Ares Capital established its inaugural commercial paper program. The program allows the company to issue up to a maximum aggregate amount outstanding at any time of $1 billion of short-term, unsecured commercial paper notes. The notes will be sold under customary terms in the United States commercial paper note market and will rank pari passu with the company’s other senior unsecured indebtedness.
The company expects to realize cost benefits in the commercial paper market relative to other funding sources, and it expects to use available borrowing capacity from its $5.5 billion revolving credit facility as a liquidity backstop for the repayment of the notes issued under the commercial paper program. Net proceeds from the issuance of any notes pursuant to the commercial paper program are expected to be used for general corporate purposes.
The notes to be offered under the commercial paper program have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
