Company Quick10K Filing
Ares Capital
10-Q 2020-06-30 Filed 2020-08-04
10-Q 2020-03-31 Filed 2020-05-05
10-K 2019-12-31 Filed 2020-02-12
10-Q 2019-09-30 Filed 2019-10-30
10-Q 2019-06-30 Filed 2019-07-30
10-Q 2019-03-31 Filed 2019-04-30
10-K 2018-12-31 Filed 2019-02-12
10-Q 2018-09-30 Filed 2018-10-31
10-Q 2018-06-30 Filed 2018-08-01
10-Q 2018-03-31 Filed 2018-05-02
10-K 2017-12-31 Filed 2018-02-13
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-02
10-Q 2017-03-31 Filed 2017-05-03
10-K 2016-12-31 Filed 2017-02-22
10-Q 2016-09-30 Filed 2016-11-02
10-Q 2016-06-30 Filed 2016-08-03
10-Q 2016-03-31 Filed 2016-05-04
10-K 2015-12-31 Filed 2016-02-24
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-08-04
10-Q 2015-03-31 Filed 2015-05-04
10-K 2014-12-31 Filed 2015-02-26
10-Q 2014-09-30 Filed 2014-11-04
10-Q 2014-06-30 Filed 2014-08-05
10-Q 2014-03-31 Filed 2014-05-06
10-K 2013-12-31 Filed 2014-02-26
10-Q 2013-09-30 Filed 2013-11-05
10-Q 2013-06-30 Filed 2013-08-06
10-Q 2013-03-31 Filed 2013-05-07
10-K 2012-12-31 Filed 2013-02-27
10-Q 2012-09-30 Filed 2012-11-05
10-Q 2012-06-30 Filed 2012-08-07
10-Q 2012-03-31 Filed 2012-05-08
10-K 2011-12-31 Filed 2012-02-28
10-Q 2011-09-30 Filed 2011-11-08
10-Q 2011-06-30 Filed 2011-08-04
10-Q 2011-03-31 Filed 2011-05-03
10-K 2010-12-31 Filed 2011-03-01
10-Q 2010-09-30 Filed 2010-11-04
10-Q 2010-06-30 Filed 2010-08-05
10-Q 2010-03-31 Filed 2010-05-10
10-K 2009-12-31 Filed 2010-02-25
8-K 2020-08-13 Shareholder Vote
8-K 2020-08-06 Enter Agreement, Leave Agreement, Exhibits
8-K 2020-08-04 Earnings, Regulation FD, Exhibits
8-K 2020-07-15 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2020-06-22
8-K 2020-06-11
8-K 2020-05-05
8-K 2020-03-31
8-K 2020-03-23
8-K 2020-02-12
8-K 2020-01-31
8-K 2020-01-24
8-K 2020-01-15
8-K 2019-12-31
8-K 2019-11-21
8-K 2019-11-19
8-K 2019-11-08
8-K 2019-10-30
8-K 2019-09-17
8-K 2019-09-10
8-K 2019-07-30
8-K 2019-07-08
8-K 2019-06-18
8-K 2019-06-10
8-K 2019-06-10
8-K 2019-06-06
8-K 2019-04-30
8-K 2019-04-01
8-K 2019-03-20
8-K 2019-03-08
8-K 2019-02-12
8-K 2018-12-14
8-K 2018-10-31
8-K 2018-10-02
8-K 2018-09-12
8-K 2018-08-01
8-K 2018-06-25
8-K 2018-05-14
8-K 2018-05-02
8-K 2018-04-02
8-K 2018-03-30
8-K 2018-02-13
8-K 2018-01-11

ARCC 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 arccq2-2020exhibit311.htm
EX-31.2 arccq2-2020exhibit312.htm
EX-32.1 arccq2-2020exhibit321.htm

Ares Capital Earnings 2020-06-30

Balance SheetIncome StatementCash Flow

10-Q 1 arccq2-202010q.htm 10-Q Document



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

ý       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020

OR

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____         

Commission File No. 814-00663 
ARES CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter) 
Maryland
 
33-1089684
(State or other jurisdiction of
 
(I.R.S. Employer
incorporation or organization)
 
Identification Number)

245 Park Avenue, 44th Floor, New York, NY 10167
(Address of principal executive office)   (Zip Code)
(212) 750-7300
(Registrant’s telephone number, including area code)
____________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbol
Name of each exchange on which registered
Common stock, $0.001 par value
ARCC
NASDAQ Global Select Market
6.875% Senior Notes due 2047
AFC
The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:   Yes  ý  No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): 
Large accelerated filer x
 
