Ares Capital Corporation Declares Third Quarter 2014 Dividend of $0.38 Per Share and Announces June 30, 2014 Financial Results

  Ares Capital Corporation Declares Third Quarter 2014 Dividend of $0.38 Per   Share and Announces June 30, 2014 Financial Results  THIRD QUARTER 2014 DIVIDEND DECLARED  Business Wire  NEW YORK -- August 5, 2014  Ares Capital Corporation (“Ares Capital”) (NASDAQ:ARCC) announced that its Board of Directors has declared a third quarter dividend of $0.38 per share, payable on September30, 2014 to stockholders of record as of September15, 2014.  JUNE 30, 2014 FINANCIAL RESULTS  Ares Capital also announced financial results for its second quarter ended June30, 2014.  HIGHLIGHTS  Financial                                                                                     Q2-14                    Q2-13   (in millions, except per     Total      Per          Total     Per   share data)                  Amount      Share(1)     Amount      Share(1)   Core EPS (2)                             $  0.34                  $  0.38   Net investment income        $ 92.0      $  0.31      $ 93.6      $  0.35   Net realized gains           $ (48.5 )  $  (0.16 )  $ 8.6       $  0.03   (losses)   Net unrealized gains         $ 99.3      $  0.33      $ 31.3      $  0.12   GAAP net income              $ 142.8     $  0.48      $ 133.5     $  0.50   Dividends declared and                   $  0.38                  $  0.38   payable                                                                                                                                                               As of June 30,                  As of December 31,   (in millions,   except per share        2014          2013            2013   data)   Portfolio   investments at fair     $  8,067.9     $  6,815.0     $       7,632.9   value   Total assets            $   8,560.2     $   7,130.8     $        8,141.5   Stockholders’           $   4,933.6     $   4,348.0     $        4,904.4   equity   Net assets per          $   16.52       $   16.21       $        16.46   share                                                                                (1)All per share amounts are basic and diluted. (2)Basic and diluted Core EPS is a non-GAAP financial measure. Core EPS is the net per share increase (decrease) in stockholders’ equity resulting from operations less realized and unrealized gains and losses, any capital gains incentive fees attributable to such net realized and unrealized gains and losses and any income taxes related to such realized gains and losses. Basic and diluted GAAP EPS is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of basic and diluted Core EPS to the most directly comparable GAAP financial measure are set forth in Schedule 1 hereto.  Portfolio Activity                                               (dollar amounts in millions)               Q2-14       Q2-13       Q4-13   Portfolio Activity During the Period:   Gross commitments                          $ 1,018.9   $ 1,203.2   Exits of commitments                       $ 767.3     $ 394.7                                                                                 Portfolio as of the End of the Period:   Number of portfolio company investments    202         164         193   Weighted average yield of debt and other   income producing securities:   At amortized cost(4)                       10.1      % 10.8      % 10.4  %   At fair value(5)                           10.0      % 10.7      % 10.4  %   Weighted average yield on total   investments:   At amortized cost(6)                       9.2       % 9.8       % 9.4   %   At fair value(7)                           9.0       % 9.6       % 9.3   %                                                                                (4) Computed as (a)annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities, divided by (b)total accruing debt and other income producing securities at amortized cost. (5) Computed as (a)annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities, divided by (b)total accruing debt and other income producing securities at fair value. (6) Computed as (a)annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities, divided by (b)total investments at amortized cost. (7) Computed as (a)annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities, divided by (b)total investments at fair value.  SECOND QUARTER 2014 OPERATING RESULTS  For the quarter ended June30, 2014, Ares Capital reported GAAP net income of $142.8 million or $0.48 per share (basic and diluted), Core EPS(2)of $0.34 per share (basic and diluted), net investment income of $92.0 million, or $0.31 per share (basic and diluted), and net realized and unrealized gains of $50.8 million or $0.17 per share (basic and diluted).  Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.  As of June30, 2014, total assets were $8.6 billion, stockholders’ equity was $4.9 billion and net asset value per share was $16.52.  