 68,787 | | | 0.2 | | 0.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 21.3 | | 22.1 | | | | | |
Storm Investment S.a.r.l. | | Spanish futbol club | | First lien senior secured loan | | 3.75% | | | | 06/2021 | | 06/2029 | | | 68.1 | | | 73.6 | | 68.1 | (2)(6) | | | | |
| | | | Ordinary shares | | | | | | 06/2021 | | | | 3,958 | | | — | | | 0.2 | (2)(6) | | | | |
| | | | Class A redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | Class B redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | Class C redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | Class D redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | Class E redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | Class F redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | Class G redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | Class H redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | Class I redeemable shares | | | | | | 06/2021 | | | | 3,297,791 | | | 1.6 | | 5.6 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 88.0 | | 118.7 | | | | | |
The Teaching Company Holdings, Inc. | | Education publications provider | | Preferred stock | | | | | | 09/2006 | | | | 10,663 | | | 1.1 | | 2.3 | (2) | | | | |
| | | | Common stock | | | | | | 09/2006 | | | | 15,393 | | | — | | | 0.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 1.1 | | 2.4 | | | | | |
See accompanying notes to consolidated financial statements
112
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 584.7 | | 649.7 | | 5.80% | | | |
Retailing and Distribution | | | | | | | | | | | | | | | | | | | | | | | | |
Bamboo Purchaser, Inc. | | Provider of nursery, garden, and greenhouse products | | First lien senior secured loan | | 12.00% | SOFR (Q) | 6.50% | | 11/2021 | | 11/2027 | | | 17.8 | | | 17.8 | | 16.9 | (2)(11) | | | | |
BradyIFS Holdings, LLC (15) | | Distributor of foodservice disposables and janitorial sanitation products | | First lien senior secured loan | | 11.38% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2029 | | | 123.0 | | | 123.0 | | 120.5 | (2)(11) | | | | |
Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc. (15) | | Provider of visual communications solutions | | First lien senior secured loan | | 11.11% | SOFR (M) | 5.65% | | 03/2019 | | 03/2025 | | | 15.5 | | | 15.5 | | 15.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.11% | SOFR (M) | 5.65% | | 08/2019 | | 03/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.11% | SOFR (M) | 5.65% | | 06/2021 | | 03/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2019 | | | | 600 | | | 0.6 | | 1.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 16.3 | | 17.4 | | | | | |
GPM Investments, LLC and ARKO Corp. | | Convenience store operator | | Common stock | | | | | | 12/2020 | | | | 2,088,478 | | | 19.8 | | 17.2 | (2)(18) | | | | |
| | | | Warrant to purchase common stock | | | | | | 12/2020 | | 12/2025 | | 1,088,780 | | | 1.6 | | 1.2 | (2)(18) | | | | |
| | | | | | | | | | | | | | | | | 21.4 | | 18.4 | | | | | |
Hills Distribution, Inc., Hills Intermediate FT Holdings, LLC and GMP Hills, LP (15) | | Distributor of HVAC, plumbing, and water heater equipment, parts, supplies and fixtures | | First lien senior secured revolving loan | | 9.87% | SOFR (Q) | 4.50% | | 11/2023 | | 11/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.37% | SOFR (S) | 6.00% | | 11/2023 | | 11/2029 | | | 3.5 | | | 3.5 | | 3.4 | (2)(11) | | | | |
| | | | Limited partnership interest | | 8.00% PIK | | | | 11/2023 | | | | 5,441,000 | | | 5.4 | | 5.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.0 | | 8.9 | | | | | |
Marcone Yellowstone Buyer Inc. and Marcone Yellowstone Holdings, LLC | | Distributor of OEM appliance aftermarket parts | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 06/2021 | | 06/2028 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 12/2021 | | 06/2028 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | Class A common units | | | | | | 06/2021 | | | | 5,796 | | | 6.1 | | 6.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 6.7 | | 7.4 | | | | | |
Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP (15) | | Auto parts retailer | | First lien senior secured revolving loan | | 8.87% | SOFR (M) | 3.25% | | 05/2021 | | 05/2026 | | | 11.2 | | | 11.2 | | 11.2 | (2)(14) | | | | |
| | | | Series A preferred stock | | 7.00% PIK | | | | 05/2021 | | | | 68,601 | | | 82.5 | | 82.5 | (2) | | | | |
| | | | Class A-1 units | | | | | | 05/2021 | | | | 24,586 | | | 24.6 | | 34.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 118.3 | | 128.0 | | | | | |
McKenzie Creative Brands, LLC (15) | | Designer, manufacturer and distributor of hunting-related supplies | | First lien senior secured revolving loan | | 12.21% | SOFR (M) | 6.75% | | 09/2014 | | 09/2025 | | | 1.6 | | | 1.6 | | 1.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.29% | SOFR (Q) | 6.75% | | 09/2014 | | 09/2025 | | | 84.5 | | | 84.5 | | 84.5 | (2)(8)(11) | | | | |
| | | | First lien senior secured loan | | 12.29% | SOFR (Q) | 6.75% | | 09/2014 | | 09/2025 | | | 5.5 | | | 5.5 | | 5.5 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 91.6 | | 91.6 | | | | | |
See accompanying notes to consolidated financial statements
113
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Monolith Brands Group, Inc. | | E-commerce platform focused on consolidating DTC branded businesses | | Series A-1 preferred stock | | | | | | 04/2022 | | | | 701,255 | | | 15.5 | | 10.2 | (2) | | | | |
Moon Valley Nursery of Arizona Retail, LLC, Moon Valley Nursery Farm Holdings, LLC, Moon Valley Nursery RE Holdings LLC, and Stonecourt IV Partners, LP | | Operator of retail and wholesale tree and plant nurseries | | Limited partnership interests | | | | | | 10/2021 | | | | 21,939,152 | | | 20.8 | | 27.6 | | | | | |
North Haven Falcon Buyer, LLC and North Haven Falcon Holding Company, LLC | | Manufacturer of aftermarket golf cart parts and accessories | | First lien senior secured loan | | 13.52% (3.75% PIK) | SOFR (Q) | 8.00% | | 05/2021 | | 05/2027 | | | 26.2 | | | 26.2 | | 21.2 | (2)(11) | | | | |
| | | | Class A units | | | | | | 05/2021 | | | | 50,000 | | | 5.0 | | — | | | | | | |
| | | | | | | | | | | | | | | | | 31.2 | | 21.2 | | | | | |
Reddy Ice LLC (15) | | Packaged ice manufacturer and distributor | | First lien senior secured revolving loan | | | | | | 07/2019 | | 07/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.57% | SOFR (Q) | 5.00% | | 07/2019 | | 07/2025 | | | 60.6 | | | 60.6 | | 60.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.57% | SOFR (Q) | 5.00% | | 11/2020 | | 07/2025 | | | 4.2 | | | 4.2 | | 4.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.57% | SOFR (Q) | 5.00% | | 10/2021 | | 07/2025 | | | 0.9 | | | 0.9 | | 0.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.46% | SOFR (M) | 5.00% | | 12/2023 | | 07/2025 | | | 2.5 | | | 2.5 | | 2.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.46% | SOFR (S) | 6.00% | | 12/2023 | | 07/2025 | | | 1.5 | | | 1.5 | | 1.5 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 69.7 | | 69.7 | | | | | |
SCIH Salt Holdings Inc. (15) | | Salt and packaged ice melt manufacturer and distributor | | First lien senior secured revolving loan | | 9.46% | SOFR (M) | 4.00% | | 03/2020 | | 12/2026 | | | 3.7 | | | 3.6 | | 3.7 | (2)(11)(14) | | | | |
Trader Corporation and Project Auto Finco Corp. (15) | | Digital automotive marketplace and software solution provider to automotive industry | | First lien senior secured loan | | 12.19% | CDOR (M) | 6.75% | | 12/2022 | | 12/2029 | | | 12.4 | | | 12.1 | | 12.4 | (2)(6)(11) | | | | |
US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P. (15) | | Producer and packager of compressed, household, and packaged salt | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 07/2021 | | 07/2028 | | | 26.1 | | | 26.1 | | 26.1 | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 07/2021 | | | | 0.40% | | | 0.8 | | 0.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 26.9 | | 26.8 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 583.9 | | 580.7 | | 5.18% | | | |
Capital Goods | | | | | | | | | | | | | | | | | | | | | | | | |
AI Aqua Merger Sub, Inc. | | End to end provider of water solutions to a wide range of customer bases | | First lien senior secured loan | | 9.09% | SOFR (M) | 3.75% | | 06/2021 | | 07/2028 | | | 1.0 | | | 1.0 | | 1.0 | (2)(11)(18) | | | | |
Airx Climate Solutions, Inc. (15) | | Provider of commercial HVAC equipment and services | | First lien senior secured loan | | 11.68% | SOFR (Q) | 6.25% | | 11/2023 | | 11/2029 | | | 9.9 | | | 9.9 | | 9.7 | (2)(11) | | | | |
API Commercial Inc., API Military Inc., and API Space Intermediate, Inc. | | Provider of military aircraft aftermarket parts and distribution, repair and logistics services | | First lien senior secured loan | | | | | | 05/2022 | | 08/2025 | | | 6.8 | | | 2.5 | | 3.9 | (2)(10) | | | | |
Arrowhead Holdco Company and Arrowhead GS Holdings, Inc. | | Distributor of non-discretionary, mission-critical aftermarket replacement parts | | First lien senior secured loan | | 10.05% | SOFR (Q) | 4.50% | | 08/2021 | | 08/2028 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Common stock | | | | | | 08/2021 | | | | 5,054 | | | 5.1 | | — | | (2) | | | | |
See accompanying notes to consolidated financial statements
114
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 5.2 | | 0.1 | | | | | |
BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC (15) | | Provides products and services to the Department of Defense and Intelligence Community | | First lien senior secured revolving loan | | 12.03% | SOFR (Q) | 6.50% | | 05/2022 | | 10/2025 | | | 1.8 | | | 1.7 | | 1.7 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 12.01% | SOFR (Q) | 6.50% | | 05/2022 | | 10/2025 | | | 1.0 | | | 1.0 | | 1.0 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 2.7 | | 2.7 | | | | | |
Burgess Point Purchaser Corporation | | Remanufacturer of mission-critical and non-discretionary aftermarket vehicle, industrial, energy storage, and solar replacement parts | | First lien senior secured loan | | 10.71% | SOFR (M) | 5.25% | | 07/2022 | | 07/2029 | | | 22.1 | | | 20.7 | | 20.8 | (2)(11)(18) | | | | |
CPIG Holdco Inc. | | Distributor of engineered fluid power and complex machined solutions | | First lien senior secured loan | | 12.49% | SOFR (Q) | 7.00% | | 04/2023 | | 04/2028 | | | 14.7 | | | 14.7 | | 14.7 | (2)(11) | | | | |
Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc. (15) | | Manufacturer of pumps, valves, and fluid control components for industrial markets | | First lien senior secured revolving loan | | | | | | 10/2023 | | 10/2029 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.40% | SOFR (Q) | 6.00% | | 10/2023 | | 10/2030 | | | 38.8 | | | 38.8 | | 37.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 38.8 | | 37.8 | | | | | |
DFS Holding Company, Inc. (15) | | Distributor of maintenance, repair, and operations parts, supplies, and equipment to the foodservice industry | | First lien senior secured loan | | 12.46% | SOFR (M) | 7.00% | | 01/2023 | | 01/2029 | | | 2.1 | | | 2.0 | | 2.1 | (2)(11) | | | | |
Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP (15) | | Provider of aerospace technology and equipment | | First lien senior secured revolving loan | | 12.53% | SOFR (Q) | 7.00% | | 12/2020 | | 12/2025 | | | 3.7 | | | 3.7 | | 3.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.54% | SOFR (Q) | 7.00% | | 12/2020 | | 12/2026 | | | 21.4 | | | 21.4 | | 21.4 | (2)(11) | | | | |
| | | | Common units | | | | | | 12/2020 | | | | 9,773,000 | | | 9.8 | | 8.7 | | | | | |
| | | | | | | | | | | | | | | | | 34.9 | | 33.8 | | | | | |
EPS NASS Parent, Inc. (15) | | Provider of maintenance and engineering services for electrical infrastructure | | First lien senior secured revolving loan | | 11.25% | SOFR (Q) | 5.75% | | 04/2021 | | 04/2026 | | | 1.2 | | | 1.2 | | 1.2 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.25% | SOFR (Q) | 5.75% | | 04/2021 | | 04/2028 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.4 | | 1.4 | | | | | |
ESCP PPG Holdings, LLC (4) | | Distributor of new equipment and aftermarket parts to the heavy-duty truck industry | | Class A-1 units | | | | | | 08/2022 | | | | 96,897 | | | 2.3 | | 4.4 | (2) | | | | |
| | | | Class A-2 units | | | | | | 12/2016 | | | | 3,500 | | | 3.5 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 5.8 | | 4.4 | | | | | |
Harvey Tool Company, LLC (15) | | Manufacturer of cutting tools used in the metalworking industry | | First lien senior secured loan | | 11.12% | SOFR (Q) | 5.50% | | 10/2021 | | 10/2027 | | | 3.6 | | | 3.6 | | 3.6 | (2)(11) | | | | |
Helix Acquisition Holdings, Inc. | | Manufacturer of springs, fasteners and custom components | | First lien senior secured loan | | 12.45% | SOFR (Q) | 7.00% | | 03/2023 | | 03/2030 | | | 11.9 | | | 11.9 | | 11.9 | (2)(11) | | | | |
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation (5) | | Provider of high-speed intelligent document scanning hardware and software | | Senior subordinated loan | | 14.00% (7.00% PIK) | | | | 01/2017 | | 12/2028 | | | 17.2 | | | 17.0 | | 17.2 | (2) | | | | |
| | | | Class A common stock | | | | | | 01/2017 | | | | 48,544 | | | 13.5 | | 48.2 | | | | | |
| | | | | | | | | | | | | | | | | 30.5 | | 65.4 | | | | | |
See accompanying notes to consolidated financial statements
115
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Kene Acquisition, Inc. and Kene Holdings, L.P. (15) | | National utility services firm providing engineering and consulting services to natural gas, electric power and other energy and industrial end markets | | First lien senior secured revolving loan | | | | | | 08/2019 | | 08/2024 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 9.75% | SOFR (Q) | 4.25% | | 08/2019 | | 08/2026 | | | 40.2 | | | 40.2 | | 40.2 | (2)(11) | | | | |
| | | | Class A units | | | | | | 08/2019 | | | | 4,549,000 | | | 0.5 | | 8.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 40.7 | | 48.7 | | | | | |
LTG Acquisition, Inc. | | Designer and manufacturer of display, lighting and passenger communication systems for mass transportation markets | | Class A membership units | | | | | | 01/2017 | | | | 5,000 | | | 5.1 | | — | | | | | | |
Maverick Acquisition, Inc. | | Manufacturer of precision machined components for defense and high-tech industrial platforms | | First lien senior secured loan | | 11.60% | SOFR (Q) | 6.25% | | 06/2021 | | 06/2027 | | | 27.3 | | | 27.3 | | 22.1 | (2)(11) | | | | |
NCWS Intermediate, Inc. and NCWS Holdings LP | | Manufacturer and supplier of car wash equipment, parts and supplies to the conveyorized car wash market | | First lien senior secured loan | | 11.53% | SOFR (Q) | 6.00% | | 12/2020 | | 12/2026 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.53% | SOFR (Q) | 6.00% | | 11/2021 | | 12/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.03% | SOFR (Q) | 6.50% | | 11/2021 | | 12/2026 | | | 96.3 | | | 96.3 | | 96.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.03% | SOFR (Q) | 6.50% | | 12/2021 | | 12/2026 | | | 13.9 | | | 13.9 | | 13.9 | (2)(11) | | | | |
| | | | Class A-2 common units | | | | | | 12/2020 | | | | 12,296,000 | | | 12.9 | | 28.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 123.4 | | 138.5 | | | | | |
Osmose Utilities Services, Inc. and Pine Intermediate Holding LLC | | Provider of structural integrity management services to transmission and distribution infrastructure | | Second lien senior secured loan | | 12.11% | SOFR (M) | 6.75% | | 06/2021 | | 06/2029 | | | 55.3 | | | 55.3 | | 54.7 | (2)(11) | | | | |
Precinmac (US) Holdings Inc., Trimaster Manufacturing Inc. and Blade Group Holdings, LP. | | Manufacturer of high-tolerance precision machined components and assemblies for the aerospace and defense industry | | First lien senior secured loan | | 11.46% | SOFR (M) | 6.00% | | 08/2021 | | 08/2027 | | | 11.5 | | | 11.5 | | 11.4 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.46% | SOFR (M) | 6.00% | | 04/2022 | | 08/2027 | | | 3.9 | | | 3.9 | | 3.9 | (2)(6)(11) | | | | |
| | | | Class A units | | | | | | 08/2021 | | | | 88,420 | | | 13.4 | | 24.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 28.8 | | 40.1 | | | | | |
Qnnect, LLC and Connector TopCo, LP (15) | | Manufacturer of highly engineered hermetic packaging products | | First lien senior secured loan | | 12.38% | SOFR (Q) | 7.00% | | 11/2022 | | 11/2029 | | | 10.7 | | | 10.7 | | 10.7 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 11/2022 | | | | 992,500 | | | 9.9 | | 11.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 20.6 | | 22.1 | | | | | |
Radius Aerospace, Inc. and Radius Aerospace Europe Limited (15) | | Metal fabricator in the aerospace industry | | First lien senior secured revolving loan | | 11.23% | SOFR (M) | 5.75% | | 03/2019 | | 03/2025 | | | 0.5 | | | 0.5 | | 0.5 | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 10.94% | SONIA (M) | 5.75% | | 11/2019 | | 03/2025 | | | 0.8 | | | 0.8 | | 0.8 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.3 | | 1.3 | | | | | |
See accompanying notes to consolidated financial statements
116
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Radwell Parent, LLC (15) | | Distributor of maintenance, repair, and operations parts | | First lien senior secured revolving loan | | 12.10% | SOFR (Q) | 6.75% | | 12/2022 | | 04/2028 | | | 0.9 | | | 0.8 | | 0.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.10% | SOFR (Q) | 6.75% | | 12/2022 | | 04/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.9 | | 1.0 | | | | | |
Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, Diecast Beacon (15) | | Manufacturer of metal castings, precision machined components and sub-assemblies in the electrical products, power transmission and distribution and general industrial markets | | First lien senior secured revolving loan | | | | | | 10/2017 | | 10/2024 | | | — | | | — | | | — | | (2)(11)(13) | | | | |
Two Six Labs, LLC (15)
| | Provider of information operations, cyber, and data analytics products and services for government and defense contracts | | First lien senior secured loan | | 11.35% | SOFR (Q) | 6.00% | | 10/2023 | | 08/2027 | | | 8.6 | | | 8.6 | | 8.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 497.6 | | 550.4 | | 4.91% | | | |
Energy | | | | | | | | | | | | | | | | | | | | | | | | |
Calyx Energy III, LLC | | Oil and gas exploration company | | First lien senior secured loan | | 13.47% | SOFR (M) | 8.00% | | 08/2022 | | 01/2027 | | | 43.3 | | | 43.3 | | 43.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 16.47% | SOFR (M) | 11.00% | | 06/2023 | | 01/2027 | | | 5.0 | | | 4.9 | | 5.0 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 16.46% | SOFR (M) | 11.00% | | 08/2023 | | 01/2027 | | | 10.1 | | | 9.8 | | 10.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 58.0 | | 58.4 | | | | | |
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC (15) | | Private oil exploration and production company | | First lien senior secured loan | | 14.45% | SOFR (Q) | 9.00% | | 11/2022 | | 11/2026 | | | 49.3 | | | 49.3 | | 49.3 | (2)(11) | | | | |
GNZ Energy Bidco Limited and Galileo Co-investment Trust I (15) | | Independent fuel provider in New Zealand | | First lien senior secured loan | | 11.69% | BKBM (Q) | 6.00% | | 05/2022 | | 07/2027 | | | 30.7 | | | 30.5 | | 30.7 | (2)(6)(11) | | | | |
| | | | Common units | | | | | | 07/2022 | | | | 17,616,667 | | | 5.9 | | 10.0 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 36.4 | | 40.7 | | | | | |
Halcon Holdings, LLC | | Operator of development, exploration, and production oil company | | First lien senior secured loan | | 12.94% | SOFR (Q) | 7.50% | | 11/2021 | | 11/2025 | | | 11.4 | | | 11.3 | | 11.4 | (2) | | | | |
HighPeak Energy, Inc. | | Oil and gas exploration and production company | | First lien senior secured loan | | 13.00% | SOFR (A) | 7.50% | | 09/2023 | | 09/2026 | | | 91.9 | | | 89.8 | | 91.9 | (2)(6)(11) | | | | |
Murchison Oil and Gas, LLC and Murchison Holdings, LLC | | Exploration and production company | | First lien senior secured loan | | 14.00% | SOFR (Q) | 8.50% | | 06/2022 | | 06/2026 | | | 78.3 | | | 78.3 | | 78.3 | (2)(11) | | | | |
| | | | Preferred units | | 8.00% | | | | 06/2022 | | | | 41,000 | | | 41.0 | | 52.0 | | | | | |
| | | | | | | | | | | | | | | | | 119.3 | | 130.3 | | | | | |
Offen, Inc. | | Distributor of fuel, lubricants, diesel exhaust fluid, and premium additives | | First lien senior secured loan | | 10.38% | SOFR (M) | 5.00% | | 05/2022 | | 06/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2) | | | | |
SilverBow Resources, Inc. | | Oil and gas producer | | Common stock | | | | | | 06/2022 | | | | 369,760 | | | 10.1 | | 10.8 | (2)(6)(18) | | | | |
VPROP Operating, LLC and V SandCo, LLC (5) | | Sand-based proppant producer and distributor to the oil and natural gas industry | | First lien senior secured loan | | 15.10% | SOFR (M) | 9.50% | | 03/2017 | | 11/2024 | | | 27.3 | | | 27.3 | | 27.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 15.10% | SOFR (M) | 9.50% | | 06/2020 | | 11/2024 | | | 6.0 | | | 6.0 | | 6.0 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
117
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 15.10% | SOFR (M) | 9.50% | | 11/2020 | | 11/2024 | | | 5.0 | | | 4.9 | | 5.0 | (2)(11) | | | | |
| | | | Class A units | | | | | | 11/2020 | | | | 347,900 | | | 32.8 | | 61.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 71.0 | | 99.4 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 445.3 | | 492.3 | | 4.40% | | | |
Food and Beverage | | | | | | | | | | | | | | | | | | | | | | | | |
American Seafoods Group LLC and American Seafoods Partners LLC | | Harvester and processor of seafood | | Class A units | | | | | | 08/2015 | | | | 77,922 | | | 0.1 | | 0.2 | (2) | | | | |
| | | | Warrant to purchase units of Class A units | | | | | | 08/2015 | | 08/2035 | | 7,422,078 | | | 7.4 | | 15.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 7.5 | | 15.6 | | | | | |
Berner Food & Beverage, LLC (15) | | Supplier of dairy-based food and beverage products | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 07/2021 | | 07/2026 | | | 0.5 | | | 0.5 | | 0.5 | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 11.03% | SOFR (Q) | 5.50% | | 07/2021 | | 07/2026 | | | 0.3 | | | 0.3 | | 0.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 0.8 | | 0.8 | | | | | |
Bragg Live Food Products, LLC and SPC Investment Co., L.P. (4)(15) | | Health food company | | First lien senior secured loan | | 11.60% | SOFR (Q) | 6.25% | | 12/2020 | | 12/2025 | | | 26.6 | | | 26.6 | | 26.6 | (2)(11) | | | | |
| | | | Common units | | | | | | 03/2019 | | | | 14,850 | | | 11.5 | | 17.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 38.1 | | 43.9 | | | | | |
CHG PPC Parent LLC & PPC CHG Blocker LLC | | Diversified food products manufacturer | | Second lien senior secured loan | | 12.22% | SOFR (M) | 6.75% | | 12/2021 | | 12/2029 | | | 94.6 | | | 94.6 | | 94.6 | (2)(11) | | | | |
| | | | Common units | | | | | | 12/2021 | | | | 59 | | | 3.0 | | 3.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 97.6 | | 98.4 | | | | | |
Demakes Borrower, LLC (15) | | Value-added protein manufacturer | | First lien senior secured loan | | 11.60% | SOFR (S) | 6.25% | | 12/2023 | | 12/2029 | | | 6.3 | | | 6.3 | | 6.1 | (2)(11) | | | | |
Florida Food Products, LLC | | Provider of plant extracts and juices | | First lien senior secured loan | | 10.47% | SOFR (M) | 5.00% | | 10/2021 | | 10/2028 | | | 0.5 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.36% | SOFR (M) | 5.00% | | 06/2022 | | 10/2028 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 13.47% | SOFR (M) | 8.00% | | 10/2021 | | 10/2029 | | | 71.8 | | | 71.8 | | 66.0 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 72.6 | | 66.8 | | | | | |
GF Parent LLC | | Producer of low-acid, aseptic food and beverage products | | Class A preferred units | | | | | | 05/2015 | | | | 2,940 | | | 2.9 | | — | | (2) | | | | |
| | | | Class A common units | | | | | | 05/2015 | | | | 60,000 | | | 0.1 | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 3.0 | | — | | | | | | |
Gotham Greens Holdings, PBC (15) | | Producer of vegetables and culinary herbs for restaurants and retailers | | First lien senior secured loan | | 14.33% (2.00% PIK) | SOFR (M) | 8.88% | | 06/2022 | | 12/2026 | | | 37.5 | | | 37.5 | | 37.5 | (2)(11) | | | | |
| | | | Series E-1 preferred stock | | 6.00% PIK | | | | 06/2022 | | | | 177,332 | | | 14.2 | | 15.2 | (2) | | | | |
| | | | Series E-1 preferred stock | | | | | | 06/2022 | | | | 11,273 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase shares of Series E-1 preferred stock | | | | | | 06/2022 | | 06/2032 | | 78,216 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 51.7 | | 52.7 | | | | | |
KNPC HoldCo, LLC | | Producer of trail mix and mixed nut snack products | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 04/2022 | | 10/2029 | | | 5.6 | | | 5.6 | | 5.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.25% | SOFR (Q) | 6.75% | | 12/2022 | | 10/2029 | | | 1.3 | | | 1.3 | | 1.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.48% | SOFR (Q) | 6.00% | | 11/2023 | | 10/2029 | | | 2.8 | | | 2.8 | | 2.8 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
118
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | | | | | | | | | | | | | | 9.7 | | 9.7 | | | | | |
Manna Pro Products, LLC (15) | | Manufacturer and supplier of specialty nutrition and care products for animals | | First lien senior secured revolving loan | | 11.46% | SOFR (M) | 6.00% | | 12/2020 | | 12/2026 | | | 5.1 | | | 5.1 | | 4.8 | (2)(11) | | | | |
Max US Bidco Inc. | | Manufacturer of premium dry dog food | | First lien senior secured loan | | 10.35% | SOFR (Q) | 5.00% | | 10/2023 | | 10/2030 | | | 1.0 | | | 0.9 | | 0.9 | (2)(18) | | | | |
RB Holdings InterCo, LLC (15) | | Manufacturer of pet food and treats | | First lien senior secured revolving loan | | 10.53% | SOFR (Q) | 5.00% | | 05/2022 | | 05/2028 | | | 1.8 | | | 1.8 | | 1.8 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.52% | SOFR (Q) | 5.00% | | 05/2022 | | 05/2028 | | | 11.4 | | | 11.4 | | 11.3 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 13.2 | | 13.1 | | | | | |
RF HP SCF Investor, LLC | | Branded specialty food company | | Membership interest | | | | | | 12/2016 | | | | 10.08% | | | 12.5 | | 29.5 | (2)(6) | | | | |
Sugar PPC Buyer LLC (15) | | Manufacturer and distributor of food products | | First lien senior secured loan | | 11.34% | SOFR (M) | 6.00% | | 10/2023 | | 10/2030 | | | 12.4 | | | 12.4 | | 12.1 | (2)(11) | | | | |
Teasdale Foods, Inc. and Familia Group Holdings Inc. | | Provider of beans, sauces and hominy to the retail, foodservice and wholesale channels | | First lien senior secured loan | | 12.68% (1.00% PIK) | SOFR (Q) | 7.25% | | 12/2020 | | 12/2025 | | | 76.1 | | | 76.1 | | 69.3 | (2)(11) | | | | |
| | | | Warrant to purchase shares of common stock | | | | | | 02/2019 | | 02/2034 | | 57,827 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 76.1 | | 69.3 | | | | | |
Triton Water Holdings, Inc. | | Producer and provider of bottled water brands | | First lien senior secured loan | | 8.86% | SOFR (Q) | 3.25% | | 03/2021 | | 03/2028 | | | 1.0 | | | 1.0 | | 1.0 | (2)(11)(18) | | | | |
| | | | Senior subordinated loan | | 6.25% | | | | 03/2021 | | 04/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(18) | | | | |
| | | | | | | | | | | | | | | | | 1.1 | | 1.1 | | | | | |
Watermill Express, LLC and Watermill Express Holdings, LLC | | Owner and operator of self-service water and ice stations | | First lien senior secured loan | | 10.50% | SOFR (Q) | 5.00% | | 04/2021 | | 04/2027 | | | 20.9 | | | 20.9 | | 20.9 | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 04/2021 | | | | 282,200 | | | 3.5 | | 4.5 | | | | | |
| | | | | | | | | | | | | | | | | 24.4 | | 25.4 | | | | | |
Winebow Holdings, Inc. and The Vintner Group, Inc. | | Importer and distributor of wine | | First lien senior secured loan | | 11.71% | SOFR (M) | 6.25% | | 04/2021 | | 07/2025 | | | 27.7 | | | 27.7 | | 26.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 460.7 | | 476.8 | | 4.26% | | | |
Consumer Staples Distribution and Retail | | | | | | | | | | | | | | | | | | | | | | | | |
Balrog Acquisition, Inc., Balrog Topco, Inc. and Balrog Parent, L.P. | | Manufacturer and distributor of specialty bakery ingredients | | First lien senior secured loan | | 9.97% | SOFR (M) | 4.50% | | 07/2023 | | 09/2028 | | | 16.4 | | | 16.4 | | 16.4 | (2)(11) | | | | |
| | | | Second lien senior secured loan | | 12.47% | SOFR (M) | 7.00% | | 09/2021 | | 09/2029 | | | 29.5 | | | 29.5 | | 29.5 | (2)(11) | | | | |
| | | | Class A preferred units | | 8.00% PIK | | | | 09/2021 | | 08/2051 | | 5,484 | | | 6.6 | | 12.9 | (2) | | | | |
| | | | Series A preferred shares | | 11.00% PIK | | | | 09/2021 | | 08/2051 | | 21,921 | | | 28.3 | | 28.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 80.8 | | 87.1 | | | | | |
BR PJK Produce, LLC (15) | | Specialty produce distributor | | First lien senior secured loan | | 11.46% | SOFR (Q) | 6.00% | | 12/2023 | | 11/2027 | | | 1.4 | | | 1.3 | | 1.4 | (2)(11) | | | | |
City Line Distributors LLC and City Line Investments LLC (15) | | Specialty food distributor | | First lien senior secured loan | | 11.46% | SOFR (M) | 6.00% | | 08/2023 | | 08/2028 | | | 3.2 | | | 3.2 | | 3.1 | (2)(11) | | | | |
| | | | Class A units | | 8.00% PIK | | | | 08/2023 | | | | 3,473,000 | | | 3.5 | | 3.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 6.7 | | 6.9 | | | | | |
See accompanying notes to consolidated financial statements
119
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Continental Café, LLC and Infinity Ovation Yacht Charters, LLC (15) | | Diversified contract food service provider | | First lien senior secured revolving loan | | 11.45% | SOFR (M) | 6.00% | | 11/2021 | | 11/2027 | | | 1.1 | | | 1.1 | | 1.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.46% | SOFR (M) | 6.00% | | 11/2021 | | 11/2027 | | | 6.3 | | | 6.3 | | 6.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.44% | SOFR (M) | 6.00% | | 04/2023 | | 11/2027 | | | 1.3 | | | 1.3 | | 1.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.71% | SOFR (M) | 6.25% | | 06/2023 | | 11/2027 | | | 1.6 | | | 1.6 | | 1.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 10.3 | | 10.3 | | | | | |
DecoPac, Inc. and KCAKE Holdings Inc. (15) | | Supplier of cake decorating solutions and products to in-store bakeries | | First lien senior secured revolving loan | | 11.49% | SOFR (M) | 6.00% | | 05/2021 | | 05/2026 | | | 4.9 | | | 4.9 | | 4.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 05/2021 | | 05/2028 | | | 147.1 | | | 147.1 | | 147.1 | (2)(11) | | | | |
| | | | Common stock | | | | | | 05/2021 | | | | 9,599 | | | 9.6 | | 10.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 161.6 | | 162.2 | | | | | |
FS Squared Holding Corp. and FS Squared, LLC (15) | | Provider of on-site vending and micro market solutions | | First lien senior secured revolving loan | | | | | | 03/2019 | | 03/2024 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 10.71% | SOFR (M) | 5.25% | | 03/2019 | | 03/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Class A units | | | | | | 03/2019 | | | | 113,219 | | | 11.1 | | 33.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.2 | | 33.2 | | | | | |
JWC/KI Holdings, LLC | | Foodservice sales and marketing agency | | Membership units | | | | | | 11/2015 | | | | 5,000 | | | 5.0 | | 11.4 | (2) | | | | |
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. (15)(16) | | Distributor of specialty foods | | First lien senior secured loan | | 12.03% | SOFR (Q) | 6.50% | | 10/2022 | | 10/2028 | | | 39.9 | | | 39.9 | | 39.6 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 10/2022 | | | | 9,683,991 | | | 9.7 | | 9.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | 49.6 | | 49.4 | | | | | |
Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC (15) | | Produce distribution platform | | First lien senior secured revolving loan | | | | | | 05/2023 | | 05/2029 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.70% | SOFR (M) | 6.25% | | 05/2023 | | 05/2029 | | | 9.7 | | | 9.7 | | 9.7 | (2)(11) | | | | |
| | | | Class B limited liability company interest | | | | | | 05/2023 | | | | 17.71% | | | 9.6 | | 10.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 19.3 | | 19.7 | | | | | |
SFE Intermediate Holdco LLC | | Provider of outsourced foodservice to K-12 school districts | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 07/2017 | | 07/2026 | | | 6.2 | | | 6.2 | | 6.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 09/2018 | | 07/2026 | | | 9.9 | | | 9.9 | | 9.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 03/2022 | | 07/2026 | | | 0.4 | | | 0.4 | | 0.4 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 16.5 | | 16.5 | | | | | |
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. (15)(16) | | Fresh and specialty food distributor | | First lien senior secured revolving loan | | 11.60% | SOFR (Q) | 6.25% | | 02/2023 | | 01/2029 | | | 0.8 | | | 0.8 | | 0.8 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.60% | SOFR (Q) | 6.25% | | 02/2023 | | 01/2029 | | | 7.4 | | | 7.4 | | 7.3 | (2)(11) | | | | |
| | | | Common units | | | | | | 01/2023 | | | | 1,673,000 | | | 1.7 | | 1.8 | | | | | |
| | | | | | | | | | | | | | | | | 9.9 | | 9.9 | | | | | |
ZB Holdco LLC and ZB TopCo LLC (15) | | Distributor of Mediterranean food and beverages | | First lien senior secured revolving loan | | | | | | 02/2022 | | 02/2028 | | | — | | | — | | | — | | (2)(13) | | | | |
See accompanying notes to consolidated financial statements
120
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 02/2022 | | 02/2028 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 08/2023 | | 02/2028 | | | 3.9 | | | 3.9 | | 3.9 | (2)(11) | | | | |
| | | | Series A units | | | | | | 06/2023 | | | | 4,699 | | | 4.0 | | 5.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 8.1 | | 9.2 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 380.3 | | 417.2 | | 3.72% | | | |
Automobiles and Components | | | | | | | | | | | | | | | | | | | | | | | | |
Automotive Keys Group, LLC and Automotive Keys Investor, LLC | | Provider of replacement wireless keys for automotive market | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 12/2021 | | 11/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 12/2022 | | 11/2025 | | | 5.1 | | | 5.1 | | 4.9 | (2)(11) | | | | |
| | | | Preferred units | | | | | | 11/2020 | | | | 4,113,113 | | | 5.1 | | 1.8 | (2) | | | | |
| | | | Preferred units | | | | | | 11/2020 | | | | 1,095,046 | | | 1.1 | | 0.5 | (2) | | | | |
| | | | Class A common units | | | | | | 11/2020 | | | | 5,208,159 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.4 | | 7.3 | | | | | |
Continental Acquisition Holdings, Inc. | | Distributor of aftermarket batteries to the electric utility vehicle, automotive, commercial, marine and industrial markets | | First lien senior secured loan | | 12.50% (5.50% PIK) | SOFR (Q) | 7.00% | | 01/2021 | | 01/2027 | | | 36.2 | | | 36.2 | | 31.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.50% PIK | SOFR (Q) | 7.00% | | 12/2021 | | 01/2027 | | | 5.4 | | | 5.4 | | 4.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 41.6 | | 35.8 | | | | | |
Eckler Purchaser LLC (5) | | Restoration parts and accessories provider for classic automobiles | | Class A common units | | | | | | 07/2012 | | | | 67,972 | | | — | | | — | | (2) | | | | |
Faraday Buyer, LLC (15) | | Manufacturer and supplier for the power utility and automotive markets worldwide | | First lien senior secured loan | | 11.35% | SOFR (Q) | 6.00% | | 11/2023 | | 10/2028 | | | 63.3 | | | 63.3 | | 62.1 | (2)(11) | | | | |
Faraday&Future Inc., FF Inc., Faraday SPE, LLC and Faraday Future Intelligent Electric Inc. | | Electric vehicle manufacturer | | Warrant to purchase shares of Class A common stock | | | | | | 08/2021 | | 08/2027 | | 27,824,527 | | | 2.3 | | — | | (2) | | | | |
Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC (15) | | Manufacturer and distributor of automotive fluids | | First lien senior secured revolving loan | | | | | | 11/2020 | | 11/2025 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | Second lien senior secured loan | | 13.52% | SOFR (Q) | 8.00% | | 11/2020 | | 11/2028 | | | 70.4 | | | 70.4 | | 70.4 | (2)(11) | | | | |
| | | | Co-invest units | | | | | | 11/2020 | | | | 59,230 | | | 5.9 | | 5.6 | (2) | | | | |
| | | | | | | | | | | | | | | | | 76.3 | | 76.0 | | | | | |
New ChurcHill HoldCo LLC and Victory Topco, LP (15) | | Operator of collision repair centers | | First lien senior secured revolving loan | | 10.87% | SOFR (Q) | 5.50% | | 11/2023 | | 11/2029 | | | 0.3 | | | 0.3 | | 0.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.87% | SOFR (Q) | 5.50% | | 11/2023 | | 11/2029 | | | 9.1 | | | 9.1 | | 8.9 | (2)(11) | | | | |
| | | | Class A-2 common units | | | | | | 11/2023 | | | | 20,170 | | | 2.0 | | 2.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 11.4 | | 11.2 | | | | | |
Sun Acquirer Corp. and Sun TopCo, LP (15) | | Automotive parts and repair services retailer | | First lien senior secured revolving loan | | 11.22% | SOFR (M) | 5.75% | | 09/2021 | | 09/2027 | | | 1.7 | | | 1.7 | | 1.7 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.22% | SOFR (M) | 5.75% | | 09/2021 | | 09/2028 | | | 51.8 | | | 51.8 | | 51.3 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
121
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.22% | SOFR (M) | 5.75% | | 11/2021 | | 09/2028 | | | 5.3 | | | 5.3 | | 5.2 | (2)(11) | | | | |
| | | | Class A units | | | | | | 09/2021 | | | | 79,688 | | | 8.0 | | 9.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 66.8 | | 67.3 | | | | | |
Wand Newco 3, Inc. | | Collision repair company | | Second lien senior secured loan | | 12.71% | SOFR (M) | 7.25% | | 02/2019 | | 02/2027 | | | 121.8 | | | 120.8 | | 121.8 | (2) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 393.9 | | 381.5 | | 3.41% | | | |
Pharmaceuticals, Biotechnology and Life Sciences | | | | | | | | | | | | | | | | | | | | | | | | |
Abzena Holdings, Inc. and Astro Group Holdings Ltd. | | Organization providing discovery, development and manufacturing services to the pharmaceutical and biotechnology industries | | A ordinary shares | | | | | | 05/2021 | | | | 2,476,744 | | | 5.7 | | 4.5 | (2)(6) | | | | |
ADMA Biologics Inc. | | Biopharmaceutical company | | First lien senior secured loan | | 11.88% | SOFR (S) | 6.50% | | 12/2023 | | 12/2027 | | | 6.5 | | | 6.4 | | 6.4 | (2)(6)(11) | | | | |
Alcami Corporation and ACM Note Holdings, LLC (15) | | Outsourced drug development services provider | | First lien senior secured loan | | 12.46% | SOFR (M) | 7.00% | | 12/2022 | | 12/2028 | | | 9.4 | | | 9.4 | | 9.4 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 10.00% PIK | | | | 12/2022 | | 06/2029 | | | 21.0 | | | 21.0 | | 21.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 30.4 | | 30.4 | | | | | |
Athyrium Buffalo LP | | Biotechnology company engaging in the development, manufacture, and commercialization of novel neuromodulators | | Limited partnership interests | | | | | | 06/2022 | | | | 7,628,966 | | | 7.6 | | 7.4 | (2)(6) | | | | |
| | | | Limited partnership interests | | | | | | 08/2023 | | | | 3,756,395 | | | 3.8 | | 3.6 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 11.4 | | 11.0 | | | | | |
Bamboo US BidCo LLC (15) | | Biopharmaceutical company | | First lien senior secured loan | | 11.38% | SOFR (Q) | 6.00% | | 09/2023 | | 09/2030 | | | 29.4 | | | 29.4 | | 28.5 | (2)(11) | | | | |
Caerus Midco 3 S.à r.l. (15) | | Provider of market intelligence and analysis for the pharmaceutical industry | | First lien senior secured revolving loan | | 11.11% | SOFR (M) | 5.75% | | 10/2022 | | 05/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.13% | SOFR (Q) | 5.75% | | 10/2022 | | 05/2029 | | | 7.1 | | | 7.0 | | 7.1 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 7.1 | | 7.2 | | | | | |
Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc. (15) | | Provider of biological products to life science and pharmaceutical companies | | First lien senior secured revolving loan | | 11.47% | SOFR (M) | 6.00% | | 10/2021 | | 10/2027 | | | 2.7 | | | 2.7 | | 2.7 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.47% | SOFR (M) | 6.00% | | 10/2021 | | 10/2028 | | | 31.5 | | | 31.5 | | 31.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.47% | SOFR (M) | 6.00% | | 06/2023 | | 10/2028 | | | 11.5 | | | 11.5 | | 11.4 | (2)(11) | | | | |
| | | | Series A preferred shares | | 15.59% PIK | SOFR (Q) | 10.00% | | 10/2021 | | | | 60,236 | | | 81.1 | | 81.1 | (2)(11) | | | | |
| | | | Preferred units | | 8.00% PIK | | | | 10/2021 | | 10/2051 | | 3,020 | | | 3.6 | | 4.1 | (2) | | | | |
| | | | Class A common units | | | | | | 10/2021 | | | | 30,500 | | | — | | | 0.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 130.4 | | 130.6 | | | | | |
NMC Skincare Intermediate Holdings II, LLC (15) | | Developer, manufacturer and marketer of skincare products | | First lien senior secured revolving loan | | 11.46% (1.00% PIK) | SOFR (M) | 6.00% | | 10/2018 | | 11/2026 | | | 1.0 | | | 1.0 | | 0.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.44% (1.00% PIK) | SOFR (M) | 6.00% | | 10/2018 | | 11/2026 | | | 30.5 | | | 30.5 | | 29.0 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
122
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 11.44% (1.00% PIK) | SOFR (M) | 6.00% | | 05/2022 | | 11/2026 | | | 4.6 | | | 4.6 | | 4.4 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 36.1 | | 34.3 | | | | | |
North American Science Associates, LLC, Cardinal Purchaser LLC and Cardinal Topco Holdings, L.P. | | Contract research organization providing research and development and testing of medical devices | | First lien senior secured loan | | 11.28% | SOFR (Q) | 5.75% | | 09/2020 | | 09/2027 | | | 47.1 | | | 47.1 | | 47.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.28% | SOFR (Q) | 5.75% | | 12/2020 | | 09/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.28% | SOFR (Q) | 5.75% | | 02/2021 | | 09/2027 | | | 2.5 | | | 2.5 | | 2.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.28% | SOFR (Q) | 5.75% | | 09/2021 | | 09/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Senior subordinated loan | | 11.00% PIK | | | | 03/2023 | | 03/2025 | | | 1.5 | | | 1.5 | | 1.5 | (2) | | | | |
| | | | Class A preferred units | | 8.00% PIK | | | | 09/2020 | | | | 13,528 | | | 17.5 | | 41.1 | (2) | | | | |
| | | | | | | | | | | | | | | | | 68.8 | | 92.4 | | | | | |
Verista, Inc. (15) | | Provides systems consulting for compliance, automation, validation, and packaging solutions to the healthcare sector | | First lien senior secured revolving loan | | 11.38% | SOFR (Q) | 6.00% | | 05/2022 | | 02/2027 | | | 1.3 | | | 1.1 | | 1.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.39% | SOFR (Q) | 6.00% | | 05/2022 | | 02/2027 | | | 0.8 | | | 0.8 | | 0.8 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 1.9 | | 2.1 | | | | | |
Vertice Pharma UK Parent Limited | | Manufacturer and distributor of generic pharmaceutical products | | Preferred shares | | | | | | 12/2015 | | | | 40,662 | | | — | | | — | | (6) | | | | |
WCI-BXC Purchaser, LLC and WCI-BXC Investment Holdings, L.P. (15) | | Manufacturer of monoclonal antibodies | | First lien senior secured loan | | 11.64% | SOFR (S) | 6.25% | | 11/2023 | | 11/2030 | | | 5.0 | | | 5.0 | | 4.9 | (2)(11) | | | | |
| | | | Limited partnership interest | | | | | | 11/2023 | | | | 1,529,000 | | | 1.5 | | 1.5 | (2) | | | | |
| | | | | | | | | | | | | | | | | 6.5 | | 6.4 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 334.1 | | 353.8 | | 3.16% | | | |
Materials | | | | | | | | | | | | | | | | | | | | | | | | |
ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP (15) | | Manufacturer and supplier of printed packaging and trimmings | | First lien senior secured loan | | 11.64% | SOFR (Q) | 6.00% | | 12/2021 | | 12/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | Class A units | | | | | | 12/2021 | | | | 195,990 | | | 19.6 | | 8.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 19.7 | | 8.8 | | | | | |
Halex Holdings, Inc. (5) | | Manufacturer of flooring installation products | | Common stock | | | | | | 01/2017 | | | | 51,853 | | | — | | | — | | | | | | |
H-Food Holdings, LLC and Matterhorn Parent, LLC | | Food contract manufacturer | | First lien senior secured loan | | 10.65% | SOFR (Q) | 5.00% | | 12/2021 | | 05/2025 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11)(18) | | | | |
| | | | First lien senior secured loan | | 9.34% | SOFR (Q) | 3.69% | | 06/2022 | | 05/2025 | | | 26.1 | | | 24.6 | | 20.8 | (2)(18) | | | | |
| | | | First lien senior secured loan | | 9.65% | SOFR (Q) | 4.00% | | 07/2022 | | 05/2025 | | | 3.3 | | | 3.1 | | 2.6 | (2)(18) | | | | |
| | | | Second lien senior secured loan | | 12.54% | SOFR (Q) | 7.00% | | 11/2018 | | 03/2026 | | | 73.0 | | | 73.0 | | 58.4 | (2) | | | | |
| | | | Common units | | | | | | 11/2018 | | | | 5,827 | | | 5.8 | | — | | | | | | |
| | | | | | | | | | | | | | | | | 106.6 | | 81.9 | | | | | |
See accompanying notes to consolidated financial statements
123
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V. (15) | | Manufacturer of thermoformed packaging for medical devices | | First lien senior secured revolving loan | | 9.71% | SOFR (M) | 4.25% | | 07/2019 | | 07/2026 | | | 1.4 | | | 1.4 | | 1.4 | (2)(6)(11) | | | | |
| | | | First lien senior secured revolving loan | | 8.33% | Euribor (M) | 4.50% | | 07/2019 | | 07/2026 | | | 1.2 | | | 1.2 | | 1.2 | (2)(6) | | | | |
| | | | First lien senior secured loan | | 8.45% | Euribor (Q) | 4.50% | | 07/2019 | | 07/2026 | | | 4.9 | | | 5.0 | | 4.9 | (2)(6) | | | | |
| | | | First lien senior secured loan | | 9.78% | SOFR (Q) | 4.25% | | 07/2019 | | 07/2026 | | | 14.7 | | | 14.7 | | 14.7 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 8.45% | Euribor (Q) | 4.50% | | 08/2019 | | 07/2026 | | | 1.5 | | | 1.5 | | 1.5 | (2)(6) | | | | |
| | | | Class A units | | | | | | 07/2019 | | | | 6,762,668 | | | 6.8 | | 9.4 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 30.6 | | 33.1 | | | | | |
Novipax Buyer, L.L.C. and Novipax Parent Holding Company, L.L.C. | | Developer and manufacturer of absorbent pads for food products | | First lien senior secured loan | | 12.21% | SOFR (M) | 6.75% | | 12/2020 | | 12/2026 | | | 22.8 | | | 22.8 | | 21.9 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.21% | SOFR (M) | 6.75% | | 12/2022 | | 12/2026 | | | 0.3 | | | 0.3 | | 0.3 | (2)(11) | | | | |
| | | | Class A preferred units | | 10.00% PIK | | | | 12/2020 | | | | 4,772 | | | 4.6 | | 3.3 | (2) | | | | |
| | | | Class C units | | | | | | 12/2020 | | | | 4,772 | | | — | | | — | | (2) | | | | |
| | | | | | | | | | | | | | | | | 27.7 | | 25.5 | | | | | |
Plaskolite PPC Intermediate II LLC and Plaskolite PPC Blocker LLC | | Manufacturer of specialized acrylic and polycarbonate sheets | | First lien senior secured loan | | 9.64% | SOFR (Q) | 4.00% | | 12/2018 | | 12/2025 | | | 22.4 | | | 21.6 | | 21.3 | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | 12.89% | SOFR (Q) | 7.25% | | 12/2018 | | 12/2026 | | | 55.0 | | | 55.0 | | 52.2 | (2)(11) | | | | |
| | | | Preferred units | | 15.00% PIK | | | | 10/2023 | | | | 841 | | | 0.1 | | — | | (2) | | | | |
| | | | Co-Invest units | | | | | | 12/2018 | | | | 5,969 | | | 0.6 | | 0.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 77.3 | | 73.8 | | | | | |
Precision Concepts International LLC and Precision Concepts Canada Corporation (15) | | Manufacturer of diversified packaging solutions and plastic injection molded products | | First lien senior secured loan | | 11.95% | SOFR (Q) | 6.50% | | 01/2019 | | 01/2026 | | | 11.6 | | | 11.6 | | 11.5 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.95% | SOFR (Q) | 6.50% | | 06/2021 | | 01/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.95% | SOFR (Q) | 6.50% | | 05/2022 | | 01/2026 | | | 0.1 | | | 0.1 | | 0.1 | (2)(6)(11) | | | | |
| | | | | | | | | | | | | | | | | 11.8 | | 11.7 | | | | | |
SCI PH Parent, Inc. | | Industrial container manufacturer, reconditioner and servicer | | Series B shares | | | | | | 08/2018 | | | | 11 | | | 1.1 | | 1.9 | (2) | | | | |
Vobev, LLC and Vobev Holdings, LLC (15) | | Producer and filler of aluminum beverage cans | | First lien senior secured loan | | 12.48% | SOFR (M) | 7.00% | | 04/2023 | | 04/2028 | | | 8.9 | | | 8.9 | | 7.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.23% (4.00% PIK) | SOFR (Q) | 7.75% | | 04/2023 | | 04/2028 | | | 50.7 | | | 50.7 | | 41.6 | (2)(11) | | | | |
| | | | Warrant to purchase shares of ordinary shares | | | | | | 04/2023 | | 11/2033 | | 4,378 | | | — | | | — | | (2) | | | | |
| | | | Warrant to purchase units of class B units | | | | | | 11/2023 | | 04/2028 | | 49,344 | | | — | | | 3.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 59.6 | | 52.1 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 334.4 | | 288.8 | | 2.58% | | | |
Technology Hardware and Equipment | | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements
124
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Chariot Buyer LLC (15) | | Provider of smart access solutions across residential and commercial properties | | Second lien senior secured loan | | 12.21% | SOFR (M) | 6.75% | | 11/2021 | | 11/2029 | | | 135.5 | | | 135.4 | | 134.1 | (2)(11) | | | | |
Everspin Technologies, Inc. | | Designer and manufacturer of computer memory solutions | | Warrant to purchase shares of common stock | | | | | | 10/2016 | | 10/2026 | | 18,461 | | | 0.4 | | — | | | | | | |
ITI Holdings, Inc. (15) | | Provider of innovative software and equipment for motor vehicle agencies | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 03/2022 | | 03/2028 | | | 1.5 | | | 1.5 | | 1.5 | (11) | | | | |
| | | | First lien senior secured revolving loan | | 10.96% | SOFR (M) | 5.50% | | 03/2022 | | 03/2028 | | | 2.0 | | | 2.0 | | 1.9 | (2)(11) | | | | |
| | | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 03/2022 | | 03/2028 | | | 2.3 | | | 2.3 | | 2.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 10.96% | SOFR (M) | 5.50% | | 03/2022 | | 03/2028 | | | 34.7 | | | 34.7 | | 33.6 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 40.5 | | 39.3 | | | | | |
Micromeritics Instrument Corp. (15) | | Scientific instrument manufacturer | | First lien senior secured loan | | 9.93% | SOFR (Q) | 4.50% | | 12/2019 | | 12/2025 | | | 18.4 | | | 18.4 | | 18.4 | (2)(11) | | | | |
PerkinElmer U.S. LLC and NM Polaris Co-Invest, L.P. | | Provider of analytical instrumentation and testing equipment and services | | First lien senior secured loan | | 12.13% | SOFR (Q) | 6.75% | | 03/2023 | | 03/2029 | | | 17.4 | | | 17.4 | | 17.4 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.11% | SOFR (Q) | 5.75% | | 10/2023 | | 03/2029 | | | 2.8 | | | 2.8 | | 2.8 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 03/2023 | | | | 0.62% | | | 9.9 | | 12.6 | (2) | | | | |
| | | | Class A-2 units | | | | | | 01/2022 | | | | 34,832 | | | 4.8 | | 4.5 | | | | | |
| | | | | | | | | | | | | | | | | 34.9 | | 37.3 | | | | | |
Repairify, Inc. and Repairify Holdings, LLC (15) | | Provider of automotive diagnostics scans and solutions | | First lien senior secured revolving loan | | 10.70% | SOFR (Q) | 5.00% | | 06/2021 | | 06/2027 | | | 4.8 | | | 4.8 | | 4.7 | (2)(11) | | | | |
| | | | Class A common units | | | | | | 06/2021 | | | | 163,820 | | | 4.9 | | 4.4 | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.7 | | 9.1 | | | | | |
Wildcat BuyerCo, Inc. and Wildcat Parent, LP (15) | | Provider and supplier of electrical components for commercial and industrial applications | | First lien senior secured revolving loan | | | | | | 02/2020 | | 02/2027 | | | — | | | — | | | — | | (2)(13) | | | | |
| | | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.75% | | 02/2020 | | 02/2027 | | | 18.5 | | | 18.5 | | 18.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.75% | | 11/2021 | | 02/2027 | | | 2.5 | | | 2.5 | | 2.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.10% | SOFR (Q) | 5.75% | | 05/2022 | | 02/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.13% | SOFR (Q) | 5.75% | | 11/2023 | | 02/2027 | | | 5.5 | | | 5.5 | | 5.5 | (2)(11) | | | | |
| | | | Limited partnership interests | | | | | | 02/2020 | | | | 17,655 | | | 1.5 | | 5.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 28.2 | | 32.4 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 267.5 | | 270.6 | | 2.42% | | | |
Household and Personal Products | | | | | | | | | | | | | | | | | | | | | | | | |
Beacon Wellness Brands, Inc. and CDI Holdings I Corp. (15) | | Provider of personal care appliances | | First lien senior secured loan | | 11.21% | SOFR (M) | 5.75% | | 12/2021 | | 12/2027 | | | 3.7 | | | 3.7 | | 3.6 | (2)(11) | | | | |
| | | | Common stock | | | | | | 12/2021 | | | | 6,149 | | | 6.1 | | 4.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 9.8 | | 7.6 | | | | | |
See accompanying notes to consolidated financial statements
125
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
Foundation Consumer Brands, LLC | | Pharmaceutical holding company of over the counter brands | | First lien senior secured loan | | 11.79% | SOFR (Q) | 6.25% | | 02/2021 | | 02/2027 | | | 13.5 | | | 13.2 | | 13.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.75% | SOFR (Q) | 6.25% | | 06/2023 | | 02/2027 | | | 0.2 | | | 0.2 | | 0.2 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 13.4 | | 13.7 | | | | | |
LifeStyles Bidco Ltd., Lifestyles Intermediate Holdco Ltd. and LifeStyles Parent, L.P. | | Provider of intimate wellness products | | First lien senior secured loan | | 12.10% | SOFR (Q) | 6.75% | | 11/2022 | | 11/2028 | | | 18.5 | | | 18.5 | | 18.5 | (2)(6)(11) | | | | |
| | | | First lien senior secured loan | | 11.89% | SOFR (S) | 6.50% | | 12/2023 | | 11/2028 | | | 8.9 | | | 8.9 | | 8.9 | (2)(6)(11) | | | | |
| | | | Preferred units | | 8.00% PIK | | | | 11/2022 | | | | 3,178 | | | 3.5 | | 3.5 | (2)(6) | | | | |
| | | | Class B common units | | | | | | 11/2022 | | | | 32,105 | | | — | | | 1.8 | (2)(6) | | | | |
| | | | | | | | | | | | | | | | | 30.9 | | 32.7 | | | | | |
Premier Specialties, Inc. and RMCF V CIV XLIV, L.P. (15) | | Manufacturer and supplier of natural fragrance materials and cosmeceuticals | | First lien senior secured revolving loan | | 12.46% | SOFR (M) | 7.00% | | 08/2021 | | 08/2027 | | | 0.7 | | | 0.7 | | 0.6 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 12.46% (3.50% PIK) | SOFR (M) | 7.00% | | 08/2021 | | 08/2027 | | | 27.3 | | | 27.3 | | 24.3 | (2)(11) | | | | |
| | | | Limited partner interests | | | | | | 08/2021 | | | | 4.58% | | | 5.0 | | 1.0 | (2) | | | | |
| | | | | | | | | | | | | | | | | 33.0 | | 25.9 | | | | | |
RD Holdco Inc. (5) | | Manufacturer and marketer of carpet cleaning machines | | Senior subordinated loan | | | | | | 01/2017 | | 10/2026 | | | 28.0 | | | 22.0 | | 13.4 | (2)(10) | | | | |
| | | | Senior subordinated loan | | | | | | 04/2023 | | 10/2026 | | | 1.0 | | | 0.9 | | 0.5 | (2)(10) | | | | |
| | | | Common stock | | | | | | 01/2017 | | | | 458,596 | | | 14.0 | | — | | | | | | |
| | | | | | | | | | | | | | | | | 36.9 | | 13.9 | | | | | |
Silk Holdings III Corp. and Silk Holdings I Corp. (15) | | Producer of personal care products | | First lien senior secured revolving loan | | 11.35% | SOFR (Q) | 6.00% | | 05/2023 | | 05/2029 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 13.10% | SOFR (Q) | 7.75% | | 05/2023 | | 05/2029 | | | 16.7 | | | 16.7 | | 16.7 | (2)(11) | | | | |
| | | | Common stock | | | | | | 05/2023 | | | | 14,199 | | | 14.2 | | 26.7 | (2) | | | | |
| | | | | | | | | | | | | | | | | 31.0 | | 43.5 | | | | | |
Walnut Parent, Inc. | | Manufacturer of natural solution pest and animal control products | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 11/2020 | | 11/2027 | | | 14.4 | | | 14.4 | | 14.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.00% | SOFR (Q) | 5.50% | | 04/2022 | | 11/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 14.5 | | 14.4 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 169.5 | | 151.7 | | 1.35% | | | |
Telecommunication Services | | | | | | | | | | | | | | | | | | | | | | | | |
Aventiv Technologies, LLC and Securus Technologies Holdings, Inc. | | Provider of inmate telecom solutions to corrections and law enforcement agencies | | First lien senior secured loan | | 10.50% | SOFR (Q) | 4.89% | | 05/2022 | | 11/2024 | | | 9.1 | | | 8.9 | | 7.0 | (2)(11)(18) | | | | |
| | | | Second lien senior secured loan | | | | | | 05/2022 | | 11/2025 | | | 0.2 | | | 0.2 | | 0.1 | (2)(10) | | | | |
| | | | | | | | | | | | | | | | | 9.1 | | 7.1 | | | | | |
Emergency Communications Network, LLC (15) | | Provider of mission critical emergency mass notification solutions | | First lien senior secured revolving loan | | 14.13% (6.25% PIK) | SOFR (Q) | 8.75% | | 06/2017 | | 06/2024 | | | 7.2 | | | 7.2 | | 6.3 | (2)(11) | | | | |
See accompanying notes to consolidated financial statements
126
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of December 31, 2023
(dollar amounts in millions)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Company (1) | | Business Description | | Investment | | Coupon (3) | Reference (7) | Spread (3) | | Acquisition Date | | Maturity Date | | Shares/Units | Principal | | Amortized Cost | | Fair Value | | % of Net Assets | | | |
| | | | First lien senior secured loan | | 14.13% (6.25% PIK) | SOFR (Q) | 8.75% | | 06/2017 | | 06/2024 | | | 51.1 | | | 51.1 | | 44.5 | (2)(11) | | | | |
| | | | | | | | | | | | | | | | | 58.3 | | 50.8 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 67.4 | | 57.9 | | 0.52% | | | |
Transportation | | | | | | | | | | | | | | | | | | | | | | | | |
Shur-Co Acquisition, Inc. and Shur-Co Holdco, Inc. | | Provider of tarp systems and accessories for trucks, trailers, carts, and specialty equipment used in the agriculture, construction and flatbed markets | | First lien senior secured loan | | 11.23% | SOFR (S) | 6.05% | | 06/2021 | | 06/2027 | | | 26.5 | | | 26.5 | | 26.5 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (S) | 6.05% | | 06/2022 | | 06/2027 | | | 0.1 | | | 0.1 | | 0.1 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.23% | SOFR (S) | 6.05% | | 03/2023 | | 06/2027 | | | 6.2 | | | 6.2 | | 6.2 | (2)(11) | | | | |
| | | | Common stock | | | | | | 06/2021 | | | | 75,990 | | | 7.6 | | 18.3 | (2) | | | | |
| | | | | | | | | | | | | | | | | 40.4 | | 51.1 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 40.4 | | 51.1 | | 0.46% | | | |
Education | | | | | | | | | | | | | | | | | | | | | | | | |
Excelligence Holdings Corp. | | Developer, manufacturer and retailer of educational products | | First lien senior secured loan | | 11.50% | SOFR (Q) | 6.00% | | 04/2017 | | 01/2024 | | | 9.1 | | | 9.1 | | 9.1 | (2)(11) | | | | |
Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc. (15) | | Distributor of instructional products, services and resources | | First lien senior secured revolving loan | | 10.97% | SOFR (M) | 5.50% | | 08/2018 | | 08/2024 | | | 3.6 | | | 3.6 | | 3.6 | (2)(11)(14) | | | | |
| | | | First lien senior secured revolving loan | | 13.00% | Base Rate (Q) | 4.50% | | 08/2018 | | 08/2024 | | | 5.6 | | | 5.6 | | 5.6 | (2)(11)(14) | | | | |
| | | | First lien senior secured loan | | 11.11% | SOFR (Q) | 5.50% | | 07/2017 | | 08/2024 | | | 29.3 | | | 29.3 | | 29.3 | (2)(11) | | | | |
| | | | First lien senior secured loan | | 11.11% | SOFR (Q) | 5.50% | | 08/2018 | | 08/2024 | | | 1.1 | | | 1.1 | | 1.1 | (2)(11) | | | | |
| | | | Series A preferred stock | | | | | | 10/2014 | | | | 1,272 | | | 0.7 | | 1.2 | (2) | | | | |
| | | | | | | | | | | | | | | | | 40.3 | | 40.8 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 49.4 | | 49.9 | | 0.45% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Investments | | | | | | | | | | | | | | | | | $ | 22,667.6 | | | $ | 22,873.7 | | (19) | 204.23% | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
See accompanying notes to consolidated financial statements
127
Derivative Instruments
Forward currency contracts
| | | | | | | | | | | | | | | | | | | | | | | |
Description | Notional Amount to be Purchased | Notional Amount to be sold | Counterparty | Settlement Date | Unrealized Appreciation / (Depreciation) |
Foreign currency forward contract | $ | 200 | | € | 190 | | ROYAL BANK OF CANADA | January 26, 2024 | $ | (7) | |
Foreign currency forward contract | $ | 140 | | £ | 116 | | ROYAL BANK OF CANADA | January 26, 2024 | (7) | |
Foreign currency forward contract | $ | 120 | | CAD | 168 | | ROYAL BANK OF CANADA | January 26, 2024 | (4) | |
Foreign currency forward contract | $ | 114 | | CAD | 153 | | ROYAL BANK OF CANADA | January 18, 2024 | (1) | |
Foreign currency forward contract | $ | 69 | | £ | 56 | | ROYAL BANK OF CANADA | August 21, 2026 | (1) | |
Foreign currency forward contract | $ | 41 | | NZD | 71 | | ROYAL BANK OF CANADA | January 26, 2024 | (4) | |
Foreign currency forward contract | $ | 9 | | $ | 10 | | ROYAL BANK OF CANADA | January 26, 2024 | — | |
Foreign currency forward contract | $ | 7 | | AUD | 10 | | ROYAL BANK OF CANADA | November 17, 2026 | — | |
Foreign currency forward contract | $ | 3 | | CAD | 4 | | CANADIAN IMPERIAL BANK OF COMMERCE | January 26, 2024 | — | |
Total | | | | | | | $ | (24) | |
Interest rate swaps
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | Hedged Item | Company Receives | Company Pays | Counterparty | Maturity Date | Notional Amount | Fair Value | Upfront Payments/Receipts | Change in Unrealized Appreciation / (Depreciation) |
Interest rate swap | January 2027 Notes | 7.000 | % | SOFR +2.585% | Wells Fargo Bank, N.A. | 1/15/2027 | $ | 600 | | $ | 10 | | $ | — | | $ | 10 | |
Interest rate swap | January 2027 Notes | 7.000 | % | SOFR +2.573% | Wells Fargo Bank, N.A. | 1/15/2027 | 300 | | 5 | | — | | 5 | |
Total | | | | | | $ | 900 | | $ | 15 | | $ | — | | $ | 15 | |
______________________________________________
(1)Other than the Company’s investments listed in footnote 5 below (subject to the limitations set forth therein), the Company does not “Control” any of its portfolio companies, for the purposes of the Investment Company Act. In general, under the Investment Company Act, the Company would “Control” a portfolio company if the Company owned more than 25% of its outstanding voting securities (i.e., securities with the right to elect directors) and/or had the power to exercise control over the management or policies of such portfolio company. All of the Company’s portfolio company investments, which as of December 31, 2023 represented 204% of the Company’s net assets or 96% of the Company’s total assets, are subject to legal restrictions on sales.