Accelerated filer o
Non-accelerated filer o
 
Smaller reporting company o
 
 
Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
 
Outstanding at August 4, 2020
Common stock, $0.001 par value
 
422,622,119





ARES CAPITAL CORPORATION
 
INDEX
 
Part I.
Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



PART I - FINANCIAL INFORMATION
Item 1. Financial Statements

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(in millions, except per share data)


 
As of
 
June 30, 2020

December 31, 2019

(unaudited)

 
ASSETS
 

 
Investments at fair value
 


 

Non-controlled/non-affiliate company investments
$
11,545


$
12,198

Non-controlled affiliate company investments
226


296

Controlled affiliate company investments
2,071


1,932

Total investments at fair value (amortized cost of $14,862 and $14,696, respectively)
13,842


14,426

Cash and cash equivalents
278


167

Restricted cash
23

 
9

Interest receivable
116


117

Other assets
101

 
78

Operating lease right-of-use asset
90

 
94

Receivable from participants
61



Receivable for open trades
6


14

Total assets
$
14,517


$
14,905

LIABILITIES
 



Debt
$
7,398


$
6,971

Payable to participants
23

 
9

Base management fees payable
53

 
54

Income based fees payable
41

 
48

Capital gains incentive fees payable

 
58

Interest and facility fees payable
63

 
54

Accounts payable and other liabilities
114

 
90

Payable for open trades
21

 
33

Operating lease liabilities
113

 
121

Total liabilities
7,826


7,438

Commitments and contingencies (Note 7)





STOCKHOLDERS’ EQUITY





Common stock, par value $0.001 per share, 600 common shares authorized; 423 and 431 common shares issued and outstanding, respectively



Capital in excess of par value
7,660


7,760

Accumulated overdistributed earnings
(969
)

(293
)
Total stockholders’ equity
6,691


7,467

Total liabilities and stockholders’ equity
$
14,517


$
14,905

NET ASSETS PER SHARE
$
15.83


$
17.32


See accompanying notes to consolidated financial statements.


3

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions, except per share data)
(unaudited)



 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
INVESTMENT INCOME:
 
 
 
 
 
 
 
From non-controlled/non-affiliate company investments:
 
 
 
 
 
 
 
Interest income from investments (excluding payment-in-kind (“PIK”) interest income)
$
213

 
$
228

 
$
445

 
$
461

PIK interest income from investments
30

 
16

 
52

 
28

Capital structuring service fees
16

 
28

 
43

 
67

Dividend income
18

 
20

 
36

 
35

Other income
10

 
8

 
16

 
16

Total investment income from non-controlled/non-affiliate company investments
287

 
300

 
592

 
607

From non-controlled affiliate company investments:
 
 
 
 
 
 
 

Interest income from investments (excluding PIK interest income)
2

 
4

 
5


9

PIK interest income from investments
1

 
1

 
2

 
2

Capital structuring service fees

 

 
1

 
2

Dividend income

 

 

 
1

Total investment income from non-controlled affiliate company investments
3

 
5

 
8

 
14

From controlled affiliate company investments:
 
 
 
 
 
 
 

Interest income from investments (excluding PIK interest income)
35

 
41

 
72

 
74

PIK interest income from investments
6

 
6

 
9

 
11

Capital structuring service fees

 
10

 

 
14

Dividend income
18

 
18

 
36

 
33

Other income
1

 
2

 
2

 
2

Total investment income from controlled affiliate company investments
60

 
77

 
119

 
134

Total investment income
350

 
382

 
719

 
755

EXPENSES:
 
 
 
 
 
 
 

Interest and credit facility fees
76

 
69

 
158

 
136

Base management fees
53

 
50

 
108

 
99

Income based fees
41

 
49

 
85

 
97

Capital gains incentive fees

 
(1
)
 
(58
)
 
1

Administrative fees
3

 
3

 
7

 
7

Other general and administrative
7

 
10

 
12

 
18

Total expenses
180

 
180

 
312

 
358

Waiver of income based fees

 
(10
)
 


(20
)
Total expenses, net of waiver of income based fees
180

 
170

 
312

 
338

NET INVESTMENT INCOME BEFORE INCOME TAXES
170

 
212

 
407

 
417

Income tax expense, including excise tax
5

 
4

 
8

 
8

NET INVESTMENT INCOME
165

 
208

 
399

 
409

REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS, FOREIGN CURRENCY AND OTHER TRANSACTIONS:
 