In the second quarter of 2014, Ares Capital made $1,018.9 million in new commitments, including commitments to 12 new portfolio companies, ten existing portfolio companies and seven additional portfolio companies through the Senior Secured Loan Fund LLC, which operates using the name “Senior Secured Loan Program” (the “SSLP”) through which Ares Capital co-invests with GE Global Sponsor Finance LLC and General Electric Capital Corporation (together, “GE”) to fund first lien senior secured loans. Of these new commitments, 27 were sponsored transactions. As of June30, 2014, 137 separate private equity sponsors were represented in Ares Capital’s portfolio. Of the $1,018.9 million in new commitments made during the second quarter of 2014, 51% were in first lien senior secured debt, 28% were in second lien senior secured loans, 20% were in subordinated certificates of the SSLP to make co-investments with GE in first lien senior secured loans through the SSLP, and 1% were in other equity securities. Of these commitments, 96% were in floating rate debt securities, of which 79% contained interest rate floors and the remaining 21% were in the subordinated certificates of the SSLP to make co-investments with GE in floating rate first lien senior secured loans through the SSLP, all of which contained interest rate floors. Ares Capital may seek to syndicate a portion of these new investment commitments, although there can be no assurance that Ares Capital will be able to do so.  During the second quarter of 2014, significant new commitments included:    *$205 million in the subordinated certificates of the SSLP to make     co-investments with GE in first lien senior secured loans to seven     portfolio companies in a variety of industries;   *$137 million in first lien senior secured revolving, delayed draw and term     loans of an archery and bow hunting accessories provider;   *$80 million in a second lien senior secured term loan of a provider of     rain and cold weather consumer products;   *$73 million in first lien senior secured revolving and term loans of an     education services provider to the medical sector;   *$68 million in first lien and second lien senior secured term loans of a     heating, ventilation and air conditioning services provider;   *$60 million in a first lien senior secured revolving loan of an     asset-based financial services company;   *$60 million in a second lien senior secured term loan of a distributor of     emergency medical service and respiratory products;   *$45 million in a second lien senior secured term loan of a dental supplies     and equipment manufacturer;   *$40 million in first lien senior secured revolving, delayed draw and term     loans of a provider of repair services to the industrial end market;   *$40 million in a second lien senior secured term loan of a flashlight     manufacturer; and   *$32 million in a first lien senior secured delayed draw term loan of a     liquefied natural gas export provider.  Also during the second quarter of 2014, Ares Capital exited approximately $767.3 million of investment commitments.  The fair value of Ares Capital’s portfolio investments at June30, 2014 was $8.1 billion, including $7.2 billion in accruing debt and other income producing securities. The total portfolio investments at fair value were comprised of approximately 44% of first lien senior secured loans, 16% of second lien senior secured loans, 24% of subordinated certificates of the SSLP (the proceeds of which were applied to co-investments with GE in first lien senior secured loans through the SSLP), 5% of senior subordinated debt securities, 3% of preferred equity securities and 8% of other equity and other securities. As of June30, 2014, the weighted average yield of debt and other income producing securities in the portfolio at fair value was 10.0%(3)(10.1% at amortized cost(4)), the weighted average yield on total investments in the portfolio at fair value was 9.0%(5)(9.2% at amortized cost(6)), and 81% of the total investments at fair value were in floating rate securities.  Chief Executive Officer Kipp deVeer commented, “We reported strong second quarter GAAP earnings, driving growth in our net asset value after paying our regular quarterly dividend of $0.38 per share. Our portfolio continues to perform well with positive credit statistics and meaningful net investment gains. We are off to a strong start in the third quarter with $390 million of net investment commitments made and a backlog and pipeline of $890 million. While the market remains competitive, our national origination platform provides us with a broad set of investment opportunities, allowing us to remain highly selective.”  PORTFOLIO QUALITY  Ares Capital Management LLC, Ares Capital’s investment adviser, employs an investment rating system to categorize Ares Capital’s investments. In addition to various risk management and monitoring tools, Ares Capital’s investment adviser grades the credit risk of all investments on a scale of 1 to 4 no less frequently than quarterly. This system is intended primarily to reflect the underlying risk of a portfolio investment relative to Ares Capital’s initial cost basis in respect of such portfolio investment (i.e., at the time of origination or acquisition), although it may also take into account under certain circumstances the performance of the portfolio company’s business, the collateral coverage of the investment and other relevant factors. Under this system, investments with a grade of 4 involve the least amount of risk to Ares Capital’s initial cost basis. The trends and risk factors for this investment since origination or acquisition are generally favorable, which may include the performance of the portfolio company or a potential exit. Investments graded 3 involve a level of risk to Ares Capital’s initial cost basis that is similar to the risk to Ares Capital’s initial cost basis at the time of origination or acquisition. This portfolio company is generally performing as expected and the risk factors