v3.26.1
DEBT
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
DEBT
5. DEBT

In accordance with the Investment Company Act, the Company is allowed to borrow amounts such that its asset coverage, calculated pursuant to the Investment Company Act, is at least 150% after such borrowing. The Company’s asset coverage requirement applicable to senior securities was reduced from 200% to 150% effective June 21, 2019. As of June 30, 2026, the aggregate principal amount outstanding of the senior securities issued by the Company was $15,924 and the Company’s asset coverage was 186%.
The Company’s outstanding debt as of June 30, 2026 and December 31, 2025 was as follows:

 As of 
June 30, 2026December 31, 2025
Total Aggregate Principal Amount Committed/ Outstanding (1)Principal Amount OutstandingCarrying ValueTotal Aggregate Principal Amount Committed/ Outstanding (1)Principal Amount OutstandingCarrying Value
Revolving Credit Facility$5,481 (2)$1,566 $1,563 $5,493 (2)$2,028 $2,031 
Revolving Funding Facility2,250 1,086 1,086 2,250 1,234 1,234 
SMBC Funding Facility1,600 (3)728 728 1,100 (3)563 563 
BNP Funding Facility1,465 674 674 1,265 717 717 
April 2036 CLO Notes(4)476 476 474 (5)476 476 473 (5)
October 2036 CLO Secured Loans(4)544 544 541 (5)544 544 541 (5)
January 2038 CLO Notes (4)700700 697 (5)700700 697 (5)
January 2026 Notes— — — 1,150 1,150 1,150 (5)
July 2026 Notes1,000 1,000 1,000 (5)1,000 1,000 999 (5)
January 2027 Notes900 900 894 (5)(6)900 900 900 (5)(6)
June 2027 Notes500 500 499 (5)500 500 498 (5)
June 2028 Notes1,250 1,250 1,249 (5)1,250 1,250 1,248 (5)
March 2029 Notes1,000 1,000 982 (5)(6)1,000 1,000 999 (5)(6)
July 2029 Notes850 850 844 (5)(6)850 850 861 (5)(6)
January 2030 Notes800 800 784 (5)(6)— — — 
September 2030 Notes750 750 730 (5)(6)750 750 743 (5)(6)
January 2031 Notes650 650 623 (5)(6)650 650 634 (5)(6)
April 2031 Notes750 750 721 (5)(6)— — — 
November 2031 Notes700 700 694 (5)700 700 693 (5)
March 2032 Notes1,000 1,000 990 (5)(6)1,000 1,000 1,010 (5)(6)
Total$22,666 $15,924 $15,773 $21,578 $16,012 $15,991 
________________________________________

(1)Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. Borrowings under the Revolving Credit Facility, Revolving Funding Facility, SMBC Funding Facility and BNP Funding Facility (each as defined below) are subject to borrowing base and other restrictions.

(2)Provides for an “accordion” feature that allows the Company, under certain circumstances, to increase the size of the Revolving Credit Facility to a maximum of approximately $8,222 and $7,925 as of June 30, 2026 and December 31, 2025, respectively.

(3)Provides for an “accordion” feature that allows ACJB (as defined below), under certain circumstances, to increase the size of the SMBC Funding Facility to a maximum of $2,500 and $1,300 as of June 30, 2026 and December 31, 2025, respectively.

(4)Excludes the April 2036 CLO Subordinated Notes, the October 2036 CLO Subordinated Notes and the January 2038 CLO Subordinated Notes (each as defined below), which were retained by the Company and, as such, eliminated in consolidation.

(5)Represents the aggregate principal amount outstanding, less unamortized debt issuance costs and the net unaccreted/amortized discount or premium recorded upon issuance. In January 2026, the Company repaid in full the January 2026 Notes (as defined below) upon their maturity. See Note 15 for a subsequent event relating to the July 2026 Notes (as defined below).
(6)The carrying value of the January 2027 Notes, the March 2029 Notes, the July 2029 Notes, the January 2030 Notes, the September 2030 Notes, the January 2031 Notes, the April 2031 Notes and the March 2032 Notes (each as defined below) includes adjustments as a result of effective hedge accounting relationships, as applicable. See Note 6 for more information on the interest rate swaps related to these unsecured notes issuances.

