Ares Capital Corporation Closes First Venture Finance Transaction With Respicardia, Inc.

Ares Capital Corporation (NASDAQ: ARCC) announced today that it closed its first venture finance transaction with Respicardia®, Inc., an early stage company developing a medical device targeted to improve respiratory and cardiovascular health by treating central sleep apnea. Ares Capital served as lead agent in a $6 million senior secured credit facility to provide working capital for Respicardia’s completion of its pilot study.

Respicardia is in the clinical trial phase of the development of its remedē® System, a fully implantable stimulation device that is designed to restore a more natural breathing pattern during sleep in patients with central sleep apnea, a widespread sleep disorder characterized by a lack of respiratory effort by the diaphragm and associated with a higher rate of ventricular arrhythmias. Respicardia is backed by five experienced life sciences-focused venture capital firms: Three Arch Partners, Versant Ventures, Polaris Ventures Partners, Accuitive Medical Ventures and Affinity Capital Management.

“We are pleased to close our first venture finance transaction with Respicardia,” said William DeMars, Managing Director of Ares Capital’s investment adviser.

“Ares Capital provided flexible capital for us to continue the clinical trial phase in the development of the remedē System,” said Bonnie Labosky, President and Chief Executive Officer of Respicardia. “The Ares team was extremely efficient in putting this facility into place and knowledgeable of our industry.”

About Ares Capital Corporation

Ares Capital is a leading specialty finance company that provides one-stop financing solutions to U.S. middle market companies and private equity sponsors. The Company originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company, and is externally managed by a wholly owned subsidiary of Ares Management LLC. Ares Management is a global alternative asset manager and a SEC-registered investment adviser with approximately $54 billion of committed capital under management as of June 30, 2012. For more information, visit

About Respicardia, Inc.

Founded in 2006 and headquartered near Minneapolis, Minnesota, Respicardia is dedicated to improving the lives of heart failure patients by developing implantable therapies designed to improve respiratory rhythm management and cardiovascular health. The first product, the remedē System, is an implantable stimulation device that is designed to restore a more normal breathing pattern during sleep for patients with central sleep apnea. Respicardia is committed to improving cardiovascular health…one breath at a time™. For more information, visit

About Three Arch Partners

Three Arch considers investment opportunities in medical devices, diagnostics and healthcare services, and less frequently in biotechnology. Three Arch also makes selected investments in later stage healthcare companies that can benefit from their experience and resources and promise strong financial returns. For more information, visit

About Versant Ventures

Versant Ventures, founded in 1999, is committed to helping entrepreneurs build successful companies that impact healthcare and improve quality of life. Versant Ventures invests in game changing medical devices, biopharmaceuticals, and other life science opportunities. . For more information, visit

About Polaris Venture Partners

Polaris Ventures Partners’ mission is to identify, invest in and partner with seed, early stage and middle-market businesses having exceptional promise, helping them grow into market-leading companies. Polaris invests in businesses across a number of sectors including technology, consumer services, and life sciences. For more information, visit

About Accuitive Medical Ventures

Accuitive Medical Ventures specializes in venture financing for companies with outstanding technology and teams. For more information, visit

About Affinity Capital Management

Affinity Capital Management works with innovative and visionary companies and entrepreneurs to create groundbreaking improvements in health care products and services. Since its inception in 1993, Affinity has invested primarily in medical technology companies to generate healthy outcomes in health care and healthy returns for investors. For more information, visit

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