GE Capital, Ares lifts commitments for loan program to $11 billion

By Susanna Moon

Chicago, Nov. 21 - Ares Capital Corp. and GE Capital said they boosted the total capital available under their senior secured loan program to $11 billion from $9 billion.

The senior secured loan program is jointly managed by an affiliate of Ares and an affiliate of GE Capital, according to a press release by the companies.

GE Capital and an affiliate agreed to commit up to $8.7 billion for program capital, and Ares Capital agreed to make available up to $2.3 billion.

During the third quarter of 2013, the loan program closed eight financing transactions, including refinancings of existing portfolio companies, totaling $1.4 billion. Since Jan. 1, 2010, the program has committed about $11.9 billion to middle-market borrowers, including $2.8 billion year to date through Sept. 30, the release noted.

GE Capital Markets and Ares Capital were the joint lead arrangers and joint bookrunners in a $230 million senior secured term loan provided by program to support Greenbriar's acquisition of Nordco, Inc., an existing portfolio company of the program. Through its GE Antares Capital business, GE Capital also provided a $20 million senior secured revolving credit facility in support of the transaction.

GE Capital Markets and Ares Capital were the joint lead arrangers and joint bookrunners in a $174 million senior secured term loan provided by the program to support the recapitalization of Excelligence Learning Corp. by Sterling Investment Partners. Through its GE Antares Capital subsidiary, GE Capital also provided a $30 million senior secured revolving facility.

GE Capital Markets and Ares Capital were the joint lead arrangers and joint bookrunners in a senior secured term loan and a senior secured delayed draw term loan provided by program to support the investment in Universal Services of America by Partners Group. Through its GE Antares Capital subsidiary, GE Capital also provided a senior secured revolving credit facility.

The senior secured loan program was formed in December 2007 to invest in the senior secured debt of middle-market companies. Its members consist of Ares Capital Corp. and GE Global Sponsor Finance LLC. The program is co-managed by GE Commercial Finance Investment Advisory Services LLC and Ares Capital Management LLC, and transactions require approval by the individuals appointed by the members of the program. The program has $11 billion of available capital and can hold up to $350 million in a single transaction for borrowers across a wide range of industry sectors, the release noted.

Ares Capital is a specialty finance company based in Los Angeles. GE Capital is a funding arm of General Electric Co. and is based in Norwalk, Conn.

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