(2)These assets are pledged as collateral under the Company’s or the Company’s consolidated subsidiaries’ various revolving credit facilities and, as a result, are not directly available to the creditors of the Company to satisfy any obligations of the Company other than the obligations under each of the respective facilities (see Note 5).
(3)Investments without an interest rate are non-income producing.
See accompanying notes to consolidated financial statements
128
(4)As defined in the Investment Company Act, the Company is deemed to be an “Affiliated Person” because it owns 5% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the year ended December 31, 2023 in which the issuer was an Affiliated Person of the Company (but not a portfolio company that the Company is deemed to Control) are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Year Ended December 31, 2023 | | As of December 31, 2023 |
(in millions) Company | | Purchases (cost) | | Redemptions (cost) | | Sales (cost) | | Interest income | | Capital structuring service fees | | Dividend income | | Other income | | Net realized gains (losses) | | Net unrealized gains (losses) | | Fair Value |
Apex Clean Energy TopCo, LLC | | $ | 33.1 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 4.5 | | | $ | 188.0 | |
APG Intermediate Holdings Corporation and APG Holdings, LLC | | — | | | 0.1 | | | — | | | 1.4 | | | — | | | — | | | — | | | — | | | 2.0 | | | 23.7 | |
Blue Wolf Capital Fund II, L.P. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Bragg Live Food Products, LLC and SPC Investment Co., L.P. | | 1.6 | | | 3.9 | | | — | | | 3.4 | | | — | | | — | | | 0.1 | | | — | | | 7.2 | | | 43.9 | |
Daylight Beta Parent LLC and CFCo, LLC | | — | | | — | | | — | | | 0.4 | | | — | | | — | | | — | | | — | | | (0.3) | | | 12.1 | |
ESCP PPG Holdings, LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 1.3 | | | 4.4 | |
European Capital UK SME Debt LP | | — | | | 9.8 | | | — | | | — | | | — | | | 7.4 | | | — | | | — | | | (0.3) | | | 16.4 | |
PCG-Ares Sidecar Investment, L.P. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 0.8 | |
PCG-Ares Sidecar Investment II, L.P. | | 0.1 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 2.5 | | | 18.1 | |
Production Resource Group, L.L.C. and PRG III, LLC | | — | | | 1.3 | | | — | | | 10.9 | | | — | | | — | | | — | | | — | | | 11.7 | | | 112.9 | |
Shock Doctor, Inc. and Shock Doctor Holdings, LLC | | 3.3 | | | 3.4 | | | 11.6 | | | 0.2 | | | — | | | — | | | — | | | (10.2) | | | 5.7 | | | — | |
Totes Isotoner Corporation and Totes Ultimate Holdco, Inc. | | — | | | — | | | — | | | 0.4 | | | — | | | — | | | — | | | — | | | — | | | 3.7 | |
| | $ | 38.1 | | | $ | 18.5 | | | $ | 11.6 | | | $ | 16.7 | | | $ | — | | | $ | 7.4 | | | $ | 0.1 | | | $ | (10.2) | | | $ | 34.3 | | | $ | 424.0 | |
See accompanying notes to consolidated financial statements
129
(5)As defined in the Investment Company Act, the Company is deemed to be both an “Affiliated Person” and “Control” this portfolio company because it owns more than 25% of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company (including through a management agreement). Transactions as of and during the year ended December 31, 2023 in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
For the Year Ended December 31, 2023 | | As of December 31, 2023 |
(in millions) Company | | Purchases (cost) | | Redemptions (cost) | | Sales (cost) | | Interest income | | Capital structuring service fees | | Dividend income | | Other income | | Net realized gains (losses) | | Net unrealized gains (losses) | | Fair Value |
Absolute Dental Group LLC and Absolute Dental Equity, LLC | | $ | 22.1 | | | $ | 16.0 | | | $ | — | | | $ | 8.6 | | | $ | — | | | $ | — | | | $ | 0.2 | | | $ | — | | | $ | (7.4) | | | $ | 72.0 | |
ACAS Equity Holdings Corporation | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 0.4 | |
ADF Capital, Inc., ADF Restaurant Group, LLC, and ARG Restaurant Holdings, Inc. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC | | 25.3 | | | 0.1 | | | — | | | 2.2 | | | — | | | — | | | 0.1 | | | — | | | (10.7) | | | 65.6 | |
CoLTs 2005-1 Ltd. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Eckler Industries, Inc. and Eckler Purchaser LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Halex Holdings, Inc. | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
HCI Equity, LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC | | — | | | — | | | — | | | 9.2 | | | — | | | — | | | — | | | — | | | 86.6 | | | 305.4 | |
Imaging Business Machines, L.L.C. and Scanner Holdings Corporation | | 11.5 | | | — | | | — | | | 2.2 | | | — | | | 0.3 | | | 0.7 | | | — | | | 5.3 | | | 65.4 | |
Ivy Hill Asset Management, L.P. | | 470.2 | | | 755.1 | | | — | | | 29.3 | | | — | | | 243.0 | | | — | | | — | | | 70.4 | | | 1,986.6 | |
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC | | 4.9 | | | 0.1 | | | — | | | — | | | — | | | — | | | 0.1 | | | — | | | (6.5) | | | 42.9 | |
Potomac Intermediate Holdings II LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (68.0) | | | 75.2 | |
PS Operating Company LLC and PS Op Holdings LLC | | — | | | 0.2 | | | — | | | 2.2 | | | — | | | — | | | 0.1 | | | — | | | (6.2) | | | 21.9 | |
RD Holdco Inc. | | 0.9 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 2.7 | | | 13.9 | |
S Toys Holdings LLC (fka The Step2 Company, LLC) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 0.5 | | | (0.1) | | | — | |
Senior Direct Lending Program, LLC | | 178.9 | | | 136.7 | | | — | | | 173.8 | | | 8.8 | | | — | | | 4.5 | | | 0.1 | | | (2.7) | | | 1,288.1 | |
SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc. | | 25.6 | | | 7.9 | | | — | | | 2.4 | | | — | | | — | | | — | | | — | | | (38.2) | | | 52.3 | |
Startec Equity, LLC | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |
Visual Edge Technology, Inc. | | — | | | 0.1 | | | — | | | 2.2 | | | — | | | 2.2 | | | — | | | — | | | 2.6 | | | 77.6 | |
VPROP Operating, LLC and V SandCo, LLC | | — | | | 4.5 | | | — | | | 6.2 | | | — | | | 6.7 | | | — | | | — | | | (12.2) | | | 99.4 | |
| | $ | 739.4 | | | $ | 920.7 | | | $ | — | | | $ | 238.3 | | | $ | 8.8 | | | $ | 252.2 | | | $ | 5.7 | | | $ | 0.6 | | | $ | 15.6 | | | $ | 4,166.7 | |
______________________________________________________________________
* Together with Varagon and its clients, the Company has co-invested through the SDLP. The SDLP has been capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of the Company and Varagon (with approval from a representative of each required); therefore, although the Company owns more than 25% of the voting securities of the SDLP, the Company does not believe that it has control over the SDLP (for purposes of the Investment Company Act or otherwise) because, among other things, these “voting securities” do not afford the Company the right to elect directors of the SDLP or any other special rights (see Note 4 to the consolidated financial statements).
See accompanying notes to consolidated financial statements
130
(6)This portfolio company is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets. Pursuant to Section 55(a) of the Investment Company Act, 23% of the Company's total assets are represented by investments at fair value and other assets that are considered "non-qualifying assets" as of December 31, 2023.
(7)Variable rate loans to the Company’s portfolio companies bear interest at a rate that may be determined by reference to SOFR or an alternate base rate (commonly based on the Federal Funds Rate or the Prime Rate), at the borrower’s option, which reset annually (A), semi-annually (S), quarterly (Q), bi-monthly (B), monthly (M) or daily (D). For each such loan, the Company has provided the interest rate in effect on the date presented. SOFR based contracts may include a credit spread adjustment that is charged in addition to the base rate and the stated spread.
(8)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.00% on $40.2 in aggregate principal amount of a “first out” tranche of the portfolio company’s senior term debt previously syndicated by the Company into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.
(9)The Company sold a participating interest of approximately $34.4 in aggregate principal amount outstanding of the portfolio company’s first lien senior secured revolving loan. As the transaction did not qualify as a “true sale” in accordance with GAAP, the Company recorded a corresponding $34.4 secured borrowing, at fair value, included in “secured borrowings” in the accompanying consolidated balance sheet. As of December 31, 2023, the interest rate in effect for the secured borrowing was 12.94%.
(10)Loan was on non-accrual status as of December 31, 2023.
(11)Loan includes interest rate floor feature.
(12)In addition to the interest earned based on the stated contractual interest rate of this security, the certificates entitle the holders thereof to receive a portion of the excess cash flow from the SDLP’s loan portfolio, after expenses, which may result in a return to the Company greater than the contractual stated interest rate.
(13)As of December 31, 2023, no amounts were funded by the Company under this first lien senior secured revolving loan; however, there were letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.
(14)As of December 31, 2023, in addition to the amounts funded by the Company under this first lien senior secured revolving loan, there were also letters of credit issued and outstanding through a financial intermediary under the loan. See Note 7 for further information on letters of credit commitments related to certain portfolio companies.
(15)As of December 31, 2023, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to issue letters of credit through a financial intermediary on behalf of certain portfolio companies. Such commitments are subject to the satisfaction of certain conditions set forth in the documents governing these loans and letters of credit and there can be no assurance that such conditions will be satisfied. See Note 7 for further information on revolving and delayed draw loan commitments, including commitments to issue letters of credit, related to certain portfolio companies.
See accompanying notes to consolidated financial statements
131
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
22 HoldCo Limited | $ | 14.0 | | $ | — | | $ | 14.0 | | $ | — | | $ | — | | $ | 14.0 | | | | | | |
3 Step Sports LLC | 10.4 | | (0.4) | | 10.0 | | — | | — | | 10.0 | | | | | | |
Absolute Dental Group LLC and Absolute Dental Equity, LLC | 12.1 | | (9.5) | | 2.6 | | — | | — | | 2.6 | | | | | | |
Accession Risk Management Group, Inc. and RSC Insurance Brokerage, Inc. | 9.6 | | — | | 9.6 | | — | | — | | 9.6 | | | | | | |
Accommodations Plus Technologies LLC and Accommodations Plus Technologies Holdings LLC | 4.1 | | (4.1) | | — | | — | | — | | — | | | | | | |
ADG, LLC, GEDC Equity, LLC and RC IV GEDC Investor LLC | 20.0 | | — | | 20.0 | | — | | — | | 20.0 | | | | | | |
| | | | | | | | | | | |
Advarra Holdings, Inc. | 0.4 | | — | | 0.4 | | — | | — | | 0.4 | | | | | | |
AffiniPay Midco, LLC and AffiniPay Intermediate Holdings, LLC | 24.5 | | — | | 24.5 | | — | | — | | 24.5 | | | | | | |
AI Fire Buyer, Inc. and AI Fire Parent LLC | 12.9 | | — | | 12.9 | | — | | — | | 12.9 | | | | | | |
AIM Acquisition, LLC | 1.8 | | — | | 1.8 | | — | | — | | 1.8 | | | | | | |
Airx Climate Solutions, Inc. | 5.2 | | — | | 5.2 | | — | | — | | 5.2 | | | | | | |
Alcami Corporation and ACM Note Holdings, LLC | 2.6 | | — | | 2.6 | | — | | — | | 2.6 | | | | | | |
Alera Group, Inc. | 12.0 | | — | | 12.0 | | — | | — | | 12.0 | | | | | | |
American Residential Services L.L.C. and Aragorn Parent Holdings LP | 4.5 | | (2.0) | | 2.5 | | — | | — | | 2.5 | | | | | | |
AmeriVet Partners Management, Inc. | 14.3 | | — | | 14.3 | | — | | — | | 14.3 | | | | | | |
Anaplan, Inc. | 1.4 | | — | | 1.4 | | — | | — | | 1.4 | | | | | | |
Anaqua Parent Holdings, Inc. & Astorg VII Co-Invest Anaqua | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Apex Service Partners, LLC and Apex Service Partners Holdings, LLC | 34.8 | | (0.7) | | 34.1 | | — | | — | | 34.1 | | | | | | |
APG Intermediate Holdings Corporation and APG Holdings, LLC | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Applied Technical Services, LLC | 3.6 | | (2.1) | | 1.5 | | — | | — | | 1.5 | | | | | | |
Appriss Health, LLC and Appriss Health Intermediate Holdings, Inc. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
AQ Sage Buyer, LLC | 5.2 | | — | | 5.2 | | — | | — | | 5.2 | | | | | | |
AQ Sunshine, Inc. | 12.8 | | — | | 12.8 | | — | | — | | 12.8 | | | | | | |
Ardonagh Midco 2 plc and Ardonagh Midco 3 plc | 15.6 | | — | | 15.6 | | — | | — | | 15.6 | | | | | | |
Argenbright Holdings V, LLC and Amberstone Security Group Limited | 2.5 | | — | | 2.5 | | — | | — | | 2.5 | | | | | | |
ASP-r-pac Acquisition CO LLC and ASP-r-pac Holdings LP | 6.2 | | — | | 6.2 | | — | | — | | 6.2 | | | | | | |
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP | 9.0 | | — | | 9.0 | | — | | — | | 9.0 | | | | | | |
ATI Restoration, LLC | 53.7 | | (8.5) | | 45.2 | | — | | — | | 45.2 | | | | | | |
Avalara, Inc. | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
Avetta, LLC | 3.9 | | — | | 3.9 | | — | | — | | 3.9 | | | | | | |
| | | | | | | | | | | |
Bamboo US BidCo LLC | 14.4 | | — | | 14.4 | | — | | — | | 14.4 | | | | | | |
Banyan Software Holdings, LLC and Banyan Software, LP | 7.3 | | (1.4) | | 5.9 | | — | | — | | 5.9 | | | | | | |
Beacon Pointe Harmony, LLC | 4.9 | | — | | 4.9 | | — | | — | | 4.9 | | | | | | |
Beacon Wellness Brands, Inc. and CDI Holdings I Corp. | 0.9 | | — | | 0.9 | | — | | — | | 0.9 | | | | | | |
Belfor Holdings, Inc. | 58.5 | | (6.2) | | 52.3 | | — | | — | | 52.3 | | | | | | |
Benecon Midco II LLC and Locutus Holdco LLC | 4.5 | | — | | 4.5 | | — | | — | | 4.5 | | | | | | |
Berner Food & Beverage, LLC | 1.7 | | (0.8) | | 0.9 | | — | | — | | 0.9 | | | | | | |
BlueHalo Financing Holdings, LLC, BlueHalo Global Holdings, LLC, and BlueHalo, LLC | 3.0 | | (1.9) | | 1.1 | | — | | — | | 1.1 | | | | | | |
Bobcat Purchaser, LLC and Bobcat Topco, L.P. | 2.5 | | — | | 2.5 | | — | | — | | 2.5 | | | | | | |
Borrower R365 Holdings LLC | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
Bottomline Technologies, Inc. and Legal Spend Holdings, LLC | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
BR PJK Produce, LLC | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
BradyIFS Holdings, LLC | 17.7 | | — | | 17.7 | | — | | — | | 17.7 | | | | | | |
Bragg Live Food Products, LLC and SPC Investment Co., L.P. | 4.4 | | — | | 4.4 | | — | | — | | 4.4 | | | | | | |
Businessolver.com, Inc. | 1.4 | | — | | 1.4 | | — | | — | | 1.4 | | | | | | |
| | | | | | | | | | | |
Caerus Midco 3 S.à r.l. | 2.3 | | (0.1) | | 2.2 | | — | | — | | 2.2 | | | | | | |
Capstone Acquisition Holdings, Inc. and Capstone Parent Holdings, LP | 15.3 | | (7.6) | | 7.7 | | — | | — | | 7.7 | | | | | | |
Captive Resources Midco, LLC | 1.2 | | — | | 1.2 | | — | | — | | 1.2 | | | | | | |
Cardinal Parent, Inc. and Packers Software Intermediate Holdings, Inc. | 5.0 | | (4.0) | | 1.0 | | — | | — | | 1.0 | | | | | | |
Center for Autism and Related Disorders, LLC | 9.5 | | (9.5) | | — | | — | | — | | — | | | | | | |
Centric Brands LLC and Centric Brands GP LLC | 8.6 | | — | | 8.6 | | — | | — | | 8.6 | | | | | | |
Chariot Buyer LLC | 12.3 | | — | | 12.3 | | — | | — | | 12.3 | | | | | | |
See accompanying notes to consolidated financial statements
132
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
Cheyenne Petroleum Company Limited Partnership, CPC 2001 LLC and Mill Shoals LLC | 9.5 | | — | | 9.5 | | — | | — | | 9.5 | | | | | | |
City Line Distributors LLC and City Line Investments LLC | 1.7 | | — | | 1.7 | | — | | — | | 1.7 | | | | | | |
Clarion Home Services Group, LLC and LBC Breeze Holdings LLC | 8.0 | | (1.4) | | 6.6 | | — | | — | | 6.6 | | | | | | |
Cliffwater LLC | 1.0 | | — | | 1.0 | | — | | — | | 1.0 | | | | | | |
Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P. | 19.0 | | — | | 19.0 | | — | | — | | 19.0 | | | | | | |
CMG HoldCo, LLC and CMG Buyer Holdings, Inc. | 24.4 | | — | | 24.4 | | — | | — | | 24.4 | | | | | | |
Cobalt Buyer Sub, Inc., Cobalt Holdings I, LP, and Cobalt Intermediate I, Inc. | 6.3 | | (2.7) | | 3.6 | | — | | — | | 3.6 | | | | | | |
Community Brands ParentCo, LLC | 7.2 | | — | | 7.2 | | — | | — | | 7.2 | | | | | | |
Compex Legal Services, Inc. | 3.6 | | (1.1) | | 2.5 | | — | | — | | 2.5 | | | | | | |
Comprehensive EyeCare Partners, LLC | 1.9 | | (1.9) | | — | | — | | — | | — | | | | | | |
Concert Golf Partners Holdco LLC | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
Consilio Midco Limited, Compusoft US LLC, and Consilio Investment Holdings, L.P. | 11.3 | | (5.1) | | 6.2 | | — | | — | | 6.2 | | | | | | |
| | | | | | | | | | | |
Continental Café, LLC and Infinity Ovation Yacht Charters, LLC | 1.8 | | (1.1) | | 0.7 | | — | | — | | 0.7 | | | | | | |
Convera International Holdings Limited and Convera International Financial S.A R.L. | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
CoreLogic, Inc. and T-VIII Celestial Co-Invest LP | 38.9 | | — | | 38.9 | | — | | — | | 38.9 | | | | | | |
Cority Software Inc., Cority Software (USA) Inc., and Cority Parent, Inc. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Cornerstone OnDemand, Inc. and Sunshine Software Holdings, Inc. | 38.7 | | (0.5) | | 38.2 | | — | | — | | 38.2 | | | | | | |
Coupa Holdings, LLC and Coupa Software Incorporated | 0.9 | | — | | 0.9 | | — | | — | | 0.9 | | | | | | |
Coyote Buyer, LLC | 5.8 | | — | | 5.8 | | — | | — | | 5.8 | | | | | | |
| | | | | | | | | | | |
Crosspoint Capital AS SPV, LP | 3.6 | | (0.7) | | 2.9 | | — | | — | | 2.9 | | | | | | |
Crown CT Parent Inc., Crown CT HoldCo Inc. and Crown CT Management LLC | 3.2 | | — | | 3.2 | | — | | — | | 3.2 | | | | | | |
CST Holding Company | 1.9 | | (0.2) | | 1.7 | | — | | — | | 1.7 | | | | | | |
Cube Industrials Buyer, Inc. and Cube A&D Buyer Inc. | 5.1 | | (1.1) | | 4.0 | | — | | — | | 4.0 | | | | | | |
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC | 18.0 | | — | | 18.0 | | — | | — | | 18.0 | | | | | | |
DecoPac, Inc. and KCAKE Holdings Inc. | 16.5 | | (4.9) | | 11.6 | | — | | — | | 11.6 | | | | | | |
Demakes Borrower, LLC | 1.8 | | — | | 1.8 | | — | | — | | 1.8 | | | | | | |
Denali Holdco LLC and Denali Apexco LP | 10.5 | | — | | 10.5 | | — | | — | | 10.5 | | | | | | |
DFC Global Facility Borrower III LLC | 76.1 | | (64.5) | | 11.6 | | — | | — | | 11.6 | | | | | | |
DFS Holding Company, Inc. | 0.3 | | — | | 0.3 | | — | | — | | 0.3 | | | | | | |
Diligent Corporation and Diligent Preferred Issuer, Inc. | 2.2 | | (1.2) | | 1.0 | | — | | — | | 1.0 | | | | | | |
Display Holding Company, Inc., Saldon Holdings, Inc. and Fastsigns Holdings Inc. | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
DOXA Insurance Holdings, LLC | 14.0 | | — | | 14.0 | | — | | — | | 14.0 | | | | | | |
DRS Holdings III, Inc. and DRS Holdings I, Inc. | 10.8 | | — | | 10.8 | | — | | — | | 10.8 | | | | | | |
DS Admiral Bidco, LLC | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Dye & Durham Corporation | 9.6 | | (3.8) | | 5.8 | | — | | — | | 5.8 | | | | | | |
Dynamic NC Aerospace Holdings, LLC and Dynamic NC Investment Holdings, LP | 7.1 | | (3.7) | | 3.4 | | — | | — | | 3.4 | | | | | | |
Echo Purchaser, Inc. | 3.9 | | (0.1) | | 3.8 | | — | | — | | 3.8 | | | | | | |
Elemica Parent, Inc. & EZ Elemica Holdings, Inc. | 4.1 | | (4.1) | | — | | — | | — | | — | | | | | | |
Elevation Services Parent Holdings, LLC | 17.1 | | (2.7) | | 14.4 | | — | | — | | 14.4 | | | | | | |
Emergency Communications Network, LLC | 7.2 | | (7.2) | | — | | — | | — | | — | | | | | | |
Enverus Holdings, Inc. | 17.8 | | — | | 17.8 | | — | | — | | 17.8 | | | | | | |
EP Wealth Advisors, LLC | 8.3 | | (0.4) | | 7.9 | | — | | — | | 7.9 | | | | | | |
EpiServer Inc. and Episerver Sweden Holdings AB | 9.5 | | — | | 9.5 | | — | | — | | 9.5 | | | | | | |
EPS NASS Parent, Inc. | 1.4 | | (1.2) | | 0.2 | | — | | — | | 0.2 | | | | | | |
ESHA Research, LLC and RMCF VI CIV XLVIII, L.P. | 1.1 | | (0.8) | | 0.3 | | — | | — | | 0.3 | | | | | | |
Essential Services Holding Corporation and OMERS Mahomes Investment Holdings LLC | 28.0 | | (22.3) | | 5.7 | | — | | — | | 5.7 | | | | | | |
Eternal Aus Bidco Pty Ltd | 1.4 | | — | | 1.4 | | — | | — | | 1.4 | | | | | | |
| | | | | | | | | | | |
Excel Fitness Consolidator LLC | 1.8 | | — | | 1.8 | | — | | — | | 1.8 | | | | | | |
Extrahop Networks, Inc. | 11.0 | | — | | 11.0 | | — | | — | | 11.0 | | | | | | |
Faraday Buyer, LLC | 5.1 | | — | | 5.1 | | — | | — | | 5.1 | | | | | | |
See accompanying notes to consolidated financial statements
133
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
Finastra USA, Inc., DH Corporation/Societe DH, and Finastra Europe S.A R.L. | 17.9 | | — | | 17.9 | | — | | — | | 17.9 | | | | | | |
FL Hawk Intermediate Holdings, Inc. | 0.5 | | — | | 0.5 | | — | | — | | 0.5 | | | | | | |
Flinn Scientific, Inc. and WCI-Quantum Holdings, Inc. | 14.5 | | (9.2) | | 5.3 | | — | | — | | 5.3 | | | | | | |
Flint OpCo, LLC | 3.5 | | — | | 3.5 | | — | | — | | 3.5 | | | | | | |
FlyWheel Acquireco, Inc. | 8.2 | | (5.5) | | 2.7 | | — | | — | | 2.7 | | | | | | |
Forescout Technologies, Inc. | 16.0 | | — | | 16.0 | | — | | — | | 16.0 | | | | | | |
| | | | | | | | | | | |
Foundation Risk Partners, Corp. | 45.2 | | — | | 45.2 | | — | | — | | 45.2 | | | | | | |
FS Squared Holding Corp. and FS Squared, LLC | 9.6 | | (0.5) | | 9.1 | | — | | — | | 9.1 | | | | | | |
Galway Borrower LLC | 8.8 | | (0.4) | | 8.4 | | — | | — | | 8.4 | | | | | | |
GC Waves Holdings, Inc. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Genesis Acquisition Co. and Genesis Ultimate Holding Co. | 1.5 | | (1.5) | | — | | — | | — | | — | | | | | | |
GI Ranger Intermediate LLC | 9.2 | | (2.2) | | 7.0 | | — | | — | | 7.0 | | | | | | |
Global Music Rights, LLC | 4.3 | | — | | 4.3 | | — | | — | | 4.3 | | | | | | |
GNZ Energy Bidco Limited and Galileo Co-investment Trust I | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
Gotham Greens Holdings, PBC | 12.9 | | — | | 12.9 | | — | | (12.9) | | — | | | | | | |
GraphPAD Software, LLC, Insightful Science Intermediate I, LLC and Insightful Science Holdings, LLC | 1.2 | | (0.6) | | 0.6 | | — | | — | | 0.6 | | | | | | |
GroundWorks, LLC | 0.6 | | — | | 0.6 | | — | | — | | 0.6 | | | | | | |
GS SEER Group Borrower LLC and GS SEER Group Holdings LLC | 9.6 | | — | | 9.6 | | — | | — | | 9.6 | | | | | | |
GTCR F Buyer Corp. and GTCR (D) Investors LP | 1.6 | | — | | 1.6 | | — | | — | | 1.6 | | | | | | |
Guidepoint Security Holdings, LLC | 3.4 | | — | | 3.4 | | — | | — | | 3.4 | | | | | | |
| | | | | | | | | | | |
Hanger, Inc. | 27.1 | | — | | 27.1 | | — | | — | | 27.1 | | | | | | |
Harvey Tool Company, LLC | 24.5 | | — | | 24.5 | | — | | — | | 24.5 | | | | | | |
HealthEdge Software, Inc. | 7.2 | | (0.3) | | 6.9 | | — | | — | | 6.9 | | | | | | |
Heavy Construction Systems Specialists, LLC | 4.0 | | — | | 4.0 | | — | | — | | 4.0 | | | | | | |
Helios Service Partners, LLC and Astra Service Partners, LLC | 3.5 | | (0.2) | | 3.3 | | — | | — | | 3.3 | | | | | | |
Help/Systems Holdings, Inc. | 15.0 | | — | | 15.0 | | — | | — | | 15.0 | | | | | | |
HGC Holdings, LLC | 7.5 | | — | | 7.5 | | — | | — | | 7.5 | | | | | | |
HH-Stella, Inc. and Bedrock Parent Holdings, LP | 12.4 | | (0.3) | | 12.1 | | — | | — | | 12.1 | | | | | | |
Higginbotham Insurance Agency, Inc. | 1.8 | | — | | 1.8 | | — | | — | | 1.8 | | | | | | |
High Street Buyer, Inc. and High Street Holdco LLC | 21.5 | | — | | 21.5 | | — | | — | | 21.5 | | | | | | |
Highline Aftermarket Acquisition, LLC, Highline Aftermarket SC Acquisition, Inc. and Highline PPC Blocker LLC | 9.5 | | (0.2) | | 9.3 | | — | | — | | 9.3 | | | | | | |
Hills Distribution, Inc. | 2.2 | | (0.1) | | 2.1 | | — | | — | | 2.1 | | | | | | |
HP RSS Buyer, Inc. | 5.1 | | — | | 5.1 | | — | | — | | 5.1 | | | | | | |
Huskies Parent, Inc., GI Insurity Parent LLC and GI Insurity TopCo LP | 13.3 | | (13.3) | | — | | — | | — | | — | | | | | | |
Hyland Software, Inc. | 2.0 | | — | | 2.0 | | — | | — | | 2.0 | | | | | | |
Infinity Home Services HoldCo, Inc. and IHS Parent Holdings, L.P. | 16.3 | | — | | 16.3 | | — | | — | | 16.3 | | | | | | |
Inszone Mid, LLC and INSZ Holdings, LLC | 18.9 | | — | | 18.9 | | — | | — | | 18.9 | | | | | | |
IQN Holding Corp. | 4.8 | | — | | 4.8 | | — | | — | | 4.8 | | | | | | |
IRI Holdings, Inc., IRI Group Holdings, Inc. and IRI Parent, L.P. | 14.4 | | (2.7) | | 11.7 | | — | | — | | 11.7 | | | | | | |
ISQ Hawkeye Holdco, Inc. and ISQ Hawkeye Holdings, L.P. | 9.1 | | (0.3) | | 8.8 | | — | | — | | 8.8 | | | | | | |
ITI Holdings, Inc. | 5.7 | | (4.3) | | 1.4 | | — | | — | | 1.4 | | | | | | |
| | | | | | | | | | | |
Kaseya Inc. and Knockout Intermediate Holdings I Inc. | 30.5 | | (6.9) | | 23.6 | | — | | — | | 23.6 | | | | | | |
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) | 5.0 | | (3.2) | | 1.8 | | — | | — | | 1.8 | | | | | | |
Kene Acquisition, Inc. and Kene Holdings, L.P. | 18.9 | | (0.4) | | 18.5 | | — | | — | | 18.5 | | | | | | |
Keystone Agency Partners LLC | 10.4 | | — | | 10.4 | | — | | — | | 10.4 | | | | | | |
Kings Buyer, LLC | 1.6 | | — | | 1.6 | | — | | — | | 1.6 | | | | | | |
Laboratories Bidco LLC and Laboratories Topco LLC | 19.6 | | (8.2) | | 11.4 | | — | | — | | 11.4 | | | | | | |
LeanTaaS Holdings, Inc. | 43.5 | | — | | 43.5 | | — | | — | | 43.5 | | | | | | |
Leviathan Intermediate Holdco, LLC and Leviathan Holdings, L.P. | 1.5 | | — | | 1.5 | | — | | — | | 1.5 | | | | | | |
Lew's Intermediate Holdings, LLC | 2.3 | | — | | 2.3 | | — | | — | | 2.3 | | | | | | |
Lido Advisors, LLC | 5.2 | | (0.6) | | 4.6 | | — | | — | | 4.6 | | | | | | |
| | | | | | | | | | | |
Lightbeam Bidco, Inc. | 5.2 | | (0.2) | | 5.0 | | — | | — | | 5.0 | | | | | | |
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. | 5.6 | | — | | 5.6 | | — | | — | | 5.6 | | | | | | |
LJP Purchaser, Inc. and LJP Topco, LP | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
Majesco and Magic Topco, L.P. | 2.0 | | — | | 2.0 | | — | | — | | 2.0 | | | | | | |
See accompanying notes to consolidated financial statements
134
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
Manna Pro Products, LLC | 7.0 | | (5.1) | | 1.9 | | — | | — | | 1.9 | | | | | | |
Marmic Purchaser, LLC and Marmic Topco, L.P. | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
Mavis Tire Express Services Topco Corp., Metis Holdco, Inc. and Metis Topco, LP | 32.9 | | (14.8) | | 18.1 | | — | | — | | 18.1 | | | | | | |
McKenzie Creative Brands, LLC | 4.5 | | (1.6) | | 2.9 | | — | | — | | 2.9 | | | | | | |
Medline Borrower, LP | 6.9 | | (0.2) | | 6.7 | | — | | — | | 6.7 | | | | | | |
Micromeritics Instrument Corp. | 4.1 | | — | | 4.1 | | — | | — | | 4.1 | | | | | | |
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp | 15.1 | | — | | 15.1 | | — | | — | | 15.1 | | | | | | |
Ministry Brands Holdings, LLC and RCP MB Investments B, L.P. | 8.0 | | (4.3) | | 3.7 | | — | | — | | 3.7 | | | | | | |
Modigent, LLC and OMERS PMC Investment Holdings LLC | 12.6 | | (2.2) | | 10.4 | | — | | — | | 10.4 | | | | | | |
Monica Holdco (US) Inc. | 3.6 | | (3.6) | | — | | — | | — | | — | | | | | | |
Moonraker AcquisitionCo LLC and Moonraker HoldCo LLC | 10.1 | | (0.1) | | 10.0 | | — | | — | | 10.0 | | | | | | |
Mr. Greens Intermediate, LLC, Florida Veg Investments LLC, MRG Texas, LLC and Restaurant Produce and Services Blocker, LLC | 6.3 | | (0.2) | | 6.1 | | — | | — | | 6.1 | | | | | | |
MRI Software LLC | 6.1 | | — | | 6.1 | | — | | — | | 6.1 | | | | | | |
| | | | | | | | | | | |
NAS, LLC and Nationwide Marketing Group, LLC | 3.0 | | (0.6) | | 2.4 | | — | | — | | 2.4 | | | | | | |
Nelipak Holding Company, Nelipak European Holdings Cooperatief U.A., KNPAK Holdings, LP and PAKNK Netherlands Treasury B.V. | 10.4 | | (2.6) | | 7.8 | | — | | — | | 7.8 | | | | | | |
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P. | 12.6 | | (0.2) | | 12.4 | | — | | — | | 12.4 | | | | | | |
New Churchill Holdco LLC | 15.2 | | (0.3) | | 14.9 | | — | | — | | 14.9 | | | | | | |
Next Holdco, LLC | 2.4 | | — | | 2.4 | | — | | — | | 2.4 | | | | | | |
NMC Skincare Intermediate Holdings II, LLC | 12.7 | | (1.0) | | 11.7 | | — | | — | | 11.7 | | | | | | |
NMN Holdings III Corp. and NMN Holdings LP | 12.5 | | (2.1) | | 10.4 | | — | | — | | 10.4 | | | | | | |
North American Fire Holdings, LLC and North American Fire Ultimate Holdings, LLC | 2.7 | | (1.2) | | 1.5 | | — | | — | | 1.5 | | | | | | |
| | | | | | | | | | | |
North Haven Fairway Buyer, LLC, Fairway Lawns, LLC and Command Pest Control, LLC | 8.6 | | — | | 8.6 | | — | | — | | 8.6 | | | | | | |
North Haven Stack Buyer, LLC | 6.6 | | (1.3) | | 5.3 | | — | | — | | 5.3 | | | | | | |
Northwinds Holding, Inc. and Northwinds Services Group LLC | 9.1 | | — | | 9.1 | | — | | — | | 9.1 | | | | | | |
OakBridge Insurance Agency LLC and Maple Acquisition Holdings, LP | 4.8 | | — | | 4.8 | | — | | — | | 4.8 | | | | | | |
Olympia Acquisition, Inc., Olympia TopCo, L.P., and Asclepius Holdings LLC | 0.9 | | — | | 0.9 | | — | | — | | 0.9 | | | | | | |
OMH-HealthEdge Holdings, LLC | 7.2 | | — | | 7.2 | | — | | — | | 7.2 | | | | | | |
OneDigital Borrower LLC | 16.4 | | (0.7) | | 15.7 | | — | | — | | 15.7 | | | | | | |
Opal Fuels Intermediate HoldCo LLC, and Opal Fuels Inc. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Paragon 28, Inc. | 8.1 | | (0.1) | | 8.0 | | — | | — | | 8.0 | | | | | | |
Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. | 1.2 | | — | | 1.2 | | — | | — | | 1.2 | | | | | | |
Pathway Vet Alliance LLC and Jedi Group Holdings LLC | 1.9 | | (0.2) | | 1.7 | | — | | — | | 1.7 | | | | | | |
Patriot Growth Insurance Services, LLC | 2.2 | | — | | 2.2 | | — | | — | | 2.2 | | | | | | |
PCIA SPV-3, LLC and ASE Royal Aggregator, LLC | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
PDDS HoldCo, Inc. | 1.6 | | (0.2) | | 1.4 | | — | | — | | 1.4 | | | | | | |
PDI TA Holdings, Inc., Peachtree Parent, Inc. and Insight PDI Holdings, LLC | 7.6 | | (7.6) | | — | | — | | — | | — | | | | | | |
Pegasus Global Enterprise Holdings, LLC, Mekone Blocker Acquisition, Inc. and Mekone Parent, LLC | 11.6 | | — | | 11.6 | | — | | — | | 11.6 | | | | | | |
Pelican Products, Inc. | 2.3 | | (0.9) | | 1.4 | | — | | — | | 1.4 | | | | | | |
People Corporation | 19.3 | | (5.2) | | 14.1 | | — | | — | | 14.1 | | | | | | |
Perforce Software, Inc. | 7.5 | | (1.1) | | 6.4 | | — | | — | | 6.4 | | | | | | |
PestCo Holdings, LLC and PestCo, LLC | 0.9 | | — | | 0.9 | | — | | — | | 0.9 | | | | | | |
Petrus Buyer, Inc. | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
PetVet Care Centers, LLC | 49.4 | | — | | 49.4 | | — | | — | | 49.4 | | | | | | |
Petvisor Holdings, LLC | 57.5 | | — | | 57.5 | | — | | — | | 57.5 | | | | | | |
Ping Identity Holding Corp. | 0.2 | | — | | 0.2 | | — | | — | | 0.2 | | | | | | |
Pluralsight, Inc. | 0.3 | | (0.2) | | 0.1 | | — | | — | | 0.1 | | | | | | |
PracticeTek Purchaser, LLC, PracticeTek MidCo, LLC and GSV PracticeTek Holdings, LLC | 12.3 | | (0.5) | | 11.8 | | — | | — | | 11.8 | | | | | | |
Precision Concepts International LLC and Precision Concepts Canada Corporation | 14.4 | | — | | 14.4 | | — | | — | | 14.4 | | | | | | |
Premier Specialties, Inc. and RMCF V CIV XLIV, L.P. | 3.5 | | (0.7) | | 2.8 | | — | | — | | 2.8 | | | | | | |
Premise Health Holding Corp. and OMERS Bluejay Investment Holdings LP | 36.0 | | (0.6) | | 35.4 | | — | | — | | 35.4 | | | | | | |
See accompanying notes to consolidated financial statements
135
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
Prime Buyer, L.L.C. | 15.9 | | — | | 15.9 | | — | | — | | 15.9 | | | | | | |
Priority Waste Holdings LLC, Priority Waste Holdings Indiana LLC and Priority Waste Super Holdings, LLC | 8.0 | | — | | 8.0 | | — | | — | | 8.0 | | | | | | |
Pritchard Industries, LLC and LJ Pritchard TopCo Holdings, LLC | 32.4 | | — | | 32.4 | | — | | — | | 32.4 | | | | | | |
ProfitSolv Purchaser, Inc. and PS Co-Invest, L.P. | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
Project Essential Bidco, Inc. and Project Essential Super Parent, Inc. | 1.1 | | — | | 1.1 | | — | | — | | 1.1 | | | | | | |
Project Potter Buyer, LLC and Project Potter Parent, L.P. | 5.5 | | (2.1) | | 3.4 | | — | | — | | 3.4 | | | | | | |
Proofpoint, Inc. | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
PS Operating Company LLC and PS Op Holdings LLC | 6.0 | | (4.4) | | 1.6 | | — | | — | | 1.6 | | | | | | |
PSC Group LLC | 14.8 | | (2.4) | | 12.4 | | — | | — | | 12.4 | | | | | | |
PushPay USA Inc. | 3.6 | | — | | 3.6 | | — | | — | | 3.6 | | | | | | |
PYE-Barker Fire & Safety, LLC | 14.9 | | — | | 14.9 | | — | | — | | 14.9 | | | | | | |
Pyramid-BMC IntermediateCo I, LLC and Pyramid Investors, LLC | 1.6 | | — | | 1.6 | | — | | — | | 1.6 | | | | | | |
QF Holdings, Inc. | 1.1 | | — | | 1.1 | | — | | — | | 1.1 | | | | | | |
Qnnect, LLC and Connector TopCo, LP | 2.7 | | — | | 2.7 | | — | | — | | 2.7 | | | | | | |
Radius Aerospace, Inc. and Radius Aerospace Europe Limited | 2.8 | | (1.3) | | 1.5 | | — | | — | | 1.5 | | | | | | |
Radwell Parent, LLC | 4.4 | | (0.9) | | 3.5 | | — | | — | | 3.5 | | | | | | |
Raptor Technologies, LLC, Sycamore Bidco LTD and Rocket Parent, LLC | 4.4 | | — | | 4.4 | | — | | — | | 4.4 | | | | | | |
| | | | | | | | | | | |
RB Holdings InterCo, LLC | 2.1 | | (1.8) | | 0.3 | | — | | — | | 0.3 | | | | | | |
Reddy Ice LLC | 8.7 | | (1.5) | | 7.2 | | — | | — | | 7.2 | | | | | | |
Redwood Services, LLC and Redwood Services Holdco, LLC | 6.7 | | — | | 6.7 | | — | | — | | 6.7 | | | | | | |
Reef Lifestyle, LLC | 32.1 | | (28.1) | | 4.0 | | — | | — | | 4.0 | | | | | | |
Registrar Intermediate, LLC and PSP Registrar Co-Investment Fund, L.P. | 6.9 | | — | | 6.9 | | — | | — | | 6.9 | | | | | | |
Relativity ODA LLC | 3.8 | | — | | 3.8 | | — | | — | | 3.8 | | | | | | |
Repairify, Inc. and Repairify Holdings, LLC | 7.3 | | (4.8) | | 2.5 | | — | | — | | 2.5 | | | | | | |
Revalize, Inc. | 0.9 | | (0.2) | | 0.7 | | — | | — | | 0.7 | | | | | | |
Rialto Management Group, LLC | 1.3 | | (0.3) | | 1.0 | | — | | — | | 1.0 | | | | | | |
Riser Merger Sub, Inc. | 4.6 | | — | | 4.6 | | — | | — | | 4.6 | | | | | | |
RMS HoldCo II, LLC & RMS Group Holdings, Inc. | 2.9 | | — | | 2.9 | | — | | — | | 2.9 | | | | | | |
Rodeo AcquisitionCo LLC | 2.5 | | (1.7) | | 0.8 | | — | | — | | 0.8 | | | | | | |
RTI Surgical, Inc. and Pioneer Surgical Technology, Inc. | 15.9 | | (12.4) | | 3.5 | | — | | — | | 3.5 | | | | | | |
SageSure Holdings, LLC and SageSure LLC | 3.1 | | — | | 3.1 | | — | | — | | 3.1 | | | | | | |
Schill Landscaping and Lawn Care Services LLC, Tender Lawn Care ULC and Landscape Parallel Partners, L.P. | 1.6 | | (0.6) | | 1.0 | | — | | — | | 1.0 | | | | | | |
SCIH Salt Holdings Inc. | 22.5 | | (4.0) | | 18.5 | | — | | — | | 18.5 | | | | | | |
SCM Insurance Services Inc. | 4.1 | | — | | 4.1 | | — | | — | | 4.1 | | | | | | |
Shermco Intermediate Holdings, Inc. | 6.5 | | (0.1) | | 6.4 | | — | | — | | 6.4 | | | | | | |
Silk Holdings III Corp. and Silk Holdings I Corp. | 0.1 | | (0.1) | | — | | — | | — | | — | | | | | | |
SiroMed Physician Services, Inc. and SiroMed Equity Holdings, LLC | 2.1 | | — | | 2.1 | | — | | — | | 2.1 | | | | | | |
SM Wellness Holdings, Inc. and SM Holdco, LLC | 3.8 | | — | | 3.8 | | — | | — | | 3.8 | | | | | | |
Smarsh Inc. and Skywalker TopCo, LLC | 2.0 | | — | | 2.0 | | — | | — | | 2.0 | | | | | | |
Spirit RR Holdings, Inc. and Winterfell Co-Invest SCSp | 3.3 | | (0.2) | | 3.1 | | — | | — | | 3.1 | | | | | | |
| | | | | | | | | | | |
Star US Bidco LLC | 15.5 | | — | | 15.5 | | — | | — | | 15.5 | | | | | | |
Steward Partners Global Advisory, LLC | 2.9 | | — | | 2.9 | | — | | — | | 2.9 | | | | | | |
Sugar PPC Buyer LLC | 3.4 | | — | | 3.4 | | — | | — | | 3.4 | | | | | | |
Sun Acquirer Corp. and Sun TopCo, LP | 19.6 | | (2.1) | | 17.5 | | — | | — | | 17.5 | | | | | | |
Sundance Group Holdings, Inc. | 3.0 | | (1.5) | | 1.5 | | — | | — | | 1.5 | | | | | | |
Sunk Rock Foundry Partners LP, Hatteras Electrical Manufacturing Holding Company and Sigma Electric Manufacturing Corporation, Diecast Beacon | 6.0 | | (0.5) | | 5.5 | | — | | — | | 5.5 | | | | | | |
Sunrun Luna Holdco 2021, LLC | 75.0 | | (50.0) | | 25.0 | | — | | — | | 25.0 | | | | | | |
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc. | 7.0 | | (2.6) | | 4.4 | | — | | — | | 4.4 | | | | | | |
Synergy HomeCare Franchising, LLC and NP/Synergy Holdings, LLC | 4.2 | | — | | 4.2 | | — | | — | | 4.2 | | | | | | |
Systems Planning and Analysis, Inc. | 4.0 | | — | | 4.0 | | — | | — | | 4.0 | | | | | | |
TA/WEG Holdings, LLC | 2.0 | | — | | 2.0 | | — | | — | | 2.0 | | | | | | |
Tamarack Intermediate, L.L.C. and Tamarack Parent, L.L.C. | 13.5 | | — | | 13.5 | | — | | — | | 13.5 | | | | | | |
Taymax Group, L.P., Taymax Group G.P., LLC, PF Salem Canada ULC and TCP Fit Parent, L.P. | 1.7 | | (1.1) | | 0.6 | | — | | — | | 0.6 | | | | | | |
See accompanying notes to consolidated financial statements
136
| | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) Portfolio Company | Total revolving and delayed draw loan commitments | Less: funded commitments | Total unfunded commitments | Less: commitments substantially at discretion of the Company | Less: unavailable commitments due to borrowing base or other covenant restrictions | Total net unfunded revolving and delayed draw commitments | | | | | |
TCP Hawker Intermediate LLC | 16.0 | | — | | 16.0 | | — | | — | | 16.0 | | | | | | |
The Alaska Club Partners, LLC, Athletic Club Partners LLC and The Alaska Club, Inc. | 1.1 | | — | | 1.1 | | — | | — | | 1.1 | | | | | | |
The Arcticom Group, LLC and AMCP Mechanical Holdings, LP | 13.7 | | (5.9) | | 7.8 | | — | | — | | 7.8 | | | | | | |
The Mather Group, LLC, TVG-TMG Topco, Inc., and TVG-TMG Holdings, LLC | 1.3 | | (0.2) | | 1.1 | | — | | — | | 1.1 | | | | | | |
The Ultimus Group Midco, LLC, The Ultimus Group, LLC, and The Ultimus Group Aggregator, LP | 6.9 | | (0.8) | | 6.1 | | — | | — | | 6.1 | | | | | | |
Thermostat Purchaser III, Inc. | 7.7 | | (0.3) | | 7.4 | | — | | — | | 7.4 | | | | | | |
THG Acquisition, LLC | 9.2 | | (1.3) | | 7.9 | | — | | — | | 7.9 | | | | | | |
Trader Corporation and Project Auto Finco Corp. | 0.6 | | — | | 0.6 | | — | | — | | 0.6 | | | | | | |
Triwizard Holdings, Inc. and Triwizard Parent, LP | 11.0 | | — | | 11.0 | | — | | — | | 11.0 | | | | | | |
TSS Buyer, LLC | 0.8 | | — | | 0.8 | | — | | — | | 0.8 | | | | | | |
Two Six Labs, LLC | 10.2 | | — | | 10.2 | | — | | — | | 10.2 | | | | | | |
UKG Inc. and H&F Unite Partners, L.P. | 25.0 | | (1.5) | | 23.5 | | — | | — | | 23.5 | | | | | | |
United Digestive MSO Parent, LLC and Koln Co-Invest Unblocked, LP | 4.6 | | — | | 4.6 | | — | | — | | 4.6 | | | | | | |
US Salt Investors, LLC and Emerald Lake Pearl Acquisition-A, L.P. | 9.9 | | — | | 9.9 | | — | | — | | 9.9 | | | | | | |
Valcourt Holdings II, LLC | 31.8 | | (0.7) | | 31.1 | | — | | — | | 31.1 | | | | | | |
Verista, Inc. | 8.0 | | (1.3) | | 6.7 | | — | | — | | 6.7 | | | | | | |
Verscend Holding Corp. | 22.5 | | — | | 22.5 | | — | | — | | 22.5 | | | | | | |
Vertex Service Partners, LLC | 9.1 | | — | | 9.1 | | — | | — | | 9.1 | | | | | | |
Visual Edge Technology, Inc. | 18.9 | | — | | 18.9 | | — | | — | | 18.9 | | | | | | |
Vobev, LLC and Vobev Holdings, LLC | 1.8 | | — | | 1.8 | | — | | — | | 1.8 | | | | | | |
VPP Intermediate Holdings, LLC and VPP Group Holdings, L.P. | 11.9 | | — | | 11.9 | | — | | — | | 11.9 | | | | | | |
VRC Companies, LLC | 5.4 | | — | | 5.4 | | — | | — | | 5.4 | | | | | | |
VS Buyer, LLC | 8.1 | | — | | 8.1 | | — | | — | | 8.1 | | | | | | |
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Waverly Advisors, LLC and WAAM Topco, LLC | 0.1 | | — | | 0.1 | | — | | — | | 0.1 | | | | | | |
WCI-BXC Purchaser, LLC | 0.7 | | — | | 0.7 | | — | | — | | 0.7 | | | | | | |
WebPT, Inc. | 0.9 | | (0.2) | | 0.7 | | — | | — | | 0.7 | | | | | | |
Wellness AcquisitionCo, Inc. | 3.9 | | — | | 3.9 | | — | | — | | 3.9 | | | | | | |
Wellpath Holdings, Inc. | 12.0 | | (7.5) | | 4.5 | | — | | — | | 4.5 | | | | | | |
Wildcat BuyerCo, Inc. and Wildcat Parent, LP | 6.3 | | (0.2) | | 6.1 | | — | | — | | 6.1 | | | | | | |
WorkWave Intermediate II, LLC | 5.2 | | — | | 5.2 | | — | | — | | 5.2 | | | | | | |
World Insurance Associates, LLC | 13.3 | | — | | 13.3 | | — | | — | | 13.3 | | | | | | |
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. | 4.0 | | (1.0) | | 3.0 | | — | | — | | 3.0 | | | | | | |
WSHP FC Acquisition LLC and WSHP FC Holdings LLC | 16.3 | | (16.3) | | — | | — | | — | | — | | | | | | |
XIFIN, Inc. and ACP Charger Co-Invest LLC | 5.6 | | (5.6) | | — | | — | | — | | — | | | | | | |
YE Brands Holdings, LLC | 2.3 | | (1.2) | | 1.1 | | — | | — | | 1.1 | | | | | | |
ZB Holdco LLC and ZB TopCo LLC | 13.1 | | (1.4) | | 11.7 | | — | | — | | 11.7 | | | | | | |
ZenDesk, Inc., Zoro TopCo, Inc. and Zoro TopCo, LP | 12.8 | | — | | 12.8 | | — | | — | | 12.8 | | | | | | |
| $ | 2,766.3 | | $ | (482.1) | | $ | 2,284.2 | | $ | — | | $ | (12.9) | | $ | 2,271.3 | | | | | | |
(16)As of December 31, 2023, the Company was party to agreements to fund equity investments as follows:
See accompanying notes to consolidated financial statements
137
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(in millions) Company | Total equity commitments | Less: funded equity commitments | Total unfunded equity commitments | Less: equity commitments substantially at the discretion of the Company | Total net unfunded equity commitments |
Apex Clean Energy TopCo, LLC | $ | 3.2 | | $ | — | | $ | 3.2 | | $ | — | | $ | 3.2 | |
AthenaHealth Group Inc., Minerva Holdco, Inc. and BCPE Co-Invest (A), LP | 1.2 | | — | | 1.2 | | — | | 1.2 | |
European Capital UK SME Debt LP | 57.4 | | (51.9) | | 5.5 | | (5.4) | | 0.1 | |
GTCR F Buyer Corp. and GTCR (D) Investors LP | 1.6 | | — | | 1.6 | | — | | 1.6 | |
HFCP XI (Parallel - A), L.P. | 7.5 | | — | | 7.5 | | — | | 7.5 | |
High Street Buyer, Inc. and High Street Holdco LLC | 44.5 | | — | | 44.5 | | — | | 44.5 | |
LJ Perimeter Buyer, Inc. and LJ Perimeter Co-Invest, L.P. | 1.9 | | — | | 1.9 | | — | | 1.9 | |
Mimecast Borrowerco, Inc. and Magnesium Co- Invest SCSp | 1.0 | | — | | 1.0 | | — | | 1.0 | |
Pathstone Family Office LLC and Kelso XI Tailwind Co-Investment, L.P. | 0.4 | | — | | 0.4 | | — | | 0.4 | |
PCG-Ares Sidecar Investment, L.P. and PCG-Ares Sidecar Investment II, L.P. | 50.0 | | (12.4) | | 37.6 | | (37.6) | | — | |
Worldwide Produce Acquisition, LLC and REP WWP Coinvest IV, L.P. | 0.2 | | — | | 0.2 | | — | | 0.2 | |
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| $ | 168.9 | | $ | (64.3) | | $ | 104.6 | | $ | (43.0) | | $ | 61.6 | |
(17)As of December 31, 2023, the Company had commitments to co-invest in the SDLP for its portion of the SDLP’s commitment to fund delayed draw loans of up to $60. See Note 4 to the consolidated financial statements for more information on the SDLP.
(18)Other than the investments noted by this footnote, the fair value of the Company’s investments is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 8 to the consolidated financial statements for more information regarding the fair value of the Company’s investments.
(19)As of December 31, 2023, the estimated net unrealized loss for federal tax purposes was $0.4 billion based on a tax cost basis of $22.5 billion. As of December 31, 2023, the estimated aggregate gross unrealized loss for federal income tax purposes was $1.7 billion and the estimated aggregate gross unrealized gain for federal income tax purposes was $1.3 billion.
See accompanying notes to consolidated financial statements
138
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(in millions, except per share data)
(unaudited)
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| Common Stock | | Capital in Excess of Par Value | | Accumulated Undistributed (Overdistributed) Earnings | | Total Stockholders’ Equity |
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Balance at December 31, 2022 | 519 | | | $ | 1 | | | $ | 9,556 | | | $ | (2) | | | $ | 9,555 | |
Issuances of common stock (net of offering and underwriting costs) | 26 | | | — | | | 477 | | | — | | | 477 | |
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Net investment income | — | | | — | | | — | | | 318 | | | 318 | |
Net realized losses on investments, foreign currency and other transactions | — | | | — | | | — | | | (50) | | | (50) | |
Net unrealized gains on investments, foreign currency and other transactions | — | | | — | | | — | | | 10 | | | 10 | |
Dividends declared and payable ($0.48 per share) | — | | | — | | | — | | | (261) | | | (261) | |
Balance at March 31, 2023 | 545 | | | $ | 1 | | | $ | 10,033 | | | $ | 15 | | | $ | 10,049 | |
Issuances of common stock (net of offering and underwriting costs) | 12 | | | — | | | 227 | | | — | | | 227 | |
Shares issued in connection with dividend reinvestment plan | — | | | — | | | 13 | | | — | | | 13 | |
Net investment income | — | | | — | | | — | | | 314 | | | 314 | |
Net realized losses on investments, foreign currency and other transactions | — | | | — | | | — | | | (81) | | | (81) | |
Net unrealized gains on investments, foreign currency and other transactions | — | | | — | | | — | | | 98 | | | 98 | |
Dividends declared and payable ($0.48 per share) | — | | | — | | | — | | | (266) | | | (266) | |
Balance at June 30, 2023 | 557 | | | $ | 1 | | | $ | 10,273 | | | $ | 80 | | | $ | 10,354 | |
Issuances of common stock (net of offering and underwriting costs) | 11 | | | — | | | 215 | | | — | | | 215 | |
Shares issued in connection with dividend reinvestment plan | 1 | | | — | | | 17 | | | — | | | 17 | |
Net investment income | — | | | — | | | — | | | 289 | | | 289 | |
Net realized losses on investments, foreign currency and other transactions | — | | | — | | | — | | | (76) | | | (76) | |
Net unrealized gains on investments, foreign currency and other transactions | — | | | — | | | — | | | 287 | | | 287 | |
Dividends declared and payable ($0.48 per share) | — | | | — | | | — | | | (271) | | | (271) | |
Balance at September 30, 2023 | 569 | | | $ | 1 | | | $ | 10,505 | | | $ | 309 | | | $ | 10,815 | |
Issuances of common stock (net of offering and underwriting costs) | 12 | | | — | | | 236 | | | — | | | 236 | |
Shares issued in connection with dividend reinvestment plan | 1 | | | — | | | 17 | | | — | | | 17 | |
Net investment income | — | | | — | | | — | | | 345 | | | 345 | |
Net realized gains on investments, foreign currency and other transactions | — | | | — | | | — | | | 28 | | | 28 | |
Net unrealized gains on investments, foreign currency and other transactions | — | | | — | | | — | | | 40 | | | 40 | |
Dividends declared and payable ($0.48 per share) | — | | | — | | | — | | | (280) | | | (280) | |
Tax reclassification of stockholders’ equity in accordance with GAAP | — | | | — | | | (20) | | | 20 | | | — | |
Balance at December 31, 2023 | 582 | | | $ | 1 | | | $ | 10,738 | | | $ | 462 | | | $ | 11,201 | |
Issuances of common stock (net of offering and underwriting costs) | 5 | | | — | | | 85 | | | — | | | 85 | |
Shares issued in connection with dividend reinvestment plan | 1 | | | — | | | 21 | | | — | | | 21 | |
Net investment income | — | | | — | | | — | | | 325 | | | 325 | |
Net realized losses on investments, foreign currency, extinguishment of debt and other transactions | — | | | — | | | — | | | (32) | | | (32) | |
Net unrealized gains on investments, foreign currency and other transactions | — | | | — | | | — | | | 156 | | | 156 | |
Conversion of 2024 Convertible Notes | 20 | | | — | | | 407 | | | — | | | 407 | |
Dividends declared and payable ($0.48 per share) | — | | | — | | | — | | | (291) | | | (291) | |
Balance at March 31, 2024 | 608 | | | $ | 1 | | | $ | 11,251 | | | $ | 620 | | | $ | 11,872 | |
Issuances of common stock (net of offering and underwriting costs) | 21 | | | — | | | 449 | | | — | | | 449 | |
Shares issued in connection with dividend reinvestment plan | 1 | | | — | | | 21 | | | — | | | 21 | |
Net investment income | — | | | — | | | — | | | 358 | | | 358 | |
Net realized gains on investments, foreign currency and other transactions | — | | | — | | | — | | | 12 | | | 12 | |
Net unrealized losses on investments, foreign currency and other transactions | — | | | — | | | — | | | (48) | | | (48) | |
Dividends declared and payable ($0.48 per share) | — | | | — | | | — | | | (300) | | | (300) | |
Balance at June 30, 2024 | 630 | | | $ | 1 | | | $ | 11,721 | | | $ | 642 | | | $ | 12,364 | |
See accompanying notes to consolidated financial statements.
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
(unaudited)
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| For the Six Months Ended June 30, |
| 2024 | | 2023 |
OPERATING ACTIVITIES: | | | |
Net increase in stockholders' equity resulting from operations | $ | 771 | | | $ | 609 | |
Adjustments to reconcile net increase in stockholders’ equity resulting from operations: | | | |
Net realized losses on investments, foreign currency and other transactions | 6 | | | 131 | |
Net unrealized gains on investments, foreign currency and other transactions | (108) | | | (108) | |
Realized loss on extinguishment of debt | 14 | | | — | |
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Net accretion of discount on investments | (9) | | | (9) | |
PIK interest | (99) | | | (81) | |
Collections of PIK interest | 26 | | | 27 | |
PIK dividends | (121) | | | (95) | |
Collections of PIK dividends | — | | | 11 | |
Amortization of debt issuance costs | 16 | | | 15 | |
Net amortization of premium on notes payable | (3) | | | (2) | |
Proceeds from sales and repayments of investments and other transactions | 4,347 | | | 2,858 | |
Purchases of investments | (6,221) | | | (2,452) | |
Changes in operating assets and liabilities: | | | |
Interest receivable | (38) | | | (9) | |
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Other assets | (4) | | | (16) | |
Operating lease right-of-use asset | 2 | | | 5 | |
Base management fee payable | 7 | | | — | |
Income based fee payable | 3 | | | (2) | |
Capital gains incentive fee payable | 12 | | | (2) | |
Interest and facility fees payable | 21 | | | (18) | |
Payable to participants | 8 | | | 8 | |
Accounts payable and other liabilities | 34 | | | (39) | |
Operating lease liabilities | (3) | | | (7) | |
Net cash (used in) provided by operating activities | (1,339) | | | 824 | |
FINANCING ACTIVITIES: | | | |
Borrowings on debt | 7,790 | | | 1,897 | |
Repayments and repurchases of debt | (6,275) | | | (2,739) | |
Debt issuance costs | (33) | | | (12) | |
Repayment of 2024 Convertible Notes | (10) | | | — | |
Net proceeds from issuance of common stock | 534 | | | 704 | |
Dividends paid | (549) | | | (514) | |
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Secured borrowings, net | (1) | | | (44) | |
Net cash provided by (used in) financing activities | 1,456 | | | (708) | |
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 117 | | | 116 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 564 | | | 337 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 681 | | | $ | 453 | |
Supplemental Information: | | | |
Interest paid during the period | $ | 288 | | | $ | 271 | |
Taxes, including excise tax, paid during the period | $ | 32 | | | $ | 28 | |
Dividends declared and payable during the period | $ | 591 | | | $ | 527 | |
See accompanying notes to consolidated financial statements.
ARES CAPITAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of June 30, 2024
(in millions, except per share data, percentages and as otherwise indicated;
for example, with the word “billion” or otherwise)
(unaudited)
1. ORGANIZATION
Ares Capital Corporation (the “Company”) is a specialty finance company that is a closed-end, non-diversified management investment company incorporated in Maryland. The Company has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”). The Company has elected to be treated as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), and operates in a manner so as to qualify for the tax treatment applicable to RICs.
The Company’s investment objective is to generate both current income and capital appreciation through debt and equity investments. The Company invests primarily in first lien senior secured loans (including “unitranche” loans, which are loans that combine both senior and subordinated debt, generally in a first lien position) and second lien senior secured loans. In addition to senior secured loans, the Company also invests in subordinated loans (sometimes referred to as mezzanine debt) and preferred equity. To a lesser extent, the Company also makes common equity investments.
