Ares BDC Closes $750 Million Private Offering, Enters Into Interest Rate Swap
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Ares Strategic Income Fund, a non-listed business development company launched in December 2022, recently announced the closing of its previously disclosed $750 million private placement offering of 5.6% notes due 2030.
In connection, the company entered into an interest rate swap agreement with Wells Fargo pursuant to which the company will receive fixed rate interest at 5.6% and pay floating rate interest based on one-month secured overnight financing rate plus approximately 2.3%. The interest rate swap matures on Feb. 15, 2030.
The BDC expects to use the net proceeds of this offering to repay certain outstanding indebtedness under its debt facilities. It may reborrow under its debt facilities for general corporate purposes, which include investing in portfolio companies in accordance with its investment objective.
As previously reported by The DI Wire, the BDC entered into a similar indenture and interest rate swamp in June of this year.