 
 
 
 
 
 

Net realized gains (losses):
 
 
 
 
 
 
 
Non-controlled/non-affiliate company investments
(12
)
 
18

 
34

 
25

Non-controlled affiliate company investments
20

 

 
13

 

Controlled affiliate company investments
2

 

 
(2
)
 

Foreign currency and other transactions
(2
)
 
3

 
(3
)
 
52

Net realized gains
8

 
21

 
42

 
77

Net unrealized gains (losses):
 
 
 
 
 
 
 

Non-controlled/non-affiliate company investments
9

 
(34
)
 
(731
)
 
(67
)
Non-controlled affiliate company investments
(17
)
 
16

 
(35
)
 
9

Controlled affiliate company investments
115

 
(6
)
 
(16
)
 
(5
)
Foreign currency and other transactions
(3
)
 
(5
)
 
6

 
(9
)
Net unrealized gains (losses)
104

 
(29
)
 
(776
)
 
(72
)
Net realized and unrealized gains (losses) on investments, foreign currency and other transactions
112

 
(8
)
 
(734
)
 
5

NET INCREASE (DECREASE) IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS
$
277

 
$
200

 
$
(335
)
 
$
414

BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE (see Note 10)
$
0.65

 
0.47

 
$
(0.79
)
 
0.97

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING (see Note 10)
423

 
426

 
426

 
426


See accompanying notes to consolidated financial statements.


4

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2020
(dollar amounts in millions)
(unaudited)


Company(1)
 
Business Description
 
Investment
 
Interest(3)(7)
 
Acquisition
Date
 
Amortized
Cost
 
Fair
Value
 
Percentage
of Net
Assets
Health Care Services
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
42 North Dental, LLC (fka Gentle Communications, LLC) (15)
 
Dental services provider
 
First lien senior secured revolving loan ($3.3 par due 5/2022)
 
8.50% (Base Rate + 5.25%/Q)
 
5/26/2017
 
$
3.3

 
$
3.0

(2)(11)
 
 
 
 
 
 
First lien senior secured revolving loan ($1.8 par due 5/2022)
 
7.57% (Libor + 6.25%/Q)
 
5/26/2017
 
1.8

 
1.6

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
5.1

 
4.6

 
 
 
Absolute Dental Management LLC and ADM Equity, LLC
 
Dental services provider
 
First lien senior secured loan ($0.8 par due 1/2022)
 
8.50% (Libor + 6.75% Cash, 0.75% PIK/Q)
 
1/15/2019
 
0.8

 
0.8

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($24.6 par due 1/2022)
 
 
 
1/5/2016
 
24.2

 
14.3

(2)(10)
 
 
 
 
 
 
Class A preferred units (4,000,000 units)
 
 
 
1/5/2016
 
4.0

 

(2)
 
 
 
 
 
 
Class A common units (4,000,000 units)
 
 
 
1/5/2016
 

 

(2)
 
 
 
 
 
 
 
 
 
 
 
 
29.0

 
15.1

 
 
 
Acessa Health Inc. (fka HALT Medical, Inc.)
 
Medical supply provider
 
Common stock (569,823 shares)
 
 
 
6/22/2017
 
0.1

 

 
 
 
ADCS Billings Intermediate Holdings, LLC (15)
 
Dermatology practice
 
First lien senior secured revolving loan ($5.0 par due 5/2022)
 
6.75% (Libor + 5.75%/Q)
 
5/18/2016
 
5.0

 
4.8

(2)(11)
 
 
ADG, LLC and RC IV GEDC Investor LLC (15)
 
Dental services provider
 
First lien senior secured revolving loan ($13.8 par due 9/2022)
 
6.32% (Libor + 2.50% Cash, 2.75% PIK/M)
 
9/28/2016
 
13.8

 
11.8

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($97.7 par due 3/2024)
 
 
 
9/28/2016
 
89.0

 
68.4

(2)(10)
 
 
 
 
 
 
Membership units (3,000,000 units)
 
 
 
9/28/2016
 
3.0

 

(2)
 
 
 
 
 
 
 
 
 
 
 
 
105.8

 
80.2

 
 
 
Air Medical Group Holdings, Inc. and Air Medical Buyer Corp.
 