The Company is externally managed by Ares Capital Management LLC (“Ares Capital Management” or the Company’s “investment adviser”), a subsidiary of Ares Management Corporation (“Ares Management”), a publicly traded, leading global alternative investment manager, pursuant to an investment advisory and management agreement. Ares Operations LLC (“Ares Operations” or the Company’s “administrator”), a subsidiary of Ares Management, provides certain administrative and other services necessary for the Company to operate.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (“GAAP”), and include the accounts of the Company and its consolidated subsidiaries. The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition as of and for the periods presented. All significant intercompany balances and transactions have been eliminated.
Interim financial statements are prepared in accordance with GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Articles 6 or 10 of Regulation S-X. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period presented, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2024.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include funds from time to time deposited with financial institutions and short-term, liquid investments in a money market account. Cash and cash equivalents are carried at cost which approximates fair value. As of June 30, 2024 and December 31, 2023, there was $37 and $36, respectively, of cash denominated in foreign currencies included within “cash and cash equivalents” or “restricted cash” in the accompanying consolidated balance sheet.
Restricted cash primarily relates to cash held as collateral for interest rate swaps and cash received by the Company on behalf of participating lenders as a result of the Company’s role as administrative agent for certain loans. The cash received is generally distributed to participating lenders shortly after the receipt of such cash.
The following table provides a reconciliation of cash, cash equivalents and restricted cash in the consolidated balance sheet to the total amount shown at the end of the applicable period in the consolidated statement of cash flows:
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| As of |
| | | |
| June 30, 2024 | | December 31, 2023 |
Cash and cash equivalents | $ | 601 | | | $ | 535 | |
Restricted cash | 80 | | | 29 | |
Total cash, cash equivalents and restricted cash shown in the consolidated statement of cash flows | $ | 681 | | | $ | 564 | |
Concentration of Credit Risk
The Company places its cash and cash equivalents with financial institutions and, at times, cash held in depository or money market accounts may exceed the Federal Deposit Insurance Corporation insured limits.
Investments
Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. Unrealized gains or losses primarily reflect the change in investment values, including the reversal of previously recorded unrealized gains or losses when gains or losses are realized.
Pursuant to Rule 2a-5 under the Investment Company Act, the Company’s board of directors designated the Company’s investment adviser as the Company’s valuation designee (the “Valuation Designee”) to perform the fair value determinations for investments held by the Company without readily available market quotations, subject to the oversight of the Company’s board of directors. All investments are recorded at their fair value.
Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, the Valuation Designee looks at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available (i.e., substantially all of the Company’s investments) are valued at least quarterly at fair value as determined in good faith by the Valuation Designee, subject to the oversight of the Company’s board of directors, based on, among other things, the input of the Company’s independent third-party valuation providers (“IVPs”) that have been engaged to support the valuation of such portfolio investments at least once during a trailing 12-month period (with certain de minimis exceptions) and under a valuation policy and a consistently applied valuation process. The valuation process is conducted at the end of each fiscal quarter by the Valuation Designee, and a portion of the Company’s investment portfolio at fair value is subject to review by an IVP each quarter as discussed further below. However, the Company may use these IVPs to review the value of its investments more frequently, including in connection with the occurrence of significant events or changes in value affecting a particular investment. In addition, the Company’s independent registered public accounting firm obtains an understanding of, and performs select procedures relating to, the Company’s valuation process within the context of performing the Company’s integrated audit.
As part of the valuation process, the Valuation Designee may take into account the following types of factors, if relevant, in determining the fair value of the Company’s investments: the enterprise value of a portfolio company (the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time), the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, changes in the interest rate environment and the credit markets, which may affect the price at which similar investments would trade in their principal markets and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Valuation Designee considers the pricing indicated by the external event to corroborate the valuation.
Because there is not a readily available market value for most of the investments in the Company’s portfolio, substantially all of the Company’s portfolio investments are valued at fair value as determined in good faith by the Valuation Designee, as described herein. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of the Company’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly
traded securities. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, the Company could realize significantly less than the value at which the Company has recorded it.
In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.
The Valuation Designee, subject to the oversight of the Company’s board of directors, undertakes a multi-step valuation process each quarter, as described below:
•The Company’s quarterly valuation process begins with a preliminary valuation being prepared by the investment professionals responsible for the portfolio investment in conjunction with the Company’s portfolio management and valuation team.
•Preliminary valuations are reviewed and discussed by the valuation committee of the Valuation Designee.
•For portfolio investments selected for review by an IVP,
◦Relevant information related to the portfolio investment is made available by the Valuation Designee to the IVP, who does not independently verify such information.
◦The IVP reviews and analyzes the information provided by the Valuation Designee, along with relevant market and economic data, and independently determines a range of values for each of the selected portfolio investments.
◦The IVP provides its analysis to the Valuation Designee to support the IVP’s valuation methodology and calculations.
•The valuation committee of the Valuation Designee determines the fair value of each investment in the Company’s portfolio without a readily available market quotation in good faith based on, among other things, the input of the IVPs, where applicable.
•For portfolio investments selected for review by an IVP, a positive assurance opinion or independent valuation report is issued by the IVP that confirms the fair value determined by the Valuation Designee for a selected portfolio investment is within the range of values independently calculated by such IVP.
See Note 8 for more information on the Company’s valuation process.
Interest Income Recognition
Interest income is recorded on an accrual basis and includes the accretion of discounts, amortization of premiums and payment-in-kind (“PIK”) interest. Discounts from and premiums to par value on investments purchased are accreted/amortized into interest income over the life of the respective security using the effective yield method. To the extent loans contain PIK provisions, PIK interest, computed at the contractual rate specified in each applicable agreement, is accrued and recorded as interest income and added to the principal balance of the loan. PIK interest income added to the principal balance is generally collected upon repayment of the outstanding principal. To maintain the Company’s tax status as a RIC, this non-cash source of income must be paid out to stockholders in the form of dividends for the year the income was earned, even though the Company has not yet collected the cash. The amortized cost of investments represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest.
Loans are generally placed on non-accrual status when principal or interest payments are past due 30 days or more or when there is reasonable doubt that principal or interest will be collected in full. Accrued and unpaid interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon the Company’s judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest are paid or there is no longer any reasonable doubt that such principal or interest will be collected in full and, in the Company’s judgment, are likely to remain current. The Company may make exceptions to this policy if the loan has sufficient collateral value (i.e., typically measured as enterprise value of the portfolio company) or is in the process of collection.
Dividend Income Recognition
Dividend income on preferred equity is recorded on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. To the extent a preferred equity contains PIK provisions, PIK dividends, computed at the contractual rate specified in each applicable agreement, are accrued and recorded as dividend income and added to the principal balance of the preferred equity. PIK dividends added to the principal balance are generally collected upon redemption of the equity.
Capital Structuring Service Fees and Other Income
In pursuit of the Company’s investment objective, the Company’s investment adviser seeks to provide assistance to its portfolio companies and in return the Company may receive fees for capital structuring services. These fees are fixed based on contractual terms, are generally only available to the Company as a result of the Company’s underlying investments, are normally paid at the closing of the investments, are generally non-recurring and non-refundable and are recognized as revenue when earned upon closing of the investment. The services that the Company’s investment adviser provides vary by investment, but generally include reviewing existing credit facilities, arranging bank financing, arranging equity financing, structuring financing from multiple lenders, structuring financing from multiple equity investors, restructuring existing loans, raising equity and debt capital, and providing general financial advice, which concludes upon closing of the investment. Any services of the above nature subsequent to the closing would generally generate a separate fee payable to the Company. In certain instances where the Company is invited to participate as a co-lender in a transaction and does not provide significant services in connection with the investment, a portion of loan fees paid to the Company in such situations will be deferred and amortized over the contractual life of the loan.
Other income includes amendment fees that are fixed based on contractual terms and are generally non-recurring and non-refundable and are recognized as revenue when earned upon closing of the related transaction. Other income also includes fees for management and consulting services, agency services, loan guarantees, commitments, and other services rendered by the Company to portfolio companies. Such fees are fixed based on contractual terms and are recognized as income as services are rendered.
Foreign Currency Translation
The Company’s books and records are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:
(1)Fair value of investment securities, other assets and liabilities—at the exchange rates prevailing at the end of the period.
(2)Purchases and sales of investment securities, income and expenses—at the exchange rates prevailing on the respective dates of such transactions, income or expenses.
Results of operations based on changes in foreign exchange rates are separately disclosed in the statement of operations, if any. Foreign security and currency translations may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices more volatile than those of comparable U.S. companies or U.S. government securities.
Derivative Instruments
The Company follows the guidance in ASC Topic 815, Derivatives and Hedging, when accounting for derivative instruments. The Company designated certain interest rate swaps as hedging instruments in a qualifying fair value hedge accounting relationship, and as a result, the change in fair value of the hedging instruments and hedged items are recorded in interest expense and recognized as components of “interest and credit facility fees” in the Company’s consolidated statement of operations. The change in fair value of the interest rate swaps is offset by a change in the carrying value of the corresponding fixed rate debt. For all other derivatives, the Company does not utilize hedge accounting and values such derivatives at fair value with the unrealized gains or losses recorded in “net unrealized gains (losses) from foreign currency and other transactions” in the Company’s consolidated statement of operations.
Equity Offering Expenses
The Company’s offering costs are charged against the proceeds from equity offerings when proceeds are received.
Debt Issuance Costs
Debt issuance costs are amortized over the life of the related debt instrument using the straight line method or the effective yield method, depending on the type of debt instrument.
Secured Borrowings
The Company follows the guidance in ASC Topic 860, Transfers and Servicing (“ASC Topic 860”), when accounting for participations and other partial loan sales. Certain loan sales do not qualify for sale accounting under ASC Topic 860 because these sales do not meet the definition of a “participating interest,” as defined in the guidance, in order for sale treatment to be allowed. Participations or other partial loan sales which do not meet the definition of a participating interest or which are not eligible for sale accounting remain as an investment on the consolidated balance sheet as required under GAAP and the proceeds are recorded as a secured borrowing. Secured borrowings are carried at fair value.
Leases
The Company is obligated under an operating lease pursuant to which it is leasing office facilities from a third party with a remaining term of approximately three years. The operating lease is included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the accompanying consolidated balance sheets. The Company does not have any finance leases.
The ROU asset represents the Company’s right to use an underlying asset for the lease term and the operating lease liability represents the Company’s obligation to make lease payments arising from such lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the remaining lease term. The Company’s lease does not provide an implicit discount rate, and as such the Company uses its weighted average borrowing rate based on the information available at the commencement date in determining the present value of the remaining lease payments. Lease expense is recognized on a straight-line basis over the remaining lease term. The Company has elected as a practical expedient to treat non-lease components as part of the lease as these components are not significant when compared to the lease component.
Income Taxes
The Company has elected to be treated as a RIC under the Code and operates in a manner so as to qualify for the tax treatment applicable to RICs. To qualify for tax treatment as a RIC, the Company must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to its stockholders at least 90% of its investment company taxable income, as defined by the Code, for each year. The Company has made and intends to continue to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal corporate-level income taxes.
Depending on the level of taxable income earned in a tax year, the Company may choose to carry forward taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, the Company accrues excise tax, if any, on estimated excess taxable income as such taxable income is earned.
The Company may hold certain portfolio company investments through consolidated taxable subsidiaries. Such subsidiaries may be subject to U.S. federal and state corporate-level income taxes. These consolidated subsidiaries recognize deferred tax assets and liabilities for the estimated future tax effects attributable to temporary differences between the tax basis of certain assets and liabilities and the reported amounts included in the accompanying consolidated balance sheet using the applicable statutory tax rates in effect for the year in which any such temporary differences are expected to reverse. As of June 30, 2024 and December 31, 2023, the Company recorded deferred tax liabilities of $67 and $87, respectively, included within “accounts payable and other liabilities” in the accompanying consolidated balance sheet, for certain of the Company’s taxable consolidated subsidiaries.
Dividends to Common Stockholders
Dividends and distributions to common stockholders are recorded on the ex-dividend date. The amount to be paid out as a dividend is determined by the Company’s board of directors each quarter and is generally based upon the earnings estimated by management and considers the level of undistributed taxable income carried forward from the prior year for distribution in the current year. Net realized capital gains, if any, are generally distributed, although the Company may decide to retain such capital gains for investment.
The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, if the Company’s board of directors authorizes, and the Company declares, a cash dividend, then the Company’s stockholders who have not “opted out” of the Company’s dividend reinvestment plan will have their cash dividends automatically reinvested in additional shares of the Company’s common stock, rather than receiving the cash dividend. The Company may use newly issued shares to implement the dividend reinvestment plan or, if the Company is otherwise permitted under applicable law to purchase such shares, the Company may purchase shares in the open market in connection with the Company’s obligations under the dividend reinvestment plan.
Use of Estimates in the Preparation of Consolidated Financial Statements
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of actual and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of income or loss and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the valuation of investments.
Recent Accounting Pronouncements
The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (the “FASB”). ASUs not listed were assessed by the Company and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements.
In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”),” which enhances disclosure requirements about significant segment expenses that are regularly provided to the chief operating decision maker (the “CODM”). ASU 2023-07, among other things, (i) requires a single segment public entity to provide all of the disclosures as required by Topic 280, (ii) requires a public entity to disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources and (iii) provides the ability for a public entity to elect more than one performance measure. ASU 2023-07 is effective for the fiscal years beginning after December 15, 2023, and interim periods beginning with the first quarter ended March 31, 2025. Early adoption is permitted and retrospective adoption is required for all prior periods presented. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact on its consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”),” which intends to improve the transparency of income tax disclosures. ASU No. 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, the Company does not expect a material impact to its consolidated financial statements.
3. AGREEMENTS
Investment Advisory and Management Agreement
The Company is party to an investment advisory and management agreement (the “investment advisory and management agreement”), with its investment adviser, Ares Capital Management. Subject to the overall supervision of the Company’s board of directors and in accordance with the Investment Company Act, Ares Capital Management provides investment advisory and management services to the Company. For providing these services, Ares Capital Management receives fees from the Company consisting of a base management fee, a fee based on the Company’s net investment income (“income based fee”) and a fee based on the Company’s net capital gains (“capital gains incentive fee”). The investment advisory and management agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party.
Effective June 21, 2019, in connection with the Company’s board of directors’ approval of the modification of the asset coverage requirement applicable to senior securities from 200% to 150%, the investment advisory and management agreement was amended to reduce the Company’s annual base management fee rate from 1.5% to 1.0% on all assets financed using leverage over 1.0x debt to equity. For all assets financed using leverage up to 1.0x debt to equity, the annual base management fee rate remains at 1.5%. The base management fee is based on the average value of the Company’s total assets (other than cash or cash equivalents but including assets purchased with borrowed funds) at the end of the two most recently completed calendar quarters and is calculated by applying the applicable fee rate. The base management fee is payable quarterly in arrears. See Note 5 for more information.
The income based fee is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income, as defined in the investment advisory and management agreement, for the quarter. Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the administration agreement, and any interest expense and dividends paid on any outstanding preferred stock, but excluding the income based fee and capital gains incentive fee accrued under GAAP). Pre-incentive fee net investment income includes, in the case of investments with a deferred income feature (such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero coupon securities), accrued income that the Company has not yet received in cash. The Company’s investment adviser is not under any obligation to reimburse the Company for any part of the income based fee it received that were based on accrued income that the Company never actually received.
Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses, unrealized capital appreciation, unrealized capital depreciation or income tax expense related to realized gains and losses. Because of the structure of the income based fee, it is possible that the Company may pay such fees in a quarter where the Company incurs a loss. For example, if the Company earns pre-incentive fee net investment income in excess of the hurdle rate (as defined below) for a quarter, the Company will pay the applicable income based fee even if the Company has incurred a loss in that quarter due to realized and/or unrealized capital losses.
Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any income based fee and capital gains incentive fee payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 1.75% per quarter. If market credit spreads rise, the Company may be able to invest its funds in debt instruments that provide for a higher return, which may increase the Company’s pre-incentive fee net investment income and make it easier for the Company’s investment adviser to surpass the fixed hurdle rate and receive an income based fee based on such net investment income. To the extent the Company has retained pre-incentive fee net investment income that has been used to calculate the income based fee, it is also included in the amount of the Company’s total assets (other than cash and cash equivalents but including assets purchased with borrowed funds) used to calculate the base management fee.
The Company pays its investment adviser an income based fee with respect to the Company’s pre-incentive fee net investment income in each calendar quarter as follows:
•No income based fee in any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the hurdle rate;
•100% of the Company’s pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.1875% in any calendar quarter. The Company refers to this portion of its pre-incentive fee net investment income (which exceeds the hurdle rate but is less than 2.1875%) as the “catch-up” provision. The “catch-up” is meant to provide the Company’s investment adviser with 20% of the pre-incentive fee net investment income as if a hurdle rate did not apply if this net investment income exceeded 2.1875% in any calendar quarter; and
•20% of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeds 2.1875% in any calendar quarter.
These calculations are adjusted for any share issuances or repurchases during the quarter.
The capital gains incentive fee is determined and payable in arrears as of the end of each calendar year (or, upon termination of the investment advisory and management agreement, as of the termination date) and is calculated at the end of each applicable year by subtracting (a) the sum of the Company’s cumulative aggregate realized capital losses and aggregate unrealized capital depreciation from (b) the Company’s cumulative aggregate realized capital gains, in each case calculated from October 8, 2004 (the date the Company completed its initial public offering). Realized capital gains and losses include gains and losses on investments and foreign currencies, gains and losses on extinguishment of debt and from other assets, as well as any income tax and other expenses related to cumulative aggregate realized gains and losses. If such amount is positive at the end of such year, then the capital gains incentive fee for such year is equal to 20% of such amount, less the aggregate amount of capital gains incentive fees paid in all prior years. If such amount is negative, then there is no capital gains incentive fee for such year.
The cumulative aggregate realized capital gains are calculated as the sum of the differences, if positive, between (a) the net sales price of each investment in the Company’s portfolio when sold and (b) the accreted or amortized cost basis of such investment.
The cumulative aggregate realized capital losses are calculated as the sum of the amounts by which (a) the net sales price of each investment in the Company’s portfolio when sold is less than (b) the accreted or amortized cost basis of such investment.
The aggregate unrealized capital depreciation is calculated as the sum of the differences, if negative, between (a) the valuation of each investment in the Company’s portfolio as of the applicable capital gains incentive fee calculation date and (b) the accreted or amortized cost basis of such investment.
Notwithstanding the foregoing, if the Company is required by GAAP to record an investment at its fair value as of the time of acquisition instead of at the actual amount paid for such investment by the Company (including, for example, as a result of the application of the asset acquisition method of accounting), then solely for the purposes of calculating the capital gains incentive fee, the “accreted or amortized cost basis” of an investment shall be an amount (the “Contractual Cost Basis”) equal to (1) (x) the actual amount paid by the Company for such investment plus (y) any amounts recorded in the Company’s financial statements as required by GAAP that are attributable to the accretion of such investment plus (z) any other adjustments made to the cost basis included in the Company’s financial statements, including PIK interest or additional amounts funded (net of repayments) minus (2) any amounts recorded in the Company’s financial statements as required by GAAP that are attributable to the amortization of such investment, whether such calculated Contractual Cost Basis is higher or lower than the fair value of such investment (as determined in accordance with GAAP) at the time of acquisition.
The base management fee, income based fee and capital gains incentive fee for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Base management fee | $ | 91 | | | $ | 79 | | | $ | 178 | | | $ | 158 | |
| | | | | | | |
Income based fee | $ | 93 | | | $ | 79 | | | $ | 181 | | | 155 | |
Capital gains incentive fee(1) | $ | (13) | | | $ | 4 | | | $ | 12 | | | (2) | |
________________________________________
(1)Calculated in accordance with GAAP as discussed below.
There was no capital gains incentive fee payable to the Company’s investment adviser as calculated under the investment advisory and management agreement for the three and six months ended June 30, 2024 and 2023. In addition, in accordance with GAAP, the Company had cumulatively accrued a capital gains incentive fee of $100 as of June 30, 2024. GAAP requires that the capital gains incentive fee accrual consider the cumulative aggregate unrealized capital appreciation in the calculation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized, even though such unrealized capital appreciation is not permitted to be considered in calculating the fee actually payable under the investment advisory and management agreement. This GAAP accrual is calculated using the aggregate cumulative realized capital gains and losses and aggregate cumulative unrealized capital depreciation included in the calculation of the capital gains incentive fee plus the aggregate cumulative unrealized capital appreciation, net of any expense associated with cumulative unrealized capital depreciation or appreciation. If such amount is positive at the end of a period, then GAAP requires the Company to record a capital gains incentive fee equal to 20% of such cumulative amount, less the aggregate amount of actual
capital gains incentive fees paid or capital gains incentive fees accrued under GAAP in all prior periods. As of June 30, 2024, the Company has paid capital gains incentive fees since inception totaling $133. The resulting accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reversal of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. There can be no assurance that such unrealized capital appreciation will be realized in the future.
Cash payment of any income based fee and capital gains incentive fee otherwise earned by the Company’s investment adviser is deferred if during the most recent four full calendar quarter period ending on or prior to the date such payment is to be made the sum of (a) the aggregate distributions to the Company’s stockholders and (b) the change in net assets (defined as total assets less indebtedness and before taking into account any income based fee and capital gains incentive fee payable during the period) is less than 7.0% of the Company’s net assets (defined as total assets less indebtedness) at the beginning of such period. These calculations will be adjusted for any share issuances or repurchases. Any income based fee and capital gains incentive fee deferred for payment are carried over for payment in subsequent calculation periods to the extent such fees are payable under the terms of the investment advisory and management agreement.
The services of all investment professionals and staff of the Company’s investment adviser, when and to the extent engaged in providing investment advisory and management services to the Company, and the compensation and routine overhead expenses of such personnel allocable to such services, are provided and paid for by the Company’s investment adviser. Under the investment advisory and management agreement, the Company bears all other costs and expenses of its operations and transactions, including, but not limited to, those relating to: organization; calculation of the Company’s net asset value (including, but not limited to, the cost and expenses of any IVP); expenses incurred by the Company’s investment adviser payable to third parties, including agents, consultants or other advisers, in monitoring the Company’s financial and legal affairs and in monitoring the Company’s investments (including the cost of consultants hired to develop information technology systems designed to monitor the Company’s investments) and performing due diligence on the Company’s prospective portfolio companies; interest payable on indebtedness, if any, incurred to finance the Company’s investments (including, but not limited to, payments to third party vendors for financial information services); offerings of the Company’s common stock and other securities (including, but not limited to, costs of rating agencies); investment advisory and management fees; administration fees payable under the administration agreement; fees payable to third parties, including agents, consultants or other advisers, relating to, or associated with, evaluating and making investments in portfolio companies, regardless of whether such transactions are ultimately consummated (including, but not limited to, payments to third party vendors for financial information services); transfer agent and custodial fees; registration fees; listing fees; taxes; independent directors’ fees and expenses; costs of preparing and filing reports or other documents required by governmental bodies (including the Securities and Exchange Commission (the “SEC”)); the costs of any reports, proxy statements or other notices to stockholders, including printing costs; to the extent the Company is covered by any joint insurance policies, the Company’s allocable portion of the insurance premiums for such policies; direct costs and expenses of administration, including auditor and legal costs; and all other expenses incurred by the Company or its administrator in connection with administering the Company’s business as described in more detail under “Administration Agreement” below.
Administration Agreement
The Company is party to an administration agreement (the “administration agreement”) with its administrator, Ares Operations. Pursuant to the administration agreement, Ares Operations furnishes the Company with office equipment and clerical, bookkeeping and record keeping services at the Company’s office facilities. Under the administration agreement, Ares Operations also performs, or oversees the performance of, the Company’s required administrative services, which include, among other things, providing assistance in accounting, legal, compliance, operations, technology and investor relations, being responsible for the financial and other records that the Company is required to maintain and preparing all reports and other materials required to be filed with the SEC or any other regulatory authority, including reports to stockholders. In addition, Ares Operations assists the Company in determining and publishing its net asset value, assists the Company in providing managerial assistance to its portfolio companies, oversees the preparation and filing of the Company’s tax returns and the printing and dissemination of reports to its stockholders, and generally oversees the payment of its expenses and the performance of administrative and professional services rendered to the Company by others. Payments under the administration agreement are equal to an amount based upon the Company’s allocable portion of Ares Operations’ overhead and other expenses (including travel expenses) incurred by Ares Operations in performing its obligations under the administration agreement, including the Company’s allocable portion of the compensation, rent and other expenses of certain of the Company’s officers (including the Company’s chief compliance officer, chief financial officer, chief accounting officer, general counsel, secretary, treasurer and assistant treasurer) and their respective staffs. The administration agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party.
For the three and six months ended June 30, 2024, the Company incurred $3 and $6, respectively, and $3 and $6, respectively, for the comparable periods in 2023, in administrative and other fees, including certain costs that are reimbursable under the investment advisory and management agreement or the administration agreement. As of June 30, 2024 and December 31, 2023, $7 and $4, respectively, in administrative and other fees were unpaid and included in “accounts payable and other liabilities” in the accompanying consolidated balance sheet.
4. INVESTMENTS
As of June 30, 2024 and December 31, 2023, investments consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | |
| As of |
| | | |
| June 30, 2024 | | December 31, 2023 |
| Amortized Cost(1) | | Fair Value | | Amortized Cost(1) | | Fair Value |
First lien senior secured loans(2) | $ | 12,732 | | | $ | 12,434 | | | $ | 10,313 | | | $ | 10,081 | |
Second lien senior secured loans | 3,120 | | | 3,011 | | | 3,980 | | | 3,753 | |
Subordinated certificates of the SDLP(3) | 1,271 | | | 1,241 | | | 1,316 | | | 1,288 | |
Senior subordinated loans | 1,438 | | | 1,401 | | | 1,150 | | | 1,096 | |
| | | | | | | |
Preferred equity | 2,731 | | | 2,741 | | | 2,457 | | | 2,460 | |
Ivy Hill Asset Management, L.P.(4) | 1,724 | | | 1,956 | | | 1,763 | | | 1,987 | |
Other equity | 1,691 | | | 2,189 | | | 1,689 | | | 2,209 | |
Total | $ | 24,707 | | | $ | 24,973 | | | $ | 22,668 | | | $ | 22,874 | |
________________________________________
(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and PIK interest or dividends.
(2)First lien senior secured loans include certain loans that the Company classifies as “unitranche” loans. The total amortized cost and fair value of the loans that the Company classified as “unitranche” loans were $7,313 and $7,184 respectively, as of June 30, 2024, and $5,786 and $5,667, respectively, as of December 31, 2023.
(3)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 19 and 22 different borrowers as of June 30, 2024 and December 31, 2023, respectively.
(4)Includes the Company’s subordinated loan and equity investments in IHAM (as defined below), as applicable.
The Company uses GICS for classifying the industry groupings of its portfolio companies. The industrial and geographic compositions of the Company’s portfolio at fair value as of June 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | |
| As of |
| | | |
| June 30, 2024 | | December 31, 2023 |
Industry | | | |
Software and Services | 24.2 | % | | 23.2 | % |
Health Care Services | 12.6 | | | 12.1 | |
Commercial and Professional Services | 10.6 | | | 9.8 | |
Financial Services(1) | 10.3 | | | 11.5 | |
Insurance Services | 5.3 | | | 5.1 | |
Investment Funds and Vehicles(2) | 5.2 | | | 5.8 | |
Consumer Services | 4.8 | | | 4.3 | |
Power Generation | 3.2 | | | 4.2 | |
Retailing and Distribution | 3.2 | | | 2.5 | |
Media and Entertainment | 3.0 | | | 2.8 | |
Consumer Durables and Apparel | 2.9 | | | 3.1 | |
Capital Goods | 2.4 | | | 2.4 | |
Food and Beverage | 2.0 | | | 2.1 | |
Consumer Staples Distribution and Retail | 1.9 | | | 1.8 | |
Energy | 1.6 | | | 2.2 | |
Other | 6.8 | | | 7.1 | |
Total | 100.0 | % | | 100.0 | % |
________________________________________
(1)Includes the Company’s investment in IHAM.
(2)Includes the Company’s investment in the SDLP (as defined below), which had made first lien senior secured loans to 19 and 22 different borrowers as of June 30, 2024 and December 31, 2023, respectively. The portfolio companies in the SDLP are in industries similar to the companies in the Company’s portfolio.
| | | | | | | | | | | |
| As of |
| | | |
| June 30, 2024 | | December 31, 2023 |
Geographic Region | | | |
West(1) | 24.1 | % | | 24.3 | % |
Midwest | 24.1 | | | 24.7 | |
Southeast | 17.9 | | | 18.5 | |
Mid-Atlantic | 14.4 | | | 13.3 | |
Northeast(2) | 13.1 | | | 13.2 | |
International | 6.4 | | | 6.0 | |
Total | 100.0 | % | | 100.0 | % |
________________________________________
(1)Includes the Company’s investment in the SDLP, which represented 5.0% and 5.6% of the total investment portfolio at fair value as of June 30, 2024 and December 31, 2023, respectively.
(2)Includes the Company’s investment in IHAM, which represented 7.8% and 8.7% of the total investment portfolio at fair value as of June 30, 2024 and December 31, 2023, respectively.
As of June 30, 2024 and December 31, 2023, loans on non-accrual status represented 1.5% of the total investments at amortized cost (or 0.7% at fair value) and 1.3% at amortized cost (or 0.6% at fair value), respectively.
Ivy Hill Asset Management, L.P.
Ivy Hill Asset Management, L.P. (“IHAM”), a wholly owned portfolio company of the Company, is an asset manager and an SEC-registered investment adviser. As of June 30, 2024, IHAM had assets under management of approximately $13.2 billion. As of June 30, 2024, IHAM managed 21 vehicles (the “IHAM Vehicles”). IHAM earns fee income from managing the IHAM Vehicles and has also invested in certain of these vehicles as part of its business strategy. The amortized cost of IHAM’s total investments as of June 30, 2024 and December 31, 2023 was $2,311 and $2,288, respectively. For the three and six months ended June 30, 2024, IHAM had management and incentive fee income of $14 and $28, respectively, and investment-related income of $92 and $191, respectively, which included net realized gains or losses on investments and other transactions. For the three and six months ended June 30, 2023, IHAM had management and incentive fee income of $13 and $27, respectively, and investment-related income of $95 and $156, respectively, which included net realized gains or losses on investments and other transactions.
The amortized cost and fair value of the Company’s investment in IHAM as of June 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| As of |
| | | | | |
| June 30, 2024 | | December 31, 2023 | | |
| Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | |
Subordinated loan(1) | $ | 23 | | | $ | 23 | | | $ | 62 | | | $ | 62 | | | |
Equity | 1,701 | | | 1,933 | | | 1,701 | | | 1,925 | | | |
Total investment in IHAM | $ | 1,724 | | | $ | 1,956 | | | $ | 1,763 | | | $ | 1,987 | | | |
_______________________________________________________________________________
(1)The Company has provided a commitment to fund up to $500 to IHAM, of which the availability is solely at the Company’s discretion.
The interest income and dividend income that the Company earned from IHAM for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Interest income | $ | — | | | $ | 10 | | | $ | 1 | | | $ | 23 | |
Dividend income | $ | 69 | | | $ | 60 | | | $ | 135 | | | $ | 117 | |
| | | | | | | |
From time to time, IHAM or certain IHAM Vehicles may purchase investments from, or sell investments to, the Company. For any such sales or purchases by the IHAM Vehicles to or from the Company, the IHAM Vehicle must obtain approval from third parties unaffiliated with the Company or IHAM, as applicable. During the six months ended June 30, 2024 and 2023, IHAM or certain of the IHAM Vehicles purchased $35 and $691, respectively, of loans from the Company. For the six months ended June 30, 2024 and 2023, the Company recognized $1 and $11, respectively, of net realized losses from these sales. During the six months ended June 30, 2024 and 2023, IHAM or certain IHAM Vehicles sold $32 and $7, respectively, of investments to the Company.
The yields at amortized cost and fair value of the Company’s investments in IHAM as of June 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | As of |
| | | | |
| | June 30, 2024 | | December 31, 2023 |
| | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Subordinated loan | | 12.0 | % | | 12.0 | % | | 12.0 | % | | 12.0 | % |
Equity(1) | | 16.2 | % | | 14.3 | % | | 15.1 | % | | 13.3 | % |
| | | | | | | | |
_______________________________________________________________________________
(1)Represents the yield on the Company’s equity investment in IHAM, which is computed as (a) the annualized amount of the dividend received by the Company related to the Company’s equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of the Company’s equity investment in IHAM, as applicable.
IHAM is party to an administration agreement, referred to herein as the “IHAM administration agreement,” with Ares Operations. Pursuant to the IHAM administration agreement, Ares Operations provides IHAM with, among other things, office facilities, equipment, clerical, bookkeeping and record keeping services, services relating to the marketing and sale of interests in vehicles managed by IHAM, services of, and oversight of, custodians, depositories, accountants, attorneys, underwriters and such other persons in any other capacity deemed to be necessary. Under the IHAM administration agreement, IHAM reimburses Ares Operations for all of the actual costs associated with such services, including Ares Operations’ allocable portion of the compensation, rent and other expenses of its officers, employees and respective staff in performing its obligations under the IHAM administration agreement.
Selected Financial Information
Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with GAAP, as of June 30, 2024 and December 31, 2023 and for the three and six months ended June 30, 2024 and 2023 are presented below.
In conformity with GAAP, IHAM is required to consolidate entities in which IHAM has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model, which include certain of the IHAM Vehicles (the “Consolidated IHAM Vehicles”). As such, for GAAP purposes only, IHAM consolidates (a) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity and (b) entities that it concludes are variable interest entities in which IHAM has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which IHAM is deemed to be the primary beneficiary.
When IHAM consolidates an IHAM Vehicle for GAAP purposes only, IHAM reflects the assets, liabilities, revenues and expenses of the Consolidated IHAM Vehicles on a gross basis, including the economic interests held by third-party investors in the Consolidated IHAM Vehicles as debt obligations, subordinated notes or non-controlling interests, in the consolidated IHAM financials below. All of the revenues earned by IHAM as the investment manager of the Consolidated IHAM Vehicles are eliminated in GAAP consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the GAAP consolidation of an IHAM Vehicle does not impact the net income or loss attributable to IHAM. As a result, the Company believes an assessment of IHAM's business and the impact to the Company’s investment in IHAM is best viewed on a stand-alone basis as reflected in the first column in the tables below.
| | | | | | | | | | | | | | | | | | | | | | | |
| As of June 30, 2024 |
| IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Balance Sheet Information: | | | | | | | |
Assets | | | | | | | |
| | | | | | | |
Investments at fair value(2) | $ | 2,266 | | | $ | 8,553 | | | $ | (2,208) | | | $ | 8,611 | |
Cash and cash equivalents | 7 | | | 968 | | | — | | | 975 | |
Other assets | 68 | | | 79 | | | (64) | | | 83 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total assets | $ | 2,341 | | | $ | 9,600 | | | $ | (2,272) | | | $ | 9,669 | |
| | | | | | | |
Liabilities | | | | | | | |
Debt | $ | 462 | | | $ | 6,872 | | | $ | — | | | $ | 7,334 | |
Subordinated note from ARCC | 23 | | | — | | | — | | | 23 | |
Subordinated notes(3) | — | | | 1,213 | | | (906) | | | 307 | |
Other liabilities | 20 | | | 228 | | | (15) | | | 233 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total liabilities | 505 | | | 8,313 | | | (921) | | | 7,897 | |
Equity | | | | | | | |
Contributed capital | 1,701 | | | — | | | — | | | 1,701 | |
Accumulated earnings | 183 | | | — | | | — | | | 183 | |
Net unrealized losses on investments and foreign currency transactions(4) | (48) | | | — | | | — | | | (48) | |
Non-controlling interests in Consolidated IHAM Vehicles(5) | — | | | 1,287 | | | (1,351) | | | (64) | |
| | | | | | | |
| | | | | | | |
Total equity | 1,836 | | | 1,287 | | | (1,351) | | | 1,772 | |
Total liabilities and equity | $ | 2,341 | | | $ | 9,600 | | | $ | (2,272) | | | $ | 9,669 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| As of December 31, 2023 |
| IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Balance Sheet Information: | | | | | | | |
Assets | | | | | | | |
| | | | | | | |
Investments at fair value(2) | $ | 2,274 | | | $ | 9,392 | | | $ | (2,265) | | | $ | 9,401 | |
Cash and cash equivalents | 9 | | | 707 | | | — | | | 716 | |
| | | | | | | |
Other assets | 70 | | | 100 | | | (68) | | | 102 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total assets | $ | 2,353 | | | $ | 10,199 | | | $ | (2,333) | | | $ | 10,219 | |
| | | | | | | |
Liabilities | | | | | | | |
| | | | | | | |
Debt | $ | 462 | | | $ | 7,459 | | | $ | — | | | $ | 7,921 | |
Subordinated note from ARCC | 62 | | | — | | | — | | | 62 | |
Subordinated notes(3) | — | | | 1,280 | | | (992) | | | 288 | |
| | | | | | | |
Other liabilities | 17 | | | 189 | | | (16) | | | 190 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total liabilities | 541 | | | 8,928 | | | (1,008) | | | 8,461 | |
Equity | | | | | | | |
Contributed capital | 1,701 | | | — | | | — | | | 1,701 | |
Accumulated earnings | 126 | | | — | | | — | | | 126 | |
Net unrealized losses on investments and foreign currency transactions(4) | (15) | | | — | | | — | | | (15) | |
Non-controlling interests in Consolidated IHAM Vehicles(5) | — | | | 1,271 | | | (1,325) | | | (54) | |
| | | | | | | |
| | | | | | | |
Total equity | 1,812 | | | 1,271 | | | (1,325) | | | 1,758 | |
Total liabilities and equity | $ | 2,353 | | | $ | 10,199 | | | $ | (2,333) | | | $ | 10,219 | |
________________________________________
(1)Consolidated for GAAP purposes only.
(2)The determination of such fair value is determined in accordance with IHAM’s valuation process (separate and apart from the Company’s valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of June 30, 2024 and December 31, 2023 was $2,311 and $2,288, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of June 30, 2024 and December 31, 2023 was $8,792 and $9,619, respectively.
(3)Subordinated notes generally represent the most junior capital in certain of the Consolidated IHAM Vehicles and effectively represent equity in such vehicles.
(4)As of June 30, 2024 and December 31, 2023, net unrealized losses of $43 and $13, respectively, have been eliminated upon consolidation and the elimination is included in “non-controlling interests in Consolidated IHAM Vehicles” in the selected balance sheet information.
(5)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $180 and $221 as of June 30, 2024 and December 31, 2023, respectively.
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, 2024 |
| IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Statement of Operations Information: | | | | | | | |
Revenues | | | | | | | |
| | | | | | | |
Investment income | $ | 92 | | | $ | 259 | | | $ | (90) | | | $ | 261 | |
Management fees and other income | 14 | | | 3 | | | (13) | | | 4 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total revenues | 106 | | | 262 | | | (103) | | | 265 | |
Expenses | | | | | | | |
| | | | | | | |
Interest expense | 10 | | | 143 | | | — | | | 153 | |
Distributions to subordinated notes | — | | | 52 | | | (40) | | | 12 | |
Management fees and other expenses | 3 | | | 15 | | | (13) | | | 5 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total expenses | 13 | | | 210 | | | (53) | | | 170 | |
Net operating income | 93 | | | 52 | | | (50) | | | 95 | |
| | | | | | | |
| | | | | | | |
Net realized gains (losses) on investments and foreign currency | — | | | (16) | | | — | | | (16) | |
| | | | | | | |
Net unrealized losses on investments, foreign currency and other transactions | (16) | | | (14) | | | 10 | | | (20) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total net realized and unrealized losses on investments, foreign currency and other transactions | (16) | | | (30) | | | 10 | | | (36) | |
Net income | 77 | | | 22 | | | (40) | | | 59 | |
| | | | | | | |
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles | — | | | 22 | | | (40) | | | (18) | |
Net income attributable to Ivy Hill Asset Management, L.P. | $ | 77 | | | $ | — | | | $ | — | | | $ | 77 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Six Months Ended June 30, 2024 |
| IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Statement of Operations Information: | | | | | | | |
Revenues | | | | | | | |
| | | | | | | |
Investment income | $ | 186 | | | $ | 533 | | | $ | (182) | | | $ | 537 | |
Management fees and other income | 28 | | | 6 | | | (26) | | | 8 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total revenues | 214 | | | 539 | | | (208) | | | 545 | |
Expenses | | | | | | | |
| | | | | | | |
Interest expense | 20 | | | 293 | | | — | | | 313 | |
Distributions to subordinated notes | — | | | 105 | | | (77) | | | 28 | |
Management fees and other expenses | 7 | | | 33 | | | (26) | | | 14 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total expenses | 27 | | | 431 | | | (103) | | | 355 | |
Net operating income | 187 | | | 108 | | | (105) | | | 190 | |
| | | | | | | |
| | | | | | | |
Net realized gains (losses) on investments and foreign currency | 5 | | | (74) | | | (9) | | | (78) | |
Net realized loss on extinguishment of debt | — | | | (1) | | | — | | | (1) | |
Net unrealized (losses) gains on investments, foreign currency and other transactions | (33) | | | 47 | | | 30 | | | 44 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total net realized and unrealized losses on investments, foreign currency and other transactions | (28) | | | (28) | | | 21 | | | (35) | |
Net income | 159 | | | 80 | | | (84) | | | 155 | |
| | | | | | | |
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles | — | | | 80 | | | (84) | | | (4) | |
Net income attributable to Ivy Hill Asset Management, L.P. | $ | 159 | | | $ | — | | | $ | — | | | $ | 159 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, 2023 |
| IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Statement of Operations Information: | | | | | | | |
Revenues | | | | | | | |
| | | | | | | |
Investment income | $ | 95 | | | $ | 273 | | | $ | (94) | | | $ | 274 | |
Management fees and other income | 13 | | | 2 | | | (13) | | | 2 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total revenues | 108 | | | 275 | | | (107) | | | 276 | |
Expenses | | | | | | | |
| | | | | | | |
Interest expense | 16 | | | 143 | | | — | | | 159 | |
Distributions to subordinated notes | — | | | 57 | | | (46) | | | 11 | |
Management fees and other expenses | 4 | | | 18 | | | (13) | | | 9 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total expenses | 20 | | | 218 | | | (59) | | | 179 | |
Net operating income | 88 | | | 57 | | | (48) | | | 97 | |
| | | | | | | |
| | | | | | | |
Net realized gains on investments and other transactions | — | | | 7 | | | — | | | 7 | |
| | | | | | | |
Net unrealized gains on investments and other transactions | 3 | | | 8 | | | (6) | | | 5 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total net realized and unrealized gains on investments and other transactions | 3 | | | 15 | | | (6) | | | 12 | |
Net income | 91 | | | 72 | | | (54) | | | 109 | |
Less: Net income attributable to non-controlling interests in Consolidated IHAM Vehicles | — | | | 72 | | | (54) | | | 18 | |
Net income attributable to Ivy Hill Asset Management, L.P. | $ | 91 | | | $ | — | | | $ | — | | | $ | 91 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Six Months Ended June 30, 2023 |
| IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Statement of Operations Information: | | | | | | | |
Revenues | | | | | | | |
| | | | | | | |
Investment income | $ | 166 | | | $ | 528 | | | $ | (164) | | | $ | 530 | |
Management fees and other income | 27 | | | 3 | | | (26) | | | 4 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total revenues | 193 | | | 531 | | | (190) | | | 534 | |
Expenses | | | | | | | |
| | | | | | | |
Interest expense | 35 | | | 272 | | | — | | | 307 | |
Distributions to subordinated notes | — | | | 89 | | | (70) | | | 19 | |
Management fees and other expenses | 8 | | | 36 | | | (26) | | | 18 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total expenses | 43 | | | 397 | | | (96) | | | 344 | |
Net operating income | 150 | | | 134 | | | (94) | | | 190 | |
| | | | | | | |
| | | | | | | |
Net realized losses on investments and other transactions | (10) | | | (10) | | | — | | | (20) | |
Net unrealized gains on investments and other transactions | 17 | | | 30 | | | (19) | | | 28 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total net realized and unrealized gains on investments and other transactions | 7 | | | 20 | | | (19) | | | 8 | |
Net income | 157 | | | 154 | | | (113) | | | 198 | |
Less: Net income attributable to non-controlling interests in Consolidated IHAM Vehicles | — | | | 154 | | | (113) | | | 41 | |
Net income attributable to Ivy Hill Asset Management, L.P. | $ | 157 | | | $ | — | | | $ | — | | | $ | 157 | |
____________________________________
(1)Consolidated for GAAP purposes only.
Senior Direct Lending Program
The Company has established a joint venture with Varagon to make certain first lien senior secured loans, including certain stretch senior and unitranche loans, primarily to U.S. middle-market companies. The joint venture is called the Senior Direct Lending Program, LLC (the “Senior Direct Lending Program” or the “SDLP”). In July 2016, the Company and Varagon and its clients completed the initial funding of the SDLP. The SDLP may generally commit and hold individual loans of up to $450. The Company may directly co-invest with the SDLP to accommodate larger transactions. The SDLP is capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of the Company and Varagon (with approval from a representative of each required).
The Company provides capital to the SDLP in the form of subordinated certificates (the “SDLP Certificates”), and Varagon and its clients provide capital to the SDLP in the form of senior notes, intermediate funding notes and the SDLP Certificates. As of June 30, 2024 and December 31, 2023, the Company and a client of Varagon owned 87.5% and 12.5%, respectively, of the outstanding SDLP Certificates.
As of June 30, 2024 and December 31, 2023, the Company and Varagon and its clients had agreed to make capital available to the SDLP of $6,150 and $6,150, respectively, in the aggregate, of which $1,444 and $1,444, respectively, is to be made available from the Company. The Company will continue to provide capital to the SDLP in the form of the SDLP Certificates, and Varagon and its clients will provide capital to the SDLP in the form of senior notes, intermediate funding notes and the SDLP Certificates. This capital will only be committed to the SDLP upon approval of transactions by the investment committee of the SDLP as discussed above. Below is a summary of the funded capital and unfunded capital commitments of the SDLP.
| | | | | | | | | | | |
| As of |
| June 30, 2024 | | December 31, 2023 |
Total capital funded to the SDLP(1) | $ | 4,966 | | | $ | 5,361 | |
Total capital funded to the SDLP by the Company(1) | $ | 1,300 | | | $ | 1,328 | |
Total unfunded capital commitments to the SDLP(2) | $ | 231 | | | $ | 260 | |
Total unfunded capital commitments to the SDLP by the Company(2) | $ | 56 | | | $ | 60 | |
___________________________________________________________________________
(1)At principal amount.
(2)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.
The SDLP Certificates pay a coupon equal to Secured Overnight Financing Rate (“SOFR”) plus 8.0% and also entitle the holders thereof to receive a portion of the excess cash flow from the loan portfolio, after expenses, which may result in a return to the holders of the SDLP Certificates that is greater than the stated coupon. The SDLP Certificates are junior in right of payment to the senior notes and intermediate funding notes.
The amortized cost and fair value of the SDLP Certificates held by the Company and the Company’s yield on its investment in the SDLP Certificates at amortized cost and fair value as of June 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| As of |
| | | | | |
| June 30, 2024 | | December 31, 2023 | | |
| Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | |
Investment in the SDLP Certificates | $ | 1,271 | | | $ | 1,241 | | | $ | 1,316 | | | $ | 1,288 | | | |
Yield on the investment in the SDLP Certificates | 13.3 | % | | 13.6 | % | | 13.6 | % | | 13.9 | % | | |
The interest income from the Company’s investment in the SDLP Certificates and capital structuring service and other fees earned for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Interest income | $ | 45 | | | $ | 43 | | | $ | 88 | | | $ | 86 | |
Capital structuring service and other fees | $ | 2 | | | $ | 6 | | | $ | 5 | | | $ | 7 | |
As of June 30, 2024 and December 31, 2023, the SDLP’s portfolio was comprised entirely of first lien senior secured loans to U.S. middle-market companies and were in industries similar to the companies in the Company’s portfolio. As of June 30, 2024, two of the loans were on non-accrual status. As of December 31, 2023, one of the loans was on non-accrual status. Below is a summary of the SDLP’s portfolio.
| | | | | | | | | | | |
| As of |
| | | |
| June 30, 2024 | | December 31, 2023 |
Total first lien senior secured loans(1)(2) | $ | 5,050 | | | $ | 5,431 | |
Largest loan to a single borrower(1) | $ | 368 | | | $ | 370 | |
Total of five largest loans to borrowers(1) | $ | 1,709 | | | $ | 1,650 | |
Number of borrowers in the SDLP | 19 | | | 22 | |
Commitments to fund delayed draw loans(3) | $ | 231 | | | $ | 260 | |
___________________________________________________________________________
(1)At principal amount.
(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of June 30, 2024 and December 31, 2023, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $4,344 and $4,558, respectively.
(3)As discussed above, these commitments have been approved by the investment committee of the SDLP.
Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of the SDLP, in conformity with GAAP, as of June 30, 2024 and December 31, 2023 and for the three and six months ended June 30, 2024 and 2023 are presented below:
| | | | | | | | | | | | |
| As of | |
| | | | |
| June 30, 2024 | | December 31, 2023 | |
Selected Balance Sheet Information: | | | | |
Investments at fair value (amortized cost of $4,879 and $5,267, respectively) | $ | 4,667 | | | $ | 5,129 | | |
Other assets | 180 | | | 192 | | |
Total assets | $ | 4,847 | | | $ | 5,321 | | |
| | | | |
Senior notes | $ | 3,352 | | | $ | 3,705 | | |
Intermediate funding notes | 128 | | | 139 | | |
Other liabilities | 130 | | | 136 | | |
Total liabilities | 3,610 | | | 3,980 | | |
Subordinated certificates and members’ capital | 1,237 | | | 1,341 | | |
Total liabilities and members’ capital | $ | 4,847 | | | $ | 5,321 | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Selected Statement of Operations Information: | | | | | | | |
Total investment income | $ | 133 | | | $ | 140 | | | $ | 283 | | | $ | 276 | |
Interest expense | 76 | | | 72 | | | 154 | | | 141 | |
Other expenses | 4 | | | 6 | | | 8 | | | 11 | |
Total expenses | 80 | | | 78 | | | 162 | | | 152 | |
Net investment income | 53 | | | 62 | | | 121 | | | 124 | |
Net realized and unrealized losses on investments | (71) | | | (17) | | | (72) | | | (86) | |
Net (decrease) increase in members’ capital resulting from operations | $ | (18) | | | $ | 45 | | | $ | 49 | | | $ | 38 | |
5. DEBT
In accordance with the Investment Company Act, the Company is allowed to borrow amounts such that its asset coverage, calculated pursuant to the Investment Company Act, is at least 150% after such borrowing. The Company’s asset coverage requirement applicable to senior securities was reduced from 200% to 150% effective June 21, 2019. As of June 30, 2024, the aggregate principal amount outstanding of the senior securities issued by the Company was $13,034 and the Company’s asset coverage was 194%.
The Company’s outstanding debt as of June 30, 2024 and December 31, 2023 was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of | |
| | | | |
| June 30, 2024 | | December 31, 2023 | |
| Total Aggregate Principal Amount Committed/ Outstanding (1) | | Principal Amount Outstanding | | Carrying Value | | Total Aggregate Principal Amount Committed/ Outstanding (1) | | Principal Amount Outstanding | | Carrying Value | |
Revolving Credit Facility | $ | 4,513 | | (2) | $ | 1,413 | | | $ | 1,413 | | | $ | 4,758 | | (2) | $ | 1,413 | | | $ | 1,413 | | |
Revolving Funding Facility | 1,775 | | | 880 | | | 880 | | | 1,775 | | | 863 | | | 863 | | |
SMBC Funding Facility | 800 | | (3) | 515 | | | 515 | | | 800 | | (3) | 401 | | | 401 | | |
BNP Funding Facility | 865 | | | 550 | | | 550 | | | 865 | | | 575 | | | 575 | | |
2024-1 CLO Notes(4) | 476 | | | 476 | | | 473 | | (5) | — | | | — | | | — | | |
2024 Convertible Notes | — | | | — | | | — | | (5) | 403 | | | 403 | | | 402 | | (5) |
June 2024 Notes | — | | | — | | | — | | (5) | 900 | | | 900 | | | 899 | | (5) |
March 2025 Notes | 600 | | | 600 | | | 599 | | (5) | 600 | | | 600 | | | 599 | | (5) |
July 2025 Notes | 1,250 | | | 1,250 | | | 1,253 | | (5) | 1,250 | | | 1,250 | | | 1,255 | | (5) |
January 2026 Notes | 1,150 | | | 1,150 | | | 1,147 | | (5) | 1,150 | | | 1,150 | | | 1,146 | | (5) |
July 2026 Notes | 1,000 | | | 1,000 | | | 994 | | (5) | 1,000 | | | 1,000 | | | 993 | | (5) |
January 2027 Notes | 900 | | | 900 | | | 889 | | (5)(6) | 900 | | | 900 | | | 905 | | (5)(6) |
June 2027 Notes | 500 | | | 500 | | | 496 | | (5) | 500 | | | 500 | | | 495 | | (5) |
June 2028 Notes | 1,250 | | | 1,250 | | | 1,247 | | (5) | 1,250 | | | 1,250 | | | 1,247 | | (5) |
March 2029 Notes | 1,000 | | | 1,000 | | | 971 | | (5)(6) | — | | | — | | | — | | |
July 2029 Notes | 850 | | | 850 | | | 841 | | (5)(6) | — | | | — | | | — | | |
November 2031 Notes | 700 | | | 700 | | | 692 | | (5) | 700 | | | 700 | | | 691 | | (5) |
Total | $ | 17,629 | | | $ | 13,034 | | | $ | 12,960 | | | $ | 16,851 | | | $ | 11,905 | | | $ | 11,884 | | |
________________________________________
(1)Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. Borrowings under the committed Revolving Credit Facility, Revolving Funding Facility, SMBC Funding Facility and BNP Funding Facility (each as defined below) are subject to borrowing base and other restrictions.
(2)Provides for a feature that allows the Company, under certain circumstances, to increase the size of the Revolving Credit Facility to a maximum of $6,732 and $7,137, as of June 30, 2024 and December 31, 2023, respectively.
(3)Provides for a feature that allows ACJB (as defined below), under certain circumstances, to increase the size of the SMBC Funding Facility to a maximum of $1,000.
(4)Excludes the CLO Subordinated Notes (as defined below), which were retained by the Company and, as such, are eliminated in consolidation. See “Debt Securitization” below for more information.
(5)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the net unaccreted/amortized discount or premium recorded upon issuance. In March 2024, the Company repaid in full the 2024 Convertible Notes (as defined below) upon their maturity. In June 2024, the Company repaid in full the June 2024 Notes (as defined below) upon their maturity.
(6)The carrying value of the January 2027 Notes, the March 2029 Notes and the July 2029 Notes (each as defined below) as of June 30, 2024 includes adjustments as a result of effective hedge accounting relationships. The carrying value of the January 2027 Notes as of December 31, 2023 includes an adjustment as a result of an effective hedge accounting relationship. See Note 6 for more information.
The weighted average stated interest rate and weighted average maturity, both on aggregate principal amount outstanding, of all the Company’s outstanding debt as of June 30, 2024 were 5.3% and 3.6 years, respectively, and as of
December 31, 2023 were 4.8% and 3.0 years, respectively. The weighted average stated interest rate of all the Company’s debt outstanding as of June 30, 2024 and December 31, 2023 includes the impact of interest rate swaps. See Note 6 for more information on the interest rate swaps.
Revolving Credit Facility
The Company is party to a senior secured revolving credit facility (as amended and restated, the “Revolving Credit Facility”), that allows the Company to borrow up to $4,513 at any one time outstanding. The Revolving Credit Facility consists of a $3,400 revolving tranche and a $1,113 term loan tranche. As of June 30, 2024, the end of the revolving periods and the stated maturity dates of the various revolving and term loan tranches of the Revolving Credit Facility were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Total Aggregate Principal Amount Committed/ Outstanding | | End of Revolving Period | | Maturity Date | | | |
Revolving tranche | $ | 3,024 | | | April 12, 2028 | | April 12, 2029 | | | |
| 269 | | March 31, 2026 | | March 31, 2027 | | | |
| 107 | | March 31, 2025 | | March 31, 2026 | | | |
| | | | | | | | |
| 3,400 | | | | | | | | |
Term loan tranche | 974 | | | | | April 12, 2029 | | | |
| 70 | | | | April 19, 2028 | | | |
| 41 | | | | March 31, 2027 | | | |
| 28 | | | | March 31, 2026 | | | |
| 1,113 | | | | | | | | |
| $ | 4,513 | | | | | | | | |
The Revolving Credit Facility also provides for a feature that allows the Company, under certain circumstances, to increase the overall size of the Revolving Credit Facility to a maximum of $6,732. The Revolving Credit Facility generally requires payments of interest at the end of each SOFR interest period, but no less frequently than quarterly, on SOFR based loans, and monthly payments of interest on other loans. Subsequent to the end of the respective revolving periods and prior to the respective stated maturity dates, the Company is required to repay the relevant outstanding principal amounts under both the term loan tranche and revolving tranche on a monthly basis in an amount equal to 1/12th of the outstanding principal amount at the end of the respective revolving periods.
Under the Revolving Credit Facility, the Company is required to comply with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including, without limitation, covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain restricted payments, (d) maintaining a certain minimum stockholders’ equity, (e) maintaining a ratio of total assets (less total liabilities not representing indebtedness) to total indebtedness of the Company and its consolidated subsidiaries (subject to certain exceptions) of not less than 1.5:1.0, (f) limitations on pledging certain unencumbered assets, and (g) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and certain of its subsidiaries. These covenants are subject to important limitations and exceptions that are described in the documents governing the Revolving Credit Facility. Amounts available to borrow under the Revolving Credit Facility (and the incurrence of certain other permitted debt) are also subject to compliance with a borrowing base that applies different advance rates to different types of assets (based on their value as determined pursuant to the Revolving Credit Facility) that are pledged as collateral. As of June 30, 2024, the Company was in compliance in all material respects with the terms of the Revolving Credit Facility.
As of June 30, 2024 and December 31, 2023, there was $1,413 and $1,413 outstanding, respectively, under the Revolving Credit Facility. The Revolving Credit Facility also provides for a sub-limit for the issuance of letters of credit for up to an aggregate amount of $250 with the ability to increase by an incremental $50 on an uncommitted basis. As of June 30, 2024 and December 31, 2023, the Company had $58 and $60, respectively, in letters of credit issued through the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility is reduced by any letters of credit issued. As of June 30, 2024, there was $3,042, available for borrowing (net of letters of credit issued) under the Revolving Credit Facility, subject to borrowing base restrictions.
The interest rate charged on the Revolving Credit Facility is based on SOFR plus a credit spread adjustment of 0.10% (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in Sterling, Canadian Dollars, Euros and certain other foreign currencies plus a spread adjustment, if applicable) and an applicable spread
of either 1.75% or 1.875% or an “alternate base rate” (as defined in the documents governing the Revolving Credit Facility) plus an applicable spread of 0.75% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving exposure and term loans outstanding under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. The Revolving Credit Facility allows for borrowings to be made using one, three or six month SOFR. As of June 30, 2024, the one, three and six month SOFR was 5.34%, 5.32% and 5.25%, respectively. As of June 30, 2024, the applicable spread in effect was 1.75%. In addition to the stated interest expense on the Revolving Credit Facility, the Company is required to pay a commitment fee of 0.375% per annum on any unused portion of the Revolving Credit Facility. The Company is also required to pay a letter of credit fee of either 2.00% or 2.125% per annum on letters of credit issued, determined monthly based on the total amount of the borrowing base relative to the total commitments of the Revolving Credit Facility and other debt, if any, secured by the same collateral as the Revolving Credit Facility.
The Revolving Credit Facility is secured by certain assets in the Company’s portfolio and excludes investments held by Ares Capital CP (as defined below) under the Revolving Funding Facility, those held by ACJB under the SMBC Funding Facility, those held by AFB (as defined below) under the BNP Funding Facility and those held by ARCC CLO I (as defined below), each as described below, and certain other investments.
For the three and six months ended June 30, 2024 and 2023, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Revolving Credit Facility were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Stated interest expense | $ | 23 | | | $ | 34 | | | $ | 45 | | | $ | 68 | |
Credit facility fees | 3 | | | 3 | | | 7 | | | 6 | |
Amortization of debt issuance costs | 3 | | | 2 | | | 5 | | | 4 | |
Total interest and credit facility fees expense | $ | 29 | | | $ | 39 | | | $ | 57 | | | $ | 78 | |
Cash paid for interest expense | $ | 23 | | | $ | 43 | | | $ | 61 | | | $ | 75 | |
Average stated interest rate | 7.34 | % | | 6.84 | % | | 7.31 | % | | 6.37 | % |
Average outstanding balance | $ | 1,242 | | | $ | 1,995 | | | $ | 1,220 | | | $ | 2,114 | |
Letter of Credit Facility
In May 2023, the Company and Deutsche Bank AG New York Branch (the “DB Issuer”) entered into an uncommitted continuing agreement (the “Letter of Credit Facility”), which allows the DB Issuer to issue letters of credit or demand guarantees, at the request of the Company, on behalf of certain portfolio companies. The Company is required to make payments to the DB Issuer if the portfolio companies were to default on their related payment obligations. The Letter of Credit Facility is secured on a pari passu basis with the Revolving Credit Facility and pursuant to substantially the same collateral as the Revolving Credit Facility. As of June 30, 2024 and December 31, 2023, the DB Issuer had $76 and $69, respectively, in letters of credit issued under the Letter of Credit Facility.
Revolving Funding Facility
The Company and the Company’s consolidated subsidiary, Ares Capital CP Funding LLC (“Ares Capital CP”), are party to a revolving funding facility (as amended, the “Revolving Funding Facility”), that allows Ares Capital CP to borrow up to $1,775 at any one time outstanding. The Revolving Funding Facility is secured by all of the assets held by, and the membership interest in, Ares Capital CP. The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility are December 29, 2024 and December 29, 2026, respectively.
Amounts available to borrow under the Revolving Funding Facility are subject to a borrowing base that applies different advance rates to different types of assets held by Ares Capital CP. Ares Capital CP is also subject to limitations with respect to the loans securing the Revolving Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and Ares Capital CP are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the
Revolving Funding Facility. As of June 30, 2024, the Company and Ares Capital CP were in compliance in all material respects with the terms of the Revolving Funding Facility.
As of June 30, 2024 and December 31, 2023, there was $880 and $863 outstanding, respectively, under the Revolving Funding Facility. The interest rate charged on the Revolving Funding Facility is based on SOFR plus a credit spread adjustment of 0.10% or a “base rate” (as defined in the documents governing the Revolving Funding Facility) plus an applicable spread of 1.90% per annum. Ares Capital CP is also required to pay a commitment fee of between 0.50% and 1.25% per annum depending on the size of the unused portion of the Revolving Funding Facility.
For the three and six months ended June 30, 2024 and 2023, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Revolving Funding Facility were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Stated interest expense | $ | 14 | | | $ | 15 | | | $ | 24 | | | $ | 28 | |
Credit facility fees | 2 | | | 2 | | | 4 | | | 3 | |
Amortization of debt issuance costs | 1 | | | 1 | | | 2 | | | 2 | |
Total interest and credit facility fees expense | $ | 17 | | | $ | 18 | | | $ | 30 | | | $ | 33 | |
Cash paid for interest expense | $ | 13 | | | $ | 15 | | | $ | 26 | | | $ | 27 | |
Average stated interest rate | 7.40 | % | | 7.10 | % | | 7.39 | % | | 6.75 | % |
Average outstanding balance | $ | 747 | | | $ | 865 | | | $ | 645 | | | $ | 838 | |
SMBC Funding Facility
The Company and the Company’s consolidated subsidiary, Ares Capital JB Funding LLC (“ACJB”), are party to a revolving funding facility (as amended, the “SMBC Funding Facility”), with ACJB, as the borrower, and Sumitomo Mitsui Banking Corporation, as the administrative agent and collateral agent, that allows ACJB to borrow up to $800 at any one time outstanding. The SMBC Funding Facility also provides for a feature that allows ACJB, subject to receiving certain consents, to increase the overall size of the SMBC Funding Facility to $1,000. The SMBC Funding Facility is secured by all of the assets held by ACJB. The end of the reinvestment period and the stated maturity date for the SMBC Funding Facility are March 28, 2027 and March 28, 2029, respectively. The reinvestment period and the stated maturity date are both subject to two one-year extensions by mutual agreement.
Amounts available to borrow under the SMBC Funding Facility are subject to a borrowing base that applies an advance rate to assets held by ACJB. ACJB is also subject to limitations with respect to the loans securing the SMBC Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and ACJB are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the SMBC Funding Facility. As of June 30, 2024, the Company and ACJB were in compliance in all material respects with the terms of the SMBC Funding Facility.