to Ares Capital’s ability to ultimately recoup the cost of Ares Capital’s investment are neutral to favorable. All investments or acquired investments in new portfolio companies are initially assessed a grade of 3. Investments graded 2 indicate that the risk to Ares Capital’s ability to recoup the initial cost basis of such investment has increased materially since origination or acquisition, including as a result of factors such as declining performance and non-compliance with debt covenants; however, payments are generally not more than 120days past due. An investment grade of 1 indicates that the risk to Ares Capital’s ability to recoup the initial cost basis of such investment has substantially increased since origination or acquisition, and the portfolio company likely has materially declining performance. For debt investments with an investment grade of 1, most or all of the debt covenants are out of compliance and payments are substantially delinquent. For investments graded 1, it is anticipated that Ares Capital will not recoup Ares Capital’s initial cost basis and may realize a substantial loss of Ares Capital’s initial cost basis upon exit. For investments graded 1 or 2, Ares Capital’s investment adviser enhances its level of scrutiny over the monitoring of such portfolio company. The grade of a portfolio investment may be reduced or increased over time.  As of June30, 2014, the weighted average grade of the investments in Ares Capital’s portfolio at fair value was 3.1 and loans on non-accrual status represented 1.9% of total investments at amortized cost (or 1.2% at fair value).  LIQUIDITY AND CAPITAL RESOURCES  As of June30, 2014, Ares Capital had $223.2 million in cash and cash equivalents and $3.4 billion in aggregate principal amount of debt outstanding ($3.4 billion in carrying value). Subject to leverage and borrowing base restrictions, Ares Capital had approximately $1.8 billion available for additional borrowings under its existing credit facilities as of June30, 2014.  In May2014, Ares Capital and Ares Capital CP Funding LLC (“Ares Capital CP”) entered into an amendment to Ares Capital CP’s revolving funding facility (the “Revolving Funding Facility”). The amendment, among other things, (1)extended the reinvestment period from April18, 2015 to May14, 2017, (2)extended the stated maturity date from April18, 2017 to May14, 2019 and (3)reduced the range of commitment fees paid depending on the size of the unused portion of the Revolving Funding Facility from between 0.50% and 1.75% per annum to 0.50% and 1.50% per annum. Commitments under the amended Revolving Funding Facility were reduced from the pre-amendment commitments of $620 million to $540 million.  In May2014, Ares Capital increased total commitments under its revolving credit facility by $80 million from $1,170 million to $1,250 million.  SECOND QUARTER 2014 DIVIDEND  For the three months ended June30, 2014, Ares Capital declared on May6, 2014 a dividend of $0.38 per share for a total of approximately $113.3 million. The record date for the dividend was June16, 2014 and the dividend was paid on June30, 2014.  RECENT DEVELOPMENTS  In July2014, Ares Capital completed a public equity offering (the “July2014 Offering”) pursuant to which Ares Capital sold 15,525,000 shares of common stock (including 2,025,000 shares pursuant to the exercise in full by the underwriters of their option to purchase additional shares) at a price of $16.63 per share to the participating underwriters. Total proceeds from the July2014 Offering, net of estimated offering expenses payable by Ares Capital, were approximately $257.7 million. Ares Capital used the net proceeds of the July2014 Offering to repay certain outstanding indebtedness under its debt facilities and for general corporate purposes, which included investing in portfolio companies in accordance with its investment objective.  From July1, 2014 through July31, 2014, Ares Capital made new investment commitments of $492million, of which $451million were funded. Of these new commitments, 54% were in first lien senior secured loans, 43% were in second lien senior secured loans, 2% were investments in subordinated certificates of the SSLP to make co-investments with GE in first lien senior secured loans through the SSLP and 1% were in other equity securities. Of the $492million of new investment commitments, 97% were floating rate, 2% were fixed rate and 1% were non-interest bearing. The weighted average yield of debt and other income producing securities funded during the period at amortized cost was 8.1%. Ares Capital may seek to syndicate a portion of these new investment commitments, although there can be no assurance that Ares Capital will be able to do so.  From July1, 2014 through July31, 2014, Ares Capital exited $102million of investment commitments. Of these investment commitments, 44% were second lien senior secured loans, 28% were first lien senior secured loans, 17% were investments in subordinated certificates of the SSLP, 6% were preferred equity securities and 5% were other equity securities. Of the $102million of exited investment commitments, 80% were floating rate, 11% were non-interest bearing, 8% were fixed rate and 1% were on non-accrual status. The weighted average yield of debt and other income producing securities exited or repaid during the period at amortized cost was 10.0%. On the $102million of investment commitments exited from July1, 2014 through July31, 2014, Ares Capital recognized total net realized gains of approximately $5million.  