Emergency air medical services provider
 
First lien senior secured loan ($1.7 par due 4/2022)
 
4.25% (Libor + 3.25%/Q)
 
4/3/2020
 
1.6

 
1.6

(2)(11)(18)
 
 
 
 
 
 
Senior subordinated loan ($182.7 par due 3/2026)
 
8.88% (Libor + 7.88%/Q)
 
3/14/2018
 
182.7

 
182.7

(2)(11)
 
 
 
 
 
 
Warrant to purchase up to 115,733 units of common stock (expires 3/2028)
 
 
 
3/14/2018
 
0.9

 
1.4

(2)
 
 
 
 
 
 
 
 
 
 
 
 
185.2

 
185.7

 
 
 
Alteon Health, LLC
 
Provider of physician management services
 
First lien senior secured loan ($3.0 par due 9/2022)
 
7.50% (Libor + 6.50%/Q)
 
5/15/2017
 
3.0

 
2.5

(2)(11)
 
 
Athenahealth, Inc., VVC Holding Corp., Virence Intermediate Holding Corp., and Virence Holdings LLC (15)
 
Revenue cycle management provider to the physician practices and acute care hospitals
 
Second lien senior secured loan ($210.3 par due 2/2027)
 
8.82% (Libor + 8.50%/Q)
 
2/11/2019
 
210.3

 
206.1

(2)
 
 
 
 
 
 
Senior preferred stock (121,810 shares)
 
11.31% PIK (Libor + 11.13%/M)
 
2/11/2019
 
141.2

 
141.2

(2)
 
 
 
 
 
 
Class A interests (0.39% interest)
 
 
 
2/11/2019
 
9.0

 
12.8

(2)
 
 
 
 
 
 
 
 
 
 
 
 
360.5

 
360.1

 
 
 
Bearcat Buyer, Inc. and Bearcat Parent, Inc. (15)
 
Provider of central institutional review boards over clinical trials
 
First lien senior secured loan ($30.7 par due 7/2026)
 
5.25% (Libor + 4.25%/Q)
 
7/9/2019
 
30.7

 
30.4

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($17.0 par due 7/2026)
 
5.25% (Libor + 4.25%/Q)
 
9/10/2019
 
17.0

 
16.9

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($64.2 par due 7/2027)
 
9.25% (Libor + 8.25%/Q)
 
7/9/2019
 
64.2

 
63.5

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($5.3 par due 7/2027)
 
9.25% (Libor + 8.25%/Q)
 
7/9/2019
 
5.3

 
5.2

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($12.7 par due 7/2027)
 
9.25% (Libor + 8.25%/Q)
 
9/10/2019
 
12.7

 
12.6

(2)(11)
 
 
 
 
 
 
Class B common units (4,211 units)
 
 
 
7/9/2019
 
4.2

 
6.2

(2)
 
 
 
 
 
 
 
 
 
 
 
 
134.1

 
134.8

 
 
 

5

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2020
(dollar amounts in millions)
(unaudited)

Company(1)
 
Business Description
 
Investment
 
Interest(3)(7)
 
Acquisition
Date
 
Amortized
Cost
 
Fair
Value
 
Percentage
of Net
Assets
CCS-CMGC Holdings, Inc. (15)
 
Correctional facility healthcare operator
 
First lien senior secured revolving loan
 
 
 
10/1/2018
 

 

(13)
 
 
 
 
 
 
First lien senior secured loan ($34.5 par due 10/2025)
 
6.45% (Libor + 5.50%/Q)
 
9/25/2018
 
34.2

 
32.1

(2)
 
 
 
 
 
 
 
 
 
 
 
 
34.2

 
32.1

 
 
 
Center for Autism and Related Disorders, LLC (15)
 
Autism treatment and services provider specializing in applied behavior analysis therapy
 
First lien senior secured revolving loan ($7.8 par due 11/2023)
 
4.89% (Libor + 4.50%/Q)
 
11/21/2018
 
7.8

 
7.2

(2)(14)
 
 
Comprehensive EyeCare Partners, LLC (15)
 
Vision care practice management company
 
First lien senior secured revolving loan ($1.8 par due 2/2024)
 
6.00% (Libor + 4.75%/Q)
 
2/14/2018
 
1.8

 
1.6

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($5.3 par due 2/2024)
 
5.75% (Libor + 4.50%/Q)
 
2/14/2018
 
5.3

 
5.0

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($1.0 par due 2/2024)
 
7.00% (Base Rate + 3.75%/Q)
 
2/14/2018
 
1.0

 
1.0

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($2.4 par due 2/2024)
 
6.00% (Libor + 4.75%/Q)
 
2/14/2018
 
2.4

 
2.2

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
10.5

 
9.8

 
 
 
Convey Health Solutions, Inc.
 