As of June 30, 2024 and December 31, 2023, there was $515 and $401 outstanding, respectively, under the SMBC Funding Facility. Since March 28, 2024, the interest rate charged on the SMBC Funding Facility is based on an applicable spread of either (i) 2.50% over one month SOFR or (ii) 1.50% over a “base rate” (as defined in the documents governing the SMBC Funding Facility). From April 28, 2023 to March 27, 2024, the interest rate charged on the SMBC Funding Facility was based on an applicable spread of either (i) 1.75% or 2.00% over one month SOFR plus a credit spread adjustment of 0.10% or (ii) 0.75% or 1.00% over a “base rate”, in each case, determined monthly based on the amount of the average borrowings outstanding under the SMBC Funding Facility. Prior to April 28, 2023, the interest rate charged on the SMBC Funding Facility was based on an applicable spread of either (i) 1.75% or 2.00% over one month London Interbank Offered Rate (“LIBOR”) or (ii) 0.75% or 1.00% over a “base rate”, in each case, determined monthly based on the amount of the average borrowings outstanding under the SMBC Funding Facility. ACJB is required to pay a commitment fee of between 0.50% and 1.00% per annum depending on the size of the unused portion of the SMBC Funding Facility.
For the three and six months ended June 30, 2024 and 2023, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the SMBC Funding Facility were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Stated interest expense | $ | 7 | | | $ | 7 | | | $ | 12 | | | $ | 14 | |
Credit facility fees | 1 | | | — | | | 2 | | | 1 | |
Amortization of debt issuance costs | — | | | — | | | 1 | | | 1 | |
Total interest and credit facility fees expense | $ | 8 | | | $ | 7 | | | $ | 15 | | | $ | 16 | |
Cash paid for interest expense | $ | 6 | | | $ | 7 | | | $ | 12 | | | $ | 14 | |
Average stated interest rate | 7.95 | % | | 6.94 | % | | 7.66 | % | | 6.55 | % |
Average outstanding balance | $ | 346 | | | $ | 413 | | | $ | 316 | | | $ | 420 | |
BNP Funding Facility
The Company and the Company’s consolidated subsidiary, ARCC FB Funding LLC (“AFB”), are party to a revolving funding facility (as amended, the “BNP Funding Facility”) with AFB, as the borrower, and BNP Paribas, as the administrative agent and lender, that allows AFB to borrow up to $865 at any one time outstanding. The BNP Funding Facility is secured by all of the assets held by AFB. The end of the reinvestment period and the stated maturity date for the BNP Funding Facility are April 20, 2026 and April 20, 2028, respectively. The reinvestment period and the stated maturity date are both subject to a one-year extension by mutual agreement. See Note 14 for a subsequent event relating to the BNP Funding Facility.
Amounts available to borrow under the BNP Funding Facility are subject to a borrowing base that applies an advance rate to assets held by AFB. AFB is also subject to limitations with respect to the loans securing the BNP Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and AFB are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the BNP Funding Facility. As of June 30, 2024, the Company and AFB were in compliance in all material respects with the terms of the BNP Funding Facility.
As of June 30, 2024 and December 31, 2023, there was $550 and $575, respectively, outstanding under the BNP Funding Facility. Since April 12, 2024, the interest rate charged on the BNP Funding Facility is based on an applicable SOFR or a “base rate” (as defined in the documents governing the BNP Funding Facility) plus a margin of (i) 2.50% during the reinvestment period and (ii) 3.00% following the reinvestment period. From February 2, 2024 to April 11, 2024, the interest rate charged on the BNP Funding Facility was based on an applicable SOFR or a “base rate” plus a margin of (i) 2.65% during the reinvestment period and (ii) 3.15% following the reinvestment period. From April 20, 2023 to February 1, 2024, the interest rate charged on the BNP Funding Facility was based on an applicable SOFR or a “base rate” plus a margin of (i) 2.80% during the reinvestment period and (ii) 3.30% following the reinvestment period. From January 9, 2023 to April 19, 2023, the interest rate charged on the BNP Funding Facility was based on an applicable SOFR or a “base rate” plus a margin of (i) 2.30% during the reinvestment period and (ii) 2.80% following the reinvestment period. Prior to January 9, 2023, the interest rate charged on the BNP Funding Facility was based on an applicable LIBOR or a “base rate” plus a margin of (i) 1.80% during the reinvestment period and (ii) 2.30% following the reinvestment period. As of June 30, 2024, the applicable spread in effect was 2.50%. AFB is required to pay a commitment fee of between 0.00% and 1.25% per annum depending on the size of the unused portion of the BNP Funding Facility. See Note 14 for a subsequent event relating to the BNP Funding Facility.
For the three and six months ended June 30, 2024 and 2023, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the BNP Funding Facility were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | |
Stated interest expense | $ | 10 | | | $ | 8 | | | $ | 23 | | | $ | 13 | |
Credit facility fees | — | | | — | | | — | | | 1 | |
Amortization of debt issuance costs | — | | | 1 | | | — | | | 1 | |
Total interest and credit facility fees expense | $ | 10 | | | $ | 9 | | | $ | 23 | | | $ | 15 | |
Cash paid for interest expense | $ | 11 | | | $ | 7 | | | $ | 23 | | | $ | 12 | |
Average stated interest rate | 7.93 | % | | 7.90 | % | | 8.03 | % | | 7.48 | % |
Average outstanding balance | $ | 537 | | | $ | 402 | | | $ | 555 | | | $ | 353 | |
Debt Securitization
2024-1 CLO Notes
In May 2024, the Company, through its wholly owned, consolidated subsidiary, Ares Direct Lending CLO 1 LLC (“ARCC CLO I”), completed a $702 term debt securitization (the “2024 Debt Securitization”). The 2024 Debt Securitization is also known as a collateralized loan obligation and is an on-balance sheet financing incurred by the Company, which is consolidated by the Company for financial reporting purposes and subject to its overall asset coverage requirement. The notes offered in the 2024 Debt Securitization (collectively, the “2024-1 CLO Notes”) were issued by ARCC CLO I pursuant to the indenture governing the 2024-1 CLO Notes (the “CLO Indenture”) and include (i) $406 of Class A Senior Floating Rate Notes (the “Class A CLO Notes”); (ii) $70 of Class B Senior Floating Rate Notes (the “Class B CLO Notes” and, together with the Class A CLO Notes, the “CLO Secured Notes”); and (iii) $226 of Subordinated Notes (the “CLO Subordinated Notes”). The Company retained all of the CLO Subordinated Notes, as such, the CLO Subordinated Notes are eliminated in consolidation. The following table presents information on the 2024-1 CLO Notes as of June 30, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class | | Type | | Principal Outstanding | | Maturity Date | | Interest Rate | | Credit Rating |
Class A CLO Notes | | Senior Secured Floating Rate | | $ | 406 | | | April 25, 2036 | | SOFR+1.80% | | AAA(sf) |
Class B CLO Notes | | Senior Secured Floating Rate | | 70 | | | April 25, 2036 | | SOFR+2.20% | | AA(sf) |
Total CLO Secured Notes | | | | 476 | | | | | | | |
CLO Subordinated Notes | | Subordinated | | 226 | | | April 25, 2036 | | None | | Not Rated |
Total 2024-1 CLO Notes | | | | $ | 702 | | | | | | | |
The CLO Secured Notes are the secured obligation of ARCC CLO I and are backed by a diversified portfolio of first lien senior secured loans contributed by the Company to ARCC CLO I pursuant to the terms of a contribution agreement. The CLO Indenture contains certain conditions pursuant to which additional loans can be acquired by ARCC CLO I, in accordance with rating agency criteria or as otherwise agreed with certain institutional investors who purchased the CLO Secured Notes. The CLO Subordinated Notes, which were retained by the Company, are the unsecured obligations of ARCC CLO I. Through April 25, 2028, all principal collections received on the underlying collateral may be used by ARCC CLO I to purchase new collateral under the direction of the Company’s investment adviser in its capacity as asset manager to ARCC CLO I under an asset management agreement and in accordance with the Company’s investment strategy, including additional collateral that may be purchased from the Company, pursuant to the terms of a master purchase and sale agreement between the Company as seller and ARCC CLO I as buyer.
The CLO Indenture includes customary covenants and defaults. The 2024-1 CLO Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities or “blue sky” laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from registration.
The Company’s investment adviser serves as asset manager to ARCC CLO I under an asset management agreement and is entitled to receive certain management fees for providing these services under the agreement. The Company’s investment adviser has waived its right to receive such fees but may rescind such waiver with respect to the CLO Secured Notes at any time.
The interest rate charged on the CLO Secured Notes is based on SOFR plus a blended weighted average spread of 1.86%. For the three and six months ended June 30, 2024, the components of interest expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the CLO Secured Notes were as follows.
| | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended June 30, 2024 | | | | For the Six Months Ended June 30, 2024 |
| | | | | | | | |
Stated interest expense | | $ | 4 | | | | | $ | 4 | | | |
Amortization of debt issuance costs | | — | | | | | — | | | |
| | | | | | | | |
| | | | | | | | |
Total interest expense | | $ | 4 | | | | | $ | 4 | | | |
Cash paid for interest expense | | $ | — | | | | | $ | — | | | |
Average stated interest rate | | 7.24 | % | | | | 7.24 | % | | |
Average outstanding balance | | $ | 199 | | | | | $ | 99 | | | |
2024 Convertible Unsecured Notes
In March 2024, the Company repaid in full the $403 in aggregate principal amount of unsecured convertible notes, which bore interest at a rate of 4.625% per year, payable semi-annually (the “2024 Convertible Notes”) upon their maturity, resulting in a realized loss on extinguishment of debt of $14. In accordance with the indenture governing the 2024 Convertible Notes, the Company settled the repayment of the 2024 Convertible Notes with a combination of cash and shares of its common stock. Approximately $393 of aggregate principal amount was settled with approximately 20 shares of the Company’s common stock and the remaining $10 was settled with available cash.
For the three and six months ended June 30, 2024 and 2023, the components of interest expense and cash paid for interest expense for the 2024 Convertible Notes were as follows.
| | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 | | |
Stated interest expense | $ | — | | | $ | 4 | | | $ | 3 | | | $ | 9 | | | |
| | | | | | | | | |
Accretion of original issue discount | — | | | — | | | — | | | 1 | | | |
Total interest expense | $ | — | | | $ | 4 | | | $ | 3 | | | $ | 10 | | | |
Cash paid for interest expense | $ | — | | | $ | — | | | $ | 9 | | | $ | 9 | | | |
Unsecured Notes
The Company has issued certain unsecured notes (each issuance of which is referred to herein using the “defined term” set forth under the “Unsecured Notes” column of the table below and collectively referred to as the “Unsecured Notes”), that pay interest semi-annually and all principal amounts are due upon maturity. Each of the Unsecured Notes may be redeemed in whole or in part at any time at the Company’s option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indentures governing each of the Unsecured Notes, plus any accrued and unpaid interest. Certain key terms related to the features for the Unsecured Notes as of June 30, 2024 are listed below.
| | | | | | | | | | | | | | | | | | | | | | | |
Unsecured Notes | Aggregate Principal Amount Issued | | Effective Stated Interest Rate | | Original Issuance Date | | Maturity Date |
March 2025 Notes | $ | 600 | | | 4.250% | | January 11, 2018 | | March 1, 2025 |
July 2025 Notes | $ | 1,250 | | | 3.250% | | January 15, 2020 | | July 15, 2025 |
January 2026 Notes | $ | 1,150 | | | 3.875% | | July 15, 2020 | | January 15, 2026 |
July 2026 Notes | $ | 1,000 | | | 2.150% | | January 13, 2021 | | July 15, 2026 |
January 2027 Notes(1) | $ | 900 | | | 7.910% | | August 3, 2023 | | January 15, 2027 |
June 2027 Notes | $ | 500 | | | 2.875% | | January 13, 2022 | | June 15, 2027 |
June 2028 Notes | $ | 1,250 | | | 2.875% | | June 10, 2021 | | June 15, 2028 |
March 2029 Notes(1) | $ | 1,000 | | | 7.352% | | January 23, 2024 | | March 1, 2029 |
July 2029 Notes(1) | $ | 850 | | | 6.972% | | May 13, 2024 | | July 15, 2029 |
November 2031 Notes | $ | 700 | | | 3.200% | | November 4, 2021 | | November 15, 2031 |
________________________________________
(1)The effective stated interest rates for the January 2027 Notes, the March 2029 Notes and the July 2029 Notes include the impact of interest rate swaps.
In June 2024, the Company repaid in full the $900 in aggregate principal amount outstanding of unsecured notes (the “June 2024 Notes”) upon their maturity. The June 2024 Notes bore interest at a rate of 4.200% per annum, payable semi-annually.
In connection with certain of the unsecured notes issued by the Company, the Company has entered into interest rate swap agreements to more closely align the interest rates of such liabilities with the Company’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swap agreements, the Company receives a fixed interest rate and pays a floating interest rate of one-month SOFR plus an applicable spread, as disclosed below. The Company designated these interest rate swaps and the associated unsecured notes as qualifying fair value hedge accounting relationships. Certain information related to the Company’s interest rate swap instruments as of June 30, 2024 is presented below.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Hedged Item | | Company Receives | | Company Pays | | | | Maturity Date | | Notional Amount | | | | |
Interest rate swap | | January 2027 Notes | | 7.000 | % | | SOFR +2.581% | | | | January 15, 2027 | | $ | 900 | | | | | |
Interest rate swap | | March 2029 Notes | | 5.875 | % | | SOFR +2.023% | | | | March 1, 2029 | | $ | 1,000 | | | | | |
Interest rate swap | | July 2029 Notes | | 5.950 | % | | SOFR +1.643% | | | | July 15, 2029 | | $ | 850 | | | | | |
| | | | | | | | | | | | | | | | |
See Note 6 for more information on the interest rate swaps.
For the three and six months ended June 30, 2024 and 2023, the components of interest expense and cash paid for interest expense for the Unsecured Notes, as well as any other unsecured notes outstanding during the periods presented were as follows.
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Stated interest expense(1) | $ | 103 | | | $ | 61 | | | $ | 196 | | | $ | 124 | |
Amortization of debt issuance costs | 4 | | | 4 | | | 8 | | | 7 | |
Net amortization of original issue premium/discount | (1) | | | (1) | | | (3) | | | (3) | |
Total interest expense | $ | 106 | | | $ | 64 | | | $ | 201 | | | $ | 128 | |
Cash paid for interest expense | $ | 59 | | | $ | 55 | | | $ | 157 | | | $ | 134 | |
________________________________________
(1)Includes the impact to interest expense related to the interest rate swaps for the three and six months ended June 30, 2024 and 2023.
The Unsecured Notes contain certain covenants, including covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act, or any successor provisions, and to provide financial information to the holders of such notes under certain circumstances. These covenants are subject to important limitations and exceptions set forth in the indentures governing such notes. As of June 30, 2024, the Company was in compliance in all material respects with the terms of the respective indentures governing each of the Unsecured Notes.
The Unsecured Notes are the Company’s senior unsecured obligations and rank senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not expressly subordinated; effectively junior in right of payment to any of its secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries, financing vehicles or similar facilities.
6. DERIVATIVE INSTRUMENTS
The Company enters into derivative instruments from time to time to help mitigate its foreign currency and interest rate risk exposures.
Foreign Currency Forward Contracts
Certain information related to the Company’s foreign currency forward derivative instruments as of June 30, 2024 and December 31, 2023 is presented below.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of June 30, 2024 |
Derivative Instrument | Notional Amount | | Maturity Date | | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Balance Sheet Location of Net Amounts |
Foreign currency forward contract | CAD | 168 | | July 26, 2024 | | $ | 124 | | | $ | (124) | | | Other assets |
Foreign currency forward contract | CAD | 153 | | July 18, 2024 | | 112 | | | (112) | | | Other assets |
Foreign currency forward contract | € | 141 | | July 26, 2024 | | 151 | | | (151) | | | Other assets |
Foreign currency forward contract | € | 91 | | July 26, 2024 | | 98 | | | (98) | | | Other assets |
Foreign currency forward contract | £ | 64 | | August 21, 2026 | | 78 | | | (79) | | | Accounts payable and other liabilities |
Foreign currency forward contract | NZD | 64 | | July 26, 2024 | | 38 | | | (39) | | | Accounts payable and other liabilities |
Foreign currency forward contract | NOK | 63 | | July 26, 2024 | | 6 | | | (6) | | | Other assets |
Foreign currency forward contract | CAD | 63 | | July 10, 2024 | | 46 | | | (46) | | | Other assets |
Foreign currency forward contract | £ | 60 | | July 26, 2024 | | 74 | | | (75) | | | Accounts payable and other liabilities |
Foreign currency forward contract | £ | 55 | | July 26, 2024 | | 69 | | | (70) | | | Accounts payable and other liabilities |
Foreign currency forward contract | CAD | 35 | | July 26, 2024 | | 26 | | | (26) | | | Other assets |
Foreign currency forward contract | AUD | 21 | | November 17, 2026 | | 14 | | | (14) | | | Other assets |
Foreign currency forward contract | AUD | 15 | | July 26, 2024 | | 10 | | | (10) | | | Other assets |
Total | | | | | | $ | 846 | | | $ | (850) | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of December 31, 2023 |
Derivative Instrument | Notional Amount | | Maturity Date | | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Balance Sheet Location of Net Amounts |
Foreign currency forward contract | € | 190 | | January 26, 2024 | | $ | 200 | | | $ | (207) | | | Accounts payable and other liabilities |
Foreign currency forward contract | CAD | 168 | | January 26, 2024 | | 120 | | | (124) | | | Accounts payable and other liabilities |
Foreign currency forward contract | CAD | 153 | | January 18, 2024 | | 114 | | | (115) | | | Accounts payable and other liabilities |
Foreign currency forward contract | £ | 116 | | January 26, 2024 | | 140 | | | (147) | | | Accounts payable and other liabilities |
Foreign currency forward contract | NZD | 71 | | January 26, 2024 | | 41 | | | (45) | | | Accounts payable and other liabilities |
Foreign currency forward contract | £ | 56 | | August 21, 2026 | | 69 | | | (70) | | | Accounts payable and other liabilities |
Foreign currency forward contract | $ | 10 | | January 26, 2024 | | 9 | | | (9) | | | Accounts payable and other liabilities |
Foreign currency forward contract | AUD | 10 | | November 17, 2026 | | 7 | | | (7) | | | Accounts payable and other liabilities |
Foreign currency forward contract | CAD | 4 | | January 26, 2024 | | 3 | | | (3) | | | Accounts payable and other liabilities |
Total | | | | | | $ | 703 | | | $ | (727) | | | |
As of June 30, 2024 and December 31, 2023, the counterparties to each of the Company’s foreign currency forward contracts were Canadian Imperial Bank of Commerce or Royal Bank of Canada.
Net realized and unrealized gains and losses on derivative instruments not designated as a qualifying hedge accounting relationship recognized by the Company for the three and six months ended June 30, 2024 and 2023 is in the following location in the consolidated statements of operations:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
Derivative Instrument | Statement Location | 2024 | | 2023 | | 2024 | | 2023 |
| | | | | | | | |
Foreign currency forward contract | Net realized gains (losses) from foreign currency and other transactions | $ | 14 | | | $ | (3) | | | $ | (1) | | | $ | (32) | |
Foreign currency forward contract | Net unrealized gains (losses) from foreign currency and other transactions | $ | (10) | | | $ | (8) | | | $ | 20 | | | $ | 18 | |
Interest Rate Swaps
In connection with certain of the unsecured notes issued by the Company, the Company has entered into interest rate swap agreements to more closely align the interest rates of such liabilities with the Company’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swap agreements, the Company receives a fixed interest rate and pays a floating interest rate of one-month SOFR plus an applicable spread, as disclosed below. The Company designated these interest rate swaps and the associated unsecured notes as qualifying fair value hedge accounting relationships. As of June 30, 2024 and December 31, 2023, the counterparty to all of the Company’s interest rate swap agreements was Wells Fargo Bank, N.A. Certain information related to the Company’s interest rate swap instruments as of June 30, 2024 is presented below.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Description | | Hedged Item | | Company Receives | | Company Pays | | | | Maturity Date | | Notional Amount | | | | |
Interest rate swap | | January 2027 Notes | | 7.000 | % | | SOFR +2.581% | | | | January 15, 2027 | | $ | 900 | | | | | |
| | | | | | | | | | | | | | | | |
Interest rate swap | | March 2029 Notes | | 5.875 | % | | SOFR +2.023% | | | | March 1, 2029 | | $ | 1,000 | | | | | |
Interest rate swap | | July 2029 Notes | | 5.950 | % | | SOFR +1.643% | | | | July 15, 2029 | | $ | 850 | | | | | |
| | | | | | | | | | | | | | | | |
See Note 5 for more information on the January 2027 Notes, the March 2029 Notes and the July 2029 Notes.
As a result of the Company’s designation of the interest rate swaps as hedging instruments in qualifying fair value hedge accounting relationships, the Company is required to fair value the hedging instruments and the related hedged items, with the changes in the fair value of each being recorded in interest expense. The net gain related to the fair value hedges was approximately $0 and $0 for the three and six months ended June 30, 2024, respectively, which is included in “interest and credit facility fees” in the Company’s consolidated statement of operations. The balance sheet impact of fair valuing the interest rate swaps as of June 30, 2024 and December 31, 2023 is presented below:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of June 30, 2024 |
Derivative Instrument | Notional Amount | | Maturity Date | | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Balance Sheet Location of Amounts |
Interest rate swap(1) | $ | 900 | | | January 15, 2027 | | $ | — | | | $ | (2) | | | Accounts payable and other liabilities |
| | | | | | | | | | |
Interest rate swap(2) | $ | 1,000 | | | March 1, 2029 | | — | | | (13) | | | Accounts payable and other liabilities |
Interest rate swap(3) | $ | 850 | | July 15, 2029 | | 7 | | | — | | | Other assets |
Total | | | | | | $ | 7 | | | $ | (15) | | | |
________________________________________
(1)The liability related to the fair value of the interest rate swaps was offset by a $2 decrease to the carrying value of the January 2027 Notes.
(2)The liability related to the fair value of the interest rate swap was offset by a $13 decrease to the carrying value of the March 2029 Notes.
(3)The asset related to the fair value of the interest rate swap was offset by a $7 increase to the carrying value of the July 2029 Notes.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| As of December 31, 2023 |
Derivative Instrument(1) | Notional Amount | | Maturity Date | | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Balance Sheet Location of Amounts |
Interest rate swap | $ | 900 | | | January 15, 2027 | | $ | 15 | | | $ | — | | | Other assets |
| | | | | | | | | | |
Total | | | | | | $ | 15 | | | $ | — | | | |
________________________________________
(1)The asset related to the fair value of the interest rate swaps was offset by a $15 increase to the carrying value of the January 2027 Notes.
7. COMMITMENTS AND CONTINGENCIES
Investment Commitments
The Company has various commitments to fund investments in its portfolio as described below. As of June 30, 2024 and December 31, 2023, the Company had the following commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to fund which are at (or substantially at) the Company’s discretion:
| | | | | | | | | | | |
| As of |
| June 30, 2024 | | December 31, 2023 |
Total revolving loan commitments | $ | 1,904 | | | $ | 1,814 | |
Less: funded commitments | (518) | | | (482) | |
Less: unavailable revolving loan commitments due to borrowing base or other covenant restrictions | (1) | | | — | |
| | | |
Total net unfunded revolving loan commitments | 1,385 | | | 1,332 | |
| | | |
Total delayed draw loan commitments | 1,652 | | | 952 | |
Less: unavailable delayed draw loan commitments due to borrowing base or other covenant restrictions | (9) | | | (13) | |
| | | |
Total net unfunded delayed draw loan commitments | 1,643 | | | 939 | |
Total net unfunded revolving and delayed draw loan commitments | $ | 3,028 | | | $ | 2,271 | |
The Company’s commitment to fund delayed draw loans is generally triggered upon the satisfaction of certain pre-negotiated terms and conditions. Generally, the most significant and uncertain term requires the borrower to satisfy a specific use of proceeds covenant. The use of proceeds covenant typically requires the borrower to use the additional loans for the specific purpose of a permitted acquisition or permitted investment, for example. In addition to the use of proceeds covenant, the borrower is generally required to satisfy additional negotiated covenants (including specified leverage levels).
Also included within the total revolving loan commitments as of June 30, 2024 were commitments to issue up to $467 in letters of credit through a financial intermediary on behalf of certain portfolio companies. As of June 30, 2024, the Company had $42 in letters of credit issued and outstanding under these commitments on behalf of the portfolio companies. For all these letters of credit issued and outstanding, the Company would be required to make payments to third parties if the portfolio companies were to default on their related payment obligations. Of these letters of credit, $27 expire in 2024, $14 expire in 2025 and $1 expire in 2026.
The Company also has commitments to co-invest in the SDLP for the Company’s portion of the SDLP’s commitments to fund delayed draw loans to certain portfolio companies of the SDLP. See Note 4 for more information.
As of June 30, 2024 and December 31, 2023, the Company was party to agreements to fund equity investment commitments as follows:
| | | | | | | | | | | | | |
| As of | | |
| June 30, 2024 | | December 31, 2023 | | |
Total equity commitments | $ | 193 | | | $ | 169 | | | |
Less: funded equity commitments | (87) | | | (64) | | | |
Total unfunded equity commitments | 106 | | | 105 | | | |
Less: equity commitments substantially at discretion of the Company | (43) | | | (43) | | | |
Total net unfunded equity commitments | $ | 63 | | | $ | 62 | | | |
In the ordinary course of business, the Company may sell certain of its investments to third party purchasers. In particular, in connection with the sale of certain controlled portfolio company equity investments (as well as certain other sales) the Company has, and may continue to do so in the future, agreed to indemnify such purchasers for future liabilities arising from the investments and the related sale transaction. Such indemnification provisions have given rise to liabilities in the past and may do so in the future.
In addition, in the ordinary course of business, the Company may guarantee certain obligations in connection with its portfolio companies (in particular, certain controlled portfolio companies). Under these guarantee arrangements, payments may be required to be made to third parties if such guarantees are called upon or if the portfolio companies were to default on their related obligations, as applicable.
Lease Commitments
The Company is currently obligated under an operating lease pursuant to which it is leasing office facilities from a third party with a remaining term of approximately three years and for the six months ended June 30, 2023, the Company was obligated under a number of operating leases pursuant to which it was leasing office facilities from third parties with remaining terms ranging from approximately one to four years. For such operating lease, the Company had previously entered into subleases. The components of operating lease expense for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Operating lease costs | $ | 1 | | | $ | 2 | | | $ | 2 | | | $ | 4 | |
Less: sublease income | (1) | | | (2) | | | (2) | | | (4) | |
Total operating lease costs(1) | $ | — | | | $ | — | | | $ | — | | | $ | — | |
________________________________________
(1)Total operating lease costs are incurred from office leases assumed as part of the Company’s acquisition of American Capital, Ltd.
Supplemental cash flow information related to operating leases for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 2 | | | $ | 4 | | | $ | 4 | | | $ | 8 | |
Operating ROU assets obtained in exchange for operating lease liabilities | $ | 1 | | | $ | 2 | | | $ | 2 | | | $ | 4 | |
Supplemental balance sheet information as of June 30, 2024 and December 31, 2023 related to operating leases were as follows:
| | | | | | | | | | | |
| As of |
| June 30, 2024 | | December 31, 2023 |
Operating lease ROU assets | $ | 8 | | | $ | 10 | |
Operating lease liabilities | $ | 14 | | | $ | 17 | |
Weighted average remaining lease term (in years) | 2.4 | | 2.9 |
Weighted average discount rate | 5.3 | % | | 4.8 | % |
The following table shows future minimum lease payments under the Company’s operating leases and a reconciliation to the operating lease liability as of June 30, 2024:
| | | | | | | | |
| | Amount |
2024 | | $ | 3 | |
2025 | | 6 | |
2026 | | 6 | |
| | |
| | |
Total lease payments | | 15 | |
Less imputed interest | | (1) | |
Total operating lease liabilities | | $ | 14 | |
The following table shows future expected rental payments to be received under the Company’s subleases where the Company is the sublessor as of June 30, 2024:
| | | | | | | | |
| | Amount |
2024 | | $ | 2 | |
2025 | | 4 | |
2026 | | 4 | |
| | |
| | |
Total | | $ | 10 | |
8. FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company follows ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASC 825-10”), which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and a better understanding of the effect of the company’s choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. The Company has not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. With the exception of the line items entitled “other assets” and “debt,” which are reported at amortized cost, the carrying value of all other assets and liabilities approximate fair value.
The Company also follows ASC 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”), which expands the application of fair value accounting. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires the Company to assume that the portfolio investment is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820-10, the Company has considered its principal market as the market in which the Company exits its portfolio investments with the greatest volume and level of activity. ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below:
•Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
•Level 2—Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
•Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
In addition to using the above inputs in investment valuations, the Valuation Designee continues to employ the net asset valuation policy and procedures that have been reviewed by the Company’s board of directors in connection with their designation of the Company’s investment adviser as the valuation designee and are consistent with the provisions of Rule 2a-5 under the Investment Company Act and ASC 820-10 (see Note 2 for more information). Consistent with its valuation policies and procedures, the Valuation Designee evaluates the source of inputs, including any markets in which the Company’s investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. Because there is not a readily available market value for most of the investments in the Company’s portfolio, the fair value of the investments must typically be determined using unobservable inputs.
The Company’s portfolio investments (other than as described below in the following paragraph) are typically valued using two different valuation techniques. The first valuation technique is an analysis of the enterprise value (“EV”) of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The primary method for determining EV uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA (generally defined as net income before net interest expense, income tax expense, depreciation and amortization). EBITDA multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. The Valuation Designee may also employ other valuation multiples to determine EV, such as revenues or, in the case of certain portfolio companies in the power generation industry, kilowatt capacity. The second method for determining EV uses a discounted cash flow analysis whereby future expected cash flows of the portfolio company are discounted to determine a present value using estimated discount rates (typically a weighted average cost of capital based on costs of debt and equity consistent with current market conditions). The EV analysis is performed to determine the value of equity investments, the value of debt investments in portfolio companies where the Company has control or could gain control through an option or warrant security, and to determine if there is credit impairment for debt investments. If debt investments are credit impaired, an EV analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate EV. The second valuation technique is a yield analysis, which is typically performed for non-credit impaired debt investments in portfolio companies where the Company does not own a controlling equity position. To determine fair value using a yield analysis, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk. In the yield analysis, the Valuation Designee considers the current contractual interest rate, the maturity and other terms of the investment relative to risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by the Company are substantially illiquid with no active transaction market, the Valuation Designee depends on primary market data, including newly funded transactions, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
For other portfolio investments such as investments in the SDLP Certificates and IHAM, discounted cash flow analysis is the primary technique utilized to determine fair value. Expected future cash flows associated with the investment are discounted to determine a present value using a discount rate that reflects estimated market return requirements.
The following table presents fair value measurements of cash and cash equivalents, restricted cash, investments, derivatives and unfunded revolving and delayed draw loan commitments as of June 30, 2024:
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| Fair Value Measurements Using |
| Total | | Level 1 | | Level 2 | | Level 3 |
Cash and cash equivalents | $ | 601 | | | $ | 601 | | | $ | — | | | $ | — | |
Restricted cash | $ | 80 | | | $ | 80 | | | $ | — | | | $ | — | |
Investments not measured at net asset value | $ | 24,966 | | | $ | 34 | | | $ | 630 | | | $ | 24,302 | |
Investments measured at net asset value(1) | 7 | | | | | | | |
Total investments | $ | 24,973 | | | | | | | |
Unfunded revolving and delayed draw loan commitments(2) | $ | (25) | | | $ | — | | | $ | — | | | $ | (25) | |
Derivatives: | | | | | | | |
Foreign currency forward contracts | $ | (4) | | | $ | — | | | $ | (4) | | | $ | — | |
Interest rate swaps | $ | (8) | | | $ | — | | | $ | (8) | | | $ | — | |
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(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.
(2)The fair value of unfunded revolving and delayed draw loan commitments is included in “accounts payable and other liabilities” in the accompanying consolidated balance sheet.
The following table presents fair value measurements of cash and cash equivalents, restricted cash, investments, derivatives and unfunded revolving and delayed draw loan commitments as of December 31, 2023:
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| Fair Value Measurements Using |
| Total | | Level 1 | | Level 2 | | Level 3 |
Cash and cash equivalents | $ | 535 | | | $ | 535 | | | $ | — | | | $ | — | |
Restricted cash | $ | 29 | | | $ | 29 | | | $ | — | | | $ | — | |
Investments not measured at net asset value | $ | 22,868 | | | $ | 48 | | | $ | 736 | | | $ | 22,084 | |
Investments measured at net asset value(1) | 6 | | | | | | | |
Total investments | $ | 22,874 | | | | | | | |
Unfunded revolving and delayed draw loan commitments(2) | $ | (32) | | | $ | — | | | $ | — | | | $ | (32) | |
Derivatives: | | | | | | | |
Foreign currency forward contracts | $ | (24) | | | $ | — | | | $ | (24) | | | $ | — | |
Interest rate swaps | $ | 15 | | | $ | — | | | $ | 15 | | | $ | — | |
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(1)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.
(2)The fair value of unfunded revolving and delayed draw loan commitments is included in “accounts payable and other liabilities” in the accompanying consolidated balance sheet.
The following tables summarize the significant unobservable inputs the Valuation Designee used to value the majority of the Company’s investments categorized within Level 3 as of June 30, 2024 and December 31, 2023. The tables are not intended to be all-inclusive, but instead to capture the significant unobservable inputs relevant to the Valuation Designee’s determination of fair values.
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| | As of June 30, 2024 | |
| | | | | | Unobservable Input | |
Asset Category | | Fair Value | | Primary Valuation Techniques | | Input | | Estimated Range | | Weighted Average(1) | |
First lien senior secured loans | | $ | 11,935 | | | Yield analysis | | Market yield | | 5.6% - 27.1% | | 12.0 | % | |
Second lien senior secured loans | | 2,894 | | | Yield analysis | | Market yield | | 9.9% - 23.0% | | 14.0 | % | |
Subordinated certificates of the SDLP | | 1,241 | | | Discounted cash flow analysis | | Discount rate | | 11.0% - 13.7% | | 13.0 | % | |
Senior subordinated loans | | 1,388 | | | Yield analysis | | Market yield | | 7.6% - 17.2% | | 13.8 | % | |
Preferred equity | | 2,741 | | | Yield analysis | | Market yield | | 7.0% - 18.8% | | 13.9 | % | |
| | | | EV market multiple analysis | | EBITDA multiple | | 3.3x - 28.5x | | 13.8x | |
Ivy Hill Asset Management, L.P.(2) | | 1,956 | | | Discounted cash flow analysis | | Discount rate | | 10.9% - 21.6% | | 12.5 | % | |
Other equity | | 2,147 | | | EV market multiple analysis | | EBITDA multiple | | 5.8x - 33.2x | | 14.7x | |
Total investments | | $ | 24,302 | | | | | | | | | | |
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(1)Unobservable inputs were weighted by the relative fair value of the investments.
(2)Includes the Company’s subordinated loan and equity investments in IHAM, as applicable.
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| | As of December 31, 2023 | |
| | | | | | Unobservable Input | |
Asset Category | | Fair Value | | Primary Valuation Techniques | | Input | | Estimated Range | | Weighted Average(1) | |
First lien senior secured loans | | $ | 9,584 | | | Yield analysis | | Market yield | | 6.4% - 35.0% | | 12.7 | % | |
Second lien senior secured loans | | 3,536 | | | Yield analysis | | Market yield | | 10.0% - 37.3% | | 14.8 | % | |
Subordinated certificates of the SDLP | | 1,288 | | | Discounted cash flow analysis | | Discount rate | | 12.3% - 14.6% | | 13.3 | % | |
Senior subordinated loans | | 1,073 | | | Yield analysis | | Market yield | | 8.0% - 19.2% | | 14.6 | % | |
Preferred equity | | 2,456 | | | Yield analysis | | Market yield | | 7.0% - 20.0% | | 14.5 | % | |
| | | | EV market multiple analysis | | EBITDA multiple | | 4.3x - 32.5x | | 15.2x | |
Ivy Hill Asset Management, L.P.(2) | | 1,987 | | | Discounted cash flow analysis | | Discount rate | | 11.6% - 32.6% | | 14.2 | % | |
Other equity | | 2,160 | | | EV market multiple analysis | | EBITDA multiple | | 5.3x - 33.8x | | 14.8x | |
Total investments | | $ | 22,084 | | | | | | | | | | |
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(1)Unobservable inputs were weighted by the relative fair value of the investments.
(2)Includes the Company’s subordinated loan and equity investments in IHAM, as applicable.
Changes in market yields, discount rates or EBITDA multiples, each in isolation, may change the fair value of certain of the Company’s investments. Generally, an increase in market yields or discount rates or a decrease in EBITDA multiples may result in a decrease in the fair value of certain of the Company’s investments.
Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period. Additionally, the fair value of the Company’s investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If the Company was required to liquidate a portfolio investment in a forced or liquidation sale, it could realize significantly less than the value at which the Company has recorded it.
In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.
The following tables present changes in investments that use Level 3 inputs as of and for the three and six months ended June 30, 2024:
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| As of and For the Three Months Ended June 30, 2024 |
Balance as of March 31, 2024 | $ | 22,353 | |
Net realized losses | (15) | |
Net unrealized losses | (51) | |
Purchases | 3,245 | |
Sales | (60) | |
Repayments | (1,301) | |
PIK interest and dividends | 128 | |
Net accretion of discount on investments | 3 | |
Net transfers in and/or out of Level 3 | — | |
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Balance as of June 30, 2024 | $ | 24,302 | |
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| As of and For the Six Months Ended June 30, 2024 |
Balance as of December 31, 2023 | $ | 22,084 | |
Net realized losses | (13) | |
Net unrealized gains | 59 | |
Purchases | 6,116 | |
Sales | (1,111) | |
Repayments | (3,055) | |
PIK interest and dividends | 218 | |
Net accretion of discount on investments | 4 | |
Net transfers in and/or out of Level 3 | — | |
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Balance as of June 30, 2024 | $ | 24,302 | |
Investments were transferred into and out of Level 3 during the three and six months ended June 30, 2024. Transfers into and out of Level 3 were generally as a result of changes in the observability of significant inputs or available market data for certain portfolio companies.
As of June 30, 2024, the net unrealized appreciation on the investments that use Level 3 inputs was $294.
For the three and six months ended June 30, 2024, the total amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to the Company’s Level 3 assets still held as of June 30, 2024, and reported within the net unrealized gains (losses) on investments, foreign currency and other transactions in the Company’s consolidated statement of operations was $(68) and $75, respectively.
The following tables present changes in investments that use Level 3 inputs as of and for the three and six months ended June 30, 2023:
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| As of and For the Three Months Ended June 30, 2023 |
Balance as of March 31, 2023 | $ | 20,683 | |
Net realized losses | (68) | |
Net unrealized gains | 94 | |
Purchases | 1,167 | |
Sales | (160) | |
Repayments | (932) | |
PIK interest and dividends | 100 | |
Net accretion of discount on investments | 2 | |
Net transfers in and/or out of Level 3 | (129) | |
Balance as of June 30, 2023 | $ | 20,757 | |
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| As of and For the Six Months Ended June 30, 2023 |
Balance as of December 31, 2022 | $ | 21,361 | |
Net realized losses | (88) | |
Net unrealized gains | 83 | |
Purchases | 2,239 | |
Sales | (857) | |
Repayments | (1,995) | |
PIK interest and dividends | 181 | |
Net accretion of discount on investments | 6 | |
Net transfers in and/or out of Level 3 | (173) | |
Balance as of June 30, 2023 | $ | 20,757 | |
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Investments were transferred into and out of Level 3 during the three and six months ended June 30, 2023. Transfers into and out of Level 3 were generally as a result of changes in the observability of significant inputs or available market data for certain portfolio companies.
As of June 30, 2023, the net unrealized depreciation on the investments that use Level 3 inputs was $129.
For the three and six months ended June 30, 2023, the total amount of gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to the Company’s Level 3 assets still held as of June 30, 2023, and reported within the net unrealized gains (losses) on investments, foreign currency and other transactions in the Company’s consolidated statement of operations was $55 and $47, respectively.
The following are the carrying and fair values of the Company’s debt obligations as of June 30, 2024 and December 31, 2023. Fair value is estimated by discounting remaining payments using applicable current market rates, which take into account changes in the Company’s marketplace credit ratings, or market quotes, if available.
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| As of |
| June 30, 2024 | | December 31, 2023 |
| Carrying Value(1) | | Fair Value(6) | | Carrying Value(1) | | Fair Value(6) |
Revolving Credit Facility | $ | 1,413 | | | $ | 1,413 | | | $ | 1,413 | | | $ | 1,413 | |
Revolving Funding Facility | 880 | | | 880 | | | 863 | | | 863 | |
SMBC Funding Facility | 515 | | | 515 | | | 401 | | | 401 | |
BNP Funding Facility | 550 | | | 550 | | | 575 | | | 575 | |
2024-1 CLO Notes (principal amount outstanding of $476 and $0, respectively)(2) | 473 | | (3) | 476 | | | — | | | — | |
2024 Convertible Notes (principal amount outstanding of $0 and $403, respectively) | — | | | — | | | 402 | | (3) | 417 | |
June 2024 Notes (principal amount outstanding of $0 and $900, respectively) | — | | | — | | | 899 | | (3) | 893 | |
March 2025 Notes (principal amount outstanding of $600) | 599 | | (3) | 593 | | | 599 | | (3) | 587 | |
July 2025 Notes (principal amount outstanding of $1,250) | 1,253 | | (3) | 1,216 | | | 1,255 | | (3) | 1,198 | |
January 2026 Notes (principal amount outstanding of $1,150) | 1,147 | | (3) | 1,111 | | | 1,146 | | (3) | 1,107 | |
July 2026 Notes (principal amount outstanding of $1,000) | 994 | | (3) | 924 | | | 993 | | (3) | 913 | |
January 2027 Notes (principal amount outstanding of $900) | 889 | | (3)(4) | 915 | | | 905 | | (3)(4) | 927 | |
June 2027 Notes (principal amount outstanding of $500) | 496 | | (3) | 457 | | | 495 | | (3) | 458 | |
June 2028 Notes (principal amount outstanding of $1,250) | 1,247 | | (3) | 1,107 | | | 1,247 | | (3) | 1,109 | |
March 2029 Notes (principal amount outstanding of $1,000 and $0, respectively) | 971 | | (3)(4) | 984 | | | — | | | — | |
July 2029 Notes (principal amount outstanding of $850 and $0, respectively) | 841 | | (3)(4) | 834 | | | — | | | — | |
November 2031 Notes (principal amount outstanding of $700) | 692 | | (3) | 578 | | | 691 | | (3) | 586 | |
Total | $ | 12,960 | | (5) | $ | 12,553 | | | $ | 11,884 | | (5) | $ | 11,447 | |
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(1)The Revolving Credit Facility, the Revolving Funding Facility, the SMBC Funding Facility and the BNP Funding Facility carrying values are the same as the principal amounts outstanding.
(2)Excludes the CLO Subordinated Notes, which were retained by the Company and, as such, are eliminated in consolidation. See Note 5 for more information on the CLO Subordinated Notes.
(3)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the net unaccreted/amortized discount or premium recorded upon issuance.
(4)The carrying value of the January 2027 Notes, the March 2029 Notes and the July 2029 Notes as of June 30, 2024 includes adjustments as a result of effective hedge accounting relationships. The carrying value of the January 2027 Notes as of December 31, 2023 includes an adjustment as a result of an effective hedge accounting relationship. See Notes 5 and 6 for more information.
(5)Total principal amount of debt outstanding totaled $13,034 and $11,905 as of June 30, 2024 and December 31, 2023, respectively.
(6)The fair value of these debt obligations would be categorized as Level 2 under ASC 820-10.
9. STOCKHOLDERS’ EQUITY
The Company may from time to time issue and sell shares of its common stock through public or “at the market” offerings. In connection with the issuance of its common stock, the Company issued and sold the following shares of common stock during the six months ended June 30, 2024:
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Issuances of Common Stock | Number of Shares Issued | | Gross Proceeds | | Underwriting Fees/Offering Expenses | | Net Proceeds | | Average Offering Price Per Share(1) | |
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“At the market” offerings | 25.9 | | $ | 538.7 | | | $ | 5.9 | | | $ | 532.8 | | | $ | 20.83 | | |
Total | 25.9 | | $ | 538.7 | | | $ | 5.9 | | | $ | 532.8 | | | | |
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(1) Represents the gross offering price per share before deducting underwriting discounts and commissions and offering expenses.
“At the Market” Offerings
The Company is party to equity distribution agreements with several banks (the “Equity Distribution Agreements”). The Equity Distribution Agreements provide that the Company may from time to time issue and sell, by means of “at the market” offerings, up to $1,000 of its common stock. Subject to the terms and conditions of the Equity Distribution Agreements, sales of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings as defined in Rule 415(a)(4) under the Securities Act. Under the Equity Distribution Agreements, common stock with an aggregate offering amount of $461 remained available for issuance as of June 30, 2024.
Conversion of the 2024 Convertible Notes
In March 2024, in connection with the repayment of the 2024 Convertible Notes, the Company issued approximately 20 shares of its common stock at a conversion price of $20.12 per share for a total value of $407. See Note 5 for more information relating to the repayment of the 2024 Convertible Notes.
Dividend Reinvestment Plan
See Note 11 for information regarding shares of common stock issued or purchased in accordance with the Company’s dividend reinvestment plan.
Stock Repurchase Program
The Company is authorized under its stock repurchase program to purchase up to $1,000 in the aggregate of its outstanding common stock in the open market at certain thresholds below its net asset value per share, in accordance with the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its sole discretion, based upon an evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. The stock repurchase program does not require the Company to repurchase any specific number of shares of common stock or any shares of common stock at all. Consequently, the Company cannot assure stockholders that any specific number of shares of common stock, if any, will be repurchased under the stock repurchase program. As of June 30, 2024, the expiration date of the stock repurchase program was February 15, 2025. The program may be suspended, extended, modified or discontinued at any time. As of June 30, 2024, there was $1,000 available for repurchases under the stock repurchase program.
During the six months ended June 30, 2024 and 2023, the Company did not repurchase any shares of the Company’s common stock under the stock repurchase program.
10. EARNINGS PER SHARE
The following information sets forth the computations of basic and diluted net increase in stockholders’ equity resulting from operations per share for the three and six months ended June 30, 2024 and 2023:
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| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| 2024 | | 2023 | | 2024 | | 2023 |
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Net increase in stockholders’ equity resulting from operations—basic | $ | 322 | | | $ | 331 | | | $ | 771 | | | $ | 609 | |
Adjustment for interest expense on 2024 Convertible Notes(1) | — | | | 4 | | | — | | | 8 | |
Net increase in stockholders’ equity resulting from operations—diluted | $ | 322 | | | $ | 335 | | | $ | 771 | | | $ | 617 | |
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Weighted average shares of common stock outstanding—basic | 616 | | | 547 | | | 603 | | | 541 | |
Assumed conversion of 2024 Convertible Notes(2) | — | | | 20 | | | — | | | 20 | |
Weighted average shares of common stock outstanding—diluted | 616 | | | 567 | | | 603 | | | 561 | |
Net increase in stockholders’ equity resulting from operations per share—basic | $ | 0.52 | | | $ | 0.61 | | | $ | 1.28 | | | $ | 1.13 | |
Net increase in stockholders’ equity resulting from operations per share—diluted | $ | 0.52 | | | $ | 0.59 | | | $ | 1.28 | | | $ | 1.10 | |
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(1) Includes the impact of the income based fee.
(2) In March 2024, in connection with the repayment of the 2024 Convertible Notes, the Company issued approximately 20 shares of common stock. See Note 5 for more information relating to the repayment of the 2024 Convertible Notes.
For the purpose of calculating diluted net increase in stockholders’ equity resulting from operations per share for the three and six months ended June 30, 2023, the Company utilized the if-converted method which assumes full share settlement for the aggregate value of the 2024 Convertible Notes.
11. DIVIDENDS AND DISTRIBUTIONS
The following table summarizes the Company’s dividends declared and payable during the six months ended June 30, 2024 and 2023:
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Date declared | | Record date | | Payment date | | Per share amount | | Total amount |
May 1, 2024 | | June 14, 2024 | | June 28, 2024 | | $ | 0.48 | | | $ | 300 | |
February 7, 2024 | | March 15, 2024 | | March 29, 2024 | | 0.48 | | | 291 | |
Total dividends declared and payable for the six months ended June 30, 2024 | | | | | | $ | 0.96 | | | $ | 591 | |
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April 25, 2023 | | June 15, 2023 | | June 30, 2023 | | $ | 0.48 | | | $ | 266 | |
February 7, 2023 | | March 15, 2023 | | March 31, 2023 | | 0.48 | | | 261 | |
Total dividends declared and payable for the six months ended June 30, 2023 | | | | | | $ | 0.96 | | | $ | 527 | |
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The Company has a dividend reinvestment plan, whereby the Company may buy shares of its common stock in the open market or issue new shares in order to satisfy dividend reinvestment requests. When the Company issues new shares in
connection with the dividend reinvestment plan, the issue price is equal to the closing price of its common stock on the dividend payment date. Dividend reinvestment plan activity for the six months ended June 30, 2024 and 2023, was as follows:
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| For the Six Months Ended June 30, | | |
| 2024 | | 2023 | | |
Shares issued | 2.0 | | | 0.7 | | | |
Average issue price per share | $ | 20.83 | | | $ | 18.79 | | | |
Shares purchased by plan agent to satisfy dividends declared and payable during the period for stockholders | — | | | 0.8 | | (1) | | |
Average purchase price per share | $ | — | | | $ | 18.35 | | | |
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(1)Shares were purchased in April 2023.
12. RELATED PARTY TRANSACTIONS
In accordance with the investment advisory and management agreement, the Company bears all costs and expenses of the operation of the Company and reimburses its investment adviser or its affiliates for certain of such costs and expenses paid for by the investment adviser or its affiliates on behalf of the Company. For the three and six months ended June 30, 2024, the Company’s investment adviser or its affiliates incurred and the Company reimbursed such expenses totaling $6 and $7, respectively. For the three and six months ended June 30, 2023, the Company’s investment adviser or its affiliates incurred and the Company reimbursed such expenses totaling $2 and $3, respectively.
The Company has entered into agreements with Ares Management LLC and IHAM, pursuant to which Ares Management LLC and IHAM are entitled to use the Company’s proprietary portfolio management software. For the three and six months ended June 30, 2024, amounts payable to the Company under these agreements totaled $0 and $0, respectively. For the three and six months ended June 30, 2023, amounts payable to the Company under these agreements totaled $0 and $0, respectively.
See Notes 3, 4 and 5 for descriptions of other related party transactions.
13. FINANCIAL HIGHLIGHTS
The following is a schedule of financial highlights as of and for the six months ended June 30, 2024 and 2023:
| | | | | | | | | | | |
| As of and For the Six Months Ended June 30, |
Per Share Data: | 2024 | | 2023 |
Net asset value at beginning of period(1) | $ | 19.24 | | | $ | 18.40 | |
Issuances of common stock | 0.04 | | | 0.01 | |
Conversion of 2024 Convertible Notes | 0.01 | | | — | |
| | | |
| | | |
| | | |
Net investment income for period(2) | 1.13 | | | 1.17 | |
Net realized and unrealized gains (losses) for period(2) | 0.15 | | | (0.04) | |
Net increase in stockholders' equity resulting from operations | 1.33 | | | 1.14 | |
Total distributions to stockholders | (0.96) | | | (0.96) | |
Net asset value at end of period(1) | $ | 19.61 | | | $ | 18.58 | |
Per share market value at end of period | $ | 20.84 | | | $ | 18.79 | |
Total return based on market value(3) | 9.02 | % | | 7.17 | % |
Total return based on net asset value(4) | 6.98 | % | | 6.28 | % |
Shares outstanding at end of period | 630 | | | 557 |
Ratio/Supplemental Data: | | | |
Net assets at end of period | $ | 12,364 | | | $ | 10,354 | |
Ratio of operating expenses to average net assets(5)(6) | 12.31 | % | | 12.37 | % |
Ratio of net investment income to average net assets(5)(7) | 12.10 | % | | 12.55 | % |
Portfolio turnover rate(5) | 37 | % | | 23 | % |
_________________________________________________________________________________
(1)The net assets used equals the total stockholders’ equity on the consolidated balance sheet.
(2)Weighted average basic per share data.
(3)For the six months ended June 30, 2024, the total return based on market value equaled the increase of the ending market value at June 30, 2024 of $20.84 per share from the ending market value at December 31, 2023 of $20.03 per share plus the declared and payable dividends of $0.96 per share for the six months ended June 30, 2024, divided by the market value at December 31, 2023. For the six months ended June 30, 2023, the total return based on market value equaled the increase of the ending market value at June 30, 2023 of $18.79 per share from the ending market value at December 31, 2022 of $18.47 per share plus the declared and payable dividends of $0.96 per share for the six months ended June 30, 2023, divided by the market value at December 31, 2022. The Company’s performance changes over time and currently may be different than that shown. Past performance is no guarantee of future results.
(4)For the six months ended June 30, 2024, the total return based on net asset value equaled the change in net asset value during the period plus the declared and payable dividends of $0.96 per share for the six months ended June 30, 2024, divided by the beginning net asset value for the period. For the six months ended June 30, 2023, the total return based on net asset value equaled the change in net asset value during the period plus the declared and payable dividends of $0.96 per share for the six months ended June 30, 2023, divided by the beginning net asset value for the period. The Company’s performance changes over time and currently may be different than that shown. Past performance is no guarantee of future results.
(5)The ratios reflect an annualized amount.
(6)For the six months ended June 30, 2024 and 2023, the ratio of operating expenses to average net assets consisted of the following:
| | | | | | | | | | | |
| For the Six Months Ended June 30, |
| 2024 | | 2023 |
Base management fee | 3.03 | % | | 3.19 | % |
Income based fee and capital gains incentive fee | 3.27 | | | 3.08 | % |
Interest and credit facility fees | 5.66 | | | 5.67 | % |
Other operating expenses | 0.35 | | | 0.43 | % |
Total operating expenses | 12.31 | % | | 12.37 | % |
(7)The ratio of net investment income to average net assets excludes income taxes related to realized gains and losses.
14. SUBSEQUENT EVENTS
The Company’s management has evaluated subsequent events through the date of issuance of the consolidated financial statements included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the six months ended June 30, 2024, except as discussed below.
On July 25, 2024, the Company and the Company’s consolidated subsidiary, AFB, entered into an agreement to amend the BNP Funding Facility. The amendment, among other things, (a) increased the total commitment under the BNP Funding Facility from $865 to $1,265, (b) extended the end of the reinvestment period from April 20, 2026 to July 26, 2027, (c) extended the stated maturity date from April 20, 2028 to July 26, 2029 and (d) adjusted the interest rate charged on the BNP Funding Facility from an applicable SOFR or a “base rate” (as defined in the document governing the BNP Funding Facility) plus a margin of (i) 2.50% during the reinvestment period and (ii) 3.00% following the reinvestment period to an applicable SOFR or a “base rate” plus a margin of (i) 2.10% during the reinvestment period and (ii) 2.60% following the reinvestment period. The other terms of the BNP Funding Facility remained materially unchanged.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The information contained in this section should be read in conjunction with our consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report. In addition, some of the statements in this Quarterly Report (including in the following discussion) constitute forward-looking statements, which relate to future events or the future performance or financial condition of Ares Capital Corporation (the “Company,” “Ares Capital,” “we,” “us,” or “our”). The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:
•our, or our portfolio companies’, future business, operations, operating results or prospects;
•the return or impact of current and future investments;
•the impact of a protracted decline in the liquidity of credit markets on our business;
•changes in the general economy, slowing economy, rising inflation and risk of recession;
•the impact of changes in laws or regulations (including the interpretation thereof), including tax laws, governing our operations or the operations of our portfolio companies or the operations of our competitors;
•the valuation of our investments in portfolio companies, particularly those having no liquid trading market;
•our ability to recover unrealized losses;
•market conditions and our ability to access different debt markets and additional debt and equity capital and our ability to manage our capital resources effectively;
•our contractual arrangements and relationships with third parties;
•political and regulatory conditions that contribute to uncertainty and market volatility including the impact of the upcoming U.S. presidential election and legislative, regulatory, trade and policy changes associated with a new administration;
•the impact of supply chain constraints on our portfolio companies and the global economy;
•uncertainty surrounding global financial stability;
•the Israel-Hamas war;
•the disruption of global shipping activities;
•the Russia-Ukraine war and the potential for volatility in energy prices and other commodities and their impact on the industries in which we invest;
•the financial condition of our current and prospective portfolio companies and their ability to achieve their objectives;
•the impact of information technology system failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity attacks;
•our ability to anticipate and identify evolving market expectations with respect to environmental, social and governance matters, including the environmental impacts of our portfolio companies’ supply chain and operations;
•our ability to successfully complete and integrate any acquisitions;
•the outcome and impact of any litigation or regulatory proceeding;
•the adequacy of our cash resources and working capital;
•the timing, form and amount of any dividend distributions;
•the timing of cash flows, if any, from the operations of our portfolio companies;
•the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; and
•the fluctuations in global interest rates.
We use words such as “anticipates,” “believes,” “expects,” “intends,” “project,” “estimates,” “will,” “should,” “could,” “would,” “may” and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. Our actual results and condition could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and in this Quarterly Report.
We have based the forward-looking statements included in this Quarterly Report on information available to us on the filing date of this Quarterly Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the Securities and Exchange Commission (the “SEC”), including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K.
OVERVIEW
We are a specialty finance company that is a closed-end, non-diversified management investment company incorporated in Maryland. We have elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”).
We are externally managed by Ares Capital Management LLC (“Ares Capital Management” or our “investment adviser”), a subsidiary of Ares Management Corporation (NYSE: ARES) (“Ares Management”), a publicly traded, leading global alternative investment manager, pursuant to our investment advisory and management agreement. Ares Operations LLC (“Ares Operations” or our “administrator”), a subsidiary of Ares Management, provides certain administrative and other services necessary for us to operate.
Our investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in first lien senior secured loans (including “unitranche” loans, which are loans that combine both senior and subordinated debt, generally in a first lien position) and second lien senior secured loans. In addition to senior secured loans, we also invest in subordinated loans (sometimes referred to as mezzanine debt) and preferred equity.
To a lesser extent, we also make common equity investments, which have generally been non-control equity investments of less than $20 million (usually in conjunction with a concurrent debt investment). However, we may increase the size or change the nature of these investments.
Since our initial public offering (“IPO”) on October 8, 2004 through June 30, 2024, our exited investments resulted in an asset level realized gross internal rate of return to us of approximately 13% (based on original cash invested, net of syndications, of approximately $45.5 billion and total proceeds from such exited investments of approximately $58.1 billion). Internal rate of return is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. Internal rate of return is gross of expenses related to investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized.
Additionally, since our IPO on October 8, 2004 through June 30, 2024, our realized gains have exceeded our realized losses by approximately $0.9 billion (excluding a one-time gain on the acquisition of Allied Capital Corporation in April 2010 (the “Allied Acquisition”) and realized gains/losses from the extinguishment of debt and other transactions). For the same time period, our average annualized net realized gain rate was approximately 0.9% (excluding a one-time gain on the Allied Acquisition and realized gains/losses from the extinguishment of debt and other transactions). Net realized gain/loss rates for a particular period are the amount of net realized gains/losses during such period divided by the average quarterly investments at amortized cost in such period.
Information included herein regarding internal rates of return, realized gains and losses and annualized net realized gain rates are historical results relating to our past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.
As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in “qualifying assets,” including securities and indebtedness of private U.S. companies and certain public U.S. companies, cash, cash equivalents, U.S. government securities and high-quality debt investments that mature in one year or less. We also may invest up to 30% of our portfolio in non-qualifying assets, as permitted by the Investment Company Act. Specifically, as part of this 30% basket, we may invest in entities that are not considered “eligible portfolio companies” (as defined in the Investment Company Act), including companies located outside of the United States, entities that are operating pursuant to certain exceptions under the Investment Company Act, and publicly traded entities whose public equity market capitalization exceeds the levels provided for under the Investment Company Act.
We have elected to be treated as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders generally at least 90% of our investment company taxable income, as defined by the Code, for each year. Pursuant to this election, we generally will not have to pay U.S. federal corporate-level taxes on any income that we distribute to our stockholders provided that we satisfy those requirements.
MACROECONOMIC ENVIRONMENT
During the second quarter of 2024, leveraged corporate credit markets posted positive returns, driven by sustained economic growth, a healthy level of corporate earnings and further stability in the capital markets and U.S. banking system. With easing inflationary measures, the Federal Reserve has signaled a willingness to soften its current restrictive monetary policies.
PORTFOLIO AND INVESTMENT ACTIVITY
Our investment activity for the three months ended June 30, 2024 and 2023 is presented below.
| | | | | | | | | | | | | |
| For the Three Months Ended June 30, |
(dollar amounts in millions) | 2024 | | 2023 | | |
New investment commitments(1): | | | | | |
New portfolio companies | $ | 1,371 | | | $ | 366 | | | |
Existing portfolio companies | 2,486 | | | 852 | | | |
Total new investment commitments(2) | $ | 3,857 | | | $ | 1,218 | | | |
Less: | | | | | |
Investment commitments exited(3) | (1,376) | | | (1,138) | | | |
Net investment commitments | $ | 2,481 | | | $ | 80 | | | |
Principal amount of investments funded: | | | | | |
First lien senior secured loans(4) | $ | 2,837 | | | $ | 959 | | | |
Second lien senior secured loans | 58 | | | 141 | | | |
Subordinated certificates of the SDLP(5) | 12 | | | 50 | | | |
Senior subordinated loans | 167 | | | 19 | | | |
Preferred equity | 125 | | | 87 | | | |
Ivy Hill Asset Management, L.P.(6) | 23 | | | — | | | |
Other equity | 55 | | | 73 | | | |
Total | $ | 3,277 | | | $ | 1,329 | | | |
Principal amount of investments sold or repaid: | | | | | |
First lien senior secured loans(4) | $ | 1,007 | | | $ | 677 | | | |
Second lien senior secured loans | 259 | | | 232 | | | |
Subordinated certificates of the SDLP(5) | 21 | | | 43 | | | |
Senior subordinated loans | 1 | | | 21 | | | |
| | | | | |
Preferred equity | 49 | | | 27 | | | |
Ivy Hill Asset Management, L.P.(6) | 58 | | | 171 | | | |
Other equity | 112 | | | 26 | | | |
Total | $ | 1,507 | | | $ | 1,197 | | | |
Number of new investment commitments(7) | 81 | | | 46 | | | |
Average new investment commitment amount | $ | 48 | | | $ | 26 | | | |
Weighted average term for new investment commitments (in months) | 68 | | | 65 | | | |
Percentage of new investment commitments at floating rates | 92 | % | | 73 | % | | |
Percentage of new investment commitments at fixed rates | 6 | % | | 13 | % | | |
Weighted average yield of debt and other income producing securities(8): | | | | | |
Funded during the period at amortized cost | 11.2 | % | | 11.7 | % | | |
Funded during the period at fair value(9) | 11.4 | % | | 11.7 | % | | |
Exited or repaid during the period at amortized cost | 11.6 | % | | 11.5 | % | | |
Exited or repaid during the period at fair value(9) | 11.6 | % | | 11.9 | % | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
_______________________________________________________________________________
(1)New investment commitments include new agreements to fund revolving loans or delayed draw loans. See Note 7 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on our commitments to fund revolving loans or delayed draw loans.
(2)Includes both funded and unfunded commitments. Of these new investment commitments, we funded $2.9 billion and $1.0 billion for the three months ended June 30, 2024 and 2023, respectively.
(3)Includes both funded and unfunded commitments. For the three months ended June 30, 2024 and 2023, investment commitments exited included exits of unfunded commitments of $123 million and $135 million, respectively.
(4)For the three months ended June 30, 2024 and 2023, net fundings (repayments) of first lien secured revolving loans were $8 million and $(176) million, respectively.
(5)See “Senior Direct Lending Program” below and Note 4 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on the SDLP (as defined below).
(6)Includes our subordinated loan and equity investments in IHAM (as defined below), as applicable. See “Ivy Hill Asset Management, L.P.” below and Note 4 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on IHAM.
(7)Number of new investment commitments represents each commitment to a particular portfolio company or a commitment to multiple companies as part of an individual transaction (e.g., the purchase of a portfolio of investments).
(8)“Weighted average yield of debt and other income producing securities” is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities (including the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end, as applicable), divided by (b) the total accruing debt and other income producing securities at amortized cost or at fair value (including the amortized cost or fair value of our equity investment in IHAM as applicable), as applicable.
(9)Represents fair value for investments in the portfolio as of the most recent prior quarter end, if applicable.
As of June 30, 2024 and December 31, 2023, our investments consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | As of |
| | June 30, 2024 | | December 31, 2023 |
(in millions) | | Amortized Cost(1) | | Fair Value | | Amortized Cost(1) | | Fair Value |
First lien senior secured loans(2) | | $ | 12,732 | | | $ | 12,434 | | | $ | 10,313 | | | $ | 10,081 | |
Second lien senior secured loans | | 3,120 | | | 3,011 | | | 3,980 | | | 3,753 | |
Subordinated certificates of the SDLP(3) | | 1,271 | | | 1,241 | | | 1,316 | | | 1,288 | |
Senior subordinated loans | | 1,438 | | | 1,401 | | | 1,150 | | | 1,096 | |
| | | | | | | | |
Preferred equity | | 2,731 | | | 2,741 | | | 2,457 | | | 2,460 | |
Ivy Hill Asset Management, L.P.(4) | | 1,724 | | | 1,956 | | | 1,763 | | | 1,987 | |
Other equity | | 1,691 | | | 2,189 | | | 1,689 | | | 2,209 | |
Total | | $ | 24,707 | | | $ | 24,973 | | | $ | 22,668 | | | $ | 22,874 | |
_______________________________________________________________________________
(1)The amortized cost represents the original cost adjusted for any accretion of discounts, amortization of premiums and payment-in-kind (“PIK”) interest or dividends.