 The weighted average stated interest rate and weighted average maturity, both on aggregate principal amount outstanding, of all the Company’s outstanding debt as of June 30, 2026 were 4.8% and 4.1 years, respectively, and as of December 31, 2025 were 4.9% and 4.2 years, respectively. The weighted average stated interest rate of all the Company’s outstanding debt as of June 30, 2026 and December 31, 2025 includes the impact of interest rate swaps. See Note 6 for more information on the interest rate swaps.
 
Revolving Credit Facility
 
The Company is party to a senior secured revolving credit facility (as amended and restated, the “Revolving Credit Facility”) that allows the Company to borrow up to $5,481 at any one time outstanding. The Revolving Credit Facility consists of an approximately $4,319 revolving tranche and an approximately $1,162 term loan tranche. As of June 30, 2026, the end of the revolving periods and the stated maturity dates of the various revolving and term loan tranches of the Revolving Credit Facility were as follows:

Total Aggregate Principal Amount CommittedEnd of Revolving PeriodMaturity Date
Revolving tranche$4,151 May 21, 2030May 21, 2031
131April 15, 2029April 15, 2030
37April 12, 2028April 12, 2029
4,319 
Term loan tranche1,039 May 21, 2031
70April 15, 2030
13April 12, 2029
40April 19, 2028
1,162 
$5,481 

The Revolving Credit Facility also provides for an “accordion” feature that allows the Company, under certain circumstances, to increase the overall size of the Revolving Credit Facility to a maximum of approximately $8,222. The Revolving Credit Facility generally requires payments of interest at the end of each SOFR interest period, but no less frequently than quarterly, on SOFR based loans, and monthly payments of interest on other loans. Subsequent to the end of the respective revolving periods and prior to the respective stated maturity dates, the Company is required to repay the relevant outstanding principal amounts under both the term loan tranche and revolving tranche on a monthly basis in an amount equal to 1/12th of the outstanding principal amount at the end of the respective revolving periods.

Under the Revolving Credit Facility, the Company is required to comply with various covenants, reporting requirements and other customary requirements for similar revolving credit facilities, including, without limitation, covenants related to: (a) limitations on the incurrence of additional indebtedness and liens, (b) limitations on certain investments, (c) limitations on certain asset transfers and restricted payments, (d) maintaining a certain minimum stockholders’ equity, (e) maintaining a ratio of total assets (less total liabilities not representing indebtedness) to total indebtedness of the Company and its consolidated subsidiaries (subject to certain exceptions) of not less than 1.5:1.0 and (f) limitations on the creation or existence of agreements that prohibit liens on certain properties of the Company and certain of its subsidiaries. These covenants are subject to important limitations and exceptions that are described in the documents governing the Revolving Credit Facility. Amounts available to borrow under the Revolving Credit Facility (and the incurrence of certain other permitted debt) are also subject to compliance with a borrowing base that applies different advance rates to different types of assets (based on their value as determined pursuant to the Revolving Credit Facility) that are pledged as collateral. As of June 30, 2026, the Company was in compliance in all material respects with the terms of the Revolving Credit Facility.
 
As of June 30, 2026 and December 31, 2025, there was $1,566 and $2,028 outstanding, respectively, under the Revolving Credit Facility. The Revolving Credit Facility also provides for a sub-limit for the issuance of letters of credit for up to an aggregate amount of $450. As of June 30, 2026 and December 31, 2025, the Company had $55 and $54, respectively, in
letters of credit issued through the Revolving Credit Facility. The amount available for borrowing under the Revolving Credit Facility is reduced by the amount of commercial paper notes outstanding, any letters of credit issued and any swingline loans issued. As of June 30, 2026, there was $3,860 available for borrowing (net of the amount of commercial paper notes outstanding, letters of credit and swingline loans issued) under the Revolving Credit Facility, subject to borrowing base restrictions.
 