Healthcare workforce management software provider
 
First lien senior secured loan ($3.2 par due 9/2026)
 
7.01% (Libor + 5.25%/Q)
 
9/4/2019
 
3.2

 
3.1

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($2.4 par due 9/2026)
 
10.35% (Libor + 9.00%/Q)
 
4/8/2020
 
2.4

 
2.4

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
5.6

 
5.5

 
 
 
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC (15)
 
Veterinary hospital operator
 
First lien senior secured revolving loan ($0.7 par due 10/2024)
 
7.25% (Libor + 6.25%/Q)
 
10/31/2019
 
0.7

 
0.7

(2)(11)(14)
 
 
 
 
 
 
First lien senior secured loan ($58.0 par due 10/2025)
 
7.34% (Libor + 5.75%/Q)
 
10/31/2019
 
58.0

 
54.5

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($14.1 par due 10/2025)
 
7.84% (Libor + 6.25%/Q)
 
10/31/2019
 
14.1

 
13.2

(2)(11)
 
 
 
 
 
 
Common stock (31,005 shares)
 
 
 
10/31/2019
 
9.6

 
9.2

(2)
 
 
 
 
 
 
 
 
 
 
 
 
82.4

 
77.6

 
 
 
D4C Dental Brands HoldCo, Inc. and Bambino Group Holdings, LLC (15)
 
Dental services provider
 
Class A preferred units (1,000,000 units)
 
 
 
12/21/2016
 
1.0

 

(2)
 
 
DCA Investment Holding LLC (15)
 
Multi-branded dental practice management
 
First lien senior secured revolving loan ($5.7 par due 7/2021)
 
6.25% (Libor + 5.25%/Q)
 
7/2/2015
 
5.7

 
5.2

(2)(11)(14)
 
 
 
 
 
 
First lien senior secured loan ($18.2 par due 7/2021)
 
6.32% (Libor + 5.25%/Q)
 
7/2/2015
 
18.2

 
16.8

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
23.9

 
22.0

 
 
 
Emerus Holdings, Inc.
 
Freestanding 24-hour emergency care micro-hospitals operator
 
First lien senior secured loan ($16.7 par due 2/2022)
 
10.00% Cash, 4.00% PIK
 
2/21/2019
 
16.7

 
16.7

(2)
 
 
Evolent Health LLC and Evolent Health, Inc. (15)
 
Medical technology company focused on value based care services and payment solutions
 
First lien senior secured loan ($67.1 par due 12/2024)
 
9.00% (Libor + 8.00%/Q)
 
12/30/2019
 
61.2

 
62.4

(2)(6)(11)
 
 
 
 
 
 
Warrant to purchase up to 1,354,968 shares of common stock (expires 1/2025)
 
 
 
12/30/2019
 
5.9

 
5.6

(2)(6)
 
 
 
 
 
 
 
 
 
 
 
 
67.1

 
68.0

 
 
 
GHX Ultimate Parent Corporation, Commerce Parent, Inc. and Commerce Topco, LLC
 
On-demand supply chain automation solutions provider to the healthcare industry
 
Second lien senior secured loan ($34.5 par due 6/2025)
 
9.00% (Libor + 8.00%/Q)
 
6/30/2017
 
34.2

 
34.2

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($55.0 par due 6/2025)
 
9.00% (Libor + 8.00%/Q)
 
1/13/2020
 
55.0

 
54.5

(2)(11)
 
 
 
 
 
 
Series A preferred stock (110,425 shares)
 
12.18% PIK (Libor + 10.75%/Q)
 
6/30/2017
 
162.1

 
160.4

(2)(11)
 
 
 
 
 
 
Class A units (14,013,303 units)
 
 
 
6/30/2017
 
14.0

 
16.6

(2)
 
 
 
 
 
 
 
 
 
 
 
 
265.3

 
265.7

 
 
 

6

ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of June 30, 2020
(dollar amounts in millions)
(unaudited)

Company(1)
 
Business Description
 
Investment
 
Interest(3)(7)
 
Acquisition
Date
 
Amortized
Cost
 
Fair
Value
 
Percentage
of Net
Assets
HealthEdge Software, Inc. (15)
 