(2)First lien senior secured loans include certain loans that we classify as “unitranche” loans. The total amortized cost and fair value of the loans that we classified as “unitranche” loans were $7.3 billion and $7.2 billion, respectively, as of June 30, 2024, and $5.8 billion and $5.7 billion, respectively, as of December 31, 2023.
(3)The proceeds from these certificates were applied to co-investments with Varagon Capital Partners (“Varagon”) and its clients to fund first lien senior secured loans to 19 and 22 different borrowers as of June 30, 2024 and December 31, 2023, respectively.
(4)Includes our subordinated loan and equity investments in IHAM, as applicable.
We have commitments to fund various revolving and delayed draw senior secured and subordinated loans, including commitments to fund which are at (or substantially at) our discretion. Our commitment to fund delayed draw loans is triggered
upon the satisfaction of certain pre-negotiated terms and conditions. Generally, the most significant and uncertain term requires the borrower to satisfy a specific use of proceeds covenant. The use of proceeds covenant typically requires the borrower to use the additional loans for the specific purpose of a permitted acquisition or permitted investment, for example. In addition to the use of proceeds covenant, the borrower is generally required to satisfy additional negotiated covenants (including specified leverage levels). We are also party to subscription agreements to fund equity investments. See Note 7 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on our unfunded commitments, including commitments to issue letters of credit, related to certain of our portfolio companies.
The weighted average yields at amortized cost and fair value of the following portions of our portfolio as of June 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | As of |
| | June 30, 2024 | | December 31, 2023 |
| | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value |
Debt and other income producing securities(1) | | 12.2 | % | | 12.2 | % | | 12.5 | % | | 12.5 | % |
Total portfolio(2) | | 11.1 | % | | 11.0 | % | | 11.3 | % | | 11.2 | % |
First lien senior secured loans(3) | | 11.2 | % | | 11.4 | % | | 11.7 | % | | 11.9 | % |
Second lien senior secured loans(3) | | 13.0 | % | | 13.4 | % | | 12.7 | % | | 13.4 | % |
Subordinated certificates of the SDLP(3)(6) | | 13.3 | % | | 13.6 | % | | 13.6 | % | | 13.9 | % |
Senior subordinated loans(3) | | 12.6 | % | | 12.9 | % | | 12.5 | % | | 13.1 | % |
| | | | | | | | |
Ivy Hill Asset Management L.P.(4) | | 16.2 | % | | 14.3 | % | | 15.1 | % | | 13.3 | % |
Other income producing equity securities(5) | | 11.5 | % | | 11.4 | % | | 11.3 | % | | 11.2 | % |
_______________________________________________________________________________
(1)“Weighted average yields on debt and other income producing securities” are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities (including the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end), divided by (b) the total accruing debt and other income producing securities at amortized cost or at fair value (including the amortized cost or fair value of our equity investment in IHAM as applicable), as applicable.
(2)“Weighted average yields on total portfolio” are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities (including the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end), divided by (b) total investments at amortized cost or at fair value, as applicable.
(3)“Weighted average yields” of investments are computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on the relevant accruing investments, divided by (b) the total relevant investments at amortized cost or at fair value, as applicable.
(4)Represents the yield on our equity investment in IHAM, which is computed as (a) the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of our equity investment in IHAM, as applicable.
(5)“Weighted average yield on other income producing equity securities” is computed as (a) the yield earned on the relevant income producing equity securities, divided by (b) the total relevant income producing equity securities at amortized cost or fair value, as applicable.
(6)The proceeds from these certificates were applied to co-investments with Varagon and its clients to fund first lien senior secured loans.
Ares Capital Management employs an investment rating system to categorize our investments. In addition to various risk management and monitoring tools, our investment adviser grades the credit risk of all investments on a scale of 1 to 4 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to our initial cost basis in respect of such portfolio investment (i.e., at the time of origination or acquisition), although it may also take into account under certain circumstances the performance of the portfolio company’s business, the collateral coverage
of the investment and other relevant factors. The grade of a portfolio investment may be reduced or increased over time. The following is a description of each investment grade:
| | | | | | | | |
Investment grade | | Description |
4 | | Involves the least amount of risk to our initial cost basis. The trends and risk factors for this investment since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit. |
3 | | Involves a level of risk to our initial cost basis that is similar to the risk to our initial cost basis at the time of origination or acquisition. This portfolio company is generally performing as expected and the risk factors to our ability to ultimately recoup the cost of our investment are neutral to favorable. All investments or acquired investments in new portfolio companies are initially assessed a grade of 3. |
2 | | Indicates that the risk to our ability to recoup the initial cost basis of such investment has increased materially since origination or acquisition, including as a result of factors such as declining performance and non-compliance with debt covenants; however, payments are generally not more than 120 days past due. For investments graded 2, our investment adviser enhances its level of scrutiny over the monitoring of such portfolio company. |
1 | | Indicates that the risk to our ability to recoup the initial cost basis of such investment has substantially increased since origination or acquisition, and the portfolio company likely has materially declining performance. For debt investments with an investment grade of 1, most or all of the debt covenants are out of compliance and payments are substantially delinquent. For investments graded 1, it is anticipated that we will not recoup our initial cost basis and may realize a substantial loss of our initial cost basis upon exit. For investments graded 1, our investment adviser enhances its level of scrutiny over the monitoring of such portfolio company. |
Set forth below is the grade distribution of our portfolio companies as of June 30, 2024 and December 31, 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of |
| | June 30, 2024 | | December 31, 2023 |
(dollar amounts in millions) | | Fair Value | | % | | Number of Companies | | % | | Fair Value | | % | | Number of Companies | | % |
Grade 4 | | $ | 4,116 | | | 16.5 | % | | 62 | | | 11.8 | % | | $ | 4,222 | | | 18.5 | % | | 64 | | | 12.7 | % |
Grade 3 | | 19,932 | | | 79.8 | | | 409 | | | 77.9 | | | 17,174 | | | 75.1 | | | 386 | | | 76.4 | |
Grade 2 | | 719 | | | 2.9 | | | 30 | | | 5.7 | | | 1,333 | | | 5.8 | | | 35 | | | 6.9 | |
Grade 1 | | 206 | | | 0.8 | | | 24 | | | 4.6 | | | 145 | | | 0.6 | | | 20 | | | 4.0 | |
Total | | $ | 24,973 | | | 100.0 | % | | 525 | | | 100.0 | % | | $ | 22,874 | | | 100.0 | % | | 505 | | 100.0 | % |
As of June 30, 2024 and December 31, 2023, the weighted average grade of the investments in our portfolio at fair value was 3.1 and 3.1, respectively.
As of June 30, 2024 and December 31, 2023, loans on non-accrual status represented 1.5% of the total investments at amortized cost (or 0.7% at fair value) and 1.3% at amortized cost (or 0.6% at fair value), respectively.
Ivy Hill Asset Management, L.P.
Ivy Hill Asset Management, L.P. (“IHAM”), our wholly owned portfolio company, is an asset manager and an SEC-registered investment adviser. As of June 30, 2024, IHAM had assets under management of approximately $13.2 billion. As of June 30, 2024, IHAM managed 21 vehicles (the “IHAM Vehicles”). IHAM earns fee income from managing the IHAM Vehicles and has also invested in certain of these vehicles as part of its business strategy. The amortized cost of IHAM’s total investments as of June 30, 2024 and December 31, 2023 was $2,311 million and $2,288 million, respectively. For the three and six months ended June 30, 2024, IHAM had management and incentive fee income of $14 million and $28 million, respectively, and other investment-related income of $92 million and $191 million, respectively, which included net realized gains or losses on investments and other transactions. For the three and six months ended June 30, 2023, IHAM had management and incentive fee income of $13 million and $27 million, respectively, and investment-related income of $95 million and $156 million, respectively, which included net realized gains or losses on investments and other transactions.
The amortized cost and fair value of our investments in IHAM as of June 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| As of |
| June 30, 2024 | | December 31, 2023 | | |
(in millions) | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | |
Subordinated loan(1) | $ | 23 | | | $ | 23 | | | $ | 62 | | | $ | 62 | | | |
Equity | 1,701 | | | 1,933 | | | 1,701 | | | 1,925 | | | |
Total investment in IHAM | $ | 1,724 | | | $ | 1,956 | | | $ | 1,763 | | | $ | 1,987 | | | |
_______________________________________________________________________________
(1)We have provided a commitment to fund up to $500 million to IHAM, of which the availability is solely at our discretion.
The interest income and dividend income that we earned from IHAM for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Interest income | $ | — | | | $ | 10 | | | $ | 1 | | | $ | 23 | |
Dividend income | $ | 69 | | | $ | 60 | | | $ | 135 | | | $ | 117 | |
From time to time, IHAM or certain IHAM Vehicles may purchase investments from, or sell investments to, us. For any such sales or purchases by the IHAM Vehicles to or from us, the IHAM Vehicle must obtain approval from third parties unaffiliated with us or IHAM, as applicable. During the six months ended June 30, 2024 and 2023, IHAM or certain of the IHAM Vehicles purchased $35 million and $691 million, respectively, of loans from us. For the six months ended June 30, 2024 and 2023, we recognized $1 million and $11 million, respectively, of net realized losses from these sales. During the six months ended June 30, 2024 and 2023, IHAM or certain IHAM Vehicles sold $32 million and $7 million, respectively, of investments to us.
The yields at amortized cost and fair value of our investments in IHAM as of June 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | As of |
| | June 30, 2024 | | December 31, 2023 |
| | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value |
Subordinated loan | | 12.0 | % | | 12.0 | % | | 12.0 | % | | 12.0 | % |
Equity(1) | | 16.2 | % | | 14.3 | % | | 15.1 | % | | 13.3 | % |
_______________________________________________________________________________
(1)Represents the yield on our equity investment in IHAM, which is computed as (a) the annualized amount of the dividend received by us related to our equity investment in IHAM during the most recent quarter end, divided by (b) the amortized cost or fair value of our equity investment in IHAM, as applicable.
Selected Financial Information
Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of IHAM, in conformity with U.S. generally accepted accounting principles (“GAAP”), as of and for the three and six months ended June 30, 2024 and 2023 are presented below.
In conformity with GAAP, IHAM is required to consolidate entities in which IHAM has a direct or indirect controlling financial interest based on either a variable interest model or voting interest model, which include certain of the IHAM Vehicles (the “Consolidated IHAM Vehicles”). As such, for GAAP purposes only, IHAM consolidates (a) entities in which it holds a majority voting interest or has majority ownership and control over the operational, financial and investing decisions of that entity and (b) entities that it concludes are variable interest entities in which IHAM has more than insignificant economic interest and power to direct the activities that most significantly impact the entities, and for which IHAM is deemed to be the primary beneficiary.
When IHAM consolidates an IHAM Vehicle for GAAP purposes only, IHAM reflects the assets, liabilities, revenues and expenses of the Consolidated IHAM Vehicles on a gross basis, including the economic interests held by third-party investors in the Consolidated IHAM Vehicles as debt obligations, subordinated notes or non-controlling interests, in the consolidated IHAM financials below. All of the revenues earned by IHAM as the investment manager of the Consolidated IHAM Vehicles are eliminated in GAAP consolidation. However, because the eliminated amounts are earned from and funded by third-party investors, the GAAP consolidation of an IHAM Vehicle does not impact the net income or loss attributable to IHAM. As a result, we believe an assessment of IHAM’s business and the impact to our investment in IHAM is best viewed on a stand-alone basis as reflected in the first column in the tables below.
| | | | | | | | | | | | | | | | | | | | | | | |
| As of June 30, 2024 |
(in millions) | IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Balance Sheet Information: | | | | | | | |
Assets | | | | | | | |
Investments at fair value(2) | $ | 2,266 | | | $ | 8,553 | | | $ | (2,208) | | | $ | 8,611 | |
Cash and cash equivalents | 7 | | | 968 | | | — | | | 975 | |
Other assets | 68 | | | 79 | | | (64) | | | 83 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total assets | $ | 2,341 | | | $ | 9,600 | | | $ | (2,272) | | | $ | 9,669 | |
| | | | | | | |
Liabilities | | | | | | | |
Debt | $ | 462 | | | $ | 6,872 | | | $ | — | | | $ | 7,334 | |
Subordinated note from ARCC | 23 | | | — | | | — | | | 23 | |
Subordinated notes(3) | — | | | 1,213 | | | (906) | | | 307 | |
Other liabilities | 20 | | | 228 | | | (15) | | | 233 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total liabilities | 505 | | | 8,313 | | | (921) | | | 7,897 | |
Equity | | | | | | | |
Contributed capital | 1,701 | | | — | | | — | | | 1,701 | |
Accumulated earnings | 183 | | | — | | | — | | | 183 | |
Net unrealized losses on investments and foreign currency transactions(4) | (48) | | | — | | | — | | | (48) | |
Non-controlling interests in Consolidated IHAM Vehicles(5) | — | | | 1,287 | | | (1,351) | | | (64) | |
| | | | | | | |
| | | | | | | |
Total equity | 1,836 | | | 1,287 | | | (1,351) | | | 1,772 | |
Total liabilities and equity | $ | 2,341 | | | $ | 9,600 | | | $ | (2,272) | | | $ | 9,669 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| As of December 31, 2023 |
(in millions) | IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Balance Sheet Information: | | | | | | | |
Assets | | | | | | | |
| | | | | | | |
Investments at fair value(2) | $ | 2,274 | | | $ | 9,392 | | | $ | (2,265) | | | $ | 9,401 | |
Cash and cash equivalents | 9 | | | 707 | | | — | | | 716 | |
| | | | | | | |
Other assets | 70 | | | 100 | | | (68) | | | 102 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total assets | $ | 2,353 | | | $ | 10,199 | | | $ | (2,333) | | | $ | 10,219 | |
| | | | | | | |
Liabilities | | | | | | | |
| | | | | | | |
Debt | $ | 462 | | | $ | 7,459 | | | $ | — | | | $ | 7,921 | |
Subordinated note from ARCC | 62 | | | — | | | — | | | 62 | |
Subordinated notes(3) | — | | | 1,280 | | | (992) | | | 288 | |
| | | | | | | |
Other liabilities | 17 | | | 189 | | | (16) | | | 190 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total liabilities | 541 | | | 8,928 | | | (1,008) | | | 8,461 | |
Equity | | | | | | | |
Contributed capital | 1,701 | | | — | | | — | | | 1,701 | |
Accumulated earnings | 126 | | | — | | | — | | | 126 | |
Net unrealized losses on investments and foreign currency transactions(4) | (15) | | | — | | | — | | | (15) | |
Non-controlling interests in Consolidated IHAM Vehicles(5) | — | | | 1,271 | | | (1,325) | | | (54) | |
| | | | | | | |
| | | | | | | |
Total equity | 1,812 | | | 1,271 | | | (1,325) | | | 1,758 | |
Total liabilities and equity | $ | 2,353 | | | $ | 10,199 | | | $ | (2,333) | | | $ | 10,219 | |
____________________________________
(1)Consolidated for GAAP purposes only.
(2)The determination of such fair value is determined in accordance with IHAM’s valuation process (separate and apart from our valuation process described elsewhere herein). The amortized cost of IHAM’s total investments as of June 30, 2024 and December 31, 2023 was $2,311 million and $2,288 million, respectively. The amortized cost of the total investments of IHAM on a consolidated basis as of June 30, 2024 and December 31, 2023 was $8,792 million and $9,619 million, respectively.
(3)Subordinated notes generally represent the most junior capital in certain of the Consolidated IHAM Vehicles and effectively represent equity in such vehicles.
(4)As of June 30, 2024 and December 31, 2023, net unrealized losses of $43 million and $13 million, respectively, have been eliminated upon consolidation and the elimination is included in “non-controlling interests in Consolidated IHAM Vehicles” in the selected balance sheet information.
(5)Non-controlling interests in Consolidated IHAM Vehicles includes net unrealized depreciation in the Consolidated IHAM Vehicles of $180 million and $221 million as of June 30, 2024 and December 31, 2023, respectively.
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, 2024 |
(in millions) | IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Statement of Operations Information: | | | | | | | |
Revenues | | | | | | | |
| | | | | | | |
Investment income | $ | 92 | | | $ | 259 | | | $ | (90) | | | $ | 261 | |
Management fees and other income | 14 | | | 3 | | | (13) | | | 4 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total revenues | 106 | | | 262 | | | (103) | | | 265 | |
Expenses | | | | | | | |
| | | | | | | |
Interest expense | 10 | | | 143 | | | — | | | 153 | |
Distributions to subordinated notes | — | | | 52 | | | (40) | | | 12 | |
Management fees and other expenses | 3 | | | 15 | | | (13) | | | 5 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total expenses | 13 | | | 210 | | | (53) | | | 170 | |
Net operating income | 93 | | | 52 | | | (50) | | | 95 | |
| | | | | | | |
| | | | | | | |
Net realized gains (losses) on investments and foreign currency | — | | | (16) | | | — | | | (16) | |
| | | | | | | |
Net unrealized losses on investments, foreign currency and other transactions | (16) | | | (14) | | | 10 | | | (20) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total net realized and unrealized losses on investments, foreign currency and other transactions | (16) | | | (30) | | | 10 | | | (36) | |
Net income | 77 | | | 22 | | | (40) | | | 59 | |
| | | | | | | |
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles | — | | | 22 | | | (40) | | | (18) | |
Net income attributable to Ivy Hill Asset Management, L.P. | $ | 77 | | | $ | — | | | $ | — | | | $ | 77 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Six Months Ended June 30, 2024 |
(in millions) | IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Statement of Operations Information: | | | | | | | |
Revenues | | | | | | | |
| | | | | | | |
Investment income | $ | 186 | | | $ | 533 | | | $ | (182) | | | $ | 537 | |
Management fees and other income | 28 | | | 6 | | | (26) | | | 8 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total revenues | 214 | | | 539 | | | (208) | | | 545 | |
Expenses | | | | | | | |
| | | | | | | |
Interest expense | 20 | | | 293 | | | — | | | 313 | |
Distributions to subordinated notes | — | | | 105 | | | (77) | | | 28 | |
Management fees and other expenses | 7 | | | 33 | | | (26) | | | 14 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total expenses | 27 | | | 431 | | | (103) | | | 355 | |
Net operating income | 187 | | | 108 | | | (105) | | | 190 | |
| | | | | | | |
| | | | | | | |
Net realized gains (losses) on investments and foreign currency | 5 | | | (74) | | | (9) | | | (78) | |
Net realized loss on extinguishment of debt | — | | | (1) | | | — | | | (1) | |
Net unrealized (losses) gains on investments, foreign currency and other transactions | (33) | | | 47 | | | 30 | | | 44 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total net realized and unrealized losses on investments, foreign currency and other transactions | (28) | | | (28) | | | 21 | | | (35) | |
Net income | 159 | | | 80 | | | (84) | | | 155 | |
| | | | | | | |
Less: Net income (loss) attributable to non-controlling interests in Consolidated IHAM Vehicles | — | | | 80 | | | (84) | | | (4) | |
Net income attributable to Ivy Hill Asset Management, L.P. | $ | 159 | | | $ | — | | | $ | — | | | $ | 159 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, 2023 |
(in millions) | IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Statement of Operations Information: | | | | | | | |
Revenues | | | | | | | |
| | | | | | | |
Investment income | $ | 95 | | | $ | 273 | | | $ | (94) | | | $ | 274 | |
Management fees and other income | 13 | | | 2 | | | (13) | | | 2 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total revenues | 108 | | | 275 | | | (107) | | | 276 | |
Expenses | | | | | | | |
| | | | | | | |
Interest expense | 16 | | | 143 | | | — | | | 159 | |
Distributions to subordinated notes | — | | | 57 | | | (46) | | | 11 | |
Management fees and other expenses | 4 | | | 18 | | | (13) | | | 9 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total expenses | 20 | | | 218 | | | (59) | | | 179 | |
Net operating income | 88 | | | 57 | | | (48) | | | 97 | |
| | | | | | | |
| | | | | | | |
Net realized gains on investments and other transactions | — | | | 7 | | | — | | | 7 | |
| | | | | | | |
Net unrealized gains on investments and other transactions | 3 | | | 8 | | | (6) | | | 5 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total net realized and unrealized gains on investments and other transactions | 3 | | | 15 | | | (6) | | | 12 | |
Net income | 91 | | | 72 | | | (54) | | | 109 | |
Less: Net income attributable to non-controlling interests in Consolidated IHAM Vehicles | — | | | 72 | | | (54) | | | 18 | |
Net income attributable to Ivy Hill Asset Management, L.P. | $ | 91 | | | $ | — | | | $ | — | | | $ | 91 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Six Months Ended June 30, 2023 |
(in millions) | IHAM | | Consolidated IHAM Vehicles(1) | | Eliminations | | Consolidated |
Selected Statement of Operations Information: | | | | | | | |
Revenues | | | | | | | |
| | | | | | | |
Investment income | $ | 166 | | | $ | 528 | | | $ | (164) | | | $ | 530 | |
Management fees and other income | 27 | | | 3 | | | (26) | | | 4 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total revenues | 193 | | | 531 | | | (190) | | | 534 | |
Expenses | | | | | | | |
| | | | | | | |
Interest expense | 35 | | | 272 | | | — | | | 307 | |
Distributions to subordinated notes | — | | | 89 | | | (70) | | | 19 | |
Management fees and other expenses | 8 | | | 36 | | | (26) | | | 18 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total expenses | 43 | | | 397 | | | (96) | | | 344 | |
Net operating income | 150 | | | 134 | | | (94) | | | 190 | |
| | | | | | | |
| | | | | | | |
Net realized losses on investments and other transactions | (10) | | | (10) | | | — | | | (20) | |
| | | | | | | |
Net unrealized gains on investments and other transactions | 17 | | | 30 | | | (19) | | | 28 | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Total net realized and unrealized gains on investments and other transactions | 7 | | | 20 | | | (19) | | | 8 | |
Net income | 157 | | | 154 | | | (113) | | | 198 | |
Less: Net income attributable to non-controlling interests in Consolidated IHAM Vehicles | — | | | 154 | | | (113) | | | 41 | |
Net income attributable to Ivy Hill Asset Management, L.P. | $ | 157 | | | $ | — | | | $ | — | | | $ | 157 | |
____________________________________
(1)Consolidated for GAAP purposes only.
Senior Direct Lending Program
We have established a joint venture with Varagon to make certain first lien senior secured loans, including certain stretch senior and unitranche loans, primarily to U.S. middle-market companies. The joint venture is called the Senior Direct Lending Program, LLC (d/b/a the “Senior Direct Lending Program” or the “SDLP”). In July 2016, we and Varagon and its clients completed the initial funding of the SDLP. The SDLP may generally commit and hold individual loans of up to $450 million. The SDLP is capitalized as transactions are completed and all portfolio decisions and generally all other decisions in respect of the SDLP must be approved by an investment committee of the SDLP consisting of representatives of ours and Varagon (with approval from a representative of each required).
We provide capital to the SDLP in the form of subordinated certificates (the “SDLP Certificates”), and Varagon and its clients provide capital to the SDLP in the form of senior notes, intermediate funding notes and the SDLP Certificates. As of June 30, 2024 and December 31, 2023, we and a client of Varagon owned 87.5% and 12.5%, respectively, of the outstanding SDLP Certificates.
As of June 30, 2024 and December 31, 2023, we and Varagon and its clients had agreed to make capital available to the SDLP of $6.2 billion and $6.2 billion, respectively, in the aggregate, of which $1.4 billion and $1.4 billion, respectively, is to be made available from us. This capital will only be committed to the SDLP upon approval of transactions by the investment committee of the SDLP. Below is a summary of the funded capital and unfunded capital commitments of the SDLP.
| | | | | | | | | | | | |
| | As of |
(in millions) | | June 30, 2024 | | December 31, 2023 |
Total capital funded to the SDLP(1) | | $ | 4,966 | | | $ | 5,361 | |
Total capital funded to the SDLP by the Company(1) | | $ | 1,300 | | | $ | 1,328 | |
Total unfunded capital commitments to the SDLP(2) | | $ | 231 | | | $ | 260 | |
Total unfunded capital commitments to the SDLP by the Company(2) | | $ | 56 | | | $ | 60 | |
___________________________________________________________________________
(1) At principal amount.
(2)These commitments to fund delayed draw loans have been approved by the investment committee of the SDLP and will be funded if and when conditions to funding such delayed draw loans are met.
The SDLP Certificates pay a coupon equal to Secured Overnight Financing Rate (“SOFR”) plus 8.0% and also entitle the holders thereof to receive a portion of the excess cash flow from the loan portfolio, after expenses, which may result in a return to the holders of the SDLP Certificates that is greater than the stated coupon. The SDLP Certificates are junior in right of payment to the senior notes and intermediate funding notes.
The amortized cost and fair value of our SDLP Certificates and our yield on our investment in the SDLP Certificates at amortized cost and fair value as of June 30, 2024 and December 31, 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| As of |
| March 31, 2024 | | December 31, 2023 | | |
(dollar amounts in millions) | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | |
Investment in the SDLP Certificates | $ | 1,271 | | | $ | 1,241 | | | $ | 1,316 | | | $ | 1,288 | | | |
Yield on the investment in the SDLP Certificates | 13.3 | % | | 13.6 | % | | 13.6 | % | | 13.9 | % | | |
The interest income from our investment in the SDLP Certificates and capital structuring service and other fees earned for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 | |
Interest income | $ | 45 | | | $ | 43 | | | $ | 88 | | | $ | 86 | | |
Capital structuring service and other fees | $ | 2 | | | $ | 6 | | | $ | 5 | | | $ | 7 | | |
As of June 30, 2024 and December 31, 2023, the SDLP portfolio was comprised entirely of first lien senior secured loans primarily to U.S. middle-market companies and were in industries similar to the companies in our portfolio. As of June 30, 2024, two of the loans were on non-accrual status. As of December 31, 2023, one of the loans was on non-accrual status. Below is a summary of the SDLP’s portfolio as of June 30, 2024 and December 31, 2023:
| | | | | | | | | | | | |
| | As of |
(dollar amounts in millions) | | June 30, 2024 | | December 31, 2023 |
Total first lien senior secured loans(1)(2) | | $ | 5,050 | | | $ | 5,431 | |
Weighted average yield on first lien senior secured loans(3) | | 10.2 | % | | 10.4 | % |
Largest loan to a single borrower(1) | | $ | 368 | | | $ | 370 | |
Total of five largest loans to borrowers(1) | | $ | 1,709 | | | $ | 1,650 | |
Number of borrowers in the SDLP | | 19 | | | 22 | |
Commitments to fund delayed draw loans(4) | | $ | 231 | | | $ | 260 | |
_______________________________________________________________________________
(1)At principal amount.
(2)First lien senior secured loans include certain loans that the SDLP classifies as “unitranche” loans. As of June 30, 2024 and December 31, 2023, the total principal amount of loans in the SDLP portfolio that the SDLP classified as “unitranche” loans was $4,344 million and $4,558 million, respectively.
(3) Computed as (a) the annual stated interest rate on accruing first lien senior secured loans, divided by (b) total first lien senior secured loans at principal amount.
(4)As discussed above, these commitments have been approved by the investment committee of the SDLP.
Pursuant to Rule 4-08(g) of Regulation S-X, selected financial information of the SDLP, in conformity with GAAP, as of June 30, 2024 and December 31, 2023 and for the three and six months ended June 30, 2024 and 2023 are presented below:
| | | | | | | | | | | | |
| As of | |
(in millions) | June 30, 2024 | | December 31, 2023 | |
Selected Balance Sheet Information: | | | | |
Investments at fair value (amortized cost of $4,879 and $5,267, respectively) | $ | 4,667 | | | $ | 5,129 | | |
Other assets | 180 | | | 192 | | |
Total assets | $ | 4,847 | | | $ | 5,321 | | |
| | | | |
Senior notes | $ | 3,352 | | | $ | 3,705 | | |
Intermediate funding notes | 128 | | | 139 | | |
Other liabilities | 130 | | | 136 | | |
Total liabilities | 3,610 | | | 3,980 | | |
Subordinated certificates and members’ capital | 1,237 | | | 1,341 | | |
Total liabilities and members’ capital | $ | 4,847 | | | $ | 5,321 | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Selected Statement of Operations Information: | | | | | | | |
Total investment income | $ | 133 | | | $ | 140 | | | $ | 283 | | | $ | 276 | |
Interest expense | 76 | | | 72 | | | 154 | | | 141 | |
Other expenses | 4 | | | 6 | | | 8 | | | 11 | |
Total expenses | 80 | | | 78 | | | 162 | | | 152 | |
Net investment income | 53 | | | 62 | | | 121 | | | 124 | |
Net realized and unrealized losses on investments | (71) | | | (17) | | | (72) | | | (86) | |
Net (decrease) increase in members’ capital resulting from operations | $ | (18) | | | $ | 45 | | | $ | 49 | | | $ | 38 | |
SDLP Loan Portfolio as of June 30, 2024
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollar amounts in millions) Portfolio Company | | Business Description | | Maturity Date | | Stated Interest Rate(1) | | Principal Amount | | Fair Value(2) |
Arrowhead Holdco Company (3)(4) | | Distributor of non-discretionary, mission-critical aftermarket replacement parts | | 08/2028 | | 10.7 | % | | $ | 275.7 | | | $ | 245.4 | |
Center for Autism and Related Disorders, LLC (3)(5) | | Autism treatment and services provider specializing in applied behavior analysis therapy | | 11/2024 | | | | 164.3 | | | — | |
Concert Golf Partners Holdco LLC (3) | | Golf club owner and operator | | 04/2030 | | 10.2 | % | | 275.9 | | | 275.9 | |
Emergency Communications Network, LLC (3)(5) | | Provider of mission critical emergency mass notification solutions | | 07/2024 | | | | 264.0 | | | 166.3 | |
FS Squared Holding Corp. (3)(4) | | Provider of on-site vending and micro market solutions | | 03/2026 | | 10.8 | % | | 321.6 | | | 321.6 | |
Harvey Tool Company, LLC (3) | | Manufacturer of cutting tools used in the metalworking industry | | 10/2027 | | 11.0 | % | | 268.2 | | | 268.2 | |
HGC Holdings, LLC (3) | | Operator of golf facilities | | 06/2026 | | 10.9 | % | | 360.9 | | | 360.9 | |
ISQ Hawkeye Holdco, Inc. (3)(4) | | Provider of commercial and industrial waste processing and disposal services | | 08/2029 | | 11.4 | % | | 301.9 | | | 301.9 | |
Manna Pro Products, LLC (3) | | Manufacturer and supplier of specialty nutrition and care products for animals | | 12/2026 | | 11.4 | % | | 266.2 | | | 234.2 | |
North Haven Falcon Buyer, LLC (3)(4) | | Manufacturer of aftermarket golf cart parts and accessories | | 05/2027 | | 13.3 | % | | 231.4 | | | 185.1 | |
Pegasus Global Enterprise Holdings, LLC (3)(4) | | Provider of plant maintenance and scheduling software | | 05/2025 | | 10.7 | % | | 333.2 | | | 333.2 | |
Penn Detroit Diesel Allison, LLC | | Distributor of aftermarket parts to the heavy-duty truck industry | | 12/2027 | | 11.2 | % | | 32.9 | | | 32.9 | |
Precinmac (US) Holdings Inc. and Trimaster Manufacturing Inc. (3)(4) | | Manufacturer of high-tolerance precision machined components and assemblies for the aerospace and defense industry | | 08/2027 | | 11.4 | % | | 254.8 | | | 254.8 | |
Pritchard Industries, LLC (3)(4) | | Provider of janitorial and facilities management services | | 10/2027 | | 11.0 | % | | 243.9 | | | 239.1 | |
Qnnect, LLC (3)(4) | | Manufacturer of highly engineered hermetic packaging products | | 11/2029 | | 11.9 | % | | 276.9 | | | 276.9 | |
THG Acquisition, LLC (3) | | Multi-line insurance broker | | 12/2026 | | 11.2 | % | | 324.7 | | | 324.7 | |
Triwizard Holdings, Inc. (3)(4) | | Hotel, gaming, restaurants and leisure | | 06/2029 | | 11.6 | % | | 180.1 | | | 180.1 | |
Valcourt Holdings II, LLC and Jobs Holdings, Inc. (3) | | Provider of window cleaning and building facade maintenance and restoration services | | 11/2029 | | 11.2 | % | | 305.1 | | | 305.1 | |
Walnut Parent, Inc. (3) | | Manufacturer of natural solution pest and animal control products | | 11/2027 | | 11.0 | % | | 368.3 | | | 360.9 | |
| | | | | | | | $ | 5,050.0 | | | $ | 4,667.2 | |
____________________________________________________________________________
(1)Represents the weighted average annual stated interest rate as of June 30, 2024. All interest rates are payable in cash, except for portions of the stated interest rates which are PIK for investments in Arrowhead Holdco Company and North Haven Falcon Buyer, LLC.
(2)Represents the fair value in accordance with Accounting Standards Codification 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”). The determination of such fair value is not included in our valuation process described elsewhere herein.
(3)We also hold a portion of this company’s first lien senior secured loan.
(4)We hold an equity investment in this company.
(5)Loan was on non-accrual status as of June 30, 2024.
SDLP Loan Portfolio as of December 31, 2023
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(dollar amounts in millions) Portfolio Company | | Business Description | | Maturity Date | | Stated Interest Rate(1) | | Principal Amount | | Fair Value(2) |
Arrowhead Holdco Company (3)(4) | | Distributor of non-discretionary, mission-critical aftermarket replacement parts | | 08/2028 | | 10.0 | % | | $ | 271.6 | | | $ | 244.4 | |
Benecon Midco II LLC (3)(4) | | Employee benefits provider for small and mid-size employers | | 12/2026 | | 10.7 | % | | 170.2 | | | 170.2 | |
Center for Autism and Related Disorders, LLC (3)(5) | | Autism treatment and services provider specializing in applied behavior analysis therapy | | 11/2024 | | | | 164.3 | | | — | |
Concert Golf Partners Holdco LLC (3) | | Golf club owner and operator | | 04/2029 | | 11.2 | % | | 273.5 | | | 273.5 | |
Emergency Communications Network, LLC (3) | | Provider of mission critical emergency mass notification solutions | | 06/2024 | | 14.1 | % | | 252.3 | | | 219.5 | |
Excelligence Holdings Corp. (3) | | Developer, manufacturer and retailer of educational products | | 01/2024 | | 11.5 | % | | 145.4 | | | 145.4 | |
FS Squared Holding Corp. (3)(4) | | Provider of on-site vending and micro market solutions | | 03/2025 | | 10.8 | % | | 323.3 | | | 323.3 | |
Harvey Tool Company, LLC (3) | | Manufacturer of cutting tools used in the metalworking industry | | 10/2027 | | 11.0 | % | | 256.6 | | | 254.0 | |
HGC Holdings, LLC (3) | | Operator of golf facilities | | 06/2026 | | 11.2 | % | | 232.0 | | | 232.0 | |
ISQ Hawkeye Holdco, Inc. (3)(4) | | Provider of commercial and industrial waste processing and disposal services | | 08/2029 | | 11.4 | % | | 295.6 | | | 295.6 | |
Manna Pro Products, LLC (3) | | Manufacturer and supplier of specialty nutrition and care products for animals | | 12/2026 | | 11.5 | % | | 267.5 | | | 251.5 | |
NCWS Intermediate, Inc. (3)(4) | | Manufacturer and supplier of car wash equipment, parts and supplies to the conveyorized car wash market | | 12/2026 | | 11.6 | % | | 279.7 | | | 279.7 | |
North Haven Falcon Buyer, LLC (3)(4) | | Manufacturer of aftermarket golf cart parts and accessories | | 05/2027 | | 13.5 | % | | 224.5 | | | 181.8 | |
Pegasus Global Enterprise Holdings, LLC (3)(4) | | Provider of plant maintenance and scheduling software | | 05/2025 | | 10.7 | % | | 334.9 | | | 334.9 | |
Penn Detroit Diesel Allison, LLC | | Distributor of aftermarket parts to the heavy-duty truck industry | | 12/2027 | | 11.7 | % | | 32.9 | | | 32.9 | |
Precinmac (US) Holdings Inc. and Trimaster Manufacturing Inc. (3)(4) | | Manufacturer of high-tolerance precision machined components and assemblies for the aerospace and defense industry | | 08/2027 | | 11.5 | % | | 256.1 | | | 253.5 | |
Pritchard Industries, LLC (3)(4) | | Provider of janitorial and facilities management services | | 10/2027 | | 11.0 | % | | 245.2 | | | 240.3 | |
Qnnect, LLC (3)(4) | | Manufacturer of highly engineered hermetic packaging products | | 11/2029 | | 12.4 | % | | 278.3 | | | 278.3 | |
THG Acquisition, LLC (3) | | Multi-line insurance broker | | 12/2026 | | 11.2 | % | | 325.5 | | | 325.3 | |
Triwizard Holdings, Inc. (4) | | Hotel, gaming, restaurants and leisure | | 06/2029 | | 11.7 | % | | 169.2 | | | 169.2 | |
Valcourt Holdings II, LLC and Jobs Holdings, Inc. (3) | | Provider of window cleaning and building facade maintenance and restoration services | | 11/2029 | | 11.3 | % | | 262.5 | | | 257.3 | |
Walnut Parent, Inc. (3) | | Manufacturer of natural solution pest and animal control products | | 11/2027 | | 11.0 | % | | 370.2 | | | 366.5 | |
| | | | | | | | $ | 5,431.3 | | | $ | 5,129.1 | |
____________________________________________________________________________
(1)Represents the weighted average annual stated interest rate as of December 31, 2023. All interest rates are payable in cash, except for portions of the stated interest rates which are PIK for investments in Emergency Communications Network, LLC and North Haven Falcon Buyer, LLC.
(2)Represents the fair value in accordance with ASC 820-10. The determination of such fair value is not included in our valuation process described elsewhere herein.
(3)We also hold a portion of this company’s first lien senior secured loan.
(4)We hold an equity investment in this company.
(5)Loan was on non-accrual status as of December 31, 2023.
RESULTS OF OPERATIONS
For the three and six months ended June 30, 2024 and 2023
Operating results for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Total investment income | $ | 755 | | | $ | 634 | | | $ | 1,456 | | | $ | 1,252 | |
Total expenses | 356 | | | 314 | | | 725 | | | 612 | |
Net investment income before income taxes | 399 | | | 320 | | | 731 | | | 640 | |
Income tax expense, including excise tax | 41 | | | 6 | | | 48 | | | 8 | |
Net investment income | 358 | | | 314 | | | 683 | | | 632 | |
Net realized gains (losses) on investments, foreign currency and other transactions | 12 | | | (81) | | | (6) | | | (131) | |
Net unrealized (losses) gains on investments, foreign currency and other transactions | (48) | | | 98 | | | 108 | | | 108 | |
Realized loss on extinguishment of debt | — | | | — | | | (14) | | | — | |
Net increase in stockholders’ equity resulting from operations | $ | 322 | | | $ | 331 | | | $ | 771 | | | $ | 609 | |
Net income can vary substantially from period to period due to various factors, including acquisitions, the level of new investment commitments, the level of base interest rates and the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, comparisons of net increase in stockholders’ equity resulting from operations may not be meaningful.
Investment Income
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Interest income from investments | $ | 539 | | | $ | 476 | | | $ | 1,052 | | | $ | 946 | |
Capital structuring service fees | 58 | | | 21 | | | 86 | | | 31 | |
Dividend income | 143 | | | 123 | | | 290 | | | 244 | |
Other income | 15 | | | 14 | | | 28 | | | 31 | |
Total investment income | $ | 755 | | | $ | 634 | | | $ | 1,456 | | | $ | 1,252 | |
Interest income from investments for the three and six months ended June 30, 2024 increased from the comparable periods in 2023 primarily as a result of the impact of higher interest rates as well as an increase in the average size of our portfolio. The average size and weighted average yield of our portfolio at amortized cost for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(dollar amounts in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Average size of portfolio(1) | $ | 23,757 | | | $ | 21,558 | | | $ | 23,247 | | | $ | 21,647 | |
Weighted average yield on portfolio | 11.5 | % | | 11.0 | % | | 11.4 | % | | 10.9 | % |
_______________________________________________________________________________
(1) Includes non-interest earning investments.
Capital structuring service fees for the three and six months ended June 30, 2024 increased from the comparable periods in 2023 primarily due to an increase in new investment commitments. The lower weighted average capital structuring service fee percentage during the three and six months ended June 30, 2024 and 2023 was primarily due to lower fee
opportunities as compared to the comparable periods in 2023. The new investment commitments and weighted average capital structuring service fee percentages for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(dollar amounts in millions) | 2024 | | 2023 | | 2024 | | 2023 |
New investment commitments(1) | $ | 3,783 | | | $ | 1,103 | | | $ | 5,537 | | | $ | 1,541 | |
Weighted average capital structuring service fee percentages(1) | 1.6 | % | | 1.9 | % | | 1.6 | % | | 2.0 | % |
_______________________________________________________________________________
(1)Excludes $34 million and $115 million of new investment commitments sold to third party lenders during the three months ended June 30, 2024 and 2023, respectively, and $1,586 million and $160 million during the six months ended June 30, 2024 and 2023, respectively. Excludes $23 million of investment commitments to IHAM for the three months ended June 30, 2024. There were no investment commitments to IHAM during the three months ended June 30, 2023. Excludes $263 million and $283 million of investment commitments to IHAM for the six months ended June 30, 2024 and 2023, respectively.
Dividend income for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Dividend income received from IHAM | $ | 69 | | | $ | 60 | | | $ | 135 | | | $ | 117 | |
Recurring dividend income | 73 | | | 55 | | | 139 | | | 110 | |
Non-recurring dividend income | 1 | | | 8 | | | 16 | | | 17 | |
Total dividend income | $ | 143 | | | $ | 123 | | | $ | 290 | | | $ | 244 | |
Dividend income received from IHAM for the three and six months ended June 30, 2024 increased from the comparable periods in 2023 primarily due to the increased earnings from the IHAM Vehicles as a result of higher interest rates. Recurring dividend income for the three and six months ended June 30, 2024 increased from the comparable periods in 2023 primarily due to an increase in yielding preferred equity investments.
Operating Expenses
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Interest and credit facility fees | $ | 174 | | | $ | 141 | | | $ | 333 | | | $ | 280 | |
Base management fee | 91 | | | 79 | | | 178 | | | 158 | |
Income based fee | 93 | | | 79 | | | 181 | | | 155 | |
Capital gains incentive fee(1) | (13) | | | 4 | | | 12 | | | (2) | |
Administrative and other fees | 3 | | | 3 | | | 6 | | | 6 | |
Other general and administrative | 8 | | | 8 | | | 15 | | | 15 | |
| | | | | | | |
| | | | | | | |
Total expenses | $ | 356 | | | $ | 314 | | | $ | 725 | | | $ | 612 | |
_______________________________________________________________________________
(1)Calculated in accordance with GAAP as discussed below.
Interest and credit facility fees for the three and six months ended June 30, 2024 and 2023, were comprised of the following:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Stated interest expense(1) | $ | 161 | | | $ | 129 | | | $ | 307 | | | $ | 256 | |
Credit facility fees | 6 | | | 5 | | | 13 | | | 11 | |
Amortization of debt issuance costs | 8 | | | 8 | | | 16 | | | 15 | |
Net amortization of premium on notes payable | (1) | | | (1) | | | (3) | | | (2) | |
Total interest and credit facility fees | $ | 174 | | | $ | 141 | | | $ | 333 | | | $ | 280 | |
________________________________________
(1)Includes the net interest expense related to the interest rate swaps for the three and six months ended June 30, 2024.
Stated interest expense for the three and six months ended June 30, 2024 increased from the comparable periods in 2023 primarily due to the increase in the average principal amount of debt outstanding and the impact of higher interest rates on our floating debt obligations. Average debt outstanding and weighted average stated interest rate on our debt outstanding for the three and six months ended June 30, 2024 and 2023 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(dollar amounts in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Average debt outstanding | $ | 12,635 | | | $ | 11,428 | | | $ | 12,254 | | | $ | 11,478 | |
Weighted average stated interest rate on debt outstanding(1) | 5.1 | % | | 4.5 | % | | 5.0 | % | | 4.5 | % |
________________________________________
(1)The weighted average stated interest rate on our debt outstanding for the three and six months ended June 30, 2024 includes the impact of interest rate swaps. See Note 6 to our consolidated financial statements for the three and six months ended June 30, 2024, for more information on the interest rate swaps.
The base management fee for the three and six months ended June 30, 2024 increased from the comparable periods in 2023 primarily due to the increase in the average size of our portfolio.
The income based fee for the three and six months ended June 30, 2024 increased from the comparable periods in 2023 primarily due to the pre-incentive fee net investment income, as defined in the investment advisory and management agreement, for the three and six months ended June 30, 2024 being higher than in the comparable periods in 2023.
For the three months ended June 30, 2024, the reduction in the capital gains incentive fee calculated in accordance with GAAP was $13 million. For the six months ended June 30, 2024, the capital gains incentive fee calculated in accordance with GAAP was $12 million. For the three months ended June 30, 2023, the capital gains incentive fee calculated in accordance with GAAP was $4 million. For the six months ended June 30, 2023, the reduction in the capital gains incentive fee calculated in accordance with GAAP was $2 million. The capital gains incentive fee accrual for the six months ended June 30, 2024 changed from the comparable period in 2023 primarily due to net gains on investments, foreign currency, other transactions and the extinguishment of debt of $88 million compared to net losses of $23 million for the six months ended June 30, 2023. The capital gains incentive fee accrued under GAAP includes an accrual related to unrealized capital appreciation, whereas the capital gains incentive fee actually payable under our investment advisory and management agreement does not. There can be no assurance that such unrealized capital appreciation will be realized in the future. The accrual for any capital gains incentive fee under GAAP in a given period may result in an additional expense if such cumulative amount is greater than in the prior period or a reduction of previously recorded expense if such cumulative amount is less than in the prior period. If such cumulative amount is negative, then there is no accrual. As of June 30, 2024, there was $100 million of capital gains incentive fee accrued in accordance with GAAP. As of June 30, 2024, there was no capital gains incentive fee actually payable under our investment advisory and management agreement. See Note 3 to our consolidated financial statements for the three and six months ended June 30, 2024, for more information on the base management fee, income based fee and capital gains incentive fee.
Cash payment of any income based fee and capital gains incentive fee otherwise earned by our investment adviser is deferred if during the most recent four full calendar quarter period ending on or prior to the date such payment is to be made the
sum of (a) the aggregate distributions to our stockholders and (b) the change in net assets (defined as total assets less indebtedness and before taking into account any income based fee and capital gains incentive fee payable during the period) is less than 7.0% of our net assets (defined as total assets less indebtedness) at the beginning of such period. These calculations will be adjusted for any share issuances or repurchases. Any income based fee and capital gains incentive fee deferred for payment are carried over for payment in subsequent calculation periods to the extent such fees are payable under the terms of the investment advisory and management agreement. See Note 3 to our consolidated financial statements for the three and six months ended June 30, 2024, for more information on the related deferral terms.
Administrative and other fees represent fees paid to Ares Operations and our investment adviser for our allocable portion of overhead and other expenses incurred by Ares Operations and our investment adviser in performing their obligations under the administration agreement and the investment advisory and management agreement, respectively, including our allocable portion of the compensation, rent and other expenses of certain of our corporate officers and their respective staffs. See Note 3 to our consolidated financial statements for the three and six months ended June 30, 2024, for more information on the administrative and other fees.
Other general and administrative expenses include, among other costs, professional fees, insurance, fees and expenses related to evaluating and making investments in portfolio companies and independent directors’ fees.
Income Tax Expense, Including Excise Tax
We have elected to be treated as a RIC under the Code and operate in a manner so as to qualify for the tax treatment applicable to RICs. To qualify as a RIC, we must, among other requirements, meet certain source-of-income and asset diversification requirements and timely distribute to our stockholders at least 90% of our investment company taxable income, as defined by the Code, for each year. We have made and intend to continue to make the requisite distributions to our stockholders which will generally relieve us from U.S. federal corporate-level income taxes.
Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions from such current year taxable income into the next tax year and pay a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year taxable income will be in excess of estimated dividend distributions for the current year from such income, we accrue excise tax, if any, on estimated excess taxable income as such taxable income is earned. For the three and six months ended June 30, 2024, we recorded a net expense of $9 million and $17 million, respectively, for U.S. federal excise tax. For the three and six months ended June 30, 2023, we recorded an expense of $6 million and $15 million, respectively, for U.S. federal excise tax.
Certain of our consolidated subsidiaries are subject to U.S. federal and state income taxes. For the three and six months ended June 30, 2024, we recorded a net tax expense of $32 million and $31 million, respectively, for these subsidiaries. For the three and six months ended June 30, 2023, we recorded a net tax expense (benefit) of $0 million and $(7) million, respectively, for these subsidiaries. The income tax expense for our taxable consolidated subsidiaries will vary depending on the level of realized gains from the exits of investments held by such taxable subsidiaries during the respective periods.
Net Realized Gains/Losses
The net realized gains (losses) from the sales, repayments or exits of investments during the three and six months ended June 30, 2024 and 2023 were comprised of the following:
| | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Sales, repayments or exits of investments(1) | $ | 1,491 | | | $ | 1,081 | | | $ | 4,396 | | | $ | 2,852 | |
Net realized gains (losses) on investments: | | | | | | | |
Gross realized gains | $ | 164 | | | $ | 25 | | | $ | 206 | | | $ | 64 | |
Gross realized losses | (166) | | | (93) | | | (212) | | | (152) | |
Total net realized losses on investments | $ | (2) | | | $ | (68) | | | $ | (6) | | | $ | (88) | |
_______________________________________________________________________________
(1)There were no loans sold to IHAM and certain vehicles managed by IHAM during the three months ended June 30, 2024. Includes $35 million of loans sold to IHAM and certain vehicles managed by IHAM during the six months ended June 30, 2024. Includes $39 million and $691 million of loans sold to IHAM and certain vehicles managed by
IHAM during the three and six months ended June 30, 2023, respectively. There were no net realized gains (losses) on these transactions with IHAM during the three months ended June 30, 2024. Net realized losses of $1 million were recorded on these transactions with IHAM during the six months ended June 30, 2024. Net realized losses of $1 million and $11 million were recorded on these transactions with IHAM during the three and six months ended June 30, 2023, respectively. See Note 4 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on IHAM and its managed vehicles.
The net realized losses on investments during the three months ended June 30, 2024 consisted of the following:
| | | | | | | | |
(in millions) Portfolio Company | | Net Realized Gains (Losses) |
Heelstone Renewable Energy, LLC | | $ | 146 | |
SVP-Singer Holdings Inc. | | (20) | |
SSE Buyer, Inc. | | (21) | |
SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc. | | (119) | |
| | |
| | |
| | |
| | |
| | |
| | |
Other, net | | 12 | |
Total | | $ | (2) | |
During the three months ended June 30, 2024, we also recognized net realized gains on foreign currency and other transactions of $14 million.
The net realized losses on investments during the three months ended June 30, 2023 consisted of the following:
| | | | | | | | |
(in millions) Portfolio Company | | Net Realized Gains (Losses) |
DFC Global Facility Borrower III LLC | | $ | (12) | |
ADG, LLC | | (79) | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Other, net | | 23 | |
Total | | $ | (68) | |
During the three months ended June 30, 2023, we also recognized net realized losses on foreign currency and other transactions of $13 million.
The net realized losses on investments during the six months ended June 30, 2024 consisted of the following:
| | | | | | | | |
(in millions) Portfolio Company | | Net Realized Gains (Losses) |
Heelstone Renewable Energy, LLC | | $ | 146 | |
Benecon Midco II LLC | | 23 | |
SVP-Singer Holdings Inc. | | (20) | |
OTG Management, LLC | | (20) | |
SSE Buyer, Inc., | | (21) | |
SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc. | | (119) | |
| | |
| | |
| | |
| | |
Other, net | | 5 | |
Total | | $ | (6) | |
During the six months ended June 30, 2024, we repaid in full the 2024 Convertible Notes (as defined below) upon their maturity with a combination of cash and shares of our common stock, resulting in a realized loss on extinguishment of debt of approximately $14 million.
The net realized losses on investments during the six months ended June 30, 2023 consisted of the following:
| | | | | | | | |
(in millions) Portfolio Company | | Net Realized Gains (Losses) |
Cipriani USA, Inc. and Cipriani Group Holding S.A.R.L. | | $ | 18 | |
DFC Global Facility Borrower III LLC | | (12) | |
National College of Business and Technology Inc. & Leeds IV Advisors, Inc. | | (48) | |
ADG, LLC | | (79) | |
| | |
| | |
| | |
| | |
| | |
| | |
Other, net | | 33 | |
Total | | $ | (88) | |
During the six months ended June 30, 2023, we also recognized net realized losses on foreign currency and other transactions of $43 million.
Net Unrealized Gains/Losses
We value our portfolio investments at least quarterly and the changes in value are recorded as unrealized gains or losses in our consolidated statement of operations. Net unrealized gains and losses on investments for the three and six months ended June 30, 2024 and 2023, were comprised of the following:
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| For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
(in millions) | 2024 | | 2023 | | 2024 | | 2023 |
Unrealized appreciation | $ | 219 | | | $ | 253 | | | $ | 502 | | | $ | 670 | |
Unrealized depreciation | (291) | | | (224) | | | (439) | | | (653) | |
Net unrealized depreciation reversed related to net realized gains or losses(1) | 34 | | | 68 | | | 25 | | | 65 | |
Total net unrealized (losses) gains on investments | $ | (38) | | | $ | 97 | | | $ | 88 | | | $ | 82 | |
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(1)The net unrealized depreciation reversed related to net realized gains or losses represents the unrealized appreciation or depreciation recorded on the related asset at the end of the prior periods.
The changes in net unrealized appreciation and depreciation on investments during the three months ended June 30, 2024 consisted of the following:
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(in millions) Portfolio Company | | Net Unrealized Appreciation (Depreciation) |
Neptune Bidco US Inc. | | $ | 11 | |
SageSure Holdings, LLC | | 11 | |
Senior Direct Lending Program, LLC | | (11) | |
Emergency Communications Network, LLC | | (12) | |
Cornerstone OnDemand, Inc. | | (13) | |
Potomac Intermediate Holdings II LLC | | (17) | |
H-Food Holdings, LLC | | (17) | |
Pluralsight, Inc. | | (40) | |
Other, net | | 50 | |
Total | | $ | (38) | |
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During the three months ended June 30, 2024, we also recognized net unrealized losses on foreign currency and other transactions of $10 million.
The changes in net unrealized appreciation and depreciation on investments during the three months ended June 30, 2023 consisted of the following:
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(in millions) Portfolio Company | | Net Unrealized Appreciation (Depreciation) |
Ivy Hill Asset Management, L.P. | | $ | 27 | |
Heelstone Renewable Energy, LLC | | 22 | |
Cloud Software Group, Inc. | | 15 | |
GPM Investments, LLC and ARKO Corp. | | (11) | |
Global Medical Response, Inc. and GMR Buyer Corp. | | (20) | |
Center for Autism and Related Disorders, LLC | | (24) | |
Other, net | | 20 | |
Total | | $ | 29 | |
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During the three months ended June 30, 2023, we also recognized net unrealized gains on foreign currency and other transactions of $1 million.
The changes in net unrealized appreciation and depreciation on investments during the six months ended June 30, 2024 consisted of the following:
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(in millions) Portfolio Company | | Net Unrealized Appreciation (Depreciation) |
Potomac Intermediate Holdings II LLC | | $ | 34 | |
SageSure Holdings, LLC | | 28 | |
Global Medical Response, Inc. | | 25 | |
Redwood Services, LLC | | 20 | |
Neptune Bidco US Inc. | | 15 | |
Pegasus Global Enterprise Holdings, LLC | | 13 | |
Bragg Live Food Products, LLC | | 13 | |
Centric Brands LLC | | 13 | |
Cloud Software Group, Inc. | | 12 | |
Shoes For Crews Global, LLC | | (11) | |
Storm Investment S.a.r.l. | | (12) | |
Reagent Chemical & Research, LLC | | (12) | |
Emergency Communications Network, LLC | | (12) | |
PS Operating Company LLC | | (13) | |
Production Resource Group, L.L.C. | | (16) | |
H-Food Holdings, LLC | | (39) | |
Pluralsight, Inc. | | (44) | |
Other, net | | 74 | |
Total | | $ | 88 | |
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During the six months ended June 30, 2024, we also recognized net unrealized gains on foreign currency and other transactions of $20 million.
The changes in net unrealized appreciation and depreciation on investments during the six months ended June 30, 2023 consisted of the following:
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(in millions) Portfolio Company | | Net Unrealized Appreciation (Depreciation) |
Heelstone Renewable Energy, LLC and Heelstone Renewable Energy Investors, LLC | | $ | 33 | |
Ivy Hill Asset Management, L.P. | | 30 | |
Cloud Software Group, Inc., Picard Parent, Inc., Cloud Software Group Holdings, Inc., Picard HoldCo, LLC and Elliott Alto Co-Investor Aggregator L.P. | | 25 | |
Production Resource Group, L.L.C. and PRG III, LLC | | 12 | |
Symplr Software Inc. and Symplr Software Intermediate Holdings, Inc. | | 12 | |
Centric Brands LLC and Centric Brands GP LLC | | (11) | |
Benefytt Technologies, Inc. | | (11) | |
VPROP Operating, LLC and V SandCo, LLC | | (12) | |
SHO Holding I Corporation, Shoes For Crews (Europe) Limited and Never Slip TopCo, Inc. | | (14) | |
Potomac Intermediate Holdings II LLC | | (17) | |
Neptune Bidco US Inc. and Elliott Metron Co-Investor Aggregator L.P. | | (17) | |
Center for Autism and Related Disorders, LLC | | (19) | |
Global Medical Response, Inc. and GMR Buyer Corp. | | (25) | |
Senior Direct Lending Program, LLC | | (26) | |
Other, net | | 57 | |
Total | | $ | 17 | |
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During the six months ended June 30, 2023, we also recognized net unrealized gains on foreign currency and other transactions of $26 million.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are generated primarily from the net proceeds of public offerings of equity and debt securities, advances from our credit facilities (the Revolving Credit Facility, the Revolving Funding Facility, the SMBC Funding Facility and the BNP Funding Facility (each as defined below, and together, the “Facilities”)), net proceeds from the issuance of other securities, including unsecured notes and debt securitizations, as well as cash flows from operations.
In accordance with the Investment Company Act, we are allowed to borrow amounts such that our asset coverage, calculated pursuant to the Investment Company Act, is at least 150% after such borrowings (i.e., we are able to borrow up to two dollars for every dollar we have in assets less all liabilities and indebtedness not represented by senior securities issued by us). As of June 30, 2024, we had $601 million in cash and cash equivalents and $13.0 billion in total aggregate principal amount of debt outstanding ($13.0 billion at carrying value) and our asset coverage was 194%. Subject to borrowing base and other restrictions, we had approximately $4.5 billion available for additional borrowings under the Facilities as of June 30, 2024.
We may from time to time seek to retire or repurchase our common stock through cash purchases, as well as retire, cancel or purchase our outstanding debt through cash purchases and/or exchanges, in open market purchases, privately negotiated transactions or otherwise. The amounts involved may be material. In addition, we may from time to time enter into additional debt facilities, increase the size of existing facilities or issue additional debt securities, including secured debt, unsecured debt and/or debt securities convertible into common stock. Any such purchases or exchanges of common stock or outstanding debt, or incurrence or issuance of additional debt would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors.
Equity Capital Activities
As of June 30, 2024 and December 31, 2023, our total equity market capitalization was $13.1 billion and $11.7 billion, respectively.
We may from time to time issue and sell shares of our common stock through public or “at the market” offerings. In connection with the issuance of our common stock, we issued and sold the following shares of common stock during the six months ended June 30, 2024:
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(in millions, except per share amount) Issuances of Common Stock | Number of Shares Issued | | Gross Proceeds | | Underwriting Fees/Offering Expenses | | Net Proceeds | | Average Offering Price Per Share(1) | |
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“At the market” offerings | 25.9 | | $ | 538.7 | | | $ | 5.9 | | | $ | 532.8 | | | $ | 20.83 | | |
Total | 25.9 | | $ | 538.7 | | | $ | 5.9 | | | $ | 532.8 | | | | |
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(1) Represents the gross offering price per share before deducting underwriting discounts and commissions and offering expenses.
“At the Market” Offerings
We are a party to equity distribution agreements with several banks (the “Equity Distribution Agreements”). The Equity Distribution Agreements provide that we may from time to time issue and sell, by means of “at the market” offerings, up to $1.0 billion of our common stock. Subject to the terms and conditions of the Equity Distribution Agreements, sales of common stock, if any, may be made in transactions that are deemed to be “at the market” offerings as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended (the “Securities Act”). Under the currently effective Equity Distribution Agreements, common stock with an aggregate offering amount of $461 million remained available for issuance as of June 30, 2024.
Conversion of the 2024 Convertible Notes
In March 2024, in connection with the repayment of the 2024 Convertible Notes, we issued approximately 20 million shares of our common stock at a conversion price of $20.12 per share for a total value of $407 million. See Note 5 to our
consolidated financial statements for the three and six months ended June 30, 2024 for more information relating to the repayment of the 2024 Convertible Notes.
Dividend Reinvestment Plan
See Note 11 to our consolidated financial statements for the three and six months ended June 30, 2024 for information regarding shares of common stock issued or purchased in accordance with our dividend reinvestment plan.
Stock Repurchase Program
We are authorized under our stock repurchase program to purchase up to $1.0 billion in the aggregate of our outstanding common stock in the open market at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing, manner, price and amount of any share repurchases will be determined by us, in our sole discretion, based upon an evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. The stock repurchase program does not require us to repurchase any specific number of shares of common stock or any shares of common stock at all. Consequently, we cannot assure stockholders that any specific number of shares of common stock, if any, will be repurchased under the stock repurchase program. As of June 30, 2024, the expiration date of the stock repurchase program was February 15, 2025. The program may be suspended, extended, modified or discontinued at any time. As of June 30, 2024, there was $1.0 billion available for additional repurchases under the program.
During the six months ended June 30, 2024 and 2023, we did not repurchase any shares of our common stock in the open market under the stock repurchase program.
Price Range of Common Stock
The following table sets forth, for the first two quarters of the year ending December 31, 2024 and each fiscal quarter for the fiscal years ended December 31, 2023 and 2022, the net asset value per share of our common stock, the range of high and low closing sales prices of our common stock, the closing sales price as a premium (discount) to net asset value and the dividends or distributions declared by us. On July 24, 2024, the last reported closing sales price of our common stock on the NASDAQ Global Select Market was $20.76 per share, which represented a premium of approximately 5.86% to the net asset value per share reported by us as of June 30, 2024.
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| Net Asset | | Price Range | | High Sales Price Premium (Discount) to Net Asset | | Low Sales Price Premium (Discount) to Net Asset | | Cash Dividend Per | |
| Value(1) | | High | | Low | | Value(2) | | Value(2) | | Share(3) | |
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Year ended December 31, 2022 | | | | | | | | | | | | |
First Quarter | $ | 19.03 | | | $ | 22.58 | | | $ | 19.70 | | | 18.65 | % | | 3.52 | % | | $ | 0.54 | | (4) |
Second Quarter | $ | 18.81 | | | $ | 22.44 | | | $ | 17.12 | | | 19.30 | % | | (8.98) | % | | $ | 0.42 | | |
Third Quarter | $ | 18.56 | | | $ | 20.70 | | | $ | 16.84 | | | 11.53 | % | | (9.27) | % | | $ | 0.43 | | |
Fourth Quarter | $ | 18.40 | | | $ | 19.76 | | | $ | 17.30 | | | 7.39 | % | | (5.98) | % | | $ | 0.48 | | |
Year ended December 31, 2023 | | | | | | | | | | | | |
First Quarter | $ | 18.45 | | | $ | 20.04 | | | $ | 17.19 | | | 8.62 | % | | (6.83) | % | | $ | 0.48 | | |
Second Quarter | $ | 18.58 | | | $ | 19.11 | | | $ | 17.65 | | | 2.85 | % | | (5.01) | % | | $ | 0.48 | | |
Third Quarter | $ | 18.99 | | | $ | 19.81 | | | $ | 18.86 | | | 4.32 | % | | (0.68) | % | | $ | 0.48 | | |
Fourth Quarter | $ | 19.24 | | | $ | 20.21 | | | $ | 18.66 | | | 5.04 | % | | (3.01) | % | | $ | 0.48 | | |
Year ended December 31, 2024 | | | | | | | | | | | | |
First Quarter | $ | 19.53 | | | $ | 20.82 | | | $ | 19.94 | | | 6.61 | % | | 2.10 | % | | $ | 0.48 | | |
Second Quarter | $ | 19.61 | | | $ | 21.58 | | | $ | 20.24 | | | 10.05 | % | | 3.21 | % | | $ | 0.48 | | |
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(1)Net asset value per share is determined as of the last day in the relevant quarter and therefore may not reflect the net asset value per share on the date of the high and low closing sales prices. The net asset values shown are based on outstanding shares at the end of the relevant quarter.