Since May 21, 2026, subject to certain exceptions, the interest rate charged on the Revolving Credit Facility is based on SOFR (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in certain approved foreign currencies plus a spread adjustment, if applicable) plus an applicable spread of either 1.525%, 1.650%, 1.775% or an “alternate base rate” (as defined in the documents governing the Revolving Credit Facility) plus an applicable spread of either 0.525%, 0.650% or 0.775%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving credit exposure and term loans outstanding under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. From April 15, 2025 to May 20, 2026, subject to certain exceptions, the interest rate charged on the Revolving Credit Facility was based on SOFR plus a credit spread adjustment of 0.10% (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in certain approved foreign currencies plus a spread adjustment, if applicable) plus an applicable spread of either 1.525%, 1.650% or 1.775% or an “alternate base rate” plus an applicable spread of either 0.525%, 0.650% or 0.775%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving credit exposure and term loans outstanding under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. Prior to April 15, 2025, the interest rate charged on the Revolving Credit Facility was based on SOFR plus a credit spread adjustment of 0.10% (or an alternate rate of interest for certain loans, commitments and/or other extensions of credit denominated in certain approved foreign currencies plus a spread adjustment, if applicable) plus an applicable spread of either 1.750% or 1.875% or an “alternate base rate” plus an applicable spread of either 0.750% or 0.875%, in each case, determined monthly based on the total amount of the borrowing base relative to the sum of (i) the greater of (a) the aggregate amount of revolving exposure and term loans outstanding under the Revolving Credit Facility and (b) 85% of the total commitments of the Revolving Credit Facility (or, if higher, the total revolving credit exposure) plus (ii) other debt, if any, secured by the same collateral as the Revolving Credit Facility. The Revolving Credit Facility allows for borrowings to be made using one, three or six month SOFR. As of June 30, 2026, the one, three and six month SOFR was 3.65%, 3.73% and 3.85%, respectively. As of June 30, 2026, the applicable weighted average spread in effect was 1.53%. Subject to certain exceptions, the Company is required to pay a commitment fee of 0.325% per annum on any unused portion of the Revolving Credit Facility. The Company is also required to pay a letter of credit fee of either 1.775%, 1.900% or 2.025% per annum on letters of credit issued, determined monthly based on the total amount of the borrowing base relative to the total commitments of the Revolving Credit Facility and other debt, if any, secured by the same collateral as the Revolving Credit Facility.

The Revolving Credit Facility is secured by certain assets in the Company’s portfolio and excludes investments held by Ares Capital CP (as defined below) under the Revolving Funding Facility, those held by ACJB (as defined below) under the SMBC Funding Facility, those held by AFB (as defined below) under the BNP Funding Facility and those held by ADL CLO 1, ADL CLO 4 and ADL CLO 7 (each as defined below) and certain other investments.

For the three and six months ended June 30, 2026 and 2025, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Revolving Credit Facility were as follows:

 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2026202520262025
Stated interest expense$26 $18 $62 $35 
Credit facility fees3 4 5 7 
Amortization of debt issuance costs2 2 5 4 
Total interest and credit facility fees expense$31 $24 $72 $46 
Cash paid for interest expense$31 $22 $69 $43 
Average stated interest rate5.10 %6.01 %5.19 %6.10 %
Average outstanding balance$1,984 $1,183 $2,378 $1,151 
 
Commercial Paper Program

The Company maintains a commercial paper program (the “CP Program”) that allows it to issue up to $1,000 of unsecured commercial paper notes, which bear interest at short-term fixed rates with maturities of up to 397 days from the date of issuance. The CP Program is backed by the Revolving Credit Facility and the Company expects to maintain a minimum undrawn amount under the Revolving Credit Facility equal to any outstanding commercial paper notes issued under the CP Program. The Company intends to refinance its commercial paper notes on a long-term basis through continued issuance of commercial paper notes upon maturity. However, the Company also has the ability to refinance such commercial paper notes under the Revolving Credit Facility, which matures on May 21, 2031. Accordingly, any outstanding commercial paper notes are classified as long-term debt in the Company’s consolidated balance sheets. Borrowings under the CP Program are expected to be used for general corporate purposes. As of June 30, 2026, the Company had not issued any commercial paper notes under the CP Program.

