Company Quick10K Filing
⚲
Ares Capital
Filings
10-Q 2020-09-30 Filed 2020-10-27
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
Reports
8-K 2020-10-27 Earnings, Regulation FD, Exhibits
8-K 2020-09-23 Off-BS Arrangement, Exhibits
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

Content
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.
Exhibits
EX-3.1 arccq3-2020exhibit31.htm
EX-31.1 arccq3-2020exhibit311.htm
EX-31.2 arccq3-2020exhibit312.htm
EX-32.1 arccq3-2020exhibit321.htm

Ares Capital Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
10-Q 1 arccq3-202010q.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 September 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 October 27, 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
 
September 30, 2020

December 31, 2019

(unaudited)

 
ASSETS
 

 
Investments at fair value
 


 

Non-controlled/non-affiliate company investments
$
11,870


$
12,198

Non-controlled affiliate company investments
223


296

Controlled affiliate company investments
2,265


1,932

Total investments at fair value (amortized cost of $15,090 and $14,696, respectively)
14,358


14,426

Cash and cash equivalents
233


167

Restricted cash
43

 
9

Interest receivable
124


117

Other assets
95

 
78

Operating lease right-of-use asset
85

 
94

Receivable for open trades
12


14

Total assets
$
14,950


$
14,905

LIABILITIES
 



Debt
$
7,550


$
6,971

Payable to participants
43

 
9

Base management fees payable
53

 
54

Income based fees payable
83

 
48

Capital gains incentive fees payable
—

 
58

Interest and facility fees payable
48

 
54

Accounts payable and other liabilities
101

 
90

Payable for open trades
1

 
33

Operating lease liabilities
108

 
121

Total liabilities
7,987


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
(697
)

(293
)
Total stockholders’ equity
6,963


7,467

Total liabilities and stockholders’ equity
$
14,950


$
14,905

NET ASSETS PER SHARE
$
16.48


$
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 September 30,
 
For the Nine Months Ended September 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)
$
194

 
$
242

 
$
639

 
$
704

PIK interest income from investments
33

 
14

 
85

 
42

Capital structuring service fees
12

 
40

 
55

 
107

Dividend income
18

 
19

 
54

 
55

Other income
22

 
7

 
38

 
23

Total investment income from non-controlled/non-affiliate company investments
279

 
322

 
871

 
931

From non-controlled affiliate company investments:
 
 
 
 
 
 
 

Interest income from investments (excluding PIK interest income)
2

 
2

 
7


10

PIK interest income from investments
—

 
2

 
2

 
4

Capital structuring service fees
—

 
—

 
1

 
2

Dividend income
—

 
2

 
—

 
3

Total investment income from non-controlled affiliate company investments
2

 
6

 
10

 
19

From controlled affiliate company investments:
 
 
 
 
 
 
 

Interest income from investments (excluding PIK interest income)
38

 
35

 
110

 
109

PIK interest income from investments
13

 
4

 
22

 
15

Capital structuring service fees
—

 
1

 
—

 
15

Dividend income
19

 
18

 
55

 
50

Other income
1

 
1

 
3

 
3

Total investment income from controlled affiliate company investments
71

 
59

 
190

 
192

Total investment income
352

 
387

 
1,071

 
1,142

EXPENSES:
 
 
 
 
 
 
 

Interest and credit facility fees
77

 
76

 
235

 
212

Base management fees
53

 
52

 
161

 
151

Income based fees
42

 
49

 
127

 
146

Capital gains incentive fees
—

 
(8
)
 
(58
)
 
(7
)
Administrative fees
3

 
4

 
10

 
11

Other general and administrative
7

 
7

 
19

 
25

Total expenses
182

 
180

 
494

 
538

Waiver of income based fees
—

 
(10
)
 
—


(30
)
Total expenses, net of waiver of income based fees
182

 
170

 
494

 
508

NET INVESTMENT INCOME BEFORE INCOME TAXES
170

 
217

 
577

 
634

Income tax expense, including excise tax
4

 
5

 
12

 
13

NET INVESTMENT INCOME
166

 
212

 
565

 
621

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

Net realized gains (losses):
 
 
 
 
 
 
 
Non-controlled/non-affiliate company investments
(19
)
 
(88
)
 
15

 
(63
)
Non-controlled affiliate company investments
—

 
—

 
13

 
—

Controlled affiliate company investments
(4
)
 
14

 
(6
)
 
14

Foreign currency and other transactions
(2
)
 
11

 
(5
)
 
63

Net realized gains (losses)
(25
)
 
(63
)
 
17

 
14

Net unrealized gains (losses):
 
 
 
 
 
 
 

Non-controlled/non-affiliate company investments
160

 
50

 
(571
)
 
(17
)
Non-controlled affiliate company investments
4

 
(1
)
 
(31
)
 
8

Controlled affiliate company investments
142

 
(25
)
 
126

 
(30
)
Foreign currency and other transactions
(6
)
 
2

 
—

 
(7
)
Net unrealized gains (losses)
300

 
26

 
(476
)
 
(46
)
Net realized and unrealized gains (losses) on investments, foreign currency and other transactions
275

 
(37
)
 
(459
)
 
(32
)
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS
$
441

 
$
175

 
$
106

 
$
589

BASIC AND DILUTED NET INCOME PER COMMON SHARE (see Note 10)
$
1.04

 
0.41

 
$
0.25

 
1.38

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

 
427

 
425

 
426


See accompanying notes to consolidated financial statements.