(2)Calculated as the respective high or low closing sales price less net asset value, divided by net asset value (in each case, as of the applicable quarter).
(3)Represents the dividend or distribution declared in the relevant quarter.
(4)Consists of a quarterly dividend of $0.42 per share and additional quarterly dividends totaling $0.12 per share, all of which were declared in the first quarter of 2022 and paid on March 31, 2022, June 30, 2022, September 30, 2022 and December 29, 2022.
Debt Capital Activities
Our debt obligations consisted of the following as of June 30, 2024 and December 31, 2023:
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| As of | |
| June 30, 2024 | | December 31, 2023 | |
(in millions) | Total Aggregate Principal Amount Available/ Outstanding(1) | | Principal Amount Outstanding | | Carrying Value | | Total Aggregate Principal Amount Available/ Outstanding(1) | | Principal Amount Outstanding | | Carrying Value | |
Revolving Credit Facility | $ | 4,513 | | (2) | $ | 1,413 | | | $ | 1,413 | | | $ | 4,758 | | (2) | $ | 1,413 | | | $ | 1,413 | | |
Revolving Funding Facility | 1,775 | | | 880 | | | 880 | | | 1,775 | | | 863 | | | 863 | | |
SMBC Funding Facility | 800 | | (3) | 515 | | | 515 | | | 800 | | (3) | 401 | | | 401 | | |
BNP Funding Facility | 865 | | | 550 | | | 550 | | | 865 | | | 575 | | | 575 | | |
2024-1 CLO Notes(4) | 476 | | | 476 | | | 473 | | (5) | — | | | — | | | — | | |
2024 Convertible Notes | — | | | — | | | — | | (5) | 403 | | | 403 | | | 402 | | (5) |
June 2024 Notes | — | | | — | | | — | | (5) | 900 | | | 900 | | | 899 | | (5) |
March 2025 Notes | 600 | | | 600 | | | 599 | | (5) | 600 | | | 600 | | | 599 | | (5) |
July 2025 Notes | 1,250 | | | 1,250 | | | 1,253 | | (5) | 1,250 | | | 1,250 | | | 1,255 | | (5) |
January 2026 Notes | 1,150 | | | 1,150 | | | 1,147 | | (5) | 1,150 | | | 1,150 | | | 1,146 | | (5) |
July 2026 Notes | 1,000 | | | 1,000 | | | 994 | | (5) | 1,000 | | | 1,000 | | | 993 | | (5) |
January 2027 Notes | 900 | | | 900 | | | 889 | | (5)(6) | 900 | | | 900 | | | 905 | | (5)(6) |
June 2027 Notes | 500 | | | 500 | | | 496 | | (5) | 500 | | | 500 | | | 495 | | (5) |
June 2028 Notes | 1,250 | | | 1,250 | | | 1,247 | | (5) | 1,250 | | | 1,250 | | | 1,247 | | (5) |
March 2029 Notes | 1,000 | | | 1,000 | | | 971 | | (5)(6) | — | | | — | | | — | | |
July 2029 Notes | 850 | | | 850 | | | 841 | | (5)(6) | — | | | — | | | — | | |
November 2031 Notes | 700 | | | 700 | | | 692 | | (5) | 700 | | | 700 | | | 691 | | (5) |
Total | $ | 17,629 | | | $ | 13,034 | | | $ | 12,960 | | | $ | 16,851 | | | $ | 11,905 | | | $ | 11,884 | | |
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(1)Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. Borrowings under the committed Revolving Credit Facility, Revolving Funding Facility, SMBC Funding Facility and BNP Funding Facility (each as defined below) are subject to borrowing base and other restrictions.
(2)Provides for a feature that allows us, under certain circumstances, to increase the size of the Revolving Credit Facility to a maximum of $6.7 billion and $7.1 billion, as of June 30, 2024 and December 31, 2023, respectively.
(3)Provides for a feature that allows ACJB (as defined below), under certain circumstances, to increase the size of the SMBC Funding Facility (as defined below) to a maximum of $1.0 billion.
(4)Excludes the CLO Subordinated Notes (as defined below), which were retained by us and, as such, are eliminated in consolidation. See “Debt Securitization” below for more information.
(5)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the net unaccreted/amortized discount or premium recorded upon issuance. In March 2024, we repaid in full the 2024 Convertible Notes (as defined below) upon their maturity. In June 2024,we repaid in full the June 2024 Notes (as defined below) upon their maturity.
(6)The carrying value of the January 2027 Notes, the March 2029 Notes and the July 2029 Notes (each as defined below) as of June 30, 2024 includes adjustments as a result of effective hedge accounting relationships. The carrying value of the January 2027 Notes as of December 31, 2023 includes an adjustment as a result of an effective hedge accounting relationship. See Note 6 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information.
The weighted average stated interest rate and weighted average maturity, both on aggregate principal amount outstanding, of all our debt outstanding as of June 30, 2024 were 5.3% and 3.6 years, respectively, and as of December 31, 2023 were 4.8% and 3.0 years, respectively. The weighted average stated interest rate of all our debt outstanding as of June 30, 2024 and December 31, 2023 includes the impact of interest rate swaps. See Note 6 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on the interest rate swaps.
The ratio of total principal amount of debt outstanding to stockholders’ equity as of June 30, 2024 was 1.06:1.00 compared to 1.07:1.00 as of December 31, 2023.
Revolving Credit Facility
We are party to a senior secured revolving credit facility (as amended and restated, the “Revolving Credit Facility”), that allows us to borrow up to $4.5 billion at any one time outstanding. The Revolving Credit Facility consists of a $3.4 billion revolving tranche and a $1.1 billion term loan tranche. As of June 30, 2024, the end of the revolving periods and the stated maturity dates of the various revolving and term loan tranches of the Revolving Credit Facility were as follows:
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(in millions) | Total Aggregate Principal Amount Committed/ Outstanding | | End of Revolving Period | | Maturity Date | | | |
Revolving tranche | $ | 3,024 | | | April 12, 2028 | | April 12, 2029 | | | |
| 269 | | March 31, 2026 | | March 31, 2027 | | | |
| 107 | | March 31, 2025 | | March 31, 2026 | | | |
| 3,400 | | | | | | | | |
Term loan tranche | 974 | | | | | April 12, 2029 | | | |
| 70 | | | | April 19, 2028 | | | |
| 41 | | | | March 31, 2027 | | | |
| 28 | | | | March 31, 2026 | | | |
| 1,113 | | | | | | | | |
| $ | 4,513 | | | | | | | | |
The Revolving Credit Facility also provides for a feature that allows us, under certain circumstances, to increase the overall size of the Revolving Credit Facility to a maximum of $6.7 billion. The interest rate charged on the Revolving Credit Facility is based on SOFR (or an alternative rate of interest for certain loans, commitments and/or other extensions of credit denominated in Sterling, Canadian Dollars, Euros and certain other foreign currencies) plus a credit spread adjustment of 0.10% and an applicable spread of either 1.75% or 1.875% or an “alternate base rate” (as defined in the documents governing the Revolving Credit Facility) plus a credit spread adjustment of 0.10% and an applicable spread of either 0.75% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving exposure and term loans outstanding under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. As of June 30, 2024, the applicable spread in effect was 1.75%. We are also required to pay a letter of credit fee of either 2.00% or 2.125% per annum on letters of credit issued, determined monthly based on the total amount of the borrowing base relative to the total commitments of the Revolving Credit Facility and other debt, if any, secured by the same collateral as the Revolving Credit Facility. Additionally, we are required to pay a commitment fee of 0.375% per annum on any unused portion of the Revolving Credit Facility. As of June 30, 2024, there was $1.4 billion outstanding under the Revolving Credit Facility and we were in compliance in all material respects with the terms of the Revolving Credit Facility.
Revolving Funding Facility
We and our consolidated subsidiary, Ares Capital CP Funding LLC (“Ares Capital CP”), are party to a revolving funding facility (as amended, the “Revolving Funding Facility”), that allows Ares Capital CP to borrow up to $1.8 billion at any one time outstanding. The Revolving Funding Facility is secured by all of the assets held by, and the membership interest in, Ares Capital CP. The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility are December 29, 2024 and December 29, 2026, respectively. The interest rate charged on the Revolving Funding Facility is based on SOFR plus a credit spread adjustment of 0.10% or a “base rate” (as defined in the documents governing the Revolving Funding Facility) plus an applicable spread of 1.90% per annum. Ares Capital CP is also required to pay a commitment fee of between 0.50% and 1.25% per annum depending on the size of the unused portion of the Revolving Funding Facility. As of June 30, 2024, there was $880 million outstanding under the Revolving Funding Facility and we and Ares Capital CP were in compliance in all material respects with the terms of the Revolving Funding Facility.
SMBC Funding Facility
We and our consolidated subsidiary, Ares Capital JB Funding LLC (“ACJB”), are party to a revolving funding facility (as amended, the “SMBC Funding Facility”), with ACJB, as the borrower, and Sumitomo Mitsui Banking Corporation, as the administrative agent and collateral agent, that allows ACJB to borrow up to $800 million at any one time outstanding. The SMBC Funding Facility also provides for a feature that allows ACJB, subject to receiving certain consents, to increase the overall size of the SMBC Funding Facility to $1.0 billion. The SMBC Funding Facility is secured by all of the assets held by ACJB. The end of the reinvestment period and the stated maturity date for the SMBC Funding Facility are March 28, 2027 and March 28, 2029, respectively. The reinvestment period and the stated maturity date are both subject to two one-year extensions by mutual agreement. The interest rate charged on the SMBC Funding Facility is based on an applicable spread of either (i) 2.50% over one month SOFR or (ii) 1.50% over a “base rate” (as defined in the documents governing the SMBC Funding Facility). ACJB is also required to pay a commitment fee of between 0.50% and 1.00% per annum depending on the size of the unused portion of the SMBC Funding Facility. As of June 30, 2024, there was $515 million outstanding under the SMBC Funding Facility and we and ACJB were in compliance in all material respects with the terms of the SMBC Funding Facility.
BNP Funding Facility
We and our consolidated subsidiary, ARCC FB Funding LLC (“AFB”), are party to a revolving funding facility (as amended, the “BNP Funding Facility”) with AFB, as the borrower, and BNP Paribas, as the administrative agent and lender, that allows AFB to borrow up to $865 million at any one time outstanding. The BNP Funding Facility is secured by all of the assets held by AFB. The end of the reinvestment period and the stated maturity date for the BNP Funding Facility are April 20, 2026 and April 20, 2028, respectively. The reinvestment period and the stated maturity date are both subject to a one-year extension by mutual agreement. The interest rate charged on the BNP Funding Facility was based on applicable SOFR, or a “base rate” (as defined in the documents governing the BNP Funding Facility) plus a margin of (i) 2.50% during the reinvestment period and (ii) 3.00% following the reinvestment period. As of June 30, 2024, the applicable spread in effect was 2.50%. AFB is required to pay a commitment fee of between 0.00% and 1.25% per annum depending on the size of the unused portion of the BNP Funding Facility. As of June 30, 2024, there was $550 million outstanding under the BNP Funding Facility and we and AFB were in compliance in all material respects with the terms of the BNP Funding Facility. See “Recent Developments,” as well as Note 14 to our consolidated financial statements for the three and six months ended June 30, 2024 for a subsequent event relating to the BNP Funding Facility.
Debt Securitization
2024-1 CLO Notes
In May 2024, we, through our wholly owned consolidated subsidiary, Ares Direct Lending CLO 1 LLC (“ARCC CLO I”), completed a $702 million term debt securitization (the “2024 Debt Securitization”). The 2024 Debt Securitization is also known as a collateralized loan obligation and is an on-balance sheet financing incurred by us, which is consolidated by us for financial reporting purposes and subject to our overall asset coverage requirement. The notes offered in the 2024 Debt Securitization (collectively, the “2024-1 CLO Notes”) were issued by ARCC CLO I pursuant to the indenture governing 2024-1 CLO Notes (the “CLO Indenture”) and include (i) $406 million of Class A Senior Floating Rate Notes (the “Class A CLO Notes”); (ii) $70 million of Class B Senior Floating Rate Notes (the “Class B CLO Notes” and, together with the Class A CLO Notes, the “CLO Secured Notes”); and (iii) $226 million of Subordinated Notes (the “CLO Subordinated Notes”). We retained all of the CLO Subordinated Notes, as such, the CLO Subordinated Notes are eliminated in consolidation. The following table presents information on the 2024-1 CLO Notes as of June 30, 2024 (dollar amounts in millions):
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Class | | Type | | Principal Outstanding | | Maturity Date | | Interest Rate | | Credit Rating |
Class A CLO Notes | | Senior Secured Floating Rate | | $ | 406 | | | April 25, 2036 | | SOFR+1.80% | | AAA(sf) |
Class B CLO Notes | | Senior Secured Floating Rate | | 70 | | | April 25, 2036 | | SOFR+2.20% | | AA(sf) |
Total CLO Secured Notes | | | | 476 | | | | | | | |
CLO Subordinated Notes | | Subordinated | | 226 | | | April 25, 2036 | | None | | Not Rated |
Total 2024-1 CLO Notes | | | | $ | 702 | | | | | | | |
The CLO Secured Notes are the secured obligation of ARCC CLO I and are backed by a diversified portfolio of first lien senior secured loans contributed by us to ARCC CLO I pursuant to the terms of a contribution agreement. The interest rate charged on the CLO Secured Notes is based on SOFR plus a blended weighted average spread of 1.86%. The CLO Subordinated Notes, which were retained by us, are the unsecured obligations of ARCC CLO I.
Our investment adviser serves as asset manager to ARCC CLO I under an asset management agreement and is entitled to receive certain management fees for providing these services under the agreement. Our investment adviser has waived its right to receive such fees but may rescind such waiver with respect to the CLO Secured Notes at any time.
2024 Convertible Unsecured Notes
In March 2024, we repaid in full the $403 million in aggregate principal amount of unsecured convertible notes which bore interest at a rate of 4.625% per year, payable semi-annually (the “2024 Convertible Notes”) upon their maturity, resulting in a realized loss on extinguishment of debt of $14 million. In accordance with the indenture governing the 2024 Convertible Notes, we settled the repayment of the 2024 Convertible Notes with a combination of cash and shares of our common stock. Approximately $393 million of aggregate principal amount was settled with approximately 20 million shares of our common stock and the remaining $10 million was settled with available cash.
Unsecured Notes
We issued certain unsecured notes (each issuance of which is referred to herein using the “defined term” set forth under the “Unsecured Notes” column of the table below and collectively referred to as the “Unsecured Notes”), that pay interest semi-annually and all principal amounts are due upon maturity. Each of the Unsecured Notes may be redeemed in whole or in part at any time at our option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indentures governing each of the Unsecured Notes, plus any accrued and unpaid interest. Certain key terms related to the features for the Unsecured Notes as of June 30, 2024 are listed below.
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(dollar amounts in millions) Unsecured Notes | Aggregate Principal Amount Issued | | Effective Stated Interest Rate | | Original Issuance Date | | Maturity Date |
March 2025 Notes | $ | 600 | | | 4.250% | | January 11, 2018 | | March 1, 2025 |
July 2025 Notes | $ | 1,250 | | | 3.250% | | January 15, 2020 | | July 15, 2025 |
January 2026 Notes | $ | 1,150 | | | 3.875% | | July 15, 2020 | | January 15, 2026 |
July 2026 Notes | $ | 1,000 | | | 2.150% | | January 13, 2021 | | July 15, 2026 |
January 2027 Notes(1) | $ | 900 | | | 7.910% | | August 3, 2023 | | January 15, 2027 |
June 2027 Notes | $ | 500 | | | 2.875% | | January 13, 2022 | | June 15, 2027 |
June 2028 Notes | $ | 1,250 | | | 2.875% | | June 10, 2021 | | June 15, 2028 |
March 2029 Notes(1) | $ | 1,000 | | | 7.352% | | January 23, 2024 | | March 1, 2029 |
July 2029 Notes(1) | $ | 850 | | | 6.972% | | May 13, 2024 | | July 15, 2029 |
November 2031 Notes | $ | 700 | | | 3.200% | | November 4, 2021 | | November 15, 2031 |
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(1)The effective stated interest rates of the January 2027 Notes, the March 2029 Notes and the July 2029 Notes include the impact of interest rate swaps.
In June 2024, we repaid in full the $900 million in aggregate principal amount outstanding of unsecured notes (the “June 2024 Notes”) upon their maturity. The June 2024 Notes bore interest at a rate of 4.200% per annum, payable semi-annually.
In connection with certain of the unsecured notes issued by us, we have entered into interest rate swap agreements to more closely align the interest rates of such liabilities with our investment portfolio, which consists primarily of floating rate loans. We designated these interest rate swaps and the associated unsecured notes as qualifying fair value hedge accounting relationships. Certain information related to our interest rate swap instruments as of June 30, 2024 is presented below (dollar amounts in millions).
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Description | | Hedged Item | | Company Receives | | Company Pays | | | | Maturity Date | | Notional Amount | | | | |
Interest rate swap | | January 2027 Notes | | 7.000 | % | | SOFR +2.581% | | | | January 15, 2027 | | $ | 900 | | | | | |
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Interest rate swap | | March 2029 Notes | | 5.875 | % | | SOFR +2.023% | | | | March 1, 2029 | | $ | 1,000 | | | | | |
Interest rate swap | | July 2029 Notes | | 5.950 | % | | SOFR +1.643% | | | | July 15, 2029 | | $ | 850 | | | | | |
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See Note 5 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on our debt obligations.
As of June 30, 2024, we were in compliance in all material respects with the indentures governing the Unsecured Notes.
The Unsecured Notes are our senior unsecured obligations and rank senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to our existing and future unsecured indebtedness that is not expressly subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries, financing vehicles or similar facilities.
RECENT DEVELOPMENTS
On July 25, 2024, we and our consolidated subsidiary, AFB, entered into an agreement to amend the BNP Funding Facility. The amendment, among other things, (a) increased the total commitment under the BNP Funding Facility from $865 million to $1,265 million, (b) extended the end of the reinvestment period from April 20, 2026 to July 26, 2027, (c) extended the stated maturity date from April 20, 2028 to July 26, 2029 and (d) adjusted the interest rate charged on the BNP Funding Facility from an applicable SOFR or a “base rate” (as defined in the document governing the BNP Funding Facility) plus a margin of (i) 2.50% during the reinvestment period and (ii) 3.00% following the reinvestment period to an applicable SOFR or a “base rate” plus a margin of (i) 2.10% during the reinvestment period and (ii) 2.60% following the reinvestment period. The other terms of the BNP Funding Facility remained materially unchanged.
From July 1, 2024 through July 24, 2024, we made new investment commitments of approximately $682 million, of which approximately $532 million were funded. Of the approximately $682 million in new investment commitments, 93% were in first lien senior secured loans, 5% were in senior subordinated loans and 2% were in our subordinated loan investment in IHAM. Of the approximately $682 million in new investment commitments, 95% were floating rate and 5% were fixed rate. The weighted average yield of debt and other income producing securities funded during the period at amortized cost was 10.6% and the weighted average yield on total investments funded during the period at amortized cost was 10.6%. We may seek to sell all or a portion of these new investment commitments, although there can be no assurance that we will be able to do so.
From July 1, 2024 through July 24, 2024, we exited approximately $493 million of investment commitments. Of the approximately $493 million of exited investment commitments, 82% were first lien senior secured loans, 9% were second lien senior secured loans, 7% were our subordinated loan investment in IHAM, 1% were preferred equity and 1% were other equity. Of the approximately $493 million of exited investment commitments, 98% were floating rate, 1% were fixed rate and 1% were non-income producing. The weighted average yield of debt and other income producing securities exited or repaid during the period at amortized cost was 11.4% and the weighted average yield on total investments exited or repaid during the period at amortized cost was 11.2%. Of the approximately $493 million of investment commitments exited from July 1, 2024 through July 24, 2024, we recognized total net realized gains of approximately $2 million.
In addition, as of July 24, 2024, we had an investment backlog and pipeline of approximately $2.9 billion and $40 million, respectively. Investment backlog includes transactions approved by our investment adviser’s investment committee and/or for which a formal mandate, letter of intent or a signed commitment have been issued, and therefore we believe are likely to close. Investment pipeline includes transactions where due diligence and analysis are in process, but no formal mandate, letter of intent or signed commitment have been issued. The consummation of any of the investments in this backlog and pipeline depends upon, among other things, one or more of the following: satisfactory completion of our due diligence investigation of the prospective portfolio company, our acceptance of the terms and structure of such investment and the execution and delivery of satisfactory transaction documentation. In addition, we may sell all or a portion of these investments and certain of these investments may result in the repayment of existing investments. We cannot assure you that we will make any of these investments or that we will sell all or any portion of these investments.
CRITICAL ACCOUNTING ESTIMATES
The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting estimates, including those relating to the valuation of our investment portfolio, are described below. The critical accounting estimates should be read in conjunction with our risk factors as disclosed in “Item 1A. Risk Factors.” See Note 2 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on our critical accounting policies.
Investments
Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and include investments charged off during the period, net of recoveries. Unrealized gains or losses primarily reflect the change in investment values, including the reversal of previously recorded unrealized gains or losses when gains or losses are realized.
Pursuant to Rule 2a-5 under the Investment Company Act, our board of directors designated our investment adviser as our valuation designee (the “Valuation Designee”) to perform the fair value determinations for investments held by us without readily available market quotations, subject to the oversight of our board of directors. All investments are recorded at their fair value.
Investments for which market quotations are readily available are typically valued at such market quotations. In order to validate market quotations, the Valuation Designee looks at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. Debt and equity securities that are not publicly traded or whose market prices are not readily available (i.e., substantially all of our investments) are valued at least quarterly at fair value as determined in good faith by the Valuation Designee, subject to the oversight of our board of directors, based on, among other things, the input of our independent third‑party valuation providers (“IVPs”) that have been engaged to support the valuation of such portfolio investments at least once during a trailing 12‑month period (with certain de minimis exceptions) and under a valuation policy and a consistently applied valuation process. The valuation process is conducted at the end of each fiscal quarter by the Valuation Designee, and a portion of our investment portfolio at fair value is subject to review by an IVP each quarter, as discussed further below. However, we may use these IVPs to review the value of our investments more frequently, including in connection with the occurrence of significant events or changes in value affecting a particular investment. In addition, our independent registered public accounting firm obtains an understanding of, and performs select procedures relating to, our valuation process within the context of performing our integrated audit.
As part of the valuation process, the Valuation Designee may take into account the following types of factors, if relevant, in determining the fair value of our investments: the enterprise value of a portfolio company (the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time), the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flow, the markets in which the portfolio company does business, a comparison of the portfolio company’s securities to any similar publicly traded securities, changes in the interest rate environment and the credit markets, which may affect the price at which similar investments would trade in their principal markets and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Valuation Designee considers the pricing indicated by the external event to corroborate the valuation.
Because there is not a readily available market value for most of the investments in our portfolio, substantially all of our portfolio investments are valued at fair value as determined in good faith by the Valuation Designee, as described herein. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it.
In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned.
The Valuation Designee, subject to the oversight of our board of directors, undertakes a multi‑step valuation process each quarter, as described below:
•Our quarterly valuation process begins with a preliminary valuation being prepared by the investment professionals responsible for the portfolio investment in conjunction with our portfolio management and valuation team.
•Preliminary valuations are reviewed and discussed by the valuation committee of the Valuation Designee.
•For portfolio investments selected for review by an IVP,
◦Relevant information related to the portfolio investment is made available by the Valuation Designee to the IVP, who does not independently verify such information.
◦The IVP reviews and analyzes the information provided by the Valuation Designee, along with relevant market and economic data, and independently determines a range of values for each of the selected portfolio investments.
◦The IVP provides its analysis to the Valuation Designee to support the IVP’s valuation methodology and calculations.
•The valuation committee of the Valuation Designee determines the fair value of each investment in our portfolio without a readily available market quotation in good faith based on, among other things, the input of the IVPs, where applicable.
•For portfolio investments selected for review by an IVP, a positive assurance opinion or independent valuation report is issued by the IVP that confirms the fair value determined by the Valuation Designee for a selected portfolio investment is within the range of values independently calculated by such IVP.
Fair Value of Financial Instruments
We follow ASC 825-10, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASC 825-10”), which provides companies the option to report selected financial assets and liabilities at fair value. ASC 825-10 also establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities and a better understanding of the effect of the company’s choice to use fair value on its earnings. ASC 825-10 also requires entities to display the fair value of the selected assets and liabilities on the face of the balance sheet. We have not elected the ASC 825-10 option to report selected financial assets and liabilities at fair value. With the exception of the line items entitled “other assets” and “debt,” which are reported at amortized cost, the carrying value of all other assets and liabilities approximate fair value.
We also follow ASC 820-10, which expands the application of fair value accounting. ASC 820-10 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure of fair value measurements. ASC 820-10 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. ASC 820-10 requires us to assume that the portfolio investment is sold in its principal market to market participants or, in the absence of a principal market, the most advantageous market, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable, and willing and able to transact. In accordance with ASC 820-10, we have considered its principal market as the market in which we exit our portfolio investments with the greatest volume and level of activity. ASC 820-10 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. In accordance with ASC 820-10, these inputs are summarized in the three broad levels listed below:
•Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access.
•Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
•Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
In addition to using the above inputs in investment valuations, the Valuation Designee continues to employ the net asset valuation policy and procedures that have been reviewed by our board of directors in connection with their designation of our investment adviser as the valuation designee and are consistent with the provisions of Rule 2a-5 under the Investment Company Act and ASC 820-10. Consistent with its valuation policies and procedures, the Valuation Designee evaluates the source of inputs, including any markets in which our investments are trading (or any markets in which securities with similar attributes are trading), in determining fair value. Because there is not a readily available market value for most of the investments in our portfolio, the fair value of the investments must typically be determined using unobservable inputs.
Our portfolio investments (other than as described below in the following paragraph) are typically valued using two different valuation techniques. The first valuation technique is an analysis of the enterprise value (“EV”) of the portfolio company. EV means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time. The primary method for determining EV uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA (generally defined as net income before net interest expense, income tax expense, depreciation and amortization). EBITDA multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any. The Valuation Designee may also employ other valuation multiples to determine EV, such as revenues or, in the case of certain portfolio companies in the power generation industry, kilowatt capacity. The second method for determining EV uses a discounted cash flow analysis whereby future expected cash flows of the portfolio company are discounted to determine a present value using estimated discount rates (typically a weighted average cost of capital based on costs of debt and equity consistent with current market conditions). The EV analysis is performed to determine the value of equity investments, the value of debt investments in portfolio companies where we have control or could gain control through an option or warrant security, and to determine if there is credit impairment for debt investments. If debt investments are credit impaired, an EV analysis may be used to value such debt investments; however, in addition to the methods outlined above, other methods such as a liquidation or wind-down analysis may be utilized to estimate EV. The second valuation technique is a yield analysis, which is typically performed for non-credit impaired debt investments in portfolio companies where we do not own a controlling equity position. To determine fair value using a yield analysis, a current price is imputed for the investment based upon an assessment of the expected market yield for a similarly structured investment with a similar level of risk. In the yield analysis, the Valuation Designee considers the current contractual interest rate, the maturity and other terms of the investment relative to the risk of the company and the specific investment. A key determinant of risk, among other things, is the leverage through the investment relative to the EV of the portfolio company. As debt investments held by us are substantially illiquid with no active transaction market, the Valuation Designee depends on primary market data, including newly funded transactions, as well as secondary market data with respect to high yield debt instruments and syndicated loans, as inputs in determining the appropriate market yield, as applicable.
For other portfolio investments such as investments in the SDLP Certificates and IHAM, discounted cash flow analysis is the primary technique utilized to determine fair value. Expected future cash flows associated with the investment are discounted to determine a present value using a discount rate that reflects estimated market return requirements.
See Note 8 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on our valuation process.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. Uncertainty with respect to the fluctuations in global interest rates, inflationary pressures, the Russia-Ukraine war and more recently the Israel-Hamas war introduced significant volatility in the financial markets, and the effects of this volatility has materially impacted and could continue to materially impact our market risks, including those listed below. For more information concerning these risks and their potential impact on our business and our operating results, see “Risk Factors—General Risk Factors—Global economic, political and market conditions, including uncertainty about the financial stability of the United States, could have a significant adverse effect on our business, financial condition and results of operations”, “Risk Factors—Risks Relating to Our Investments—Economic recessions or downturns could impair our portfolio companies and harm our operating results” and “Risk Factors—Risks Relating to Our Business—Inflation has adversely affected and may continue to adversely affect the business, results of operations and financial condition of our portfolio companies” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 7, 2024.
Investment Valuation Risk
Because there is not a readily available market value for most of the investments in our portfolio, substantially all of our portfolio investments are valued at fair value as determined in good faith by our investment adviser, as the valuation designee, subject to the oversight of our board of directors based on, among other things, the input of the independent third-party valuation firms that have been engaged to support the valuation of each portfolio investment without a readily available market quotation at least once during a trailing 12-month period (with certain de minimis exceptions). Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” as well as Notes 2 and 8 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information relating to our investment valuation.
Interest Rate Risk
Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. See “Risk Factors—Risks Relating to Our Business—We are exposed to risks associated with changes in interest rates, including the current rising interest rate environment” in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 7, 2024.
In a prolonged low interest rate environment, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net income and potentially adversely affecting our operating results. Conversely, in a rising interest rate environment, such difference could potentially increase thereby increasing our net income as indicated per the table below.
As of June 30, 2024, 69% of the investments at fair value in our portfolio bore interest and dividends at variable rates (including our investment in the SDLP Certificates which accounted for 5% of our total investments at fair value), 13% bore interest at fixed rates, 9% were non-income producing, 1% were on non-accrual status and 8% was our equity investment in IHAM which generally pays a quarterly dividend. Additionally, excluding our investment in the SDLP Certificates, 98% of the remaining variable rate investments at fair value contained interest rate floors. The Facilities and the 2024-1 Notes bear interest at variable rates with no interest rate floors. The Unsecured Notes bear interest at fixed rates, except that the January 2027 Notes, the March 2029 Notes and the July 2029 Notes have been swapped from a fixed rate to a floating rate through interest rate swaps. See Note 5 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on our debt obligations. See Note 6 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on the interest rate swaps.
We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.
Based on our June 30, 2024 balance sheet, the following table shows the annualized impact on net income of base rate changes in interest rates (considering interest rate floors for variable rate instruments) assuming no changes in our investment and borrowing structure:
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(in millions) Basis Point Change | | Interest and Dividend Income | | Interest Expense | | Net Income(1) |
Up 300 basis points | | $ | 517 | | | $ | 198 | | | $ | 319 | |
Up 200 basis points | | $ | 344 | | | $ | 132 | | | $ | 212 | |
Up 100 basis points | | $ | 172 | | | $ | 66 | | | $ | 106 | |
Down 100 basis points | | $ | (173) | | | $ | (66) | | | $ | (107) | |
Down 200 basis points | | $ | (345) | | | $ | (132) | | | $ | (213) | |
Down 300 basis points | | $ | (517) | | | $ | (198) | | | $ | (319) | |
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(1)Excludes the impact of the income based fee. See Note 3 to our consolidated financial statements for the three and six months ended June 30, 2024 for more information on the income based fee.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as that term is defined in Rules 13a‑15(e) and 15d‑15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2024. Based upon that evaluation and subject to the foregoing, our principal executive officer and principal financial officer concluded that, as of June 30, 2024, the design and operation of our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting (as defined in Rules 13a‑15(f) and 15d‑15(f) under the Exchange Act) during the quarter ended June 30, 2024 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we, our executive officers, directors and our investment adviser, its affiliates and/or any of their respective principals and employees are subject to legal proceedings, including those arising from our investments in our portfolio companies, and as a result, incur significant costs and expenses in connection with such legal proceedings. Legal proceedings may increase to the extent we find it necessary to foreclose or otherwise enforce remedies with respect to loans that are in default, which borrowers may seek to resist by asserting counterclaims and defenses against us or our investment adviser.
We and our investment adviser are also subject to extensive regulation, which, from time to time, results in requests for information from us or our investment adviser or regulatory proceedings or investigations against us or our investment adviser, respectively. We incur significant costs and expenses in connection with any such information requests, proceedings and investigations.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risk factors described in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
We did not sell any equity securities during the period covered in this report that were not registered under the Securities Act.
Dividend Reinvestment Plan
During the quarter ended June 30, 2024, as part of our dividend reinvestment plan for our common stockholders, we did not purchase shares of our common stock in the open market in order to satisfy the reinvestment portion of our dividends.
Stock Repurchase Program
In January 2024, our board of directors authorized an amendment to our existing stock repurchase program to extend the expiration date of the program from February 15, 2024 to February 15, 2025. Under the program, we may repurchase up to $1.0 billion in the aggregate of our outstanding common stock in the open market at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 of the Exchange Act. The timing, manner, price and amount of any share repurchases will be determined by us, in our sole discretion, based upon an evaluation of economic and market conditions, stock price, applicable legal and regulatory requirements and other factors. The stock repurchase program will be in effect through February 15, 2025, unless extended or until the approved dollar amount has been used to repurchase shares. The stock repurchase program does not require us to repurchase any specific number of shares of common stock or any shares of common stock at all. Consequently, we cannot assure stockholders that any specific number of shares of common stock, if any, will be repurchased under the stock repurchase program. The program may be suspended, extended, modified or discontinued at any time.
During the quarter ended June 30, 2024, there were no repurchases of our common stock under our stock repurchase program. As of June 30, 2024, the approximate dollar value of shares that may yet be purchased under the program was $1.0 billion.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Rule 10b5-1 Trading Plans
During the fiscal quarter ended June 30, 2024, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of our securities to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”
Amendment to BNP Funding Facility
On July 25, 2024, we and our consolidated subsidiary, AFB, amended the BNP Funding by entering into BNP Amendment No. 8. The BNP Amendment No. 8, among other things, (a) increased the total commitment under the BNP Funding Facility from $865 million to $1,265 million, (b) extended the end of the reinvestment period from April 20, 2026 to July 26, 2027, (c) extended the stated maturity date from April 20, 2028 to July 26, 2029 and (d) adjusted the interest rate charged on the BNP Funding Facility from an applicable SOFR or a “base rate” (as defined in the document governing the BNP Funding Facility) plus a margin of (i) 2.50% during the reinvestment period and (ii) 3.00% following the reinvestment period to an applicable SOFR or a “base rate” plus a margin of (i) 2.10% during the reinvestment period and (ii) 2.60% following the reinvestment period. The other terms of the BNP Funding Facility remained materially unchanged. The foregoing description of BNP Amendment No. 8 is only a summary of the material provisions of BNP Amendment No. 8 and is qualified in its entirety by reference to a copy of such amendment, which is filed herewith as Exhibit 10.6, and by this reference incorporated herein.
Item 6. Exhibits.
EXHIBIT INDEX
| | | | | | | | | |
Exhibit Number | | Description | |
| | Articles of Amendment and Restatement, as amended (incorporated by reference to Exhibit 3.1 to the Company’s Form 10-Q (File No. 814-00663) for the quarter ended March 31, 2023, filed on April 25, 2023). | |
| | Third Amended and Restated Bylaws, as amended (incorporated by reference to Exhibit 3.2 to the Company’s Form 10-K (File No. 814-00663) for the year ended December 31, 2018, filed on February 12, 2019). | |
| | | |
| | | |
| | Indenture, dated as of May 13, 2024, by and between the Company and U.S. Bank Trust Company, National Association, as trustee.* | |
| | First Supplemental Indenture, dated as of May 13, 2024, relating to the 5.950% Notes due 2029, between Ares Capital Corporation and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Company’s Form 8-K (File No. 814-00663), filed on May 13, 2024). | |
| | Form of 5.950% Notes due 2029 (incorporated by reference to Exhibit 4.3, as applicable, to the Company’s Form 8-K (File No. 814-00663), filed on May 13, 2024) (contained in the First Supplemental Indenture filed as Exhibit 4.2 thereto). | |
| | Indenture, dated as of May 24, 2024, by and between Ares Direct Lending CLO 1 LLC, as issuer, and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K (File No. 814-00663), filed on May 31, 2024). | |
| | Form of Class A Senior Floating Rate Notes due 2036 (incorporated by reference to Exhibit 4.2 to the Company’s Form 8-K (File No. 814-00663), filed on May 31, 2024 (contained in the Indenture filed as Exhibit 4.1 thereto)). | |
| | Form of Class B Senior Floating Rate Notes due 2036 incorporated by reference to Exhibit 4.3 to the Company’s Form 8-K (File No. 814-00663), filed on May 31, 2024 (contained in the Indenture filed as Exhibit 4.1 thereto)). | |
| | Form of Subordinated Notes due 2036 incorporated by reference to Exhibit 4.4 to the Company’s Form 8-K (File No. 814-00663), filed on May 31, 2024 (contained in the Indenture filed as Exhibit 4.1 thereto)). | |
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| | | |
| | | |
| | | |
| | | |
| | | |
| | Collateral Administration Agreement, dated as of May 24, 2024, by and between Ares Direct Lending CLO 1 LLC, as issuer, Ares Capital Management LLC, as asset manager, and U.S. Bank Trust Company, National Association as collateral administrator (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (File No. 814-00663), filed on May 31, 2024). | |
| | Asset Management Agreement, dated as of May 24, 2024, by and between Ares Direct Lending CLO 1 LLC, as issuer and Ares Capital Management LLC, as asset manager (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K (File No. 814-00663), filed on May 31, 2024). | |
| | Master Purchase and Sale Agreement, dated as of May 24, 2024, by and between Ares Capital Corporation, as seller, and Ares Direct Lending CLO 1 LLC, as buyer (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K (File No. 814-00663), filed on May 31, 2024). | |
| | Contribution Agreement, dated as of May 24, 2024, by and between Ares Capital Corporation, as transferor, and Ares Direct Lending CLO 1 LLC, as transferee (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K (File No. 814-00663), filed on May 31, 2024). | |
| | Fifteenth Amended and Restated Senior Secured Credit Agreement, dated as of April 12, 2024, among Ares Capital Corporation, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (File No. 814-00663), filed on April 17, 2024). | |
| | Seventh Amendment to the Revolving Credit and Security Agreement, dated as of April 12, 2024, 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 (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K (File No. 814-00663), filed on April 17, 2024). | |
| | Eighth Amendment to the Revolving Credit and Security Agreement, dated as of July 25, 2024, 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* | |
| | Certification by Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
| | Certification by Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* | |
| | Certification by Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002** | |
101.INS | | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. | |
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101.SCH | | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
________________________________________
* Filed herewith
** This certification is not deemed filed by the SEC and is not to be incorporated by reference in any filing we make under the Securities Act or the Exchange Act, irrespective of any general incorporation language in any filings.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | | | | | | | |
| ARES CAPITAL CORPORATION |
| |
| | |
Date: July 30, 2024 | By | /s/ R. KIPP DEVEER |
| | R. Kipp deVeer Chief Executive Officer |
| | |
Date: July 30, 2024 | By | /s/ SCOTT C. LEM |
| | Scott C. Lem Chief Financial Officer and Treasurer |
| | |
Date: July 30, 2024 | By | /s/ PAUL CHO |
| | Paul Cho Chief Accounting Officer |
EXECUTION VERSION
ARES CAPITAL CORPORATION
(Issuer)
and
U.S. Bank Trust Company, National Association
(Trustee)
Indenture
Dated as of May 13, 2024
Providing for the Issuance
of
Debt Securities
TABLE OF CONTENTS
Page
| | | | | | | | |
ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION | | 1 | |
SECTION 1.01. Definitions | | 1 | |
SECTION 1.02. Compliance Certificates | | 13 | |
SECTION 1.03. Form of Documents Delivered to Trustee | | 13 | |
SECTION 1.04. Acts of Holders | | 14 | |
SECTION 1.05. Notices, Etc., to Trustee and Company | | 15 | |
SECTION 1.06. Notice to Holders; Waiver | | 16 | |
SECTION 1.07. Effect of Headings and Table of Contents | | 16 | |
SECTION 1.08. Successors and Assigns | | 17 | |
SECTION 1.09. Separability Clause | | 17 | |
SECTION 1.10. Benefits of Indenture | | 17 | |
SECTION 1.11. Governing Law; Jury Trial Waiver | | 17 | |
SECTION 1.12. Legal Holidays | | 17 | |
SECTION 1.13. Submission to Jurisdiction | | 18 | |
| | | | | | | | |
ARTICLE TWO SECURITIES FORMS | | 18 | |
SECTION 2.01. Forms of Securities | | 18 | |
SECTION 2.02. Form of Trustee’s Certificate of Authentication | | 18 | |
SECTION 2.03. Securities Issuable in Global Form | | 19 | |
SECTION 2.04. Certificated Notes | | 20 | |
| | | | | | | | |
ARTICLE THREE THE SECURITIES | | 20 | |
SECTION 3.01. Amount Unlimited; Issuable in Series | | 20 | |
SECTION 3.02. Denominations | | 23 | |
SECTION 3.03. Execution, Authentication, Delivery and Dating | | 24 | |
SECTION 3.04 Temporary Securities | | 25 | |
SECTION 3.05 Registration; Registration of Transfer and Exchange | | 26 | |
SECTION 3.06. Mutilated, Destroyed, Lost and Stolen Securities | | 28 | |
SECTION 3.07. Payment of Interest; Interest Rights Preserved; Optional Interest Reset | | 29 | |
SECTION 3.08. Optional Extension of Maturity | | 31 | |
SECTION 3.09. Persons Deemed Owners | | 32 | |
SECTION 3.10. Cancellation | | 32 | |
SECTION 3.11. Computation of Interest | | 33 | |
SECTION 3.12. Currency and Manner of Payments in Respect of Securities | | 33 | |
SECTION 3.13. Appointment and Resignation of Successor Exchange Rate Agent | | 36 | |
SECTION 3.14. CUSIP Numbers, ISINs and Common Code Numbers | | 37 | |
| | | | | | | | |
ARTICLE FOUR SATISFACTION AND DISCHARGE | | 37 | |
SECTION 4.01. Satisfaction and Discharge of Indenture | | 37 | |
SECTION 4.02. Application of Trust Funds | | 38 | |
| | | | | | | | |
ARTICLE FIVE REMEDIES | | 38 | |
SECTION 5.01. Events of Default | | 38 | |
SECTION 5.02. Acceleration of Maturity; Rescission and Annulment | | 40 | |
SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by Trustee | | 43 | |
SECTION 5.04 Trustee May File Proofs of Claim | | 44 | |
SECTION 5.05 Trustee May Enforce Claims Without Possession of Securities | | 45 | |
SECTION 5.06. Application of Money Collected | | 45 | |
SECTION 5.07. Limitation on Suits | | 46 | |
SECTION 5.08. Unconditional Right of Holders to Receive Principal, Premium and Interest | | 46 | |
SECTION 5.09. Restoration of Rights and Remedies | | 46 | |
SECTION 5.10. Rights and Remedies Cumulative | | 47 | |
SECTION 5.11. Delay or Omission Not Waiver | | 47 | |
SECTION 5.12. Control by Holders of Securities | | 47 | |
SECTION 5.13. Waiver of Past Defaults | | 47 | |
SECTION 5.14. Waiver of Stay or Extension Laws | | 48 | |
SECTION 5.15. Undertaking for Costs | | 48 | |
| | | | | | | | |
ARTICLE SIX THE TRUSTEE | | 48 | |
SECTION 6.01. Notice of Defaults | | 48 | |
SECTION 6.02. Certain Rights of Trustee | | 50 | |
SECTION 6.03. Not Responsible for Recitals or Issuance of Securities | | 52 | |
SECTION 6.04. May Hold Securities | | 52 | |
SECTION 6.05. Money Held in Trust | | 52 | |
SECTION 6.06. Compensation and Reimbursement and Indemnification of Trustee | | 52 | |
SECTION 6.07. Corporate Trustee Required; Eligibility | | 53 | |
SECTION 6.08. Disqualification; Conflicting Interests | | 53 | |
SECTION 6.09. Resignation and Removal; Appointment of Successor | | 54 | |
SECTION 6.10. Acceptance of Appointment by Successor | | 55 | |
SECTION 6.11. Merger, Conversion, Consolidation or Succession to Business | | 56 | |
SECTION 6.12. Appointment of Authenticating Agent | | 57 | |
SECTION 6.13. Preferential Collection of Claims Against Company | | 58 | |
| | | | | | | | |
ARTICLE SEVEN HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY | | 58 | |
SECTION 7.01. Disclosure of Names and Addresses of Holders | | 58 | |
SECTION 7.02. Preservation of Information; Communications to Holders | | 59 | |
SECTION 7.03. Reports by Trustee | | 59 | |
SECTION 7.04. Reports by Company | | 59 | |
SECTION 7.05. Calculation of Original Issue Discount | | 60 | |
| | | | | | | | |
ARTICLE EIGHT CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER | | 60 | |
SECTION 8.01. Company May Consolidate, Etc., Only on Certain Terms | | 60 | |
SECTION 8.02. Successor Person Substituted | | 61 | |
| | | | | | | | |
ARTICLE NINE SUPPLEMENTAL INDENTURES | | 61 | |
| | | | | | | | |
SECTION 9.01. Supplemental Indentures Without Consent of Holders | | 61 | |
SECTION 9.02. Supplemental Indentures with Consent of Holders | | 62 | |
SECTION 9.03. Execution of Supplemental Indentures | | 64 | |
SECTION 9.04. Effect of Supplemental Indentures | | 64 | |
SECTION 9.05. Conformity with Trust Indenture Act | | 64 | |
SECTION 9.06. Reference in Securities to Supplemental Indentures | | 64 | |
| | | | | | | | |
ARTICLE TEN COVENANTS | | 64 | |
SECTION 10.01. Payment of Principal, Premium, if any, and Interest | | 64 | |
SECTION 10.02. Maintenance of Office or Agency | | 65 | |
SECTION 10.03. Money for Securities Payments to Be Held in Trust | | 65 | |
SECTION 10.04. Additional Amounts | | 66 | |
SECTION 10.05. Statement as to Compliance | | 67 | |
SECTION 10.06. Waiver of Certain Covenants | | 67 | |
SECTION 10.07. Section 18(a)(1)(A) of the Investment Company Act | | 67 | |
SECTION 10.08. Commission Reports and Reports to Holders | | 68 | |
| | | | | | | | |
ARTICLE ELEVEN REDEMPTION OF SECURITIES | | 68 | |
SECTION 11.01. Applicability of Article | | 68 | |
SECTION 11.02. Notice to Trustee | | 68 | |
SECTION 11.03. Selection by Trustee of Securities to Be Redeemed | | 68 | |
SECTION 11.04. Notice of Redemption | | 69 | |
SECTION 11.05. Deposit of Redemption Price | | 70 | |
SECTION 11.06. Securities Payable on Redemption Date | | 70 | |
SECTION 11.07. Securities Redeemed in Part | | 71 | |
| | | | | | | | |
ARTICLE TWELVE SINKING FUNDS | | 71 | |
SECTION 12.01. Applicability of Article | | 71 | |
SECTION 12.02. Satisfaction of Sinking Fund Payments with Securities | | 71 | |
SECTION 12.03. Redemption of Securities for Sinking Fund | | 72 | |
| | | | | | | | |
ARTICLE THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS | | 72 | |
SECTION 13.01. Applicability of Article | | 72 | |
SECTION 13.02. Repayment of Securities | | 72 | |
SECTION 13.03. Exercise of Option | | 73 | |
SECTION 13.04. When Securities Presented for Repayment Become Due and Payable | | 73 | |
SECTION 13.05. Securities Repaid in Part | | 74 | |
| | | | | | | | |
ARTICLE FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE | | 74 | |
SECTION 14.01. Applicability of Article; Company’s Option to Effect Defeasance or Covenant Defeasance | | 74 | |
SECTION 14.02. Defeasance and Discharge | | 74 | |
SECTION 14.03. Covenant Defeasance | | 75 | |
SECTION 14.04. Conditions to Defeasance or Covenant Defeasance | | 75 | |
SECTION 14.05. Deposited Money and Government Obligations to Be Held in Trust; Other Miscellaneous Provisions | | 77 | |
| | | | | | | | |
ARTICLE FIFTEEN MEETINGS OF HOLDERS OF SECURITIES | | 78 | |
SECTION 15.01. Purposes for Which Meetings May Be Called | | 78 | |
SECTION 15.02. Call, Notice and Place of Meetings | | 78 | |
SECTION 15.03. Persons Entitled to Vote at Meetings | | 78 | |
SECTION 15.04. Quorum; Action | | 79 | |
SECTION 15.05. Determination of Voting Rights; Conduct and Adjournment of Meetings | | 80 | |
SECTION 15.06. Counting Votes and Recording Action of Meetings | | 80 | |
| | | | | | | | |
ARTICLE SIXTEEN SUBORDINATION OF SECURITIES | | 81 | |
SECTION 16.01. Agreement to Subordinate | | 81 | |
SECTION 16.02. Distribution on Dissolution, Liquidation and Reorganization; Subrogation of Subordinated Securities | | 81 | |
SECTION 16.03. No Payment on Subordinated Securities in Event of Default on Senior Indebtedness | | 83 | |
SECTION 16.04. Payments on Subordinated Securities Permitted | | 84 | |
SECTION 16.05. Authorization of Holders to Trustee to Effect Subordination | | 84 | |
SECTION 16.06. Notices to Trustee | | 84 | |
SECTION 16.07. Trustee as Holder of Senior Indebtedness | | 85 | |
SECTION 16.08. Modifications of Terms of Senior Indebtedness | | 85 | |
SECTION 16.09. Reliance on Judicial Order or Certificate of Liquidating Agent | | 85 | |
ARES CAPITAL CORPORATION
Reconciliation and tie between Trust Indenture Act of 1939
and Indenture, dated as of May 13, 2024
| | | | | | | | | | | |
Trust Indenture Act Section | | Indenture Section |
§ 310 | (a)(1) | | 6.07 |
| (a)(2) | | 6.07 |
| (a)(5) | | 6.07 |
| (b) | | 6.08 |
§ 311 | | | 6.13 |
§ 312 | (c) | | 7.01 |
§ 313 | | | 7.03 |
§ 314 | (a) | | 7.04 |
| (a)(4) | | 10.05 |
| (c)(1) | | 1.02 |
| (c)(2) | | 1.02 |
| (e) | | 1.02 |
§ 315 | (a) | | 6.01 |
| (b) | | 6.01 |
| (c) | | 6.01 |
| (d) | | 6.01 |
| (e) | | 5.15 |
§ 316 | (a) (last sentence) | | 1.01 (“Outstanding”) |
| (a)(1)(A) | | 5.02, 5.12 |
| (a)(1)(B) | | 5.13 |
| (b) | | 5.08 |
§ 317 | (a)(1) | | 5.03 |
| (a)(2) | | 5.04 |
| (b) | | 10.03 |
§ 318 | (a) | | 1.11 |
| (c) | | 1.11 |
________________________________________
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture.
INDENTURE, dated as of May 13, 2024, between Ares Capital Corporation, a Maryland corporation (the “Company”), and U.S. Bank Trust Company, National Association, a national banking association, as Trustee (as trustee in such capacity and not in its individual capacity, the “Trustee”).
RECITALS OF THE COMPANY
WHEREAS, the Company deems it necessary to issue from time to time for its lawful purposes debt securities (hereinafter called the “Securities”) evidencing its secured or unsecured indebtedness, which may or may not be convertible into or exchangeable for any securities of any Person (including the Company), and has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of the Securities, to be issued in one or more series, unlimited as to principal amount, to bear such rates of interest, to mature at such times and to have such other provisions as shall be fixed as hereinafter provided;
WHEREAS, this Indenture (as defined herein) is subject to the provisions of the Trust Indenture Act (as defined herein) that are required to be part of this Indenture and shall, to the extent applicable, be governed by such provisions; and
WHEREAS, all things necessary to make this Indenture a valid and legally binding agreement of, and enforceable against, the Company, in accordance with its terms, have been done.
NOW, THEREFORE, for and in consideration of the premises and the purchase of the Securities by the Holders (as defined herein) thereof, it is mutually covenanted and agreed, for the benefit of each other and for the equal and proportionate benefit of all Holders of the Securities, or of a series thereof, as follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 1.01 Definitions.
For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular and, pursuant to Section 3.01, any such item may, with respect to any particular series of Securities, be amended or modified or specified as being inapplicable;
(b) all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein, and the terms “cash transaction” and “self-liquidating paper,” as used in Section 311 of the Trust Indenture Act, shall have the meanings assigned to them in the rules of the Commission adopted under the Trust Indenture Act;
(c) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP;
(d) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision;
(e) “or” is not exclusive;
(f) the words “include,” “includes” or “including” shall be deemed to be followed by the words “without limitation”;
(g) provisions apply to successive events and transactions;
(h) references to sections of or rules under the Exchange Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the Commission from time to time; and
(i) any reference to “execute,” “executed,” “sign,” “signed,” “signature” or any other like term hereunder shall include execution by electronic signature (including any .pdf file, .jpeg file, or any other electronic or image file, or any “electronic signature” complying with the New York Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309), as amended from time to time, which includes any electronic signature provided using Orbit, Adobe Fill & Sign, Adobe Sign, DocuSign, or any other similar platform identified by the Company and reasonably available at no undue burden or expense to the Trustee), except to the extent the Trustee requests otherwise. Any such electronic signatures shall be deemed original signatures for all purposes hereunder. Transmission by telecopy, electronic mail or other transmission method of any executed counterpart hereunder will constitute due and sufficient delivery of such counterpart.
Certain terms, used in other Articles herein, are defined in those Articles.
“Act,” when used with respect to any Holder of a Security, has the meaning specified in Section 1.04.
“Additional Amounts” means any additional amounts that are required by a Security or by or pursuant to a Board Resolution, under circumstances specified therein, to be paid by the Company in respect of certain taxes imposed on certain Holders and that are owing to such Holders.
“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing; provided, that “Affiliate” shall not include any portfolio company of the Company over which the Company may have control or in which the Company may have an investment from time to time.
“Applicable Procedures” means, with respect to any matter at any time relating to any global Security, the rules, policies and procedures of the Depositary that apply to such matter.
“Authenticating Agent” means the Trustee or any authenticating agent appointed by the Trustee pursuant to Section 6.12 to act on behalf of the Trustee to authenticate Securities of one or more series.
“Bankruptcy Law” has the meaning specified in Section 5.01.
“Board of Directors” means the board of directors of the Company, or any duly authorized committee of such board of directors or any officers of the Company duly authorized so to act by such board of directors.
“Board Resolution” means a copy of a resolution certified by the Secretary, an Assistant Secretary or another appropriate officer of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification.
“Business Day” means any day other than a Legal Holiday.
“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties on such date.
“Company” means the Person named as the “Company” in the first paragraph of this Indenture until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person.
“Company Request” and “Company Order” mean, respectively, a written request or order signed in the name of the Company by the Chairman (or a Co-Chairman, if applicable), the Chief Executive Officer, the Chief Financial Officer, the Chief Operating Officer, if any, the President (or a Co-President, if applicable), a Vice President, the Treasurer, the Secretary or an Assistant Secretary of the Company.
“Component Currency” has the meaning specified in Section 3.12(h).
“Controlled Subsidiary” means any Subsidiary of the Company, 50% or more of the outstanding equity interests of which are owned by the Company and its direct or indirect Subsidiaries and of which the Company possesses, directly or indirectly, the power to direct or cause the direction of the management or policies, whether through the ownership of voting equity interests, by agreement or otherwise.
“Conversion Date” has the meaning specified in Section 3.12(d).
“Conversion Event” means the cessation of use of (i) a Foreign Currency both by the government of the country which issued such currency and for the settlement of transactions by a central bank or other public institutions of or within the international banking community, (ii) the Euro both within the EMU and for the settlement of transactions by public institutions of or within the EMU or (iii) any currency unit (or composite currency) other than the Euro for the purposes for which it was established.
“Corporate Trust Office” means the office of the Trustee at which, at any particular time, its corporate trust business shall be principally administered, which office at the date hereof is located 60 Livingston Ave., St. Paul, MN 55107, Attn: Ares Capital Notes Administrator; Brandon Bonfig, Vice President, brandon.bonfig@usbank.com; provided that for purposes of presentment or surrender of securities for transfer or payment or exchange, such office is located at Bondholder Services-EP-MN WS2N, 111 Fillmore Avenue East, St. Paul, MN 55107, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).
“corporation” includes corporations, associations, companies and business trusts.
“Currency” means any currency or currencies, composite currency or currency unit or currency units, including the Euro, issued by the government of one or more countries or by any reorganized confederation or association of such governments.
“Default” means any event that is, or after notice or passage of time or both would be, an Event of Default.
“Defaulted Interest” has the meaning specified in Section 3.07(a).
“Depositary” means, with respect to each Security in global form, The Depository Trust Company, until a successor shall have been appointed and becomes such person, and thereafter, “Depositary” shall mean or include such successor.
“Derivative Instrument” means, with respect to a Person and the Securities of any series, any contract, instrument or other right to receive payment or delivery of cash or other assets to which such Person or any Affiliate of such Person that is acting in concert with such Person in connection with such Person’s investment in Securities of such series (other than a Screened Affiliate) is a party (whether or not requiring further performance by such Person), the value and/or cash flows of which (or any material portion thereof) are materially affected by the value and/or performance of such Securities and/or the creditworthiness of the Company (the “Performance References”).
“Directing Holder” has the meaning specified in Section 5.02.
“Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the United States of America as at the time shall be legal tender for the payment of public and private debts.
“Election Date” has the meaning specified in Section 3.12(h).
“EMU” means the Economic and Monetary Union of the European Union.
“Event of Default” has the meaning specified in Section 5.01.
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any statute successor thereto, in each case as amended from time to time and the rules and regulations of the Commission promulgated thereunder.
“Exchange Rate Agent,” with respect to Securities of or within any series, means, unless otherwise specified with respect to any Securities pursuant to Section 3.01, a New York Clearing House bank designated pursuant to Section 3.01 or Section 3.13.
“Exchange Rate Officer’s Certificate” means a certificate setting forth (i) the applicable Market Exchange Rate or the applicable bid quotation and (ii) the Dollar or Foreign Currency amounts of principal (and premium, if any) and interest, if any (on an aggregate basis and on the basis of a Security having the lowest denomination principal amount determined in accordance with Section 3.02 in the relevant Currency), payable with respect to a Security of any series on the basis of such Market Exchange Rate or the applicable bid quotation signed by the Chief Financial Officer or any Vice President of the Company.
“Extension Notice” has the meaning specified in Section 3.08.
“Extension Period” has the meaning specified in Section 3.08.
“Final Maturity” has the meaning specified in Section 3.08.
“Foreign Currency” means any Currency other than the U.S. dollar, including the Euro.
“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants, the opinions and pronouncements of the Public Company Accounting Oversight Board and the statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession in the United States, which are in effect from time to time.
“Government Obligations” means securities that are (i) direct obligations of the United States of America or the government which issued the Foreign Currency in which the Securities of a particular series are payable, for the payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America or such government that issued the Foreign Currency in which the Securities of such series are payable, the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America or such other government, which, in either case, are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such Government Obligation or a specific payment of interest on or principal of any such Government Obligation held by such custodian for the account of the holder of a depository receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the Government Obligation or the specific payment of interest on or principal of the Government Obligation evidenced by such depository receipt.
“Holder” means the Person in whose name a Security is registered in the Security Register.
“Holder Direction” has the meaning specified in Section 5.02.
“Indenture” means this indenture as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, and shall include the terms of particular series of Securities established as contemplated by Section 3.01; provided, however, that, if at any time more than one Person is acting as Trustee under this instrument, “Indenture” shall mean, with respect to any one or more series of Securities for which such Person is Trustee, this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the terms of the or those particular series of Securities for which such Person is Trustee established as contemplated by Section 3.01, exclusive, however, of any provisions or terms that relate solely to other series of Securities for which such Person is not Trustee, regardless of when such terms or provisions were adopted, and exclusive of any provisions or terms adopted by means of one or more indentures supplemental hereto executed and delivered after such Person had become such Trustee but to which such Person, as such Trustee, was not a party.
“Indexed Security” means a Security as to which all or certain interest payments and/or the principal amount payable at Maturity are determined by reference to prices, changes in prices, or differences between prices, of securities, Currencies, intangibles, goods, articles or commodities or by such other objective price, economic or other measures as are specified in Section 3.01 hereof.
“Initial Default” has the meaning specified in Section 5.02.
“Interest,” when used with respect to an Original Issue Discount Security that by its terms bears interest only after Maturity, means interest payable after Maturity, and, when used with respect to a Security that provides for the payment of Additional Amounts pursuant to Section 10.04, includes such Additional Amounts.
“Interest Payment Date,” when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security.
“Investment Company Act” means the Investment Company Act of 1940, as amended, and any statute successor thereto, in each case as amended from time to time and the rules and regulations of the Commission promulgated thereunder.
“Junior Subordinated Indebtedness” means the principal of (and premium, if any) and unpaid interest on (i) indebtedness of the Company (including indebtedness of others guaranteed by the Company), whether outstanding on the date hereof or thereafter created, incurred, assumed or guaranteed, for money borrowed, which in the instrument creating or evidencing the same or pursuant to which the same is outstanding it is provided that such indebtedness ranks junior in right of payment to the Company’s Senior Indebtedness and Senior Subordinated Indebtedness and equally and pari passu in right of payment to any other Junior Subordinated Indebtedness, (ii) Junior Subordinated Securities, and (iii) renewals, extensions, modifications and refinancings of any such indebtedness.
“Junior Subordinated Security” or “Junior Subordinated Securities” means any Security or Securities designated pursuant to Section 3.01 as a Junior Subordinated Security.
“Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City of New York or in the city in which the Corporate Trust Office is located or in the city in which the Corporate Trust Office is located are authorized or required by law, regulation or executive order to remain closed.
“Long Derivative Instrument” means a Derivative Instrument (i) the value of which generally increases, and/or the payment or delivery obligations under which generally decrease, with positive changes to the Performance References and/or (ii) the value of which generally decreases, and/or the payment or delivery obligations under which generally increase, with negative changes to the Performance References.
“Market Exchange Rate” means, unless otherwise specified with respect to any Securities pursuant to Section 3.01, (i) for any conversion involving a currency unit on the one hand and Dollars or any Foreign Currency on the other, the exchange rate between the relevant currency unit and Dollars or such Foreign Currency calculated by the method specified pursuant to Section 3.01 for the Securities of the relevant series, (ii) for any conversion of Dollars into any Foreign Currency, the noon buying rate for such Foreign Currency for cable transfers quoted in New York City as certified for customs purposes by the Federal Reserve Bank of New York and (iii) for any conversion of one Foreign Currency into Dollars or another Foreign Currency, the spot rate at noon local time in the relevant market at which, in accordance with normal banking procedures, the Dollars or Foreign Currency into which conversion is being made could be purchased with the Foreign Currency from which conversion is being made from major banks located in either New York City, London or any other principal market for Dollars or such purchased Foreign Currency, in each case determined by the Exchange Rate Agent. Unless otherwise specified with respect to any Securities pursuant to Section 3.01, in the event of the unavailability of any of the exchange rates provided for in the foregoing clauses (i), (ii) and (iii), the Exchange Rate Agent shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New York as of the most recent available date, or quotations from one or more major banks in New York City, London or other principal market for such currency or currency unit in question, or such other quotations as the Exchange Rate Agent shall deem appropriate. Unless otherwise specified by the Exchange Rate Agent, if there is more than one market for dealing in any currency or currency unit by reason of foreign exchange regulations or otherwise, the market to be used in respect of such currency or currency unit shall be that upon which a nonresident issuer of securities designated in such currency or currency unit would purchase such currency or currency unit in order to make payments in respect of such securities as determined by the Exchange Rate Agent, in its sole discretion.
“Maturity,” when used with respect to any Security, means the date on which the principal of such Security or an installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, notice of redemption, notice of option to elect repayment, notice of exchange or conversion or otherwise.
“Net Short” means, with respect to a Holder or beneficial owner of Securities of any series, as of a date of determination, either (i) the value of its Short Derivative Instruments exceeds the sum of the (x) value of its Securities of such series plus (y) value of its Long Derivative Instruments as of such date of determination or (ii) it is reasonably expected that such would have been the case were a Failure to Pay or Bankruptcy Credit Event (each as defined in the 2014 ISDA Credit Derivatives Definitions) to have occurred with respect to the Company immediately prior to such date of determination.
“Notice of Default” has the meaning provided in Section 5.01.
“Officer’s Certificate” means a certificate signed by the Chairman (or a Co-Chairman, if applicable), the Chief Executive Officer, the Chief Financial Officer, the Chief Operating Officer, if any, the President (or a Co-President, if applicable), any Vice President, the Treasurer, the Secretary or an Assistant Secretary of the Company.
“Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company or who may be an employee of or other counsel for the Company.
“Optional Reset Date” has the meaning specified in Section 3.07(b).
“Original Issue Discount Security” means any Security that provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02.
“Original Stated Maturity” has the meaning specified in Section 3.08.
