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Mar 31, 2024
Ares Capital Q1 2024 Earnings Report
Ares Capital reported strong financial results for Q1 2024 and declared a second quarter dividend.
Key Takeaways
Ares Capital Corporation announced its financial results for the first quarter ended March 31, 2024, and declared a second quarter 2024 dividend of $0.48 per share. The company reported a GAAP net income of $0.76 per share and Core EPS of $0.59. The company also reported Net Investment Income of $325 million.
Ares Capital declared a second quarter 2024 dividend of $0.48 per share.
GAAP net income per share was $0.76.
Core EPS was $0.59.
Net investment income totaled $325 million.
Ares Capital
Ares Capital
Forward Guidance
Ares Capital amended and restated its senior secured credit facility and entered into an agreement to amend the BNP Funding Facility. From April 1, 2024 through April 24, 2024, Ares Capital made new investment commitments of approximately $1.2 billion, of which approximately $1.1 billion were funded.
Positive Outlook
- Ares Capital amended and restated its senior secured credit facility.
- The amendment reduced the total commitment under the A&R Credit Facility from $4,758 million to $4,488 million.
- Extended the expiration of the revolving period for lenders electing to extend their revolving commitments in an amount equal to approximately $3,005 million from April 19, 2027 to April 12, 2028.
- Extended the stated maturity date for lenders electing to extend their revolving commitments in an amount equal to approximately $3,005 million from April 19, 2028 to April 12, 2029
- Extended the stated maturity date for $968 million of the lenders electing to extend their term loan commitments from April 19, 2028 to April 12, 2029.
Challenges Ahead
- Lenders who elected not to extend their revolving commitments in an amount equal to approximately $269 million and $107 million will remain subject to a revolving period expiration of March 31, 2026 and March 31, 2025, respectively, and a stated maturity date of March 31, 2027 and March 31, 2026, respectively.
- Lenders who elected not to extend their term loan commitments in an amount equal to $70 million, $41 million and $28 million will remain subject to a maturity date of April 19, 2028, March 31, 2027 and March 31, 2026, respectively.
- From April 1, 2024 through April 24, 2024, Ares Capital exited approximately $249 million of investment commitments.
- Ares Capital may seek to sell all or a portion of these new investment commitments, although there can be no assurance that it will be able to do so.
- Ares Capital cannot assure you that it will make any of these investments or that Ares Capital will sell all or any portion of these investments.