4
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 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 ($5.0 par due 5/2022)
 
7.25% (Libor + 6.25%/Q)
 
5/26/2017
 
$
5.0

 
$
4.7

(2)(11)
 
 
Absolute Dental Group LLC and Absolute Dental Equity, LLC (5)(15)
 
Dental services provider
 
First lien senior secured loan ($7.5 par due 9/2022)
 
11.00% PIK (Libor + 10.00%/Q)
 
9/30/2020
 
7.5

 
7.5

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($16.0 par due 9/2022)
 
11.00% PIK (Libor + 10.00%/Q)
 
9/30/2020
 
16.0

 
16.0

(2)(11)
 
 
 
 
 
 
Class A pref units (14,750,000 units)
 
 
 
9/30/2020
 
4.7

 
4.7

(2)
 
 
 
 
 
 
Common units (7,200,000 units)
 
 
 
9/30/2020
 
—

 
—

(2)
 
 
 
 
 
 
 
 
 
 
 
 
28.2

 
28.2

 
 
 
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 ($13.9 par due 9/2022)
 
6.25% (Libor + 2.50% Cash, 2.75% PIK/M)
 
9/28/2016
 
13.9

 
12.1

(2)(11)
 
 
 
 
 
 
Second lien senior secured loan ($100.5 par due 3/2024)
 
 
 
9/28/2016
 
89.0

 
72.4

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

 
—

(2)
 
 
 
 
 
 
 
 
 
 
 
 
105.9

 
84.5

 
 
 
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

 
1.7

(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

 
2.0

(2)
 
 
 
 
 
 
 
 
 
 
 
 
185.2

 
186.4

 
 
 
Alteon Health, LLC
 
Provider of physician management services
 
First lien senior secured loan ($2.8 par due 9/2023)
 
7.50% (Libor + 6.50%/Q)
 
5/15/2017
 
2.8

 
2.4

(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)
 
8.75% (Libor + 8.50%/Q)
 
2/11/2019
 
210.3

 
210.3

(2)
 
 
 
 
 
 
Senior preferred stock (121,810 shares)
 
11.28% PIK (Libor + 11.13%/Q)
 
2/11/2019
 
145.3

 
145.3

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

 
12.1

(2)
 
 
 
 
 
 
 
 
 
 
 
 
364.6

 
367.7

 
 
 
Bearcat Buyer, Inc. and Bearcat Parent, Inc. (15)
 
Provider of central institutional review boards over clinical trials
 
First lien senior secured loan ($30.6 par due 7/2026)
 
5.25% (Libor + 4.25%/Q)
 
7/9/2019
 
30.6

 
30.6

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

 
17.0

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

 
64.2

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

 
5.3

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

 
12.7

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

 
6.8

(2)
 
 
 
 
 
 
 
 
 
 
 
 
134.0

 
136.6

 
 
 
CCS-CMGC Holdings, Inc. (15)
 
Correctional facility healthcare operator
 
First lien senior secured revolving loan
 
 
 
10/1/2018
 
—

 
—

(13)
 
 

5
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 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
 
 
 
 
First lien senior secured loan ($34.4 par due 10/2025)
 
5.76% (Libor + 5.50%/Q)
 
9/25/2018
 
34.1

 
32.7

(2)
 
 
 
 
 
 
 
 
 
 
 
 
34.1

 
32.7

 
 
 
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 ($7.5 par due 11/2023)
 
4.75% (Libor + 4.50%/Q)
 
11/21/2018
 
7.5

 
7.0

(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

 
1.7

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($5.3 par due 2/2024)
 
6.00% (Libor + 4.75%/Q)
 
2/14/2018
 
5.3

 
5.1

(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

 
10.0

 
 
 
Convey Health Solutions, Inc.
 
Healthcare workforce management software provider
 
First lien senior secured loan ($3.1 par due 9/2026)
 
6.25% (Libor + 5.25%/Q)
 
9/4/2019
 
3.1

 
3.1

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($2.3 par due 9/2026)
 
10.00% (Libor + 9.00%/Q)
 
4/8/2020
 
2.3

 
2.3

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
5.4

 
5.4

 
 
 
CVP Holdco, Inc. and OMERS Wildcats Investment Holdings LLC (15)
 
Veterinary hospital operator
 
First lien senior secured loan ($53.3 par due 10/2025)
 
6.75% (Libor + 5.75%/Q)
 
10/31/2019
 
53.3

 
52.8

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($21.8 par due 10/2025)
 
6.75% (Libor + 5.75%/Q)
 
10/31/2019
 
21.8

 
21.6

(2)(11)
 
 
 
 
 
