Ares Capital Issues $750 Million Notes and Swaps Rate

Ares Capital ( (ARCC) ) has shared an announcement.

On January 12, 2026, Ares Capital Corporation completed the issuance and sale of $750 million aggregate principal amount of 5.250% unsecured notes due April 12, 2031, under a supplemental indenture with U.S. Bank Trust Company, National Association as trustee. The notes, which pay interest semiannually starting April 12, 2026, include covenants tied to Investment Company Act leverage requirements, reporting obligations if Ares Capital ceases to be an Exchange Act filer, and a change-of-control repurchase feature if the notes are downgraded below investment grade by all three major rating agencies. Ares Capital intends to use the net proceeds to repay borrowings under its credit facilities, with capacity to reborrow for general corporate purposes including new portfolio investments, thereby optimizing its liability structure and preserving funding flexibility. In a related step, on January 5, 2026, the company entered into a purchase agreement with a syndicate of underwriters for the notes and simultaneously executed a $750 million interest rate swap with SMBC Capital Markets, Inc., converting its fixed 5.250% coupon into a floating rate based on one‑month SOFR plus 1.7217% through April 12, 2031, which aligns its funding costs more closely with short-term rates and may reduce interest rate risk.

The most recent analyst rating on (ARCC) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Ares Capital stock, see the ARCC Stock Forecast page.

Spark’s Take on ARCC Stock

According to Spark, TipRanks’ AI Analyst, ARCC is a Outperform.

Ares Capital’s strong financial performance, attractive valuation, and positive technical indicators contribute significantly to its overall score. The recent earnings call and corporate events further bolster its position, highlighting robust transaction volumes and enhanced financial flexibility.

To see Spark’s full report on ARCC stock, click here.

More about Ares Capital

Ares Capital Corporation is a specialty finance company that operates as a business development company, providing debt and other financing solutions to middle-market and private equity-backed companies. It focuses on generating income and capital appreciation through a diversified portfolio of investments in U.S. corporate borrowers across a range of industries.

Average Trading Volume: 4,877,459

Technical Sentiment Signal: Strong Buy

Current Market Cap: $14.87B

Find detailed analytics on ARCC stock on TipRanks’ Stock Analysis page.