In addition, as of July31, 2014, Ares Capital had an investment backlog and pipeline of approximately $390million and $500million, respectively. Investment backlog includes transactions approved by Ares Capital’s investment adviser’s investment committee and/or for which a formal mandate, letter of intent or signed commitment has been issued, and therefore Ares Capital believes are likely to close. Investment pipeline includes transactions where due diligence and analysis are in process, but no formal mandate, letter of intent or signed commitment has been issued. The consummation of any of the investments in this backlog and pipeline depends upon, among other things, one or more of the following: satisfactory completion of Ares Capital’s due diligence investigation of the prospective portfolio company, Ares Capital’s acceptance of the terms and structure of such investment and the execution and delivery of satisfactory transaction documentation. In addition, Ares Capital may syndicate a portion of these investments and certain of these investments may result in the repayment of existing investments. Ares Capital cannot assure you that Ares Capital will make any of these investments or that Ares Capital will syndicate any portion of these investments.  WEBCAST / CONFERENCE CALL  Ares Capital will host a webcast/conference call on Tuesday, August5, 2014, at 12:00p.m. (ET) to discuss its financial results for the second quarter ended June30, 2014. PLEASE VISIT ARES CAPITAL’S WEBCAST LINK LOCATED ON THE HOME PAGE OF THE INVESTOR RESOURCES SECTIONOF ARES CAPITAL’S WEBSITE FOR A SLIDE PRESENTATION THAT COMPLEMENTS THE EARNINGS CONFERENCE CALL.  All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home pageof the Investor Resources section of Ares Capital’s website at http://www.arescapitalcorp.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing (888) 317-6003. International callers can access the conference call by dialing +1 (412) 317-6061. All callers will need to enter the Participant Elite Entry Number 9496315 followed by the # sign and reference “Ares Capital Corporation” once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available approximately one hour after the end of the call through August18, 2014 at 5:00p.m. (Eastern Time) to domestic callers by dialing (877) 344-7529 and to international callers by dialing +1 (412) 317-0088. For all replays, please reference conference number 10048348. An archived replay will also be available on a webcast link located on the Home pageof the Investor Resources section of Ares Capital’s website.  ABOUT ARES CAPITAL CORPORATION  Ares Capital is a leading specialty finance company that provides one-stop debt and equity financing solutions to the U.S. middle market. Ares Capital originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company, and is externally managed by a subsidiary of Ares Management, L.P. (“Ares Management”) (NYSE:ARES). Ares Management is a publicly traded, leading global alternative asset manager with approximately $77 billion of assets under management as of March31, 2014. For more information, visit www.arescapitalcorp.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.  FORWARD-LOOKING STATEMENTS  Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or Ares Capital’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital’s filings with the Securities and Exchange Commission. Ares Capital Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call.  AVAILABLE INFORMATION  Ares Capital Corporation’s filings with the Securities and Exchange Commission, press releases, earnings releases and other financial information are available on its website at http://www.arescapitalcorp.com. The information on Ares Capital’s website is not and should not be deemed to be incorporated by reference herein.  ARES CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Amounts in thousands, except per share data)                                                                            As of                                        June 30, 2014    December 31, 2013                                        (unaudited)   ASSETS   Total investments at fair   value (amortized cost of             $  8,067,942      $    7,632,897   $7,880,204 and $7,537,403,   respectively)   Cash and cash equivalents            223,154           149,629   Interest receivable                  153,077           123,981   Receivable for open trades           963               128,566   Other assets                         115,083           106,431   Total assets                         $  8,560,219      $    8,141,504   LIABILITIES   Debt                                 $  3,357,415      $    2,986,275   Base management fees payable         30,731            29,270   Income based fees payable            25,540            29,001   Capital gains incentive fees         74,615            80,937   payable   Accounts payable and other           76,271            68,649   liabilities   Interest and facility fees           44,527            42,828   payable   Payable for open trades              17,476            100   Total liabilities                    3,626,575         3,237,060   STOCKHOLDERS’ EQUITY   Common stock, par value $0.001   per share, 500,000 common   shares authorized, 298,583           299               298   and 297,971 common shares   issued and outstanding,   respectively   Capital in excess of par value       4,993,323         4,982,477   