 
Common stock (32,429 shares)
 
 
 
10/31/2019
 
10.0

 
9.7

(2)
 
 
 
 
 
 
 
 
 
 
 
 
85.1

 
84.1

 
 
 
D4C Dental Brands HoldCo, Inc. and Bambino Group Holdings, LLC (15)
 
Dental services provider
 
First lien senior secured revolving loan ($0.1 par due 12/2022)
 
8.25% (Libor + 2.50% Cash, 4.75% PIK/Q)
 
12/21/2016
 
0.1

 
0.1

(2)(11)(14)
 
 
 
 
 
 
Class A preferred units (1,000,000 units)
 
 
 
12/21/2016
 
1.0

 
1.0

(2)
 
 
 
 
 
 
 
 
 
 
 
 
1.1

 
1.1

 
 
 
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

 
5.4

(2)(11)(14)
 
 
 
 
 
 
First lien senior secured loan ($18.2 par due 7/2021)
 
6.25% (Libor + 5.25%/Q)
 
7/2/2015
 
18.2

 
17.3

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
23.9

 
22.7

 
 
 
Emerus Holdings, Inc.
 
Freestanding 24-hour emergency care micro-hospitals operator
 
First lien senior secured loan ($16.9 par due 2/2022)
 
10.00% Cash, 4.00% PIK
 
2/21/2019
 
16.9

 
16.9

(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

 
65.1

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

 
13.1

(2)(6)
 
 
 
 
 
 
 
 
 
 
 
 
67.1

 
78.2

 
 
 
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

 
34.5

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

 
55.0

(2)(11)
 
 
 
 
 
 
Series A preferred stock (110,425 shares)
 
11.75% PIK (Libor + 10.75%/Q)
 
6/30/2017
 
166.9

 
166.9

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

 
17.6

(2)
 
 
 
 
 
 
 
 
 
 
 
 
270.1

 
274.0

 
 
 

6
ARES CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 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 revolving loan
 
 
 
4/9/2020
 
—

 
—

(13)
 
 
 
 
 
 
First lien senior secured loan ($3.7 par due 4/2026)
 
7.25% (Libor + 6.25%/M)
 
4/9/2020
 
3.7

 
3.6

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($7.1 par due 4/2026)
 
7.25% (Libor + 6.25%/M)
 
4/9/2020
 
7.1

 
7.1

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
10.8

 
10.7

 
 
 
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

 
2.5

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

 
10.7

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

 
11.1

(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

 
24.9

 
 
 
JDC Healthcare Management, LLC (15)
 
Dental services provider
 
First lien senior secured revolving loan ($4.1 par due 4/2022)
 
 
 
4/10/2017
 
3.9

 
3.1

(2)(10)
 
 
 
 
 
 
First lien senior secured loan ($29.6 par due 4/2023)
 
 
 
4/10/2017
 
28.3

 
22.5

(2)(10)
 
 
 
 
 
 
First lien senior secured loan ($4.2 par due 4/2023)
 
 
 
4/10/2017
 
4.0

 
3.2

(2)(10)
 
 
 
 
 
 
 
 
 
 
 
 
36.2

 
28.8

 
 
 
KBHS Acquisition, LLC (d/b/a Alita Care, LLC) (15)
 
Provider of behavioral health services
 
First lien senior secured revolving loan ($0.6 par due 3/2022)
 
6.00% (Libor + 4.00% Cash, 1.00% PIK/M)
 
3/17/2017
 
0.6

 
0.6

(2)(11)
 
 
Key Surgical LLC (15)
 
Provider of sterile processing, operating room and instrument care supplies for hospitals
 
First lien senior secured loan ($17.1 par due 6/2023)
 
6.00% (EURIBOR + 5.00%/Q)
 
6/1/2017
 
16.3

 
17.1

(2)(11)
 
 
 
 
 
 
First lien senior secured loan ($5.7 par due 6/2023)
 
6.00% (Libor + 5.00%/Q)
 
8/28/2019
 
5.4

 
5.7

(2)(11)
 
 
 
 
 
 
 
 
 
 
 
 
21.7

 
22.8

 
 
 
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 ($2.2 par due 9/2023)
 
7.50% (Libor + 6.50%/Q)
 
9/29/2017
 
2.2

 
2.2

(2)(11)
 
 
MCH Holdings, Inc. and MC Acquisition Holdings I, LLC
 
Healthcare professional provider
 
First lien senior secured loan ($114.4 par due 7/2021)
 
8.50% (Libor + 7.00%/M)
 
7/26/2017
 
114.4

 
114.4

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

 
1.1

(2)
 
 
 
 
 
 
 
 
 
 
 
 
115.9

 
115.5

 
 
 
Minerva Surgical, Inc. (15)
 
Medical device company focused on women's health
 
First lien senior secured loan ($31.0 par due 12/2022)
 
11.50% (Libor + 3.50% Cash, 6.00% PIK/Q)
 
12/30/2019
 
30.1

 
31.0

(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%/B)
 
4/12/2011
 
10.5

 
9.8

(2)(11)