Ares Strategic Income unit gets $500 million revolving credit facility

By Wendy Van Sickle

Columbus, Ohio, Aug. 1 – Ares Strategic Income Fund entered into a loan and servicing agreement as equityholder and servicer, with ASIF Funding I, LLC, a wholly owned subsidiary, as borrower and Societe Generale as agent on July 26 that provides a facility amount of $500 million with a revolving period ending July 26, 2026 and a final maturity date of July 26, 2028, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at term SOFR plus a margin of 190 basis points for the portion of the collateral pool that consists of broadly syndicated loans and 280 bps for the portion of the collateral pool that does not consist of broadly syndicated loans.

From and after the six-month anniversary of the effective date, the applicable margin will be subject to a floor of 275 bps.

The borrower will also pay a daily commitment fee on any monthly distribution date, termination date or date of any payment or prepayment of a loan outstanding under the facility.

Proceeds may be used for general corporate purposes, which includes payment of dividends or distributions by the borrower to the fund.

On July 31, Ares Strategic Income Fund entered into a commitment increase to its senior secured credit agreement dated Dec. 20, 2022 with JPMorgan Chase Bank, NA as administrative agent, which increased the multicurrency commitments to $775 million from $725 million. With the $25 million of dollar commitments, the total size of this facility is $800 million.

Ares is a New York-based investment company.

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