Accumulated overdistributed          (45,928       )   (8,785            )   net investment income   Accumulated net realized loss   on investments, foreign   currency transactions,               (201,512      )   (165,040          )   extinguishment of debt and   other assets   Net unrealized gain on   investments and foreign              187,462           95,494   currency transactions   Total stockholders’ equity           4,933,644         4,904,444   Total liabilities and                $  8,560,219      $    8,141,504   stockholders’ equity   NET ASSETS PER SHARE                 $  16.52          $    16.46                                                                                ARES CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share data)                                                                          For the three months ended      For the six months ended                        June 30,                        June 30,                        2014           2013            2014           2013                        (unaudited)     (unaudited)     (unaudited)     (unaudited)   INVESTMENT   INCOME:   Interest   income from          $  176,150      $  157,969      $  349,674      $  302,146   investments   Capital   structuring          21,732          24,149          42,630          30,140   service fees   Dividend             16,749          15,778          47,475          47,867   income   Management and       6,078           4,993           12,030          9,491   other fees   Other income         4,218           3,234           12,837          11,534   Total   investment           224,927         206,123         464,646         401,178   income                                                                                       EXPENSES:   Interest and   credit               53,151          40,261          105,644         79,608   facility fees   Base   management           30,731          24,902          60,815          48,120   fees   Income based         25,540          25,390          53,858          49,226   fees   Capital gains        10,168          7,984           11,103          4,233   incentive fees   Administrative       2,813           2,606           6,556           5,198   fees   Other general   and                  7,610           7,484           14,040          14,396   administrative   Total expenses       130,013         108,627         252,016         200,781   NET INVESTMENT   INCOME BEFORE        94,914          97,496          212,630         200,397   INCOME TAXES   Income tax   expense,             2,923           3,919           8,303           7,723   including   excise tax   NET INVESTMENT       91,991          93,577          204,327         192,674   INCOME   NET REALIZED   AND UNREALIZED   GAINS (LOSSES)   ON INVESTMENTS   AND FOREIGN   CURRENCY   TRANSACTIONS:   Net realized         (48,517     )   8,648           (36,400     )   20,326   gains (losses)   Net unrealized       99,357          31,273          91,968          840   gains   Net realized   and unrealized   gains on   investments          50,840          39,921          55,568          21,166   and foreign   currency   transactions   REALIZED   LOSSES ON            —               —               (72         )   —   EXTINGUISHMENT   OF DEBT   NET INCREASE   IN   STOCKHOLDERS’        $  142,831      $  133,498      $  259,823      $  213,840   EQUITY   RESULTING FROM   OPERATIONS   BASIC AND   DILUTED              $  0.48         $  0.50         $  0.87         $  0.83   EARNINGS PER   COMMON SHARE   WEIGHTED   AVERAGE SHARES   OF COMMON   STOCK                298,270         266,174         298,122         257,464   OUTSTANDING -   BASIC AND   DILUTED                                                                                                                        SCHEDULE 1   Reconciliations of basic and diluted Core EPS to basic and diluted GAAP EPS  Reconciliations of basic and diluted Core EPS to basic and diluted GAAP EPS, the most directly comparable GAAP financial measure, for the three months ended June30, 2014 and 2013 are provided below.                                                                             For the three months ended June 30,                                        2014                  2013                                        (unaudited)            (unaudited)   Basic and diluted Core EPS(1)        $      0.34            $    0.38   Net realized and unrealized          0.17                   0.15   gains   Capital gains incentive fees   attributed to net realized and       (0.03            )     (0.03        )   unrealized gains and losses   Income tax expense related to        —                      —   realized gains and losses   Basic and diluted GAAP EPS           $      0.48            $    0.50                                                                                (1) Basic and diluted Core EPS is a non-GAAP financial measure. Core EPS is the net per share increase (decrease) in stockholders’ equity resulting from operations less realized and unrealized gains and losses, any capital gains incentive fees attributable to such net realized and unrealized gains and losses and any income taxes related to such realized gains and losses. Basic and diluted GAAP EPS is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.  Contact:  Ares Capital Corporation Carl G. Drake Jana Markowicz 888-818-5298  
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