Letter of Credit Facility

The Company and Deutsche Bank AG New York Branch (the “DB Issuer”) are party to an uncommitted continuing agreement (the “Letter of Credit Facility”), which allows the DB Issuer to issue letters of credit or demand guarantees, at the request of the Company, on behalf of certain portfolio companies. The Company is required to make payments to the DB Issuer if the portfolio companies were to default on their related payment obligations. The Letter of Credit Facility is secured on a pari passu basis with the Revolving Credit Facility and pursuant to substantially the same collateral as the Revolving Credit Facility. As of June 30, 2026 and December 31, 2025, the DB Issuer had $299 and $218, respectively, in letters of credit issued under the Letter of Credit Facility.

Revolving Funding Facility
 
The Company and the Company’s consolidated subsidiary, Ares Capital CP Funding LLC (“Ares Capital CP”), are party to a revolving funding facility (as amended, the “Revolving Funding Facility”), that allows Ares Capital CP to borrow up to $2,250 at any one time outstanding. The Revolving Funding Facility is secured by all of the assets held by, and the Company’s membership interest in, Ares Capital CP. The end of the reinvestment period and the stated maturity date for the Revolving Funding Facility are July 28, 2028 and July 28, 2030, respectively.

Amounts available to borrow under the Revolving Funding Facility are subject to a borrowing base that applies different advance rates to different types of assets held by Ares Capital CP. Ares Capital CP is also subject to limitations with respect to the loans securing the Revolving Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and Ares Capital CP are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the Revolving Funding Facility. As of June 30, 2026, the Company and Ares Capital CP were in compliance in all material respects with the terms of the Revolving Funding Facility.
 
As of June 30, 2026 and December 31, 2025, there was $1,086 and $1,234 outstanding, respectively, under the Revolving Funding Facility. Since July 28, 2025, the interest rate charged on the Revolving Funding Facility is based on SOFR or a “base rate” (as defined in the documents governing the Revolving Funding Facility) plus an applicable spread of 1.80% per annum. Prior to July 28, 2025, the interest rate charged on the Revolving Funding Facility was based on SOFR or a “base rate” plus an applicable spread of 2.00% per annum. Ares Capital CP is also required to pay a commitment fee of between 0.50% and 1.25% per annum depending on the size of the unused portion of the Revolving Funding Facility.
  
For the three and six months ended June 30, 2026 and 2025, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the Revolving Funding Facility were as follows:

 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2026202520262025
Stated interest expense$16 $14 $31 $30 
Credit facility fees2 2 3 4 
Amortization of debt issuance costs1 2 2 3 
Total interest and credit facility fees expense$19 $18 $36 $37 
Cash paid for interest expense$17 $18 $34 $35 
Average stated interest rate5.47 %6.31 %5.44 %6.32 %
Average outstanding balance$1,185 $921 $1,139 $954 

SMBC Funding Facility
 
The Company and the Company’s consolidated subsidiary, Ares Capital JB Funding LLC (“ACJB”), are party to a revolving funding facility (as amended, the “SMBC Funding Facility”), with ACJB, as the borrower, and Sumitomo Mitsui Banking Corporation, as the administrative agent and collateral agent, that allows ACJB to borrow up to $1,600 at any one time outstanding. The SMBC Funding Facility also provides for an “accordion” feature that allows ACJB, under certain circumstances, to increase the overall size of the SMBC Funding Facility to $2,500. The SMBC Funding Facility is secured by all of the assets held by ACJB. The end of the reinvestment period and the stated maturity date for the SMBC Funding Facility are July 25, 2028 and July 25, 2030, respectively. The reinvestment period and the stated maturity date are both subject to two one-year extensions by mutual agreement.
 
Amounts available to borrow under the SMBC Funding Facility are subject to a borrowing base that applies an advance rate to assets held by ACJB. ACJB is also subject to limitations with respect to the loans securing the SMBC Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and ACJB are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the SMBC Funding Facility. As of June 30, 2026, the Company and ACJB were in compliance in all material respects with the terms of the SMBC Funding Facility.
 