“Outstanding,” when used with respect to Securities or any series of Securities, means, as of the date of determination, all Securities or all Securities of such series, as the case may be, theretofore authenticated and delivered under this Indenture, except:
(i) Securities, or portions thereof, theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;
(ii) Securities, or portions thereof, for whose payment or redemption or repayment at the option of the Holder, money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities, provided that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made;
(iii) Securities, except to the extent provided in Sections 14.02 and 14.03, with respect to which the Company has effected defeasance and/or covenant defeasance as provided in Article Fourteen; and
(iv) Securities that have been paid pursuant to Section 3.06 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a protected purchaser in whose hands such Securities are valid obligations of the Company;
provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder or are present at a meeting of Holders for quorum purposes, and for the purpose of making the calculations required by TIA Section 313, (i) the principal amount of an Original Issue Discount Security that may be counted in making such determination or calculation and that shall be deemed to be Outstanding for such purpose shall be equal to the amount of principal thereof that would be (or shall have been declared to be) due and payable, at the time of such determination, upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02, (ii) the principal amount of any Security denominated in a Foreign Currency that may be counted in making such determination or calculation and that shall be deemed Outstanding for such purpose shall be equal to the Dollar equivalent, determined as of the date such Security is originally issued by the Company as set forth in an Exchange Rate Officer’s Certificate delivered to the Trustee, of the principal amount (or, in the case of an Original Issue Discount Security or Indexed Security, the Dollar equivalent as of such date of original issuance of the amount determined as provided in clause (i) above or (iii) below, respectively) of such Security, (iii) the principal amount of any Indexed Security that may be counted in making such determination or calculation and that shall be deemed outstanding for such purpose shall be equal to the principal face amount of such Indexed Security at original issuance, unless otherwise provided with respect to such Security pursuant to Section 3.01, and (iv) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in making such calculation or in relying upon any such request, demand, authorization, direction, notice, consent or waiver or upon any such determination as to the presence of a quorum, only Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.
“Paying Agent” means any Person authorized by the Company to pay the principal of (or premium, if any) or interest, if any, on any Securities on behalf of the Company.
“Performance References” has the meaning set forth in the definition of “Derivative Instrument.”
“Permitted Junior Securities” has the meaning specified in Section 16.02.
“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization or government or any agency or political subdivision thereof, or any other entity.
“Position Representation” has the meaning specified in Section 5.02.
“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.06 in exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security.
“Redemption Date,” when used with respect to any Security to be redeemed, in whole or in part, means the date fixed for such redemption by or pursuant to this Indenture or the terms of such Security, as applicable.
“Redemption Price,” when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture or the terms of such Security, as applicable.
“Regular Record Date” for the interest payable on any Interest Payment Date on the Securities of or within any series means the date specified for that purpose as contemplated by Section 3.01, whether or not a Business Day.
“Repayment Date,” when used with respect to any Security to be repaid at the option of the Holder, means the date fixed for such repayment by or pursuant to this Indenture.
“Repayment Price,” when used with respect to any Security to be repaid at the option of the Holder, means the price at which it is to be repaid by or pursuant to this Indenture.
“Reset Notice” has the meaning specified in Section 3.07(b).
“Responsible Officer,” when used with respect to the Trustee, means any officer of the Trustee assigned by the Trustee to administer its corporate trust matters and who shall have direct responsibility for the administration of this Indenture.
“Screened Affiliate” means any Affiliate of a Holder (i) that makes investment decisions independently from such Holder and any other Affiliate of such Holder that is not a Screened Affiliate, (ii) that has in place customary information screens between it and such Holder and any other Affiliate of such Holder that is not a Screened Affiliate and such screens prohibit the sharing of information with respect to the Company or its subsidiaries, (iii) whose investment policies are not directed by such Holder or any other Affiliate of such Holder that is acting in concert with such Holder in connection with its investment in the Securities of any series and (iv) whose investment decisions are not influenced by the investment decisions of such Holder or any other Affiliate of such Holder that is acting in concert with such Holder in connection with its investment in the Securities of any series.
“Security” or “Securities” has the meaning stated in the first recital of this Indenture and, more particularly, means any Security or Securities authenticated and delivered under this Indenture; provided, however, that, if at any time there is more than one Person acting as Trustee under this Indenture, “Securities” with respect to the Indenture as to which such Person is Trustee shall have the meaning stated in the first recital of this Indenture and shall more particularly mean Securities authenticated and delivered under this Indenture, exclusive, however, of Securities of any series as to which such Person is not Trustee.
“Security Register” and “Security Registrar” have the respective meanings specified in Section 3.05.
“Senior Indebtedness” means the principal of (and premium, if any) and unpaid interest on (i) indebtedness of the Company (including indebtedness of others guaranteed by the Company), whether outstanding on the date hereof or thereafter created, incurred, assumed or guaranteed, for money borrowed, unless in the instrument creating or evidencing the same or under which the same is outstanding it is provided that such indebtedness is not senior or prior in right of payment to Subordinated Indebtedness, (ii) Senior Securities, and (iii) renewals, extensions, modifications and refinancings of any such indebtedness.
“Senior Security” or “Senior Securities” means any Security or Securities designated pursuant to Section 3.01 as a Senior Security.
“Senior Subordinated Indebtedness” means the principal of (and premium, if any) and unpaid interest on (i) indebtedness of the Company (including indebtedness of others guaranteed by the Company), whether outstanding on the date hereof or thereafter created, incurred, assumed or guaranteed, for money borrowed, that in the instrument creating or evidencing the same or pursuant to which the same is outstanding it is provided that such indebtedness ranks junior in right of payment to the Company’s Senior Indebtedness, equally and pari passu in right of payment with all other Senior Subordinated Indebtedness and senior in right of payment to any Junior Subordinated Indebtedness, (ii) Senior Subordinated Securities, and (iii) renewals, extensions, modifications and refinancings of any such indebtedness.
“Senior Subordinated Security” or “Senior Subordinated Securities” means any Security or Securities designated pursuant to Section 3.01 as a Senior Subordinated Security.
“Short Derivative Instrument” means a Derivative Instrument (i) the value of which generally decreases, and/or the payment or delivery obligations under which generally increase, with positive changes to the Performance References and/or (ii) the value of which generally increases, and/or the payment or delivery obligations under which generally decrease, with negative changes to the Performance References.
“Special Record Date” for the payment of any Defaulted Interest on the Securities of or within any series means a date fixed by the Trustee pursuant to Section 3.07.
“Specified Amount” has the meaning specified in Section 3.12(h).
“Stated Maturity,” when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable, as such date may be extended pursuant to the provisions of Section 3.08.
“Subordinated Indebtedness” means any Senior Subordinated Indebtedness or Junior Subordinated Indebtedness.
“Subordinated Security” or “Subordinated Securities” means any Senior Subordinated Security or Junior Subordinated Security.
“Subsequent Interest Period” has the meaning specified in Section 3.07(b).
“Subsidiary” means (i) any corporation a majority of the outstanding voting stock of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries of the Company, (ii) any other Person (other than a corporation) in which such Person, one or more Subsidiaries of such Person, or such Person and one or more Subsidiaries of such Person, directly or indirectly, at the date of determination thereof has a majority ownership interest, or (iii) a partnership in which such Person or a Subsidiary of such Person is, at the time, a general partner and in which such Person, directly or indirectly, at the date of determination thereof has a majority ownership interest. For the purposes of this definition, “voting stock” means stock having voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency. In addition, for purposes of this definition, “Subsidiary” shall exclude any investments held by the Company in the ordinary course of business which are not, under GAAP, consolidated on the financial statements of the Company and its Subsidiaries.
“Surviving Person” has the meaning specified in Section 8.01.
“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as amended, as in force at the date as of which this Indenture was executed, except as provided in Section 9.05.
“Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee hereunder; provided, however, that if at any time there is more than one such Person, “Trustee” as used with respect to the Securities of any series shall mean only the Trustee with respect to Securities of that series.
“United States” means, unless otherwise specified with respect to any Securities pursuant to Section 3.01, the United States of America (including the states and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction.
“United States Person” means, unless otherwise specified with respect to any Securities pursuant to Section 3.01, any individual who is a citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the United States, any state thereof or the District of Columbia (other than a partnership that is not treated as a United States Person under any applicable Treasury regulations), any estate the income of which is subject to United States federal income taxation regardless of its source, or any trust if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of the trust. Notwithstanding the preceding sentence, to the extent provided in the Treasury regulations, certain trusts in existence on August 20, 1996, and treated as United States persons prior to such date that elect to continue to be treated as United States Persons, will also be United States persons.
“Valuation Date” has the meaning specified in Section 3.12(c).
“Verification Covenant” has the meaning specified in Section 5.02.
“Yield to Maturity” means the yield to maturity, computed at the time of issuance of a Security (or, if applicable, at the most recent redetermination of interest on such Security) and as set forth in such Security in accordance with generally accepted United States bond yield computation principles.
Section 1.02 Compliance Certificates.
Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished.
Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than pursuant to Section 10.05) shall include:
(a) a statement that each individual signing such certificate or opinion has read such condition or covenant and the definitions herein relating thereto;
(b) a brief statement as to the nature and scope of the examination or investigation upon which the statements contained in such certificate or opinion are based;
(c) a statement that such individual signing the certificate or opinion has made such examination or investigation as is necessary to enable such individual to express an informed belief as to whether or not such condition or covenant has been complied with; and
(d) a statement as to whether such individual believes such condition or covenant has been complied with.
Section 1.03 Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion as to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon an Opinion of Counsel, or a certificate or representations by counsel, unless such officer knows, or in the exercise of reasonable care should know, that the opinion, certificate or representations with respect to the matters upon which the certificate or opinion is based are erroneous. Any such Opinion of Counsel or certificate or representations may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company stating that the information as to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations as to such matters are erroneous.
Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.
Section 1.04 Acts of Holders.
(a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders of the Outstanding Securities of all series or one or more series, as the case may be, may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agents duly appointed in writing. Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders of the Outstanding Securities of all series or one or more series, as the case may be, may, alternatively, be embodied in and evidenced by the record of Holders of Securities of such series voting in favor thereof, either in person or by proxies duly appointed in writing, at any meeting of Holders of Securities of such series duly called and held in accordance with the provisions of Article Fifteen, or a combination of such instruments and any such record. Except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments or record or both are delivered to the Trustee and, where it is hereby expressly required, to the Company.
Such instrument or instruments and any such record (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments or so voting at any such meeting. Proof of execution of any such instrument or of a writing appointing any such agent, or of the holding by any Person of a Security, shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company and any agent of the Trustee or the Company, if made in the manner provided in this Section. The record of any meeting of Holders of Securities shall be proved in the manner provided in Section 15.06.
(b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him or her the execution thereof. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner that the Trustee deems reasonably sufficient.
(c) The ownership of Securities shall be proved by the Security Register.
(d) If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, in or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so. Notwithstanding TIA Section 316(c), such record date shall be the record date specified in or pursuant to such Board Resolution, which shall be a date not earlier than the date 30 calendar days prior to the first solicitation of Holders generally in connection therewith and not later than the date such solicitation is completed. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Securities shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than eleven months after the record date.
(e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee, any Security Registrar, any Paying Agent, any Authenticating Agent or the Company in reliance thereon, whether or not notation of such action is made upon such Security.
Section 1.05 Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with,
(i) the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if in writing and mailed, first-class postage prepaid, or sent via overnight courier guaranteeing next day delivery or same day messenger service or sent by electronic mail in .pdf format, to the Trustee at its Corporate Trust Office, Attention: Ares Capital Corporation [identify Securities], or
(ii) the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, or sent via overnight courier guaranteeing next day delivery or same day messenger service or sent by electronic mail in .pdf format, to the Company, to the attention of its Chief Financial Officer at 245 Park Avenue, 44th Floor, New York, New York 10167.
The Company or the Trustee, by notice to the other, may designate additional or different addresses for subsequent notices or communications.
All notices and communications (other than those sent to Holders) shall be deemed to have been duly given: (i) as of the date so delivered, if personally delivered or if delivered electronically; (ii) five calendar days after being deposited in the mail, postage prepaid, if mailed; and (iii) the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.
Section 1.06 Notice to Holders; Waiver.
Where this Indenture provides for notice of any event to Holders by the Company or the Trustee, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, or by overnight courier guaranteeing next day delivery or by electronic mail to each such Holder affected by such event, at such Holder’s address or e-mail address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. Any notice or communication shall also be so mailed or delivered to any Person described in TIA Section 313(c), to the extent required by the TIA. In any case where notice to Holders of Securities is given as provided herein, neither the failure to send such notice, nor any defect in any notice so sent, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders. Any notice mailed or sent to a Holder in the manner herein prescribed shall be conclusively deemed to have been received by such Holder, whether or not such Holder actually receives such notice.
If by reason of the suspension of or irregularities in regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification to Holders as shall be made with the approval of the Trustee shall constitute a sufficient notification to such Holders for every purpose hereunder.
Any request, demand, authorization, direction, notice, consent or waiver required or permitted under this Indenture shall be in the English language, except that any published notice may be in an official language of the country of publication.
Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.
Notwithstanding any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event (including any notice of redemption or purchase) to a Holder of a Security in global form (whether by mail or otherwise), such notice shall be sufficiently given if given to the Depositary (or its designee) pursuant to Applicable Procedures.
Section 1.07 Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.
Section 1.08 Successors and Assigns.
All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.
Section 1.09 Separability Clause.
In case any provision in this Indenture or in any Security shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
Section 1.10 Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto, any Security Registrar, any Paying Agent, any Authenticating Agent and their successors hereunder and the Holders any benefit or any legal or equitable right, remedy or claim under this Indenture.
Section 1.11 Governing Law; Jury Trial Waiver.
This Indenture and the Securities shall be governed by and construed in accordance with the law of the State of New York without regard to principles of conflicts of laws that would cause the application of laws of another jurisdiction. EACH OF THE COMPANY, THE TRUSTEE, AND EACH HOLDER OF A SECURITY, BY ITS ACCEPTANCE THEREOF, HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY
.
This Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of this Indenture and shall, to the extent applicable, be governed by such provisions. If any provision of this Indenture limits, qualifies or conflicts with a provision of the Trust Indenture Act that is required under the Trust Indenture Act to be a part of and govern this Indenture, the provision of the Trust Indenture Act shall control. If any provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified or excluded, the provision of the Trust Indenture Act shall be deemed to apply to this Indenture as so modified or only to the extent not so excluded, as the case may be.
Section 1.12 Legal Holidays.
In any case where any Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or Maturity of any Security is a Legal Holiday, then (notwithstanding any other provision of this Indenture or any Security other than a provision in the Securities of any series which specifically states that such provision shall apply in lieu of this Section), payment of principal (or premium, if any) or interest, if any, need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or Maturity; provided that no interest shall accrue on the amount so payable
for the period from and after such Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or Maturity, as the case may be.
Section 1.13 Submission to Jurisdiction.
The Company hereby irrevocably submits to the non-exclusive jurisdiction of any New York state or federal court sitting in The City of New York in any action or proceeding arising out of or relating to the Indenture and the Securities of any series, and the Company hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such New York state or federal court. The Company hereby irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding.
ARTICLE TWO
SECURITIES FORMS
Section 2.01 Forms of Securities.
The Securities of each series, the temporary global Securities of each series, if any, and the permanent global Securities of each series, if any, to be endorsed thereon shall be in substantially the forms as shall be established in one or more indentures supplemental hereto or approved from time to time by or pursuant to a Board Resolution in accordance with Section 3.01, shall have such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture or any indenture supplemental hereto, and may have such letters, numbers or other marks of identification or designation and such legends or endorsements placed thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Securities may be listed, or to conform to usage.
The definitive Securities of each series shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods or may be produced in any other manner, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities.
Unless otherwise provided as contemplated by Section 3.01 with respect to any series of Securities, the Securities of each series shall be issuable in registered form without coupons.
Section 2.02 Form of Trustee’s Certificate of Authentication.
Subject to Section 6.12, the Trustee’s certificate of authentication shall be in substantially the following form:
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
| | | | | | | | |
| U.S Bank Trust Company, National |
| Association, as Trustee |
| | |
| By: | |
| Authorized Officer |
Section 2.03 Securities Issuable in Global Form.
If Securities of or within a series are issuable in global form, as contemplated by Section 3.01, then, notwithstanding clause (viii) of Section 3.01 and the provisions of Section 3.02, any such Security shall represent such of the Outstanding Securities of such series as shall be specified therein and may provide that it shall represent the aggregate amount of Outstanding Securities of such series from time to time endorsed thereon and that the aggregate amount of Outstanding Securities of such series represented thereby may from time to time be increased or decreased to reflect exchanges. Any endorsement of a Security in global form to reflect the amount, or any increase or decrease in the amount, of Outstanding Securities represented thereby shall be made by the Trustee or the Security Registrar in such manner and upon instructions given by such Person or Persons as shall be specified therein or in the Company Order to be delivered to the Trustee pursuant to Section 3.03 or 3.04. Subject to the provisions of Section 3.03 and, if applicable, Section 3.04, the Trustee or the Security Registrar shall deliver and redeliver any Security in permanent global form in the manner and upon instructions given by the Person or Persons specified therein or in the applicable Company Order. If a Company Order pursuant to Section 3.03 or 3.04 has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement, delivery or redelivery of a Security in global form shall be in writing but need not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel.
The provisions of the last sentence of Section 3.03 shall apply to any Security represented by a Security in global form if such Security was never issued and sold by the Company and the Company delivers to the Trustee or the Security Registrar the Security in global form together with written instructions (which need not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel) with regard to the reduction in the principal amount of Securities represented thereby, together with the written statement contemplated by the last sentence of Section 3.03.
Notwithstanding the provisions of Section 3.07, unless otherwise specified as contemplated by Section 3.01, payment of principal of (and premium, if any) and interest, if any, on any Security in permanent global form shall be made to the Person or Persons specified therein.
Notwithstanding the provisions of Section 3.09 and except as provided in the preceding paragraph, the Company, the Trustee and any agent of the Company and the Trustee shall treat the Holder of a permanent global Security as the Holder of such principal amount of Outstanding Securities represented by such permanent global Security.
Section 2.04 Certificated Notes.
Notwithstanding anything to the contrary in this Indenture, a Security in physical, certificated form will be issued and delivered to each person that the Depositary identifies as a beneficial owner of the related Security only if:
(a) the Depositary notifies the Company at any time that it is unwilling or unable to continue as depositary for such Security in global form and a successor depositary is not appointed within 90 days;
(b) the Depositary ceases to be registered as a clearing agency under the Exchange Act and a successor depositary is not appointed within 90 days; or
(c) an Event of Default with respect to such Security has occurred and is continuing and such beneficial owner requests that its Security be issued in physical, certificated form.
ARTICLE THREE
THE SECURITIES
Section 3.01 Amount Unlimited; Issuable in Series.
The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series, each of which may consist of one or more tranches, and shall be designated as Senior Securities, Senior Subordinated Securities or Junior Subordinated Securities. Senior Securities are unsubordinated, shall rank equally and pari passu with all of the Company’s Senior Indebtedness and senior to all Subordinated Indebtedness. Senior Subordinated Securities shall rank junior to the Company’s Senior Indebtedness, equally and pari passu with all other Senior Subordinated Indebtedness and senior to any Junior Subordinated Indebtedness. Junior Subordinated Securities shall rank junior to the Company’s Senior Indebtedness and any Senior Subordinated Indebtedness and equally and pari passu with all other Junior Subordinated Indebtedness. There shall be established in one or more Board Resolutions or pursuant to authority granted by one or more Board Resolutions and, subject to Section 3.03, set forth, or determined in the manner provided, in an Officer’s Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series, any or all of the following, as applicable (each of which (except for the matters set forth in clauses (i), (ii) and (xv) below), if so provided, may be determined from time to time by the Company with respect to unissued Securities of the series when issued from time to time):
(i) the title of the Securities of the series including CUSIP numbers (which shall distinguish the Securities of such series from all other series of Securities);
(ii) any limit upon the aggregate principal amount of the Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 3.04, 3.05, 3.06, 9.06, 11.07 or 13.05, and except for any Securities which, pursuant to Section 3.03, are deemed never to have been authenticated and delivered hereunder);
(iii) the date or dates, or the method by which such date or dates will be determined or extended, on which the principal of the Securities of the series shall be payable;
(iv) the rate or rates at which the Securities of the series shall bear interest, if any, or the method by which such rate or rates shall be determined, the date or dates from which such interest shall accrue or the method by which such date or dates shall be determined, the Interest Payment Dates on which such interest will be payable and the Regular Record Date, if any, for the interest payable on any Security on any Interest Payment Date, or the method by which such date shall be determined, and the basis upon which such interest shall be calculated if other than that of a 360-day year of twelve 30-day months;
(v) the place or places, if any, other than or in addition to the Corporate Trust Office, where the principal of (and premium, if any) and interest, if any, on Securities of the series shall be payable, any Securities of the series may be surrendered for registration of transfer, Securities of the series may be surrendered for exchange, where Securities of that series that are convertible or exchangeable may be surrendered for conversion or exchange, as applicable, and where notices or demands to or upon the Company in respect of the Securities of the series and this Indenture may be served;
(vi) the period or periods within which, or the date or dates on which, the price or prices at which, the Currency or Currencies in which, and other terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company, if the Company is to have the option;
(vii) the obligation, if any, of the Company to redeem, repay or purchase Securities of the series pursuant to any sinking fund or analogous provision or at the option of a Holder thereof, and the period or periods within which or the date or dates on which, the price or prices at which, the Currency or Currencies in which, and other terms and conditions upon which Securities of the series shall be redeemed, repaid or purchased, in whole or in part, pursuant to such obligation;
(viii) if other than denominations of $1,000 and any integral multiple thereof, the denomination or denominations in which any Securities of the series shall be issuable;
(ix) if other than the Trustee, the identity of each Security Registrar and/or Paying Agent;
(x) if other than the principal amount thereof, the portion of the principal amount of Securities of the series that shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 5.02, upon redemption of the Securities of the series which are redeemable before their Stated Maturity, upon surrender for repayment at the option of the Holder, or which the Trustee shall be entitled to claim pursuant to Section 5.04 or the method by which such portion shall be determined;
(xi) if other than Dollars, the Currency or Currencies in which payment of the principal of (or premium, if any) or interest, if any, on the Securities of the series shall be made or in which the Securities of the series shall be denominated and the particular provisions applicable thereto in accordance with, in addition to or in lieu of any of the provisions of Section 3.12;
(xii) whether the amount of payments of principal of (or premium, if any) or interest, if any, on the Securities of the series may be determined with reference to an index, formula or other method (which index, formula or method may be based, without limitation, on one or more Currencies, commodities, equity indices or other indices), and the manner in which such amounts shall be determined;
(xiii) whether the principal of (or premium, if any) or interest, if any, on the Securities of the series are to be payable, at the election of the Company or a Holder thereof, in one or more Currencies other than that in which such Securities are denominated or stated to be payable, the period or periods within which (including the Election Date), and the terms and conditions upon which, such election may be made, and the time and manner of determining the exchange rate between the Currency or Currencies in which such Securities are denominated or stated to be payable and the Currency or Currencies in which such Securities are to be paid, in each case in accordance with, in addition to or in lieu of any of the provisions of Section 3.12;
(xiv) provisions, if any, granting special rights to the Holders of Securities of the series, including with respect to any collateral securing such Securities;
(xv) any deletions from, modifications of or additions to the Events of Default or covenants (including any deletions from, modifications of or additions to any of the provisions of Section 10.07) of the Company with respect to Securities of the series, whether or not such Events of Default or covenants are consistent with the Events of Default or covenants set forth herein;
(xvi) whether any Securities of the series are to be issuable initially in temporary global form and whether any Securities of the series are to be issuable in permanent global form and, if so, whether beneficial owners of interests in any such permanent global Security may exchange such interests for Securities of such series in certificated form and of like tenor of any authorized form and denomination and the circumstances under which any such exchanges may occur, if other than in the manner provided in Section 3.05;
(xvii) the date as of which any temporary global Security representing Outstanding Securities of the series shall be dated if other than the date of original issuance of the first Security of the series to be issued;
(xviii) the Person to whom any interest on any Security of the series shall be payable, if other than the Person in whose name such Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, and the extent to which, or the manner in which, any interest payable on a global Security on an Interest Payment Date will be paid if other than in the manner provided in Section 3.07;
(xix) the applicability, if any, of Sections 14.02 and/or 14.03 to the Securities of the series and any provisions in modification of, in addition to or in lieu of any of the provisions of Article Fourteen;
(xx) if the Securities of such series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary Security of such series) only upon receipt of certain certificates or other documents or satisfaction of other conditions, then the form and/or terms of such certificates, documents or conditions;
(xxi) whether, under what circumstances and the Currency in which, the Company will pay Additional Amounts as contemplated by Section 10.04 on the Securities of the series to any Holder who is not a United States Person (including any modification to the definition of such term) in respect of any tax, assessment or governmental charge and, if so, whether the Company will have the option to redeem such Securities rather than pay such Additional Amounts (and the terms of any such option);
(xxii) the designation of the initial Exchange Rate Agent, if any;
(xxiii) if the Securities of the series are to be issued upon the exercise of warrants, the time, manner and place for such Securities to be authenticated and delivered;
(xxiiv) if the Securities of the series are to be convertible into or exchangeable for any securities of any Person (including the Company), the terms and conditions upon which such Securities will be so convertible or exchangeable;
(xxv) if the Securities of the series are to be listed on a securities exchange, the name of such exchange; and
(xxii) any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture or the requirements of the Trust Indenture Act), including, but not limited to, secured Securities and guarantees of Securities.
All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to the Board Resolution referred to above (subject to Section 3.03) and set forth in the Officer’s Certificate referred to above or in any such indenture supplemental hereto. All Securities of any one series need not be issued at the same time and, unless otherwise provided, a series may be reopened, without the consent of the Holders, for issuances of additional Securities of such series.
If any of the terms of the Securities of any series are established by action taken pursuant to one or more Board Resolutions, a copy of an appropriate record of such action(s) shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officer’s Certificate setting forth the terms of the Securities of such series.
Section 3.02 Denominations.
The Securities of each series shall be issuable in such denominations as shall be specified as contemplated by Section 3.01. With respect to Securities of any series denominated in Dollars, in the absence of any such provisions with respect to the Securities of any series, the Securities of such series, other than Securities issued in global form (which may be of any denomination), shall be issuable in denominations of $1,000 and any integral multiple thereof.
Section 3.03 Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by the Chairman (or a Co-Chairman, if applicable), the Chief Executive Officer, the Chief Financial Officer, the Chief Operating Officer, if any, the President (or a Co-President, if applicable), any Vice President, the Treasurer, the Secretary or any Assistant Secretary of the Company. The signature of any of these officers on the Securities may be manual or by facsimile, .pdf attachment or other electronically transmitted signature of the present or any future such authorized officer and may be imprinted or otherwise reproduced on the Securities.
Securities bearing the signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities.
At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series, executed by the Company, to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver such Securities. If all the Securities of any series are not to be issued at one time and if the Board Resolution or supplemental indenture establishing such series shall so permit, such Company Order may set forth procedures acceptable to the Trustee for the issuance of such Securities and determining the terms of particular Securities of such series, such as interest rate, maturity date, date of issuance and date from which interest shall accrue. In authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to TIA Section 315(a) through 315(d)) shall be fully protected in relying upon,
(a) an Opinion of Counsel stating,
(i) that the form or forms of such Securities have been established in conformity with the provisions of this Indenture;
(ii) that the terms of such Securities have been established in conformity with the provisions of this Indenture; and
(iii) that such Securities, when completed by appropriate insertions and executed and delivered by the Company to the Trustee for authentication in accordance with this Indenture, authenticated and delivered by the Trustee in accordance with this Indenture and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute legal, valid and binding obligations of the Company, enforceable in accordance with their terms, subject to (a) bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer, fraudulent conveyance and other similar laws of general applicability relating
to or affecting the enforcement of creditors’ rights, (b) general equitable principles (regardless of whether enforceability is considered in a proceeding in equity or at law), (c) other commonly
recognized statutory and judicial constraints as to enforceability, including statutes of limitations, (d) public policy considerations which may limit the rights of parties to obtain certain remedies and (e) such other qualifications as such counsel shall conclude do not materially affect the rights of Holders of such Securities; and
(b) an Officer’s Certificate stating, to the best of the knowledge of the signers of such certificate, that no Event of Default with respect to any of the Securities shall have occurred and be continuing.
Notwithstanding the provisions of Section 3.01 and of this Section 3.03, if all the Securities of any series are not to be issued at one time, it shall not be necessary to deliver an Officer’s Certificate otherwise required pursuant to Section 3.01 or the Company Order, Opinion of Counsel or Officer’s Certificate otherwise required pursuant to the preceding paragraph at the time of issuance of each Security of such series, but such order, opinion and certificates, with appropriate modifications to cover such future issuances, shall be delivered at or before the time of issuance of the first Security of such series.
If such form or terms have been so established, the Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties, obligations or immunities under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee. Notwithstanding the generality of the foregoing, the Trustee will not be required to authenticate Securities denominated in a Foreign Currency if the Trustee reasonably believes that it would be unable to perform its duties with respect to such Securities.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein duly executed by the Trustee or an Authenticating Agent by manual signature of an authorized signatory, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 3.10 together with a written statement (which need not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture.
Section 3.04 Temporary Securities.
(a) Pending the preparation of definitive Securities of any series, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary Securities that are typewritten, printed, lithographed or engraved or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued, in registered form, and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as conclusively evidenced by their execution of such Securities. In the case of Securities of any series, such temporary Securities may be in global form.
Except in the case of temporary Securities in global form, if temporary Securities of any series are issued, the Company will cause definitive Securities of that series to be prepared without unreasonable delay. After the preparation of definitive Securities of such series, the temporary Securities of such series shall be exchangeable for definitive Securities of such series upon surrender of the temporary Securities of such series. Upon surrender for cancellation of any one or more temporary Securities of any series, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount and like tenor of definitive Securities of the same series of authorized denominations. Until so exchanged, the temporary Securities of any series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series.
Section 3.05 Registration; Registration of Transfer and Exchange.
The Company shall cause to be kept for each series of Securities a register or registers herein sometimes referred to collectively as the “Security Register” in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Securities and of transfers of Securities. The Security Register shall be in written form or any other form capable of being converted into written form within a reasonable time and kept at the office or agency of the Security Registrar. The Trustee, at its Corporate Trust Office, is hereby initially appointed “Security Registrar” for the purpose of registering Securities and transfers of Securities on such Security Register as herein provided, and for facilitating exchanges of temporary global Securities for permanent global Securities or definitive Securities, or both, or of permanent global Securities for definitive Securities, or both, as herein provided. In the event that the Trustee shall cease to be Security Registrar, it shall have the right to examine the Security Register at all reasonable times.
Upon surrender for registration of transfer of any Security of any series, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of the same series, of any authorized denominations and of a like aggregate principal amount, bearing a number not contemporaneously outstanding and containing identical terms and provisions.
At the option of the Holder, Securities of any series may be exchanged for other Securities of the same series, of any authorized denomination or denominations and of a like aggregate principal amount, containing identical terms and provisions, upon surrender of the Securities to be exchanged. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities that the Holder making the exchange is entitled to receive.
Notwithstanding the foregoing, except as otherwise specified as contemplated by Section 3.01, any permanent global Security shall be exchangeable only as provided in this paragraph. If any beneficial owner of an interest in a permanent global Security is entitled to exchange such interest for Securities of such series and of like tenor and principal amount of another authorized form and denomination, as specified as contemplated by Section 3.01 and provided that any applicable notice provided in the permanent global Security shall have been given, then without unnecessary delay but in any event not later than the earliest date on which such interest may be so exchanged, the Company shall deliver to the Trustee definitive Securities in aggregate principal amount equal to the principal amount of such beneficial owner’s interest in such permanent global Security, executed by the Company. On or after the earliest date on which such interests may be so exchanged, such permanent global Security shall be surrendered by the Depositary or such other depositary as shall be specified in the Company Order with respect thereto to the Trustee, as the Company’s agent for such purpose, or to the Security Registrar, to be exchanged, in whole or from time to time in part, for definitive Securities of the same series without charge and the Trustee shall authenticate and deliver, in exchange for each portion of such permanent global Security, an equal aggregate principal amount of definitive Securities of the same series of authorized denominations and of like tenor as the portion of such permanent global Security to be exchanged; provided, however, that no such exchanges may occur during a period beginning at the opening of business 15 calendar days before any selection of Securities to be redeemed and ending on the relevant Redemption Date if the Security for which exchange is requested may be among those selected for redemption. If a Security is issued in exchange for any portion of a permanent global Security after the close of business at the office or agency where such exchange occurs on (i) any Regular Record Date and before the opening of business at such office or agency on the relevant Interest Payment Date, or (ii) any Special Record Date and before the opening of business at such office or agency on the related proposed date for payment of Defaulted Interest or interest, as the case may be, will not be payable on such Interest Payment Date or proposed date for payment, as the case may be, in respect of such Security, but will be payable on such Interest Payment Date or proposed date for payment, as the case may be, only to the Person to whom interest in respect of such portion of such permanent global Security is payable in accordance with the provisions of this Indenture.
All Securities issued upon any registration of transfer or exchange of Securities shall be valid obligations of the Company, evidencing the same debt and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or the Security Registrar or any transfer agent) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar, duly executed by the Holder thereof or its attorney or any transfer agent duly authorized in writing.
No service charge shall be made for any registration of transfer or exchange of Securities, but the Company or the Trustee may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 3.04, 9.06, 11.07 or 13.05 not involving any transfer.
The Company shall not be required to (i) issue, register the transfer of or exchange any Security if such Security may be among those selected for redemption during a period beginning at the opening of business 15 calendar days before selection of the Securities to be redeemed under Section 11.03 and ending at the close of business on the day of the mailing or delivering of the relevant notice of redemption, (ii) register the transfer of or exchange any Security so selected for redemption in whole or in part, except, in the case of any Security to be redeemed in part, the portion thereof not to be redeemed, or (iii) issue, register the transfer of or exchange any Security that has been surrendered for repayment at the option of the Holder, except the portion, if any, of such Security not to be so repaid.
Each Holder agrees to indemnify the Company and the Trustee against any liability that may result from the transfer, exchange or assignment of such Holder’s Security in violation of any provision of this Indenture and/or applicable U.S. federal or state securities laws.
None of the Trustee, any Paying Agent, the Security Registrar or the Company shall have any responsibility for any actions taken or not taken by the Depositary.
Section 3.06 Mutilated, Destroyed, Lost and Stolen Securities.
If any mutilated Security is surrendered to the Trustee or the Company, together with, in proper cases, such security or indemnity as may be required by the Company or the Trustee to save each of them or any agent of either of them harmless, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same series and principal amount, containing identical terms and provisions and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and to the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security, and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then the Company shall, subject to the following paragraph, execute and upon its request the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of the same series and principal amount, containing identical terms and provisions and bearing a number not contemporaneously outstanding.
Notwithstanding the provisions of the previous two paragraphs, in case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.
Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.
Every new Security of any series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.
Section 3.07 Payment of Interest; Interest Rights Preserved; Optional Interest Reset.
(a) Except as otherwise specified with respect to a series of Securities in accordance with the provisions of Section 3.01, interest, if any, on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest at the office or agency of the Company maintained for such purpose pursuant to Section 10.02; provided, however, that each installment of interest, if any, on any Security may at the Company’s option be paid by (i) mailing a check for such interest, payable to or upon the written order of the Person entitled thereto pursuant to Section 3.09, to the address of such Person as it appears on the Security Register or (ii) transfer to an account maintained by the payee located in the United States.
Except as otherwise specified with respect to a series of Securities in accordance with the provisions of Section 3.01, any interest on any Security of any series that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be payable to the registered Holder thereof on the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (i) or (ii) below:
(i) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each Security of such series and the date of the proposed payment (which shall not be less than 20 calendar days after such notice is received by the Trustee), and at the same time the Company shall deposit with the Trustee an amount of money in the Currency in which the Securities of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Securities of such series and except, if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e)) equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon, the Company shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 calendar days and not less than 10 calendar days prior to the date of the proposed payment and not less than 10 calendar days after the receipt by the Trustee of the notice of the proposed payment. The Company shall promptly notify the Trustee of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder of Securities of such series at his address as it appears in the Security Register not less than 10 calendar days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or
their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (ii).
(ii) The Company may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause (and certification by the Company that the proposed manner of payment complies with the requirements of this clause (ii)), such manner of payment shall be deemed practicable by the Trustee.
(b) The provisions of this Section 3.07(b) may be made applicable to any series of Securities pursuant to Section 3.01 (with such modifications, additions or substitutions as may be specified pursuant to such Section 3.01). The interest rate (or the spread or spread multiplier used to calculate such interest rate, if applicable) on any Security of such series may be reset by the Company on the date or dates specified on the face of such Security (each an “Optional Reset Date”). The Company may exercise such option with respect to such Security by notifying the Trustee of such exercise at least 45 but not more than 60 calendar days prior to an Optional Reset Date for such Security. Not later than 40 calendar days prior to each Optional Reset Date, the Trustee shall transmit, in the manner provided for in Section 1.06, to the Holder of any such Security a notice (the “Reset Notice”) indicating whether the Company has elected to reset the interest rate (or the spread or spread multiplier used to calculate such interest rate, if applicable), and if so (i) such new interest rate (or such new spread or spread multiplier, if applicable) and (ii) the provisions, if any, for redemption during the period from such Optional Reset Date to the next Optional Reset Date or if there is no such next Optional Reset Date, to the Stated Maturity of such Security (each such period a “Subsequent Interest Period”), including the date or dates on which or the period or periods during which and the price or prices at which such redemption may occur during the Subsequent Interest Period.
Notwithstanding the foregoing, not later than 20 calendar days prior to the Optional Reset Date (or if 20 calendar days does not fall on a Business Day, the next succeeding Business Day), the Company may, at its option, revoke the interest rate (or the spread or spread multiplier used to calculate such interest rate, if applicable) provided for in the Reset Notice and establish a higher interest rate (or a spread or spread multiplier providing for a higher interest rate, if applicable) for the Subsequent Interest Period by causing the Trustee to transmit, in the manner provided for in Section 1.06, notice of such higher interest rate (or such higher spread or spread multiplier providing for a higher interest rate, if applicable) to the Holder of such Security. Such notice shall be irrevocable. All Securities with respect to which the interest rate (or the spread or spread multiplier used to calculate such interest rate, if applicable) is reset on an Optional Reset Date, and with respect to which the Holders of such Securities have not tendered such Securities for repayment (or have validly revoked any such tender) pursuant to the next succeeding paragraph, will bear such higher interest rate (or such higher spread or spread multiplier providing for a higher interest rate, if applicable).
The Holder of any such Security will have the option to elect repayment by the Company of the principal of such Security on each Optional Reset Date at a price equal to the principal amount thereof plus interest accrued to such Optional Reset Date. In order to obtain repayment on an Optional Reset Date, the Holder must follow the procedures set forth in Article Thirteen for repayment at the option of Holders except that the period for delivery or notification to the Trustee shall be at least 25 but not more than 35 calendar days prior to such Optional Reset Date and except that, if the Holder has tendered any Security for repayment pursuant to the Reset
Notice, the Holder may, by written notice to the Trustee, revoke such tender or repayment until the close of business on the tenth day before such Optional Reset Date.
Subject to the foregoing provisions of this Section and Section 3.05, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security.
Section 3.08 Optional Extension of Maturity.
The provisions of this Section 3.08 may be made applicable to any series of Securities pursuant to Section 3.01 (with such modifications, additions or substitutions as may be specified pursuant to such Section 3.01). The Stated Maturity of any Security of such series may be extended at the option of the Company for the period or periods specified on the face of such Security (each an “Extension Period”) up to but not beyond the date (the “Final Maturity”) set forth on the face of such Security. The Company may exercise such option with respect to any Security by notifying the Trustee of such exercise at least 45 but not more than 60 calendar days prior to the Stated Maturity of such Security in effect prior to the exercise of such option (the “Original Stated Maturity”). If the Company exercises such option, the Trustee shall transmit, in the manner provided for in Section 1.06, to the Holder of such Security not later than 40 calendar days prior to the Original Stated Maturity a notice (the “Extension Notice”), prepared by the Company, indicating (i) the election of the Company to extend the Stated Maturity, (ii) the new Stated Maturity, (iii) the interest rate (or spread, spread multiplier or other formula to calculate such interest rate, if applicable), if any, applicable to the Extension Period and (iv) the provisions, if any, for redemption during such Extension Period. Upon the Trustee’s transmittal of the Extension Notice, the Stated Maturity of such Security shall be extended automatically and, except as modified by the Extension Notice and as described in the next paragraph, such Security will have the same terms as prior to the transmittal of such Extension Notice.
Notwithstanding the foregoing, not later than 20 calendar days before the Original Stated Maturity (or if 20 calendar days does not fall on a Business Day, the next succeeding Business Day) of such Security, the Company may, at its option, revoke the interest rate (or spread, spread multiplier or other formula to calculate such interest rate, if applicable) provided for in the Extension Notice and establish a higher interest rate (or spread, spread multiplier or other formula to calculate such higher interest rate, if applicable) for the Extension Period by causing the Trustee to transmit, in the manner provided for in Section 1.06, notice of such higher interest rate (or spread, spread multiplier or other formula to calculate such interest rate, if applicable) to the Holder of such Security. Such notice shall be irrevocable. All Securities with respect to which the Stated Maturity is extended will bear such higher interest rate.
If the Company extends the Stated Maturity of any Security, the Holder will have the option to elect repayment of such Security by the Company on the Original Stated Maturity at a price equal to the principal amount thereof, plus interest accrued to such date. In order to obtain repayment on the Original Stated Maturity once the Company has extended the Stated Maturity thereof, the Holder must follow the procedures set forth in Article Thirteen for repayment at the option of Holders, except that the period for delivery or notification to the Trustee shall be at least 25 but not more than 35 calendar days prior to the Original Stated Maturity and except that, if the Holder has tendered any Security for repayment pursuant to an Extension Notice, the Holder may by written notice to the Trustee revoke such tender for repayment until the close of business on the tenth day before the Original Stated Maturity.
Section 3.09 Persons Deemed Owners.
Prior to due presentment of a Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Security is registered as the owner of such Security for the purpose of receiving payment of principal of (and premium, if any) and (subject to Sections 3.05 and 3.07) interest, if any, on such Security and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.
None of the Company, the Trustee, any Paying Agent or the Security Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Security in global form or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
Notwithstanding the foregoing, with respect to any global temporary or permanent Security, nothing herein shall prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by any depositary, as a Holder, with respect to such global Security or impair, as between such depositary and owners of beneficial interests in such global Security, the operation of customary practices governing the exercise of the rights of such depositary (or its nominee) as Holder of such global Security.
Section 3.10 Cancellation.
All Securities surrendered for payment, redemption, repayment at the option of the Holder, registration of transfer or exchange or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee, and any such Securities surrendered directly to the Trustee for any such purpose shall be promptly cancelled by the Trustee. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by the Trustee. If the Company shall so acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are surrendered to the Trustee for cancellation. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture. Cancelled Securities held by the Trustee shall be destroyed by the Trustee in accordance with its customary procedures, unless by a Company Order the Company directs the Trustee to deliver a certificate of such destruction to the Company or to return them to the Company.
Section 3.11 Computation of Interest.
Except as otherwise specified as contemplated by Section 3.01 with respect to Securities of any series, interest, if any, on the Securities of each series shall be computed on the basis of a 360-day year consisting of twelve 30-day months.
Section 3.12 Currency and Manner of Payments in Respect of Securities.
(a) Unless otherwise specified with respect to any Securities pursuant to Section 3.01, with respect to Securities of any series not permitting the election provided for in paragraph (b) below or the Holders of which have not made the election provided for in paragraph (b) below, payment of the principal of (and premium, if any) and interest, if any, on any Security of such series will be made in the Currency in which such Security is payable. The provisions of this Section 3.12 may be modified or superseded with respect to any Securities pursuant to Section 3.01.
(b) It may be provided pursuant to Section 3.01 with respect to Securities of any series that Holders shall have the option, subject to paragraphs (d) and (e) below, to receive payments of principal of (or premium, if any) or interest, if any, on such Securities in any of the Currencies which may be designated for such election by delivering to the Trustee for such series of Securities a written election with signature guarantees and in the applicable form established pursuant to Section 3.01, not later than the close of business on the Election Date immediately preceding the applicable payment date. If a Holder so elects to receive such payments in any such Currency, such election will remain in effect for such Holder or any transferee of such Holder until changed by such Holder or such transferee by written notice to the Trustee for such series of Securities (but any such change must be made not later than the close of business on the Election Date immediately preceding the next payment date to be effective for the payment to be made on such payment date and no such change of election may be made with respect to payments to be made on any Security of such series with respect to which an Event of Default has occurred or with respect to which the Company has deposited funds pursuant to Article Four or Fourteen or with respect to which a notice of redemption has been given by the Company or a notice of option to elect repayment has been sent by such Holder or such transferee). Any Holder of any such Security who shall not have delivered any such election to the Trustee of such series of Securities not later than the close of business on the applicable Election Date will be paid the amount due on the applicable payment date in the relevant Currency as provided in paragraph (a) above. The Trustee for each such series of Securities shall notify the Exchange Rate Agent as soon as practicable after the Election Date of the aggregate principal amount of Securities for which Holders have made such written election.
(c) Unless otherwise specified pursuant to Section 3.01, if the election referred to in paragraph (b) above has been provided for pursuant to Section 3.01, then, unless otherwise specified pursuant to Section 3.01, not later than the fourth Business Day after the Election Date for each payment date for Securities of any series, the Exchange Rate Agent will deliver to the Company a written notice specifying the Currency in which Securities of such series are payable, the respective aggregate amounts of principal of (and premium, if any) and interest, if any, on the Securities to be paid on such payment date, specifying the amounts in such Currency so payable in respect of the Securities as to which the Holders of Securities denominated in any Currency shall have elected to be paid in another Currency as provided in paragraph (b) above. If the
election referred to in paragraph (b) above has been provided for pursuant to Section 3.01 and if at least one Holder has made such election, then, unless otherwise specified pursuant to Section 3.01, on the second Business Day preceding such payment date the Company will deliver to the Trustee for such series of Securities an Exchange Rate Officer’s Certificate in respect of the Dollar or Foreign Currency or Currencies payments to be made on such payment date. Unless otherwise specified pursuant to Section 3.01, the Dollar or Foreign Currency or Currencies amount receivable by Holders of Securities who have elected payment in a Currency as provided in paragraph (b) above shall be determined by the Company on the basis of the applicable Market Exchange Rate in effect on the second Business Day (the “Valuation Date”) immediately preceding each payment date, and such determination shall be conclusive and binding for all purposes, absent manifest error.
(d) If a Conversion Event occurs with respect to a Foreign Currency in which any of the Securities are denominated or payable other than pursuant to an election provided for pursuant to paragraph (b) above, then with respect to each date for the payment of principal of (and premium, if any) and interest, if any on the applicable Securities denominated or payable in such Foreign Currency occurring after the last date on which such Foreign Currency was used (the “Conversion Date”), the Dollar shall be the currency of payment for use on each such payment date. Unless otherwise specified pursuant to Section 3.01, the Dollar amount to be paid by the Company to the Trustee of each such series of Securities and by such Trustee or any Paying Agent to the Holders of such Securities with respect to such payment date shall be, in the case of a Foreign Currency other than a currency unit, the Dollar Equivalent of the Foreign Currency or, in the case of a currency unit, the Dollar Equivalent of the Currency Unit, in each case as determined by the Exchange Rate Agent in the manner provided in paragraph (f) or (g) below.
(e) Unless otherwise specified pursuant to Section 3.01, if the Holder of a Security denominated in any Currency shall have elected to be paid in another Currency as provided in paragraph (b) above, and a Conversion Event occurs with respect to such elected Currency, such Holder shall receive payment in the Currency in which payment would have been made in the absence of such election; and if a Conversion Event occurs with respect to the Currency in which payment would have been made in the absence of such election, such Holder shall receive payment in Dollars as provided in paragraph (d) of this Section 3.12.
(f) The “Dollar Equivalent of the Foreign Currency” shall be determined by the Exchange Rate Agent and shall be obtained for each subsequent payment date by converting the specified Foreign Currency into Dollars at the Market Exchange Rate on the Conversion Date.
(g) The “Dollar Equivalent of the Currency Unit” shall be determined by the Exchange Rate Agent and subject to the provisions of paragraph (h) below shall be the sum of each amount obtained by converting the Specified Amount of each Component Currency into Dollars at the Market Exchange Rate for such Component Currency on the Valuation Date with respect to each payment.
(h) For purposes of this Section 3.12, the following terms shall have the following meanings:
A “Component Currency” shall mean any currency which, on the Conversion Date, was a component currency of the relevant currency unit.
A “Specified Amount” of a Component Currency shall mean the number of units of such Component Currency or fractions thereof which were represented in the relevant currency unit on the Conversion Date. If after the Conversion Date the official unit of any Component Currency is altered by way of combination or subdivision, the Specified Amount of such Component Currency shall be divided or multiplied in the same proportion. If after the Conversion Date two or more Component Currencies are consolidated into a single currency, the respective Specified Amounts of such Component Currencies shall be replaced by an amount in such single currency equal to the sum of the respective Specified Amounts of such consolidated Component Currencies expressed in such single currency, and such amount shall thereafter be a Specified Amount and such single currency shall thereafter be a Component Currency. If after the Conversion Date any Component Currency shall be divided into two or more currencies, the Specified Amount of such Component Currency shall be replaced by amounts of such two or more currencies, having an aggregate Dollar Equivalent value at the Market Exchange Rate on the date of such replacement equal to the Dollar Equivalent of the Specified Amount of such former Component Currency at the Market Exchange Rate immediately before such division, and such amounts shall thereafter be Specified Amounts and such currencies shall thereafter be Component Currencies. If, after the Conversion Date of the relevant currency unit, a Conversion Event (other than any event referred to above in this definition of “Specified Amount”) occurs with respect to any Component Currency of such currency unit and is continuing on the applicable Valuation Date, the Specified Amount of such Component Currency shall, for purposes of calculating the Dollar Equivalent of the Currency Unit, be converted into Dollars at the Market Exchange Rate in effect on the Conversion Date of such Component Currency.
An “Election Date” shall mean the Regular Record Date for the applicable series of Securities or at least 16 calendar days prior to Maturity, as the case may be, or such other prior date for any series of Securities as specified pursuant to clause (xiii) of Section 3.01 by which the written election referred to in Section 3.12(b) may be made.
All decisions and determinations of the Exchange Rate Agent regarding the Dollar Equivalent of the Foreign Currency, the Dollar Equivalent of the Currency Unit, the Market Exchange Rate and changes in the Specified Amounts as specified above shall be in its sole discretion and shall, in the absence of manifest error, be conclusive for all purposes and irrevocably binding upon the Company, the Trustee for the appropriate series of Securities and all Holders of such Securities denominated or payable in the relevant Currency. The Exchange Rate Agent shall promptly give written notice to the Company and the Trustee for the appropriate series of Securities of any such decision or determination.
In the event that the Company determines in good faith that a Conversion Event has occurred with respect to a Foreign Currency, the Company will immediately give written notice thereof and of the applicable Conversion Date to the Trustee of the appropriate series of Securities and to the Exchange Rate Agent (and such Trustee will promptly thereafter give notice in the manner provided in Section 1.06 to the affected Holders) specifying the Conversion Date. In the event the Company so determines that a Conversion Event has occurred with respect to the Euro or any other currency unit in which Securities are denominated or payable, the Company will immediately give written notice thereof to the Trustee of the appropriate series of Securities and to the Exchange Rate Agent (and such Trustee will promptly thereafter give notice in the manner provided in Section 1.06 to the affected Holders) specifying the Conversion Date and the Specified Amount of each Component Currency on the Conversion Date. In the event the Company determines in good faith that any subsequent change in any Component Currency as set forth in the definition of Specified Amount above has occurred, the Company will similarly give written notice to the Trustee of the appropriate series of Securities and to the Exchange Rate Agent.
The Trustee of the appropriate series of Securities shall be fully justified and protected in relying and acting upon information received by it from the Company and the Exchange Rate Agent and shall not otherwise have any duty or obligation to determine the accuracy or validity of such information independent of the Company or the Exchange Rate Agent.
Section 3.13 Appointment and Resignation of Successor Exchange Rate Agent.
(a) Unless otherwise specified pursuant to Section 3.01, if and so long as the Securities of any series (i) are denominated in a Foreign Currency or (ii) may be payable in a Foreign Currency, or so long as it is required under any other provision of this Indenture, then the Company will maintain with respect to each such series of Securities, or as so required, at least one Exchange Rate Agent. The Company will cause the Exchange Rate Agent to make the necessary foreign exchange determinations at the time and in the manner specified pursuant to Section 3.01 for the purpose of determining the applicable rate of exchange and, if applicable, for the purpose of converting the issued Foreign Currency into the applicable payment Currency for the payment of principal (and premium, if any) and interest, if any, pursuant to Section 3.12.
(b) No resignation of the Exchange Rate Agent and no appointment of a successor Exchange Rate Agent pursuant to this Section shall become effective until the acceptance of appointment by the successor Exchange Rate Agent as evidenced by a written instrument delivered to the Company and the Trustee of the appropriate series of Securities accepting such appointment executed by the successor Exchange Rate Agent.
(c) If the Exchange Rate Agent shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of the Exchange Rate Agent for any cause, with respect to the Securities of one or more series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor Exchange Rate Agent or Exchange Rate Agents with respect to the Securities of that or those series (it being understood that any such successor Exchange Rate Agent may be appointed with respect to the Securities of one or more or all of such series and that, unless otherwise specified pursuant to Section 3.01, at any time there shall only be one Exchange Rate Agent with respect to the Securities of any particular series that are originally issued by the Company on the same date and that are initially denominated and/or payable in the same Currency).
Section 3.14 CUSIP Numbers, ISINs and Common Code Numbers.
The Company in issuing the Securities may use “CUSIP” numbers, “ISINs” and/or “Common Code” numbers (if then generally in use), and, if so, the Trustee shall indicate the respective “CUSIP” numbers, “ISINs” and/or “Common Code” numbers of the Securities in notices as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company shall advise the Trustee as promptly as practicable in writing of any change in the “CUSIP” numbers, “ISINs” and/or “Common Code” numbers of any Securities.
ARTICLE FOUR
SATISFACTION AND DISCHARGE
Section 4.01 Satisfaction and Discharge of Indenture.
Except as set forth below, this Indenture shall upon Company Request cease to be of further effect with respect to any series of Securities specified in such Company Request (except as to any surviving rights of registration of transfer or exchange of Securities of such series expressly provided for herein or pursuant hereto, any surviving rights of tender for repayment at the option of the Holders and any right to receive Additional Amounts, as provided in Section 10.04), and the Trustee, upon receipt of a Company Order, and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture as to such series when
(a) either
(i) all Securities of such series theretofore authenticated and delivered (other than (i) Securities of such series that have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 3.06 and (ii) Securities of such series for whose payment money has theretofore been deposited in trust with the Trustee or any Paying Agent or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 10.03) have been delivered to the Trustee for cancellation; or
(ii) all Securities of such series not theretofore delivered to the Trustee for cancellation
(1) have become due and payable, or
(2) will become due and payable at their Stated Maturity within one year, or
(3) if redeemable at the option of the Company, are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company,
and the Company, in the case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose, solely for the benefit of the Holders, an amount in the Currency in which the Securities of such series are payable, sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest, if any, to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be;
(b) the Company has irrevocably paid or caused to be irrevocably paid all other sums payable hereunder by the Company; and
(c) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture as to such series have been complied with.
Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee and any predecessor Trustee under Section 6.06, the obligations of the Company to any Authenticating Agent under Section 6.12 and, if money shall have been deposited with the Trustee pursuant to subclause (ii) of clause (a) of this Section, the obligations of the Trustee under Section 4.02 and the last paragraph of Section 10.03 shall survive any termination of this Indenture.
Section 4.02 Application of Trust Funds.
Subject to the provisions of the last paragraph of Section 10.03, all money deposited with the Trustee pursuant to Section 4.01 shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest, if any, for whose payment such money has been deposited with or received by the Trustee, but such money need not be segregated from other funds except to the extent required by law.
ARTICLE FIVE
REMEDIES
Section 5.01 Events of Default.
“Event of Default,” wherever used herein with respect to any particular series of Securities, means any one of the following events, unless it is either inapplicable to a particular series or is specifically deleted or modified in or pursuant to the supplemental indenture or a Board Resolution establishing such series of Securities or is in the form of Security for such series:
(i) default in the payment of any interest upon any Security of that series, when such interest becomes due and payable, and continuance of such default for a period of 30 calendar days; or
(ii) default in the payment of the principal of (or premium, if any, on) any Security of that series when it becomes due and payable at its Maturity, and continuance of such default for a period of 5 Business Days; or
(iii) default in the deposit of any sinking fund payment, when and as due by the terms of any Security of that series, and continuance of such default for a period of 5 Business Days; or
(iv) default in the performance, or breach, of any covenant or agreement of the Company in this Indenture with respect to any Security of that series (other than a covenant or agreement a default in whose performance or whose breach is elsewhere in this Section specifically dealt with or that has expressly been included in this Indenture solely for the benefit of a series of Securities other than that series), and continuance of such default or breach for a period of 60 consecutive calendar days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;
(v) the Company, pursuant to or within the meaning of any Bankruptcy Law:
(1) commences a voluntary case or proceeding under any Bankruptcy Law,
(2) consents to the commencement of any bankruptcy or insolvency case or proceeding against it, or files a petition or answer or consent seeking reorganization or relief against it,
(3) consents to the entry of a decree or order for relief against it in an involuntary case or proceeding,
(4) consents to the filing of such petition or to the appointment of or taking possession by a Custodian of the Company or for all or substantially all of its property, or
(5) makes an assignment for the benefit of creditors, or admits in writing of its inability to pay its debts generally as they become due or takes any corporate action in furtherance of any such action;
(vi) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(1) is for relief against the Company in an involuntary case or proceeding, or
(2) adjudges the Company bankrupt or insolvent, or approves as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company, or
(3) appoints a Custodian of the Company or for all or substantially all of its property, or
(4) orders the winding up or liquidation of the Company, and the continuance of any such decree or order for relief or any such other decree or order remains unstayed and in effect for a period of 60 consecutive calendar days;
(vii) if, pursuant to Sections 18(a)(1)(c)(ii) and 61 of the Investment Company Act, on the last business day of each of 24 consecutive calendar months any class of Securities shall have an asset coverage (as such term is used in the Investment Company Act) of less than 100%; or
(viii) any other Event of Default provided with respect to Securities of that series.
The term “Bankruptcy Law” means Title 11, U.S. Code or any applicable federal or state bankruptcy, insolvency, reorganization or other similar law. The term “Custodian” means any custodian, receiver, trustee, assignee, liquidator, sequestrator or other similar official under any Bankruptcy Law.
Notwithstanding anything to the contrary in this Indenture, with respect to any Default or Event of Default, the words “exists,” “is continuing” or similar expressions with respect thereto shall mean that the Default or Event of Default has occurred and has not yet been cured or waived; provided that it is understood and agreed that any court of competent jurisdiction may (x) extend or stay any grace period prior to when any actual or alleged Default becomes an actual or alleged Event of Default or (y) stay the exercise of remedies by the Trustee upon the occurrence of an actual or alleged Event of Default, in each case, in accordance with the requirements of applicable law. If any Default or Event of Default occurs due to (i) the failure by the Company to take any action by a specified time, such Default or Event of Default shall be deemed to have been cured at the time, if any, that the Company takes such action or (ii) the taking of any action by the Company that is not then permitted by the terms of this Indenture, such Default or Event of Default shall be deemed to be cured on the earlier to occur of (x) the date on which such action would be permitted at such time to be taken under this Indenture, including pursuant to an applicable amendment or waiver permitting such action, or otherwise and (y) the date on which such action is unwound or otherwise modified to the extent necessary for such revised action to be permitted at such time by this Indenture (including after giving effect to any amendments or waivers).
Section 5.02 Acceleration of Maturity; Rescission and Annulment.
If an Event of Default with respect to Securities of any series at the time Outstanding occurs and is continuing, then and in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of that series may declare the principal (or, if any Securities are Original Issue Discount Securities or Indexed Securities, such portion of the principal as may be specified in the terms thereof) of all the Securities of that series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders), and upon any such declaration such principal or specified portion thereof shall become immediately due and payable.
At any time after such a declaration of acceleration with respect to Securities of any series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter provided in this Article, the Holders of not less than a majority in principal amount of the Outstanding Securities of that series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if:
(i) the Company has paid or deposited with the Trustee a sum sufficient to pay in the Currency in which the Securities of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Securities of such series and except, if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e)):
(1) all overdue installments of interest, if any, on all Outstanding Securities of that series,
(2) the principal of (and premium, if any) all Outstanding Securities of that series that have become due otherwise than by such declaration of acceleration and interest thereon at the rate or rates borne by or provided for in such Securities,
(3) to the extent that payment of such interest is lawful, interest upon overdue installments of interest at the rate or rates borne by or provided for in such Securities, and
(4) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and
(ii) all Events of Default with respect to Securities of that series, other than the nonpayment of the principal of (or premium, if any) or interest on Securities of that series that have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 5.13.
No such rescission shall affect any subsequent default or impair any right consequent thereon.
A Notice of Default may not be given with respect to any action taken, and reported publicly or to Holders, more than two years prior to such Notice of Default. Any Notice of Default, notice of acceleration or instruction to the Trustee to provide a Notice of Default, notice of acceleration or to take any other action (a “Holder Direction”) provided by any one or more Holders of the Securities of any series (each a “Directing Holder”) must be accompanied by a written representation from each such Holder, delivered to the Company and the Trustee, that
such Holder is not (or, in the case such Holder is the Depositary or its nominee, that such Holder is being instructed solely by beneficial owners that are not) Net Short (a “Position Representation”), which representation, in the case of a Holder Direction relating to the delivery of a Notice of Default, shall be deemed a continuing representation until the resulting Event of Default is cured or otherwise ceases to exist or the Securities of the applicable series are accelerated. In addition, each Directing Holder is deemed, at the time of providing a Holder Direction, to covenant to provide the Company with such other information as the Company may reasonably request from time to time in order to verify the accuracy of such Directing Holder’s Position Representation within five Business Days of request therefor (a “Verification Covenant”). In any case in which the Directing Holder is the Depositary or its nominee, any Position Representation or Verification Covenant required hereunder shall be provided by the beneficial owner of the Securities of the applicable series in lieu of the Depositary or its nominee.
If, following the delivery of a Holder Direction with respect to the Securities of any series, but prior to acceleration of the Securities of such series, the Company determines in good faith that there is a reasonable basis to believe a Directing Holder was, at any relevant time, in breach of its Position Representation and provides to the Trustee an Officer’s Certificate stating that the Company has initiated litigation in a court of competent jurisdiction seeking a determination that such Directing Holder was, at such time, in breach of its Position Representation, and seeking to invalidate any Default, Event of Default or acceleration (or notice thereof) that resulted from the applicable Holder Direction, the cure period with respect to such Default shall be automatically stayed and the cure period with respect to such Default or Event of Default shall be automatically reinstituted and any remedy stayed pending a final and non-appealable determination of a court of competent jurisdiction on such matter. If, following the delivery of a Holder Direction with respect to the Securities of any series, but prior to acceleration of the Securities of such series, the Company provides to the Trustee an Officer’s Certificate stating that a Directing Holder failed to satisfy its Verification Covenant, the cure period with respect to such Default shall be automatically stayed and the cure period with respect to any Default or Event of Default with respect to the Securities of such series that resulted from the applicable Holder Direction shall be automatically reinstituted and any remedy stayed pending satisfaction of such Verification Covenant. Any breach of the Position Representation shall result in such Holder’s participation in such Holder Direction being disregarded, and, if, without the participation of such Holder, the percentage of Securities of the applicable series held by the remaining Holders of the Securities of such series that provided such Holder Direction would have been insufficient to validly provide such Holder Direction, such Holder Direction shall be void ab initio (except for any indemnity or security offered or provided to the Trustee), with the effect that such Default or Event of Default shall be deemed never to have occurred, acceleration shall be voided and the Trustee shall be deemed not to have received such Holder Direction or any notice of such Default or Event of Default.
Notwithstanding anything in the preceding two paragraphs to the contrary, any Holder Direction delivered to the Trustee during the pendency of an Event of Default as the result of a bankruptcy or similar proceeding shall not require compliance with the foregoing paragraphs.
For the avoidance of doubt, the Trustee shall be entitled to conclusively rely on any Holder Direction, Officer’s Certificate or other document delivered to it in accordance with this Indenture, shall have no duty to inquire as to or investigate the accuracy of any Position Representation, enforce compliance with any Verification Covenant, verify any statements in any Officer’s Certificate delivered to it, or otherwise make calculations, investigations or determinations with respect to Derivative Instruments, Net Shorts, Long Derivative Instruments, Short Derivative Instruments or otherwise. The Trustee shall have no liability to the Company,
any Holder or any other Person in acting in good faith on a Holder Direction or to determine whether any Holder has delivered a Position Representation or that such Position Representation conforms with this Indenture or any other agreement.
If a Default for a failure to deliver a required notice or certificate in connection with another Default (the “Initial Default”) occurs, then at the time such Initial Default is cured, such Default for a failure to deliver a required notice or certificate in connection with another Default that resulted solely because of that Initial Default will also be cured without any further action and any Default or Event of Default for the failure to deliver any notice or certificate pursuant to any other provision of this Indenture shall be deemed to be cured upon the delivery of any such notice or certificate required by such covenant or such notice or certificate, as applicable, even though such delivery is not within the prescribed period specified in this Indenture. Any time period in this Indenture to cure any actual or alleged Default or Event of Default may be extended or stayed by a court of competent jurisdiction.
