Exhibit
99.1
ARES
CAPITAL CORPORATION
ANNOUNCES ESTABLISHMENT OF NEW MIDDLE MARKET CREDIT FUND
New York, NY — November 20, 2007 — Ares
Capital Corporation (NASDAQ: ARCC) announced today that it established a new
middle market credit fund - Ivy Hill Middle Market Credit Fund, Ltd. (“Ivy Hill”
or the “Fund”) — which will be managed by Ivy Hill Asset Management, L.P., a
wholly owned subsidiary of ARCC. On its
formation, the Fund closed with $400 million of capital, including a $56
million investment by ARCC for $40 million of rated notes and $16 million of
junior capital.
ARCC expects the Fund will be an active purchaser of
first lien and second lien bank debt of middle market companies. Subject to certain approvals, ARCC may, in
the near future, sell to the Fund up to $150 million of senior secured loans
and in the future may from time to time sell additional loans to the Fund. In addition, Ivy Hill will seek to partner
with banks and other agents, while providing support to critical sponsor
relationships, to provide $5 million to $15 million investments as part of
larger financing solutions.
“We are extremely pleased that we have been
given the opportunity to manage the Fund and to work with its impressive roster
of investors,” said ARCC President Michael Arougheti. “We believe that the Fund is well positioned
to take advantage of attractive opportunities in the current market for senior
debt in middle market companies. We hope
this Fund is the first of many opportunities to actively manage third party assets
and to build on our core competencies in the middle market.”
ABOUT ARES CAPITAL CORPORATION
Ares Capital Corporation is a specialty finance
company that is a closed-end, non-diversified management investment company
regulated as a business development company under the Investment Company Act of
1940. Its investment objective is to generate both current income and capital
appreciation through debt and equity investments. Ares Capital Corporation
invests primarily in first and second lien senior loans and mezzanine debt,
which in some cases includes an equity component, and, to a lesser extent, in
equity investments in private U.S. middle market companies.
FORWARD-LOOKING STATEMENTS
Statements included herein may constitute “forward-looking
statements,” which relate to future events or our future performance or
financial condition. These statements
are not guarantees of future performance or results and involve a number of
risks and uncertainties. Actual results 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 our filings with the Securities and Exchange
Commission. Ares Capital Corporation undertakes no duty to update any
forward-looking statements made herein.
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
www.arescapitalcorp.com.
CONTACT
Alison Sternberg
Ares Capital Corporation
(310) 201-4200