As of June 30, 2026 and December 31, 2025, there was $728 and $563 outstanding, respectively, under the SMBC Funding Facility. Since February 25, 2026, the interest rate charged on the SMBC Funding Facility is based on an applicable spread of either (i) 1.75% over SOFR or (ii) 0.75% over a “base rate” (as defined in the documents governing the SMBC Funding Facility). From July 25, 2025 to February 24, 2026, the interest rate charged on the SMBC Funding Facility was based on an applicable spread of either (i) 1.80% over SOFR or (ii) 0.80% over a “base rate”. Prior to July 25, 2025, the interest rate charged on the SMBC Funding Facility was based on an applicable spread of either (i) 2.00% over one month SOFR or (ii) 1.00% over a “base rate”, in each case, determined monthly based on the amount of the average borrowings outstanding under the SMBC Funding Facility. ACJB is also required to pay a commitment fee of between 0.50% and 1.00% per annum depending on the size of the unused portion of the SMBC Funding Facility.
For the three and six months ended June 30, 2026 and 2025, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the SMBC Funding Facility were as follows:

 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2026202520262025
Stated interest expense$10 $7 $18 $14 
Credit facility fees1 1 2 1 
Amortization of debt issuance costs2 — 2 1 
Total interest and credit facility fees expense$13 $8 $22 $16 
Cash paid for interest expense$10 $8 $18 $15 
Average stated interest rate5.39 %6.32 %5.42 %6.32 %
Average outstanding balance$715 $449 $638 $432 
    
BNP Funding Facility
 
The Company and the Company’s consolidated subsidiary, ARCC FB Funding LLC (“AFB”), are party to a revolving funding facility (as amended, the “BNP Funding Facility”) with AFB, as the borrower, and BNP Paribas, as the administrative agent and lender, that allows AFB to borrow up to $1,465 at any one time outstanding. The BNP Funding Facility is secured by all of the assets held by AFB. The end of the reinvestment period and the stated maturity date for the BNP Funding Facility are March 20, 2028 and March 20, 2030, respectively.
 
Amounts available to borrow under the BNP Funding Facility are subject to a borrowing base that applies an advance rate to assets held by AFB. AFB is also subject to limitations with respect to the loans securing the BNP Funding Facility, including restrictions on sector concentrations, loan size, payment frequency and status, collateral interests and loans with fixed rates, as well as restrictions on portfolio company leverage, all of which may also affect the borrowing base and therefore amounts available to borrow. The Company and AFB are also required to comply with various covenants, reporting requirements and other customary requirements for similar facilities. These covenants are subject to important limitations and exceptions that are described in the documents governing the BNP Funding Facility. As of June 30, 2026, the Company and AFB were in compliance in all material respects with the terms of the BNP Funding Facility.
 
As of June 30, 2026 and December 31, 2025, there was $674 and $717, respectively, outstanding under the BNP Funding Facility. Since March 20, 2025, the interest rate charged on the BNP Funding Facility is based on an applicable SOFR or a “base rate” (as defined in the documents governing the BNP Funding Facility) plus a margin of (i) 1.90% during the reinvestment period and (ii) 2.40% following the reinvestment period. Prior to March 20, 2025, the interest rate charged on the BNP Funding Facility was based on an applicable SOFR or a “base rate” plus a margin of (i) 2.10% during the reinvestment period and (ii) 2.60% following the reinvestment period. AFB is also required to pay a commitment fee of between 0.00% and 1.25% per annum depending on the size of the unused portion of the BNP Funding Facility.

For the three and six months ended June 30, 2026 and 2025, the components of interest and credit facility fees expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the BNP Funding Facility were as follows:

For the Three Months Ended June 30,For the Six Months Ended June 30,
 2026202520262025
Stated interest expense$10 $11 $19 $22 
Credit facility fees— 1 1 1 
Amortization of debt issuance costs— — 1 1 
Total interest and credit facility fees expense$10 $12 $21 $24 
Cash paid for interest expense$10 $13 $21 $25 
Average stated interest rate5.55 %6.20 %5.56 %6.31 %
Average outstanding balance$717 $664 $693 $687 
Debt Securitizations