The Company and the Trustee may, to the extent provided in Section 9.01, enter into one or more supplemental indentures with respect to any series of the Securities that may provide for additional, different or fewer Events of Default with respect to such series of Securities. Additional, different or fewer Events of Default with respect to such series of Securities may also be set forth pursuant to Section 3.01.
Section 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee.
The Company covenants that if:
(i) default is made in the payment of any installment of interest on any Security of any series when such interest becomes due and payable and such default continues for a period of 30 calendar days, or
(ii) default is made in the payment of the principal of (or premium, if any) any Security of any series at its Maturity,
then the Company will, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders of Securities of such series, the whole amount then due and payable on such Securities for principal (and premium, if any) and interest, if any, with interest upon any overdue principal (and premium, if any) and, to the extent that payment of such interest shall be legally enforceable, upon any overdue installments of interest, if any, at the rate or rates borne by or provided for in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon Securities of such series and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities of such series, wherever situated.
If an Event of Default with respect to Securities of any series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.
Section 5.04 Trustee May File Proofs of Claim.
In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities of any series shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of any overdue principal, premium or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise:
(i) to file and prove a claim for the whole amount of principal (or in the case of Original Issue Discount Securities or Indexed Securities, such portion of the principal as may be provided for in the terms thereof) (and premium, if any) and interest, if any, owing and unpaid in respect of the Securities and to file such other papers or documents (and take such other actions, including voting for the election of a trustee in bankruptcy or similar official and serving on a committee of creditors) as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and
(ii) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator (or other similar official) in any such judicial proceeding is hereby authorized by each Holder of Securities of such series to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee and any predecessor Trustee, their agents and counsel, and any other amounts due the Trustee or any predecessor Trustee under Section 6.06.
Subject to Article Eight and Section 9.02 and unless otherwise provided as contemplated by Section 3.01, nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder of a Security any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a Security in any such proceeding.
Section 5.05 Trustee May Enforce Claims Without Possession of Securities.
All rights of action and claims under this Indenture or any of the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name and as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.
Section 5.06 Application of Money Collected.
Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, if any, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under Section 6.06;
SECOND: To the payment of the amounts then due and unpaid upon any Senior Securities for principal (and premium, if any) and interest, if any, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the aggregate amounts due and payable on such Senior Securities for principal (and premium, if any) and interest, if any, respectively;
THIRD: To the payment of the amounts then due and unpaid upon any Senior Subordinated Securities for principal (and premium, if any) and interest, if any, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the aggregate amounts due and payable on such Senior Subordinated Securities for principal (and premium, if any) and interest, if any, respectively;
FOURTH: To the payment of the amounts then due and unpaid upon any Junior Subordinated Securities for principal (and premium, if any) and interest, if any, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the aggregate amounts due and payable on such Junior Subordinated Securities for principal (and premium, if any) and interest, if any, respectively;
FIFTH: To the payment of the amounts then due and unpaid upon any other Securities for principal (and premium, if any) and interest, if any, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to
the aggregate amounts due and payable on such Securities for principal (and premium, if any) and interest, if any, respectively; and
SIXTH: To the payment of the remainder, if any, to the Company or any other Person or Persons entitled thereto.
Section 5.07 Limitation on Suits.
No Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:
(i) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that series;
(ii) the Holders of not less than 25% in principal amount of the Outstanding Securities of that series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;
(iii) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request;
(iv) the Trustee for 60 calendar days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and
(v) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the Outstanding Securities of that series,
it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.
Section 5.08 Unconditional Right of Holders to Receive Principal, Premium and Interest.
Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of (and premium, if any) and (subject to Sections 3.05 and 3.07) interest, if any, on such Security on the Stated Maturity or Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date or, in the case of repayment at the option of the Holders on the Repayment Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.
Section 5.09 Restoration of Rights and Remedies.
If the Trustee or any Holder of a Security has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case the Company, the Trustee and the Holders of Securities shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.
Section 5.10 Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.06, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders of Securities is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.
Section 5.11 Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders of Securities, as the case may be.
Section 5.12 Control by Holders of Securities.
Subject to Section 6.02(v), the Holders of a majority in principal amount of the Outstanding Securities of any series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee with respect to the Securities of such series, provided that
(i) such direction shall not be in conflict with any rule of law or with this Indenture,
(ii) the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction, and
(iii) the Trustee need not take any action that it determines in good faith may involve it in personal liability or be unjustly prejudicial to the Holders of Securities of such series not consenting.
Section 5.13 Waiver of Past Defaults.
Subject to Section 5.02, the Holders of not less than a majority in principal amount of the Outstanding Securities of any series may on behalf of the Holders of all the Securities of such series waive any past default hereunder with respect to Securities of such series and its consequences, except a default
(i) in the payment of the principal of (or premium, if any) or interest, if any, on any Security of such series, or
(ii) in respect of a covenant or provision hereof which under Article Nine cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series affected.
Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture, but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.
Section 5.14 Waiver of Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.
Section 5.15 Undertaking for Costs.
In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 5.15 does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 5.08 hereof, or a suit by Holders of more than 10% in principal amount of the then Outstanding Securities of any series.
ARTICLE SIX
THE TRUSTEE
Section 6.01 Notice of Defaults.
(a) Within 90 calendar days after the occurrence of any Default hereunder with respect to the Securities of any series, the Trustee shall transmit in the manner and to the extent provided in TIA Section 313(c), notice of such Default hereunder known to the Trustee, unless such Default shall have been cured or waived; provided, however, that, except in the case of a Default in the payment of the principal of (or premium, if any) or interest, if any, on any Security
of such series, or in the payment of any sinking or purchase fund installment with respect to the Securities of such series, the Trustee shall be protected in withholding such notice if and so long
as the Board of Directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determines that the withholding of such notice is in the interest of the Holders of the Securities of such series; and provided further that in the case of any Default or breach of the character specified in Section 5.01(iv) with respect to the Securities of such series, no such notice to Holders shall be given until at least 90 calendar days after the occurrence thereof.
(b) Prior to the time when the occurrence of an Event of Default becomes known to a Responsible Officer of the Trustee and after the curing or waiving of all such Events of Default with respect to a series of Securities that may have occurred:
(i) the duties and obligations of the Trustee shall with respect to the Securities of any series be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable with respect to the Securities except for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and
(ii) in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform on their face to the requirements of this Indenture (but need not confirm or investigate the accuracy of any mathematical calculations or other facts stated therein).
(c) If an Event of Default has occurred and is continuing with respect to the Securities of any series of which a Responsible Officer of the Trustee has actual notice, the Trustee shall exercise such of the rights and powers vested in it by this Indenture with respect to the Securities of such series, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.
(d) The Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: (i) this paragraph does not limit the effect of paragraph (b) of this Section 6.01; (ii) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; and (iii) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the Securities of any series Outstanding relating to the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, with respect to the Securities of any series under this Indenture.
(e) Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (d) of this Section 6.01.
Section 6.02 Certain Rights of Trustee.
Subject to the provisions of TIA Section 315(a) through 315(d):
(i) The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Trustee need not investigate any fact or matter stated in any document.
(ii) Any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order (other than delivery of any Security to the Trustee for authentication and delivery pursuant to Section 3.03 which shall be sufficiently evidenced as provided therein) and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution.
(iii) Whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon a Board Resolution, an Opinion of Counsel or an Officer’s Certificate.
(iv) The Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.
(v) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders of Securities of any series pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities (including the reasonable fees and expenses of its agents and counsel) which might be incurred by it in compliance with such request or direction.
(vi) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled upon reasonable notice and at reasonable times during normal business hours to examine the books, records and premises of the Company, personally or by agent or attorney.
(vii) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.
(viii) The Trustee shall not deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture.
(ix) The rights, privileges, protections, immunities and benefits given to the Trustee, including its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder.
(x) The permissive rights of the Trustee enumerated herein shall not be construed as duties.
(xi) The Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of not less than a majority in principal amount of the Outstanding Securities of a series relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture with respect to such Securities.
(xii) Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate (unless other evidence is specifically prescribed herein). The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate.
(xiii) The Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.
(xiv) The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture.
(xv) The Trustee may request that the Company deliver an Officer’s Certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officer’s Certificate may be signed by any person authorized to sign an Officer’s Certificate, including any person specified as so authorized in any such certificate previously delivered and not superseded.
(xvi) Anything in this Indenture notwithstanding, in no event shall the Trustee be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to loss of profit), even if the Trustee has been advised as to the likelihood of such loss or damage and regardless of the form of action.
(xvii) The Trustee shall not be responsible or liable for any failure or delay in the performance of its obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances beyond its reasonable control, including acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; interruptions; loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil or military authority and governmental action.
The Trustee shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.
Section 6.03 Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except the Trustee’s certificate of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that the statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are true and accurate, subject to the qualifications set forth therein. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of Securities or the proceeds thereof.
Section 6.04 May Hold Securities.
The Trustee, any Paying Agent, Security Registrar, Authenticating Agent or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to TIA Sections 310(b) and 311, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar, Authenticating Agent or such other agent.
Section 6.05 Money Held in Trust.
Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company.
Section 6.06 Compensation and Reimbursement and Indemnification of Trustee.
The Company agrees:
(i) to pay to the Trustee or any predecessor Trustee from time to time such reasonable compensation for all services rendered by it hereunder as has been agreed upon from time to time in writing (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);
(ii) except as otherwise expressly provided herein, to reimburse each of the Trustee and any predecessor Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee or any predecessor Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and
(iii) to indemnify each of the Trustee or any predecessor Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its own part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses (including the reasonable fees and expenses of its agents and counsel) of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder.
As security for the performance of the obligations of the Company under this Section, the Trustee shall have a claim prior to the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of (or premium, if any) or interest, if any, on particular Securities.
When the Trustee incurs expenses or renders services after an Event of Default specified in Section 5.01 occurs, the expenses and compensation for such services are intended to constitute expenses of administration under Title 11, U.S. Code, or any similar Federal, State or analogous foreign law for the relief of debtors.
The provisions of this Section 6.06 shall survive the resignation or removal of the Trustee and the satisfaction, termination or discharge of this Indenture.
Section 6.07 Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee hereunder that shall be eligible to act as Trustee under TIA Section 310(a)(1) and shall have a combined capital and surplus of at least $50,000,000. If such Trustee publishes reports of condition at least annually, pursuant to law or to the requirements of federal, state, territorial or the District of Columbia supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Trustee shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.
Section 6.08 Disqualification; Conflicting Interests.
If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.
Section 6.09 Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 6.10.
(b) The Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Company.
(c) The Trustee may be removed at any time with respect to the Securities of any series by (i) the Company, by an Officer’s Certificate delivered to the Trustee, provided that contemporaneously therewith (x) the Company immediately appoints a successor Trustee with respect to the Securities of such series meeting the requirements of Section 6.07 hereof and (y) the terms of Section 6.10 hereof are complied with in respect of such appointment (the Trustee being removed hereby agreeing to execute the instrument contemplated by Section 6.10(b) hereof, if applicable, under such circumstances) and provided further that no Default with respect to such Securities shall have occurred and then be continuing at such time, or (ii) Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Trustee and to the Company.
(d) If at any time:
(i) the Trustee shall fail to comply with the provisions of TIA Section 310(b) after written request therefor by the Company or by any Holder of a Security who has been a bona fide Holder of a Security for at least six months, or
(ii) the Trustee shall cease to be eligible under Section 6.07 and shall fail to resign after written request therefor by the Company or by any Holder of a Security who has been a bona fide Holder of a Security for at least six months, or
(iii) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company by or pursuant to a Board Resolution may remove the Trustee and appoint a successor Trustee with respect to all Securities, or (ii) subject to TIA Section 315(e), any Holder of a Security who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a successor Trustee or Trustees.
(e) If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 calendar days after the giving of a notice of resignation or the delivery of an Act of removal, the Trustee resigning or being removed may petition any court of competent jurisdiction for the appointment of a successor Trustee.
(f) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause with respect to the Securities of one or more series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series). If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any series shall have been so appointed by the Company or the Holders of Securities and accepted appointment in the manner hereinafter provided, any Holder of a Security who has been a bona fide Holder of a Security of such series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to Securities of such series.
(g) The Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor Trustee with respect to the Securities of any series in the manner provided for notices to the Holders of Securities in Section 1.06. Each notice shall include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office.
Section 6.10 Acceptance of Appointment by Successor.
(a) In case of the appointment hereunder of a successor Trustee with respect to all Securities, every such successor Trustee shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on request of the Company or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee, and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder, subject nevertheless to its claim, if any, provided for in Section 6.06.
(b) In case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and that (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (ii) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or
those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (iii) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor Trustee relates. Whenever there is a successor Trustee with respect to one or more (but less than all) series of securities issued pursuant to this Indenture, the terms “Indenture” and “Securities” shall have the meanings specified in the provisos to the respective definition of those terms in Section 1.01 which contemplate such situation.
(c) Upon request of any such successor Trustee, the Company shall execute any and all instruments reasonably necessary to more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be.
(d) No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article.
Section 6.11 Merger, Conversion, Consolidation or Succession to Business.
Any Person into which the Trustee may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such Person shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. In case any Securities shall not have been authenticated by such predecessor Trustee, any such successor Trustee may authenticate and deliver such Securities, in either its own name or that of its predecessor Trustee, with the full force and effect which this Indenture provides for the certificate of authentication of the Trustee; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.
Section 6.12 Appointment of Authenticating Agent.
At any time when any of the Securities remain Outstanding, the Trustee may appoint an Authenticating Agent or Agents (which may be an Affiliate or Affiliates of the Company) with respect to one or more series of Securities that shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon original issue or upon exchange, registration of transfer or partial redemption thereof, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. Any such appointment shall be evidenced by an instrument in writing signed by a Responsible Officer of the Trustee, a copy of which instrument shall be promptly furnished to the Company. Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and, except as may otherwise be provided pursuant to Section 3.01, shall at all times be a bank or trust company or corporation organized and doing business and in good standing under the laws of the United States of America or of any State or the District of Columbia, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by Federal or State authorities. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. In case at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section.
Any Person into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any Person succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided such Person shall be otherwise eligible under this Section, without the execution or filing of any paper or further act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent for any series of Securities may at any time resign by giving written notice of resignation to the Trustee for such series and to the Company. The Trustee for any series of Securities may at any time terminate the agency of an Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee for such series may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall promptly give written notice of such appointment to all Holders of Securities of the series with respect to which such Authenticating Agent will serve in the manner set forth in Section 1.06. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent herein.
No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.
The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation including reimbursement of its reasonable expenses for its services under this Section.
If an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to or in lieu of the Trustee’s certificate of authentication, an alternate certificate of authentication substantially in the following form:
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
| | | | | | | | |
| U.S Bank Trust Company, National |
| Association, as Trustee |
| | |
| By: | |
| as Authenticating Agent |
| | |
| By: | |
| Authorizing Officer |
If all of the Securities of a series may not be originally issued at one time, and the Trustee does not have an office capable of authenticating Securities upon original issuance, the Trustee, if so requested by the Company in writing (which writing need not comply with Section 1.02 and need not be accompanied by an Opinion of Counsel), shall appoint in accordance with this Section an Authenticating Agent (which, if so requested by the Company, shall be an Affiliate of the Company), provided that the terms and conditions of such appointment are reasonably acceptable to the Trustee.
Section 6.13 Preferential Collection of Claims Against Company.
The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein.
ARTICLE SEVEN
HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 7.01 Disclosure of Names and Addresses of Holders.
Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor any Security Registrar nor any agent of any of them shall be held accountable by reason of the disclosure of any information as to the names and addresses of the Holders of Securities in accordance with TIA Section 312, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under TIA Section 312(b).
Section 7.02 Preservation of Information; Communications to Holders.
(a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders contained in the most recent list furnished to the Trustee as provided in Section 7.01 and the names and addresses of Holders received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01 upon receipt of a new list so furnished.
(b) The rights of Holders to communicate with other Holders with respect to their rights under this Indenture or under the Securities, and the corresponding rights and duties of the Trustee, shall be as provided by the Trust Indenture Act.
(c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held accountable by reason of any disclosure of information as to names and addresses of Holders made pursuant to the Trust Indenture Act.
Section 7.03 Reports by Trustee.
Within 60 calendar days after May 15 of each year commencing with the first May 15 after the first issuance of Securities pursuant to this Indenture, the Trustee shall transmit by mail to all Holders of Securities as provided in TIA Section 313(c) a brief report dated as of such May 15 which meets the requirements of TIA Section 313(a).
A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange, if any, upon which the Securities are listed, with the Commission and with the Company. The Company will promptly notify the Trustee of the listing of the Securities on any stock exchange. In the event that, on any such reporting date, no events have occurred under the applicable sections of the TIA within the 12 months preceding such reporting date, the Trustee shall be under no duty or obligation to provide such reports.
Section 7.04 Reports by Company.
The Company will file with the Trustee and the Commission, and transmit to Holders, such information, documents and other reports, and such summaries thereof, as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant to the Trust Indenture Act; provided, that any such information, documents or reports filed electronically with the Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be deemed filed with and delivered to the Trustee and the Holders at the same time as filed with the Commission.
Delivery of such reports, information, and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to conclusively rely exclusively on Officer’s Certificates).
Section 7.05 Calculation of Original Issue Discount.
Upon request of the Trustee, the Company shall file with the Trustee promptly at the end of each calendar year a written notice specifying the amount of original issue discount (including daily rates and accrual periods), if any, accrued on Outstanding Securities as of the end of such year.
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
Section 8.01 Company May Consolidate, Etc., Only on Certain Terms.
Unless otherwise provided in the terms of such Securities, the Company shall not merge or consolidate with or into any other Person (other than a merger of a wholly owned Subsidiary of the Company into the Company) or sell, transfer, lease, convey or otherwise dispose of all or substantially all of its property (provided that, for the avoidance of doubt, a pledge of assets pursuant to any secured debt instrument of the Company or its Controlled Subsidiaries shall not be deemed to be any such sale, transfer, lease, conveyance or disposition) in one transaction or series of related transactions unless:
(i) the Company shall be the surviving Person (the “Surviving Person”) or the Surviving Person (if other than the Company) formed by such merger or consolidation or to which such sale, transfer, lease, conveyance or disposition is made shall be a corporation or limited liability company organized and existing under the laws of the United States of America or any state or territory thereof;
(ii) the Surviving Person (if other than the Company) expressly assumes, by supplemental indenture in form reasonably satisfactory to the Trustee, executed and delivered to the Trustee by such Surviving Person, the due and punctual payment of the principal of, and premium, if any, and interest on, all the Securities Outstanding, and the due and punctual performance and observance of all the covenants and conditions of this Indenture to be performed by the Company;
(iii) immediately after giving effect to such transaction or series of related transactions, no Default or Event of Default shall have occurred and be continuing; and
(iv) the Company shall deliver, or cause to be delivered, to the Trustee, an Officer’s Certificate and an Opinion of Counsel, each stating that such transaction and the supplemental indenture, if any, in respect thereto comply with this Section 8.01 and that all conditions precedent herein provided relating to such transaction have been complied with.
For the purposes of this Section 8.01, the sale, transfer, lease, conveyance or other disposition of all the property of one or more Subsidiaries of the Company, which property, if held by the Company instead of such Subsidiaries, would constitute all or substantially all the
property of the Company on a consolidated basis, shall be deemed to be the transfer of all or substantially all the property of the Company.
Section 8.02 Successor Person Substituted.
Upon any consolidation or merger, or any conveyance or transfer of the properties and assets of the Company substantially as an entirety in accordance with Section 8.01, the Surviving Person formed by such consolidation or into which the Company is merged or the successor Person to which such conveyance or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor had been named as the Company herein; and in the event of any such conveyance or transfer, the Company shall be discharged from all obligations and covenants under this Indenture and the Securities and may be dissolved and liquidated.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 9.01 Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders of Securities, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form reasonably satisfactory to the Trustee, for any of the following purposes:
(i) to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company herein and in the Securities contained; or
(ii) to add to or modify the covenants and agreements of the Company for the benefit of the Holders of all or any series of Securities or to surrender any right or power herein conferred upon the Company; or
(iii) to add or modify any Events of Default for the benefit of the Holders of all or any series of Securities; provided, however, that in respect of any such additional Events of Default such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies available to the Trustee upon such default or may limit the right of the Holders of a majority in aggregate principal amount of that or those series of Securities to which such additional Events of Default apply to waive such default; or
(iv) to permit or facilitate the issuance of Securities in uncertificated form; or
(v) to change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become effective only when there is no Security Outstanding of any series created prior to the execution of such supplemental indenture that is entitled to the benefit of such provision; or
(vi) to secure the Securities pursuant to the requirements of Section 8.01 or 10.06, or otherwise; or
(vii) to establish the form or terms of Securities of any series as permitted by Sections 2.01 and 3.01, including the provisions and procedures relating to Securities convertible into or exchangeable for any securities of any Person (including the Company), or to authorize the issuance of additional Securities of a series previously authorized or to add to the conditions, limitations or restrictions on the authorized amount, terms or purposes of issue, authentication or delivery of the Securities of any series, as herein set forth, or other conditions, limitations or restrictions thereafter to be observed; or
(viii) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; or
(ix) to cure any ambiguity, omission, mistake, defect or inconsistency, to correct or supplement any provision herein that may be inconsistent with any other provision herein; or
(x) to make any other provisions with respect to matters or questions arising under this Indenture, provided that such provision shall not adversely affect the interests of the Holders of Securities of any series in any material respect; or
(xi) to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Securities pursuant to Sections 4.01, 14.02 and 14.03; provided that any such action shall not adversely affect the interests of the Holders of Securities of such series or any other series of Securities in any material respect; or
(xii) to add guarantors for the benefit of the Securities of all or any series; or
(xiii) to comply with the Applicable Procedures of the Depositary; or
(xiv) to comply with the Trust Indenture Act or maintain the qualification of this Indenture under the Trust Indenture Act; or
(xv) to conform the provisions of this Indenture and the Securities to the description thereof contained in the applicable prospectus and any related prospectus supplement.
Section 9.02 Supplemental Indentures with Consent of Holders.
With the consent of the Holders of not less than a majority in aggregate principal amount of all Outstanding Securities affected by such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the Company and the Trustee may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture that affects such series of Securities or of modifying in any manner the rights of the Holders of such series of Securities under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security affected thereby:
(i) change the Stated Maturity of the principal of (or premium, if any) or any installment of principal of or interest on, any Security, subject to the provisions of Section 3.08, or the terms of any sinking fund with respect to any Security, or reduce the principal amount thereof or the rate of interest or change the manner of calculating the rate of interest thereon, or any premium payable upon the redemption thereof, or change any obligation of the Company to pay Additional Amounts pursuant to Section 10.04 (except as contemplated by Section 8.01(i) and permitted by Section 9.01(i)), or reduce the portion of the principal of an Original Issue Discount Security or Indexed Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.02, or upon the redemption thereof, or adversely affect the right to receive payment of the principal of and interest on any Security, or change the Currency in which any Security or any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof, or adversely affect any right to convert or exchange any Security as may be provided pursuant to Section 3.01 herein, or modify the subordination provisions set forth in Article Sixteen in a manner that is adverse to the Holder of any Security; or
(ii) reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any waiver with respect to such series (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture, or reduce the requirements of Section 15.04 for quorum or voting; or
(iii) modify any of the provisions of this Section, Section 5.13 or Section 10.07, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby; provided, however, that this clause shall not be deemed to require the consent of any Holder of a Security with respect to changes in the references to “the Trustee” and concomitant changes in this Section, or the deletion of this proviso, in accordance with the requirements of Sections 6.10(b) and 9.01(viii).
It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.
A supplemental indenture that changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities, or that modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series.
The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Persons entitled to consent to any indenture supplemental hereto. If a record date is fixed, the Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to consent to such supplemental indenture, whether or not such Holders remain Holders after such record date; provided, that unless such consent shall have become effective by virtue of the requisite percentage having been obtained prior to the date that is eleven months after such record date, any such consent previously given shall automatically and without further action by any Holder be cancelled and of no further effect.
Section 9.03 Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modification thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and shall be fully protected in relying upon, in addition to the documents required by Section 1.02 of this Indenture, an Officer’s Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and that all conditions precedent to such supplemental indenture have been complied with, subject to customary assumptions, qualifications and exceptions. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.
Section 9.04 Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.
Section 9.05 Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect.
Section 9.06 Reference in Securities to Supplemental Indentures.
Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall, if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series.
ARTICLE TEN
COVENANTS
Section 10.01 Payment of Principal, Premium, if any, and Interest.
The Company covenants and agrees for the benefit of the Holders of each series of Securities that it will duly and punctually pay the principal of (and premium, if any) and interest, if any, on the Securities of that series in accordance with the terms of such series of Securities and this Indenture.
Section 10.02 Maintenance of Office or Agency.
The Company shall maintain an office or agency where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer or exchange, where Securities that are convertible or exchangeable may be surrendered for conversion or exchange, as applicable, and where notices and demands to or upon the Company in respect of any Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of each such office or agency. If at any time the Company shall fail to maintain any such required office or agency in respect of any series of Securities or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee at its Corporate Trust Office its agent to receive all such presentations, surrenders, notices and demands.
The Company may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all of such purposes, and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in accordance with the requirements set forth above for Securities of any series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.
Unless otherwise specified with respect to any Securities pursuant to Section 3.01, if and so long as the Securities of any series (i) are denominated in a currency other than Dollars or (ii) may be payable in a currency other than Dollars, or so long as it is required under any other provision of the Indenture, then the Company will maintain with respect to each such series of Securities, or as so required, at least one Exchange Rate Agent. The Company will notify the Trustee of the name and address of any Exchange Rate Agent retained by it.
Section 10.03 Money for Securities Payments to Be Held in Trust.
If the Company shall at any time act as its own Paying Agent with respect to any series of any Securities, it will, on or before each due date of the principal of (or premium, if any) or interest, if any, on any of the Securities of that series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum in the Currency in which the Securities of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Securities of such series and except, if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e)) sufficient to pay the principal (and premium, if any) and interest, if any, on Securities of such series so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and will promptly notify the Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents for any series of Securities, it will, on or before each due date of the principal of (or premium, if any) or interest, if any, on any Securities of that series, deposit with a Paying Agent a sum (in the Currency or Currencies described in the preceding paragraph) sufficient to pay the principal (or premium, if any) or interest, if any, so becoming due, such sum of money to be held in trust for the benefit of the Persons entitled to such principal, premium or interest and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.
The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums of money held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such sums.
Except as otherwise provided in the Securities of any series, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (or premium, if any) or interest, if any, on any Security of any series and remaining unclaimed for two years after such principal, premium or interest has become due and payable shall be paid to the Company upon Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such money held in trust, and all liability of the Company as trustee thereof, shall thereupon cease.
Section 10.04 Additional Amounts.
If the Securities of a series provide for the payment of Additional Amounts, the Company will pay to the Holder of any Security of such series such Additional Amounts as may be specified as contemplated by Section 3.01. Whenever in this Indenture there is mentioned, in any context, the payment of the principal of (or premium, if any) or interest, if any, on any Security of any series or the net proceeds received on the sale or exchange of any Security of any series, such mention shall be deemed to include mention of the payment of Additional Amounts provided for by the terms of such series established pursuant to Section 3.01 to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof pursuant to such terms and express mention of the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made.
Except as otherwise specified as contemplated by Section 3.01, if the Securities of a series provide for the payment of Additional Amounts, at least 10 calendar days prior to the first Interest Payment Date with respect to that series of Securities (or if the Securities of that series
will not bear interest prior to Maturity, the first day on which a payment of principal premium is made), and at least 10 calendar days prior to each date of payment of principal, premium or interest if there has been any change with respect to the matters set forth in the below-mentioned Officer’s Certificate, the Company will furnish the Trustee and the Company’s principal Paying Agent or Paying Agents, if other than the Trustee, with an Officer’s Certificate instructing the Trustee and such Paying Agent or Paying Agents whether such payment of principal, premium or interest on the Securities of that series shall be made to Holders of Securities of that series who are not United States persons without withholding for or on account of any tax, assessment or other governmental charge described in the Securities of that series. If any such withholding shall be required, then such Officer’s Certificate shall specify by country the amount, if any, required to be withheld on such payments to such Holders of Securities of that series and the Company will pay to the Trustee or such Paying Agent the Additional Amounts required by the terms of such Securities. In the event that the Trustee or any Paying Agent, as the case may be, shall not so receive the above-mentioned certificate, then the Trustee or such Paying Agent shall be entitled (i) to assume that no such withholding or deduction is required with respect to any payment of principal or interest with respect to any Securities of a series until it shall have received a certificate advising otherwise and (ii) to make all payments of principal and interest with respect to the Securities of a series without withholding or deductions until otherwise advised. The Company covenants to indemnify the Trustee and any Paying Agent for, and to hold them harmless against, any loss, liability or expense reasonably incurred without negligence or bad faith on their part arising out of or in connection with actions taken or omitted by any of them in reliance on any Officer’s Certificate furnished pursuant to this Section or in reliance on the Company’s not furnishing such an Officer’s Certificate.
Section 10.05 Statement as to Compliance.
The Company will deliver to the Trustee, within 120 calendar days after the end of each fiscal year ending after the date hereof so long as any Security is Outstanding hereunder, an Officer’s Certificate stating to the knowledge of the signers thereof whether any Default or Event of Default occurred during the previous fiscal year that is continuing.
Section 10.06 Waiver of Certain Covenants.
The Company may omit in any particular instance to comply with any covenant or condition set forth in Section 10.06, and, as specified pursuant to Section 3.01(xv) for Securities of any series, in any covenants of the Company added to Article Ten pursuant to Section 3.01(xiv) or Section 3.01(xv) in connection with the Securities of a series, if before or after the time for such compliance the Holders of at least a majority in aggregate principal amount of all Outstanding Securities of such series, by Act of such Holders, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such covenant or condition shall remain in full force and effect.
Section 10.07 Section 18(a)(1)(A) of the Investment Company Act.
The Company hereby agrees that for the period of time during which Securities of any series are Outstanding, the Company will not violate, whether or not it is subject to, Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act or any successor provisions thereto of the Investment Company Act, as such obligation may be amended or superseded but giving effect to any exemptive relief granted to the Company by the Commission.
Section 10.08 Commission Reports and Reports to Holders.
If, at any time, the Company is not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act to file any periodic reports with the Commission, the Company agrees to furnish to the Holders of Securities of any series and the Trustee for the period of time during which the Securities of such series are Outstanding: (i) within 90 days after the end of the each fiscal year of the Company, audited annual consolidated financial statements of the Company; and (ii) within 45 days after the end of each fiscal quarter of the Company (other than the Company’s fourth fiscal quarter), unaudited interim consolidated financial statements of the Company. All such financial statements shall be prepared, in all material respects, in accordance with GAAP, as applicable.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 11.01 Applicability of Article.
Securities of any series that are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 3.01 for Securities of any series) in accordance with this Article.
Section 11.02 Notice to Trustee.
In case of any redemption at the election of the Company, the Company shall, at least 15 calendar days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee in writing of such Redemption Date and of the principal amount of Securities of such series to be redeemed, and, if applicable, of the tenor of the Securities to be redeemed, and, if applicable, shall deliver to the Trustee such documentation and records as shall enable the Trustee to select the Securities to be redeemed pursuant to Section 11.03. In the case of any redemption of Securities of any series prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officer’s Certificate evidencing compliance with such restriction.
Section 11.03 Selection by Trustee of Securities to Be Redeemed.
If less than all of the Securities of a series are to be redeemed at any time, and the Securities of such series are global Securities, they will be selected for redemption in accordance with Applicable Procedures. If the Securities of such series are not global Securities, the particular Securities to be redeemed shall be selected not more than 60 calendar days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series issued on such date with the same terms not previously called for redemption, by such method as the Trustee shall deem fair and appropriate; provided that such method complies with the rules of any
national securities exchange or quotation system on which the Securities are listed (which rules shall be certificated to the Trustee by the Company or such national securities exchange at the Trustee’s request), and may provide for the selection for redemption of portions (equal to the minimum authorized denomination for Securities of that series or any integral multiple thereof) of the principal amount of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series; provided, however, that no such partial redemption shall reduce the portion of the principal amount of a Security not redeemed to less than the minimum authorized denomination for Securities of such series.
The Trustee shall promptly notify the Company and the Security Registrar (if other than itself) in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed.
Section 11.04 Notice of Redemption.
Notice of redemption shall be given in the manner provided in Section 1.06, not less than 10 calendar days nor more than 60 calendar days prior to the Redemption Date, unless a shorter period is specified by the terms of such series established pursuant to Section 3.01, to each Holder of Securities to be redeemed, but failure to give such notice in the manner herein provided to the Holder of any Security designated for redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other such Security or portion thereof.
Any notice that is mailed or delivered to the Holders in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the Holder receives the notice.
Any notice of redemption may, in the Company’s discretion, be given subject to the satisfaction of one or more conditions precedent. In that case, such notice of redemption shall describe each such condition, and, if applicable, shall state that, in the Company’s discretion, (i) the Redemption Date may be delayed until such time (including by more than 60 calendar days after the date the notice of redemption was mailed or delivered, including by electronic transmission) as any or all such conditions shall be satisfied, or (ii) such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied or waived by the Company by the relevant Redemption Date, or by the Redemption Date as so delayed. In addition, the Company may provide in such notice that payment of the Redemption Price and performance of the Company’s obligations with respect to such redemption may be performed by another Person.
In addition, all notices of redemption shall state:
(i) the Redemption Date,
(ii) the Redemption Price and accrued interest, if any, to the Redemption Date payable as provided in Section 11.06,
(iii) if less than all Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial redemption, the principal amount) of the particular Security or Securities to be redeemed,
(iv) in case any Security is to be redeemed in part only, the notice that relates to such Security shall state that on and after the Redemption Date, upon surrender of such Security, the Holder will receive, without a charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed,
(v) that on the Redemption Date, the Redemption Price and accrued interest, if any, to the Redemption Date payable as provided in Section 11.06 will become due and payable upon each such Security, or the portion thereof, to be redeemed and, if applicable, that interest thereon shall cease to accrue on and after said date,
(vi) that the redemption is for a sinking fund, if such is the case, and
(vii) the “CUSIP” number, “ISIN” and/or “Common Code” number of such Security, if any.
A notice of redemption mailed or delivered as contemplated by Section 1.06 need not identify particular Securities to be redeemed. Notice of redemption of Securities to be redeemed shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company.
Section 11.05 Deposit of Redemption Price.
On or prior to 11:00 a.m., New York City time, on the Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, in accordance with the terms of this Indenture, segregate and hold in trust as provided in Section 10.03) an amount of money in the Currency in which the Securities of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Securities of such series and except, if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e)) sufficient to pay on the Redemption Date the Redemption Price of, and (unless otherwise specified pursuant to Section 3.01) accrued interest on, all the Securities or portions thereof which are to be redeemed on that date.
Section 11.06 Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified in the Currency in which the Securities of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Securities of such series and except, if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e)) (together with accrued interest, if any, to the Redemption
Date), and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest, if any) such Securities shall if the same were interest-bearing cease to bear interest. Upon surrender of any such Security for redemption in accordance with said notice, such Security shall be paid by the Company at the Redemption Price, together with accrued interest, if any, to the Redemption Date; provided, however, that, unless otherwise specified as contemplated by Section 3.01, installments of interest on Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant record dates according to their terms and the provisions of Section 3.07.
If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the Redemption Price shall, until paid, bear interest from the Redemption Date at the rate of interest set forth in such Security or, in the case of an Original Issue Discount Security, at the Yield to Maturity of such Security.
Section 11.07 Securities Redeemed in Part.
Any Security that is to be redeemed only in part (pursuant to the provisions of this Article or of Article Twelve) shall be surrendered (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing) and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security without service charge a new Security or Securities of the same series and of like tenor, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. If a temporary global Security or permanent global Security is so surrendered, such new Security so issued shall be a new temporary global Security or permanent global Security, respectively. However, if less than all the Securities of any series with differing issue dates, interest rates and Stated Maturities are to be redeemed, the Company in its sole discretion shall select the particular Securities to be redeemed and shall notify the Trustee in writing thereof at least 15 calendar days prior to the relevant Redemption Date.
ARTICLE TWELVE
SINKING FUNDS
Section 12.01 Applicability of Article.
The provisions of this Article shall be applicable to any sinking fund for the retirement of Securities of a series except as otherwise specified as contemplated by Section 3.01 for Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of such Securities of any series is herein referred to as an “optional sinking fund payment”. If provided for by the terms of any Securities of any series, the cash amount of any mandatory sinking fund payment may be subject to reduction as provided in Section 12.02. Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.
Section 12.02 Satisfaction of Sinking Fund Payments with Securities.
The Company may, in satisfaction of all or any part of any mandatory sinking fund payment with respect to the Securities of a series, (i) deliver Outstanding Securities of such series (other than any previously called for redemption) and (ii) apply as a credit Securities of such series which have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, as provided for by the terms of such Securities; provided that such Securities so delivered or applied as a credit have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the applicable Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such mandatory sinking fund payment shall be reduced accordingly.
Section 12.03 Redemption of Securities for Sinking Fund.
Not less than 60 calendar days prior to each sinking fund payment date for Securities of any series, the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash in the Currency in which the Securities of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Securities of such series and except, if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e)) and the portion thereof, if any, which is to be satisfied by delivering and crediting Securities of that series pursuant to Section 12.02, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and will also deliver to the Trustee any Securities to be so delivered and credited. If such Officer’s Certificate shall specify an optional amount to be added in cash to the next ensuing mandatory sinking fund payment, the Company shall thereupon be obligated to pay the amount therein specified. Not less than 30 calendar days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 11.03 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 11.04. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 11.06 and 11.07.
ARTICLE THIRTEEN
REPAYMENT AT THE OPTION OF HOLDERS
Section 13.01 Applicability of Article.
Repayment of Securities of any series before their Stated Maturity at the option of Holders thereof shall be made in accordance with the terms of such Securities and (except as otherwise specified by the terms of such series established pursuant to Section 3.01) in accordance with this Article.
Section 13.02 Repayment of Securities.
Securities of any series subject to repayment in whole or in part at the option of the Holders thereof will, unless otherwise provided in the terms of such Securities, be repaid at the Repayment Price thereof, together with interest, if any, thereon accrued to the Repayment Date specified in or pursuant to the terms of such Securities. The Company covenants that on or before 12:00 p.m., New York City time, on the Repayment Date it will deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money in the Currency in which the Securities of such series are payable (except as otherwise specified pursuant to Section 3.01 for the Securities of such series and except, if applicable, as provided in Sections 3.12(b), 3.12(d) and 3.12(e)) sufficient to pay the Repayment Price of, and (unless otherwise specified pursuant to Section 3.01) accrued interest on, all the Securities or portions thereof, as the case may be, to be repaid on such date.
Section 13.03 Exercise of Option.
Securities of any series subject to repayment at the option of the Holders thereof will contain an “Option to Elect Repayment” form on the reverse of such Securities. To be repaid at the option of the Holder, any Security so providing for such repayment, with the “Option to Elect Repayment” form on the reverse of such Security duly completed by the Holder (or by the Holder’s attorney duly authorized in writing), must be received by the Company not earlier than 45 calendar days nor later than 30 calendar days prior to the Repayment Date. If less than the entire Repayment Price of such Security is to be repaid in accordance with the terms of such Security, the portion of the Repayment Price of such Security to be repaid, in increments of the minimum denomination for Securities of such series, and the denomination or denominations of the Security or Securities to be issued to the Holder for the portion of such Security surrendered that is not to be repaid, must be specified. Any Security providing for repayment at the option of the Holder thereof may not be repaid in part if, following such repayment, the unpaid principal amount of such Security would be less than the minimum authorized denomination of Securities of the series of which such Security to be repaid is a part. Except as otherwise may be provided by the terms of any Security providing for repayment at the option of the Holder thereof, exercise of the repayment option by the Holder shall be irrevocable unless waived by the Company.
Section 13.04 When Securities Presented for Repayment Become Due and Payable.
If Securities of any series providing for repayment at the option of the Holders thereof shall have been surrendered as provided in this Article and as provided by or pursuant to the terms of such Securities, such Securities or the portions thereof, as the case may be, to be repaid shall become due and payable and shall be paid by the Company on the Repayment Date therein specified, and on and after such Repayment Date (unless the Company shall default in the payment of such Securities on such Repayment Date) such Securities shall, if the same were interest-bearing, cease to bear interest. Upon surrender of any such Security for repayment in accordance with such provisions, the Repayment Price of such Security so to be repaid shall be paid by the Company, together with accrued interest, if any, to the Repayment Date; provided, however, that installments of interest on Securities, whose Stated Maturity is prior to (or, if specified pursuant to Section 3.01, on) the Repayment Date shall be payable (but without interest thereon, unless the Company shall default in the payment thereof) to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant record dates according to their terms and the provisions of Section 3.07.
If any Security surrendered for repayment shall not be so repaid upon surrender thereof, the Repayment Price shall, until paid, bear interest from the Repayment Date at the rate of interest
set forth in such Security or, in the case of an Original Issue Discount Security, at the Yield to Maturity of such Security.
Section 13.05 Securities Repaid in Part.
Upon surrender of any Security that is to be repaid in part only, the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security, without service charge and at the expense of the Company, a new Security or Securities of the same series, and of like tenor, of any authorized denomination specified by the Holder, in an aggregate principal amount equal to and in exchange for the portion of the principal of such Security so surrendered that is not to be repaid. If a temporary global Security or permanent global Security is so surrendered, such new Security so issued shall be a new temporary global Security or a new permanent global Security, respectively.
ARTICLE FOURTEEN
DEFEASANCE AND COVENANT DEFEASANCE
Section 14.01 Applicability of Article; Company’s Option to Effect Defeasance or Covenant Defeasance.
If pursuant to Section 3.01 provision is made for either or both of (a) defeasance of the Securities of or within a series under Section 14.02 or (b) covenant defeasance of the Securities of or within a series under Section 14.03, then the provisions of such Section or Sections, as the case may be, together with the other provisions of this Article (with such modifications thereto as may be specified pursuant to Section 3.01 with respect to any Securities), shall be applicable to such Securities, and the Company may at its option by Board Resolution, at any time, with respect to such Securities, elect to have either Section 14.02 (if applicable) or Section 14.03 (if applicable) be applied to such Outstanding Securities upon compliance with the conditions set forth below in this Article.
Section 14.02 Defeasance and Discharge.
Upon the Company’s exercise of the above option applicable to this Section with respect to any Securities of or within a series, the Company shall be deemed to have been discharged from its obligations with respect to such Outstanding Securities on and after the date the conditions set forth in Section 14.04 are satisfied (hereinafter, “defeasance”). For this purpose, such defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by such Outstanding Securities, which shall thereafter be deemed to be “Outstanding” only for the purposes of Section 14.05 and the other Sections of this Indenture referred to in clauses (A) and (B) of this Section, and to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder: (A) the rights of Holders of such Outstanding Securities to receive, solely from the trust fund described in Section 14.04 and as more fully set forth in such Section, payments in respect of the principal of (and premium, if any) and interest, if any, on such Securities when such payments are
due, (B) the Company’s obligations with respect to such Securities under Sections 3.05, 3.06, 10.02 and 10.03 and with respect to the payment of Additional Amounts, if any, on such Securities as contemplated by Section 10.04, (C) the rights, powers, trusts, duties and immunities of the Trustee hereunder and (D) this Article. Subject to compliance with this Article Fourteen, the Company may exercise its option under this Section notwithstanding the prior exercise of its option under Section 14.03 with respect to such Securities. Following a defeasance, payment of such Securities may not be accelerated because of an Event of Default.
Section 14.03 Covenant Defeasance.
Upon the Company’s exercise of the above option applicable to this Section with respect to any Securities of or within a series, the Company shall be released from its obligations under Section 10.06, and, if specified pursuant to Section 3.01, its obligations under any other covenant with respect to such Outstanding Securities on and after the date the conditions set forth in Section 14.04 are satisfied (hereinafter, “covenant defeasance”), and such Securities shall thereafter be deemed to be not “Outstanding” for the purposes of any direction, waiver, consent or declaration or Act of Holders (and the consequences of any thereof) in connection with Section 10.06, or such other covenant, but shall continue to be deemed “Outstanding” for all other purposes hereunder. For this purpose, such covenant defeasance means that, with respect to such Outstanding Securities, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such Section or such other covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such Section or such other covenant or by reason of reference in any such Section or such other covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 5.01(iv) or 5.01(vii) or otherwise, as the case may be, but, except as specified above, the remainder of this Indenture and such Securities shall be unaffected thereby. Following a covenant defeasance, payment of such Securities may not be accelerated because of an Event of Default solely by reference to such Sections specified above in this Section 14.03.
Section 14.04 Conditions to Defeasance or Covenant Defeasance.
The following shall be the conditions to application of either Section 14.02 or Section 14.03 to any Outstanding Securities of or within a series:
(i) The Company shall have irrevocably deposited or caused to be irrevocably deposited with the Trustee (or another trustee satisfying the requirements of Section 6.07 who shall agree to comply with the provisions of this Article Fourteen applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for the benefit of, and dedicated solely to, the Holders of such Securities, (A) an amount (in such Currency in which such Securities are then specified as payable at Stated Maturity), or (B) Government Obligations applicable to such Securities (determined on the basis of the Currency in which such Securities are then specified as payable at Stated Maturity) which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, without reinvestment thereof, not later than one day before the due date of any payment of principal of (and premium, if any) and interest, if any, on such Securities, money in an amount, or (C) a combination thereof in an amount, sufficient, in the opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge, (1) the principal of (and premium, if any) and interest, if any, on such Outstanding Securities on the
Stated Maturity of such principal or installment of principal or interest and (2) any mandatory sinking fund payments or analogous payments applicable to such Outstanding Securities on the day on which such payments are due and payable in accordance with the terms of this Indenture and of such Securities.
(ii) Such defeasance or covenant defeasance shall not result in a breach or violation of, or constitute a default under, this Indenture or any other material agreement or instrument to which the Company is a party or by which it is bound.
(iii) No Default or Event of Default with respect to such Securities shall have occurred and be continuing on the date of such deposit or, insofar as Sections 5.01(v) and 5.01(vi) are concerned, at any time during the period ending on the 91st day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period).
(iv) In the case of an election under Section 14.02, the Company shall have delivered to the Trustee an Opinion of Counsel, subject to customary limitations and exclusions, stating that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such opinion shall confirm that, the Holders of such Outstanding Securities will not recognize income, gain or loss for Federal income tax purposes as a result of such defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred.
(v) In the case of an election under Section 14.03, the Company shall have delivered to the Trustee an Opinion of Counsel, subject to customary limitations and exclusions, to the effect that the Holders of such Outstanding Securities will not recognize income, gain or loss for Federal income tax purposes as a result of such covenant defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such covenant defeasance had not occurred.
(vi) The Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent to either the defeasance under Section 14.02 or the covenant defeasance under Section 14.03 (as the case may be) have been complied with.
(vii) Notwithstanding any other provisions of this Section, such defeasance or covenant defeasance shall be effected in compliance with any additional or substitute terms, conditions or limitations which may be imposed on the Company in connection therewith pursuant to Section 3.01.
Section 14.05 Deposited Money and Government Obligations to Be Held in Trust; Other Miscellaneous Provisions.
Subject to the provisions of the last paragraph of Section 10.03, all money and Government Obligations (or other property as may be provided pursuant to Section 3.01) (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 14.05, the “Trustee”) pursuant to Section 14.04 in respect of any Outstanding Securities of any series shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Securities of all sums due and to become due thereon in respect of principal (and premium, if any) and interest, if any, but such money need not be segregated from other funds except to the extent required by law.
Unless otherwise specified with respect to any Security pursuant to Section 3.01, if, after a deposit referred to in Section 14.04(i) has been made, (a) the Holder of a Security in respect of which such deposit was made is entitled to, and does, elect pursuant to Section 3.12(b) or the terms of such Security to receive payment in a Currency other than that in which the deposit pursuant to Section 14.04(a) has been made in respect of such Security, or (b) a Conversion Event occurs as contemplated in Section 3.12(d) or 3.12(e) or by the terms of any Security in respect of which the deposit pursuant to Section 14.04(a) has been made, the indebtedness represented by such Security shall be deemed to have been, and will be, fully discharged and satisfied through the payment of the principal of (and premium, if any) and interest, if any, on such Security as the same becomes due out of the proceeds yielded by converting (from time to time as specified below in the case of any such election) the amount or other property deposited in respect of such Security into the Currency in which such Security becomes payable as a result of such election or Conversion Event based on the applicable Market Exchange Rate for such Currency in effect on the second Business Day prior to each payment date, except, with respect to a Conversion Event, for such Currency in effect (as nearly as feasible) at the time of the Conversion Event.
The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the money or Government Obligations deposited pursuant to Section 14.04 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of such Outstanding Securities.
Anything in this Article to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company Request any money or Government Obligations (or other property and any proceeds therefrom) held by it as provided in Section 14.04 which, in the opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect a defeasance or covenant defeasance, as applicable, in accordance with this Article.
If, after the Company has made a deposit with the Trustee pursuant to Section 14.04, the Trustee is unable to apply any money in accordance with Section 14.05 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s obligations under this Indenture and the applicable Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 14.04 until such time as the Trustee is permitted to apply all such money in accordance with this Article Fourteen; provided, however, that if the Company has made any payment of the principal of or interest on any series of Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive any such payment from the money held by the Trustee.
Money deposited with the Trustee in trust pursuant to this Section 14.05 shall not be subject to the subordination provisions of Article Sixteen.
ARTICLE FIFTEEN
MEETINGS OF HOLDERS OF SECURITIES
Section 15.01 Purposes for Which Meetings May Be Called.
A meeting of Holders of any series of Securities of such series may be called at any time and from time to time pursuant to this Article to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by Holders of Securities of such series.
Section 15.02 Call, Notice and Place of Meetings.
(a) The Trustee may at any time call a meeting of Holders of Securities of any series for any purpose specified in Section 15.01, to be held at such time and at such place in the Borough of Manhattan, the City of New York as the Trustee shall determine. Notice of every meeting of Holders of Securities of any series, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given, in the manner provided in Section 1.06, not less than 21 nor more than 180 calendar days prior to the date fixed for the meeting.
(b) In case at any time the Company, pursuant to a Board Resolution, or the Holders of at least 10% in principal amount of the Outstanding Securities of any series shall have requested the Trustee to call a meeting of the Holders of Securities of such series for any purpose specified in Section 15.01, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have made the first publication or mailing of the notice of such meeting within 21 calendar days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided herein, then the Company or the Holders of Securities of such series in the amount above specified, as the case may be, may determine the time and the place in the Borough of Manhattan, the City of New York for such meeting and may call such meeting for such purposes by giving notice thereof as provided in subsection (a) of this Section.
Section 15.03 Persons Entitled to Vote at Meetings.
To be entitled to vote at any meeting of Holders of Securities of any series, a Person shall be (i) a Holder of one or more Outstanding Securities of such series, or (ii) a Person appointed by an instrument in writing as proxy for a Holder or Holders of one or more Outstanding Securities of such series by such Holder or Holders. The only Persons who shall be entitled to be present or
to speak at any meeting of Holders of Securities of any series shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.
Section 15.04 Quorum; Action.
The Persons entitled to vote a majority in principal amount of the Outstanding Securities of a series shall constitute a quorum for a meeting of Holders of Securities of such series; provided, however, that if any action is to be taken at such meeting with respect to a consent, waiver, request, demand, notice, authorization, direction or other action that this Indenture expressly provides may be made, given or taken by the Holders of not less than a specified percentage in principal amount of the Outstanding Securities of a series, the Persons entitled to vote such specified percentage in principal amount of the Outstanding Securities of such series shall constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the request of Holders of Securities of such series, be dissolved. In any other case the meeting may be adjourned for a period of not less than 10 calendar days as determined by the chairman of the meeting prior to the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further adjourned for a period of not less than 10 calendar days as determined by the chairman of the meeting prior to the adjournment of such adjourned meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 15.02(a), except that such notice need be given only once not less than five calendar days prior to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of any adjourned meeting shall state expressly the percentage, as provided above, of the principal amount of the Outstanding Securities of such series which shall constitute a quorum.
Except as limited by the proviso to Section 9.02, any resolution presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted by the affirmative vote of the Holders of a majority in principal amount of the Outstanding Securities of that series; provided, however, that, except as limited by the proviso to Section 9.02, any resolution with respect to any consent, waiver, request, demand, notice, authorization, direction or other action which this Indenture expressly provides may be made, given or taken by the Holders of a specified percentage, which is less than a majority, in principal amount of the Outstanding Securities of a series may be adopted at a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid by the affirmative vote of the Holders of such specified percentage in principal amount of the Outstanding Securities of that series.
Any resolution passed or decision taken at any meeting of Holders of Securities of any series duly held in accordance with this Section shall be binding on all the Holders of Securities of such series, whether or not present or represented at the meeting.
Notwithstanding the foregoing provisions of this Section 15.04, if any action is to be taken at a meeting of Holders of Securities of any series with respect to any consent, waiver, request, demand, notice, authorization, direction or other action that this Indenture expressly provides may be made, given or taken by the Holders of a specified percentage in principal amount of all Outstanding Securities affected thereby, or of the Holders of such series and one or more additional series:
(i) there shall be no minimum quorum requirement for such meeting; and
(ii) the principal amount of the Outstanding Securities of such series that vote in favor of such consent, waiver, request, demand, notice, authorization, direction or other action shall be taken into account in determining whether such request, demand, authorization, direction, notice, consent, waiver or other action has been made, given or taken under this Indenture.
Section 15.05 Determination of Voting Rights; Conduct and Adjournment of Meetings.
(a) Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders of Securities of a series in regard to proof of the holding of Securities of such series and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate. Except as otherwise permitted or required by any such regulations, the holding of Securities shall be proved in the manner specified in Section 1.04 and the appointment of any proxy shall be proved in the manner specified in Section 1.04. Such regulations may provide that written instruments appointing proxies, regular on their face, may be presumed valid and genuine without the proof specified in Section 1.04 or other proof.
(b) The Trustee shall, by an instrument in writing appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Holders of Securities as provided in Section 15.02(b), in which case the Company or the Holders of Securities of the series calling the meeting, as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in principal amount of the Outstanding Securities of such series represented at the meeting.
(c) At any meeting of Holders, each Holder of a Security of such series or proxy shall be entitled to one vote for each $1,000 principal amount of the Outstanding Securities of such series held or represented by such Holder; provided, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote, except as a Holder of a Security of such series or proxy.
(d) Any meeting of Holders of Securities of any series duly called pursuant to Section 15.02 at which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority in principal amount of the Outstanding Securities of such series represented at the meeting, and the meeting may be held as so adjourned without further notice.
Section 15.06 Counting Votes and Recording Action of Meetings.
The vote upon any resolution submitted to any meeting of Holders of Securities of any series shall be by written ballots on which shall be subscribed the signatures of the Holders of Securities of such series or of their representatives by proxy and the principal amounts and serial numbers of the Outstanding Securities of such series held or represented by them. The chairman of the meeting shall appoint at least one inspector of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting a verified written report of all votes cast at the meeting. A record, at least in duplicate, of the proceedings of each meeting of Holders of Securities of any series shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the fact, setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 15.02 and, if applicable, Section 15.04. Each copy shall be signed and verified by the affidavits of the chairman and secretary of the meeting and one such copy shall be delivered to the Company and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated.
ARTICLE SIXTEEN
SUBORDINATION OF SECURITIES
Section 16.01 Agreement to Subordinate.
The Company, for itself, its successors and assigns, covenants and agrees, and each Holder of Senior Subordinated Securities by his acceptance thereof, likewise covenants and agrees, that the payment of the principal of (and premium, if any) and interest, if any, on each and all of the Senior Subordinated Securities is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of all Senior Indebtedness.
The Company, for itself, its successors and assigns, covenants and agrees, and each Holder of Junior Subordinated Securities by his acceptance thereof, likewise covenants and agrees, that the payment of the principal of (and premium, if any) and interest, if any, on each and all of the Junior Subordinated Securities is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of all Senior Indebtedness and Senior Subordinated Indebtedness.
Section 16.02 Distribution on Dissolution, Liquidation and Reorganization; Subrogation of Subordinated Securities.
Upon any distribution of assets of the Company upon any dissolution, winding up, liquidation or reorganization of the Company, whether in bankruptcy, insolvency, reorganization or receivership proceedings or upon an assignment for the benefit of creditors or any other marshalling of the assets and liabilities of the Company or otherwise (subject to the power of a court of competent jurisdiction to make other equitable provision reflecting the rights conferred in this Indenture upon the Senior Indebtedness and the holders thereof with respect to the Securities and the holders thereof by a lawful plan of reorganization under applicable bankruptcy law):
(i) the holders of all Senior Indebtedness shall be entitled to receive payment in full of the principal thereof (and premium, if any) and interest due thereon before the Holders of the Subordinated Securities (except that, anything in this Indenture to the contrary notwithstanding, Holders of Subordinated Securities may receive and retain Permitted Junior Securities) are entitled to receive any payment upon the principal (or premium, if any) or interest, if any, on indebtedness evidenced by the Subordinated Securities (except that, anything in this Indenture to the contrary notwithstanding, Holders of Subordinated Securities may receive and retain Permitted Junior Securities);
(ii) the holders of all Senior Subordinated Indebtedness shall be entitled to receive payment in full of the principal thereof (and premium, if any) and interest due thereon before the Holders of the Junior Subordinated Securities are entitled to receive any payment upon the principal (or premium, if any) or interest, if any, on indebtedness evidenced by the Junior Subordinated Securities;
(iii) any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders of the Securities or the Trustee would be entitled except for the provisions of this Article Sixteen shall be paid by the liquidating trustee or agent or other person making such payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the holders of Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of the principal of (and premium, if any) and interest on the Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness; and
(iv) in the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, shall be received by the Trustee or the Holders of the Subordinated Securities before all Senior Indebtedness is paid in full, such payment or distribution shall be paid over, upon written notice to the Trustee, to the holder of such Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instrument evidencing any of such Senior Indebtedness may have been issued, ratably as aforesaid, for application to payment of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness.
“Permitted Junior Securities” means:
(i) Equity interests in the Company; or
(ii) debt securities that are subordinated to all Senior Indebtedness and any debt securities issued in exchange for Senior Indebtedness to substantially the same extent as, or to a greater extent than, the Subordinated Securities and the Junior Subordinated Securities are subordinated to Senior Indebtedness under this Indenture.
Subject to the payment in full of all Senior Indebtedness, the Holders of the Subordinated Securities shall be subrogated to the rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to Senior Indebtedness until the principal of (and premium, if any) and interest, if any, on the Subordinated Securities shall be paid in full and no such payments or distributions to the Holders of the Subordinated Securities of cash, property or securities otherwise distributable to the holders of Senior Indebtedness shall, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Subordinated Securities be deemed to be a payment by the Company to or on account of the Subordinated Securities. It is understood that the provisions of this Article Sixteen are and are intended solely for the purpose of defining the relative rights of the Holders of the Subordinated Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand. Nothing contained in this Article Sixteen or elsewhere in this Indenture or in the Subordinated Securities is intended to or shall impair, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Subordinated Securities, the obligation of the Company, which is unconditional and absolute, to pay to the Holders of the Subordinated Securities the principal of (and premium, if any) and interest, if any, on the Subordinated Securities as and when the same shall become due and payable in accordance with their terms, or to affect the relative rights of the Holders of the Subordinated Securities and creditors of the Company other than the holders of Senior Indebtedness, nor shall anything herein or in the Subordinated Securities prevent the Trustee or the Holder of any Subordinated Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article Sixteen of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. Upon any payment or distribution of assets of the Company referred to in this Article Sixteen, the Trustee, subject to the provisions of Section 6.01, shall be entitled to rely upon a certificate of the liquidating trustee or agent or other person making any distribution to the Trustee for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article Sixteen.
If the Trustee or any Holder of Subordinated Securities does not file a proper claim or proof of debt in the form required in any proceeding referred to above prior to 30 calendar days before the expiration of the time to file such claim in such proceeding, then the holder of any Senior Indebtedness is hereby authorized, and has the right, to file an appropriate claim or claims for or on behalf of such Holder of Subordinated Securities.
With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants or obligations as are specifically set forth in this Article and no implied covenants or obligations with respect to holders of Senior Indebtedness shall be read into this Indenture against the Trustee. The Trustee does not owe any fiduciary duties to the holders of Senior Indebtedness, including any holder of Securities other than Securities issued under this Indenture.
Section 16.03 No Payment on Subordinated Securities in Event of Default on Senior Indebtedness.
No payment by the Company on account of principal (or premium, if any), sinking funds or interest, if any, on the Subordinated Securities shall be made unless full payment of amounts then due for principal (premium, if any), sinking funds and interest on Senior Indebtedness has been made or duly provided for in money or money’s worth.
Section 16.04 Payments on Subordinated Securities Permitted.
Nothing contained in this Indenture or in any of the Subordinated Securities shall (a) affect the obligation of the Company to make, or prevent the Company from making, at any time except as provided in Sections 16.02 and 16.03, payments of principal of (or premium, if any) or interest, if any, on the Subordinated Securities or (b) prevent the application by the Trustee of any moneys deposited with it hereunder to the payment of or on account of the principal of (or premium, if any) or interest, if any, on the Subordinated Securities, unless the Trustee shall have received at its Corporate Trust Office written notice of any event prohibiting the making of such payment more than three Business Days prior to the date fixed for such payment.
Section 16.05 Authorization of Holders to Trustee to Effect Subordination.
Each Holder of Subordinated Securities by his acceptance thereof authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Article Sixteen and appoints the Trustee his attorney-in-fact for any and all such purposes.
Section 16.06 Notices to Trustee.
Notwithstanding the provisions of this Article or any other provisions of this Indenture, neither the Trustee nor any Paying Agent (other than the Company) shall be charged with knowledge of the existence of any Senior Indebtedness or of any event which would prohibit the making of any payment of moneys to or by the Trustee or such Paying Agent, unless and until the Trustee or such Paying Agent shall have received (in the case of the Trustee, at its Corporate Trust Office) written notice thereof from the Company or from the holder of any Senior Indebtedness or from the trustee for any such holder, together with proof reasonably satisfactory to the Trustee of such holding of Senior Indebtedness or of the authority of such trustee; provided, however, that if at least three Business Days prior to the date upon which by the terms hereof any such moneys may become payable for any purpose (including the payment of either the principal (or premium, if any) or interest, if any, on any Subordinated Security) the Trustee shall not have received with respect to such moneys the notice provided for in this Section 16.06, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such moneys and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary, which may be received by it within three Business Days prior to such date. The Trustee shall be entitled to rely on the delivery to it of a written notice by a Person representing himself to be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to establish that such a notice has been given by a holder of Senior Indebtedness or a trustee on behalf of any such holder. In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article Sixteen, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article Sixteen and, if such evidence is
not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment.
Section 16.07 Trustee as Holder of Senior Indebtedness.
The Trustee in its individual capacity shall be entitled to all the rights set forth in this Article Sixteen in respect of any Senior Indebtedness at any time held by it to the same extent as any other holder of Senior Indebtedness and nothing in this Indenture shall be construed to deprive the Trustee of any of its rights as such holder.
Nothing in this Article Sixteen shall apply to claims of, or payments to, the Trustee under or pursuant to Section 6.06.
Section 16.08 Modifications of Terms of Senior Indebtedness.
Any renewal or extension of the time of payment of any Senior Indebtedness or the exercise by the holders of Senior Indebtedness of any of their rights under any instrument creating or evidencing Senior Indebtedness, including the waiver of default thereunder, may be made or done all without notice to or assent from the Holders of the Subordinated Securities or the Trustee.
No compromise, alteration, amendment, modification, extension, renewal or other change of, or waiver, consent or other action in respect of, any liability or obligation under or in respect of, or of any of the terms, covenants or conditions of any indenture or other instrument under which any Senior Indebtedness is outstanding or of such Senior Indebtedness, whether or not such release is in accordance with the provisions of any applicable document, shall in any way alter or affect any of the provisions of this Article Sixteen or of the Subordinated Securities relating to the subordination thereof.
Section 16.09 Reliance on Judicial Order or Certificate of Liquidating Agent.
Upon any payment or distribution of assets of the Company referred to in this Article Sixteen, the Trustee and the Holders of the Securities shall be entitled to rely upon any order or decree entered by any court of competent jurisdiction in which such insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution, winding up or similar case or proceeding is pending, or a certificate of the trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for the benefit of creditors, agent or other person making such payment or distribution, delivered to the Trustee or to the Holders of Subordinated Securities, for the purpose of ascertaining the persons entitled to participate in such payment or distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article Sixteen.
* * * * *
This Indenture may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Indenture. The exchange of copies of this Indenture and of signature pages by facsimile, .pdf transmission, email or other electronic means shall constitute effective execution and delivery of this Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile, .pdf transmission, email or other electronic means shall be deemed to be their original signatures for all purposes.
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, as of the day and year first above written.
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| ARES CAPITAL CORPORATION |
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| By: | /s/ Scott C. Lem |
| Name: | Scott C. Lem |
| Title: | Chief Financial Officer and Treasurer |
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| U.S. BANK TRUST COMPANY, |
| NATIONAL ASSOCIATION |
| As Trustee |
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| By: | /s/ Brandon Bonfig |
| Name: | Brandon Bonfig |
| Title: | Vice President |