Provider of financial, administrative and clinical software platforms to the healthcare industry
 
First lien senior secured loan ($3.7 par due 4/2026)
 
7.25% (Libor + 6.25%/Q)
 
4/9/2020
 
3.7

 
3.6

(2)(11)
 
 
Hygiena Borrower LLC (15)
 
Adenosine triphosphate testing technology provider
 
Second lien senior secured loan ($2.5 par due 8/2023)
 
8.75% (Libor + 7.75%/Q)
 
8/26/2016
 
2.5

 
2.4

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($10.7 par due 8/2023)
 
8.75% (Libor + 7.75%/Q)
 
2/27/2017
 
10.7

 
10.3

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($11.1 par due 8/2023)
 
8.75% (Libor + 7.75%/Q)
 
6/29/2018
 
11.1

 
10.8

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($0.6 par due 8/2023)
 
8.75% (Libor + 7.75%/Q)
 
6/29/2018
 
0.6

 
0.6

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
24.9

 
24.1

 
 
 
JDC Healthcare Management, LLC (15)
 
Dental services provider
 
First lien senior secured revolving loan ($4.0 par due 4/2022)
 
 
 
4/10/2017
 
4.0

 
3.1

(2)(10)
 
 
 
 
 
 
First lien senior secured loan ($29.6 par due 4/2023)
 
 
 
4/10/2017
 
28.8

 
22.5

(2)(10)
 
 
 
 
 
 
First lien senior secured loan ($4.2 par due 4/2023)
 
 
 
4/10/2017
 
4.1

 
3.2

(2)(10)
 
 
 
 
 
 
 
 
 
 
 
 
36.9

 
28.8

 
 
 
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) (15)
 
Provider of behavioral health services
 
First lien senior secured revolving loan ($2.1 par due 3/2022)
 
6.00% (Libor + 4.00% Cash, 1.00% PIK/M)
 
3/17/2017
 
2.1

 
2.0

(2)(11)
 
 
Key Surgical LLC (15)
 
Provider of sterile processing, operating room and instrument care supplies for hospitals
 
First lien senior secured loan ($16.4 par due 6/2023)
 
6.00% (EURIBOR + 5.00%/Q)
 
6/1/2017
 
16.4

 
15.9

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($5.5 par due 6/2023)
 
6.00% (Libor + 5.00%/Q)
 
8/28/2019
 
5.4

 
5.3

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
21.8

 
21.2

 
 
 
LivaNova USA Inc.
 
Medical device company focused on treating cardiovascular and neurological diseases
 
First lien senior secured loan ($42.5 par due 6/2025)
 
7.50% (Libor + 6.50%/Q)
 
6/10/2020
 
42.5

 
41.2

(2)(11)
 
 
MB2 Dental Solutions, LLC (15)
 
Dental services provider
 
First lien senior secured revolving loan ($4.6 par due 9/2023)
 
5.82% (Libor + 4.75%/Q)
 
9/29/2017
 
4.6

 
4.3

(2)(11)
 
 
MCH Holdings, Inc. and MC Acquisition Holdings I, LLC
 
Healthcare professional provider
 
First lien senior secured loan ($0.8 par due 7/2020)
 
7.75% (Base Rate + 4.50%/Q)
 
7/26/2017
 
0.8

 
0.8

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($114.4 par due 7/2020)
 
7.00% (Libor + 5.50%/Q)
 
7/26/2017
 
114.4

 
114.4

(2)(11)
 
 
 
 
 
 
Class A units (1,438,643 shares)
 
 
 
1/17/2014
 
1.5

 
1.2

(2)
 
 
 
 
 
 
 
 
 
 
 
 
116.7

 
116.4

 
 
 
Minerva Surgical, Inc. (15)
 
Medical device company focused on women's health
 
First lien senior secured loan ($30.5 par due 12/2022)
 
11.50% (Libor + 3.50% Cash, 6.00% PIK/Q)
 
12/30/2019
 
29.5

 
29.9

(2)(11)
 
 
MW Dental Holding Corp. (15)
 
Dental services provider
 
First lien senior secured revolving loan ($10.5 par due 4/2021)
 
8.25% (Libor + 6.75%/Q)
 
4/12/2011
 
10.5

 
9.6

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($153.3 par due 4/2021)
 
8.25% (Libor + 6.75%/Q)
 
4/12/2011
 
151.8

 
141.0

(2)(11)