GE Capital And Ares Capital Increase Available Capital To Senior Secured Loan Program To $9 Billion
The Senior Secured Loan Program (SSLP), jointly managed by an affiliate
of Ares Capital Corporation and an affiliate of GE Capital, announced
today that its total available capital has increased from $7.
The Senior Secured Loan Program (SSLP), jointly managed by an affiliate of Ares Capital Corporation and an affiliate of GE Capital, announced today that its total available capital has increased from $7.7 billion to $9.0 billion. In connection with this expansion, GE Capital and an affiliate agreed to make available to the SSLP up to approximately $7.25 billion and Ares Capital agreed to make available to the SSLP up to approximately $1.75 billion. “We are excited about this new expansion of the SSLP which reflects the wide acceptance of our product and its significant advantages in today’s competitive marketplace,” commented Kipp deVeer, a Senior Partner of the Ares Management LLC Private Debt Group. “The SSLP continues to expand, allowing us to provide a compelling financing solution for private equity firms and management teams,” said Timothy Lyne, Senior Managing Director of GE Antares Capital. “We look forward to using this additional capital to help our customers acquire and grow their businesses in 2013 and beyond.” During the fourth quarter of 2012, SSLP closed eight financing commitments totaling approximately $1.3 billion, including four refinancing transactions of existing portfolio companies. In 2012, SSLP’s commitments totaled approximately $3.2 billion, including loans to 10 new portfolio companies and 13 existing portfolio companies. Since January 1, 2010, the SSLP has committed approximately $9.1 billion to middle-market borrowers. Below is a brief description of three of the fourth quarter SSLP transactions. Intermedix Corporation/ Thomas H. Lee Partners GE Capital Markets and Ares Capital served as joint lead arrangers and joint bookrunners in a $330 million senior secured term loan provided by SSLP to support the refinancing of Intermedix Corporation by Thomas H. Lee Partners. In addition, Ares Capital served as administrative agent in a $112 million second lien term loan and GE Capital, through its GE Antares Capital subsidiary, served as administrative agent for a $50 million senior secured revolving credit facility in connection with the transaction. Intermedix is a leading provider of technology-enabled solutions for the US healthcare and emergency response industries.
Before you invest in business development companies (BDCs) holding loans with real estate or other hard assets and mortgage real estate investment trusts (mREITs), understand these differences between the two instruments.