Ares Capital Lifts SMBC Funding Facility to $1.6B, Cuts Spread; Accordion Up to $2.5B
Ares Capital has amended its SMBC Funding Facility, increasing lender commitments from $1.1 billion to $1.6 billion and lowering the interest spread to 1.75% over SOFR. The accordion feature is expanded to a maximum of $2.5 billion. These changes aim to enhance liquidity and reduce borrowing costs, with other terms remaining unchanged. The amendment is effective from February 25, 2026, and is provided by Sumitomo Mitsui Banking and other lenders.
Ares Capital entered into Amendment No. 13 to its SMBC Funding Facility, increasing lender commitments from $1.1 billion to $1.6 billion. The amendment lowers the interest spread to 1.75% over SOFR or 0.75% over the base rate and expands the accordion feature to a maximum of $2.5 billion. The facility is provided by Sumitomo Mitsui Banking and other lenders, with other terms remaining materially unchanged. The changes are expected to enhance liquidity while modestly reducing borrowing costs.
Agreement details:
- Agreement type: Amendment to loan and servicing agreement for SMBC Funding Facility
- Counterparty: Sumitomo Mitsui Banking and other lenders
- Signed / Effective: Feb 25 2026 / same
- Duration / Termination: At will
- Reason: Increase capacity and lower borrowing costs
Original SEC Filing: ARES CAPITAL CORP [ ARCC ] - 8-K - Feb. 27, 2026