Certain of the Company’s wholly owned, consolidated subsidiaries (Ares Direct Lending CLO 1 LLC (“ADL CLO 1”), Ares Direct Lending CLO 4 LLC (“ADL CLO 4”) and Ares Direct Lending CLO 7 LLC (“ADL CLO 7” and, together with ADL CLO 1 and ADL CLO 4, the “CLO Subsidiaries”)) have completed on-balance sheet financings through term debt securitizations (also known as collateralized loan obligations), which are consolidated by the Company for financial reporting purposes and count as debt for the purposes of determining the Company’s asset coverage. These include (i) a $702 term debt securitization completed in May 2024 (the “ADL CLO 1 Debt Securitization”), (ii) a $804 term debt securitization completed in November 2024 (the “ADL CLO 4 Debt Securitization”) and (iii) a $1,003 term debt securitization completed in December 2025 (the “ADL CLO 7 Debt Securitization”). The Company refers to the ADL CLO 1 Debt Securitization, ADL CLO 4 Debt Securitization and ADL CLO 7 Debt Securitization collectively as the “Debt Securitizations.” The Company’s investment adviser serves as asset manager to the CLO Subsidiaries under asset management agreements with each CLO Subsidiary and has agreed to waive any management fees from the CLO Subsidiaries for such services.

ADL CLO 1 Debt Securitization

The following table presents information on the ADL CLO 1 Debt Securitization as of June 30, 2026:

ClassTypePrincipal OutstandingMaturity DateInterest Rate
April 2036 Class A CLO Notes(1)Senior Secured Floating Rate$406 April 25, 2036
SOFR+1.80%
April 2036 Class B CLO Notes(1)
Senior Secured Floating Rate70 April 25, 2036
SOFR+2.20%
Total April 2036 CLO Secured Notes476 
SOFR+1.86%
April 2036 CLO Subordinated Notes(2)
Subordinated226 April 25, 2036None
Total April 2036 CLO Notes$702 
________________________________________

(1)The April 2036 Class A CLO Notes and the April 2036 Class B CLO Notes are referred to collectively as the April 2036 CLO Secured Notes and are the secured obligations of ADL CLO 1 and are backed by a diversified portfolio of first lien senior secured loans contributed by the Company to ADL CLO 1.

(2)The Company retained all of the April 2036 CLO Subordinated Notes, as such, the April 2036 CLO Subordinated Notes are eliminated in consolidation.

The indenture governing the April 2036 CLO Secured Notes contains customary covenants and events of default as well as certain conditions pursuant to which additional loans can be acquired by ADL CLO 1. Through April 25, 2028, all principal collections received on the underlying collateral may be used by ADL CLO 1 to purchase new collateral, including additional collateral from the Company.

See Note 15 for a subsequent event relating to the ADL CLO 1 Debt Securitization.

ADL CLO 4 Debt Securitization

The following table presents information on the ADL CLO 4 Debt Securitization as of June 30, 2026:

ClassTypePrincipal OutstandingMaturity DateInterest Rate
October 2036 Class A CLO Loans(1)
Senior Secured Floating Rate$464 October 24, 2036
SOFR+1.54%
October 2036 Class B CLO Loans(1)
Senior Secured Floating Rate80 October 24, 2036
SOFR+1.83%
Total October 2036 CLO Secured Loans544 
SOFR+1.58%
October 2036 CLO Subordinated Notes(2)
Subordinated260 October 24, 2036None
Total October 2036 CLO Notes$804 
________________________________________

(1)The October 2036 Class A CLO Loans and the October 2036 Class B CLO Loans are referred to collectively as the October 2036 CLO Secured Loans and are the secured obligations of ADL CLO 4 and are backed by a diversified portfolio of first lien senior secured loans contributed by the Company to ADL CLO 4.
(2)The Company retained all of the October 2036 CLO Subordinated Notes, as such, the October 2036 CLO Subordinated Notes are eliminated in consolidation.

The documents governing the October 2036 CLO Secured Loans contain customary covenants and events of default as well as certain conditions pursuant to which additional loans can be acquired by ADL CLO 4. Through October 24, 2028, all principal collections received on the underlying collateral may be used by ADL CLO 4 to purchase new collateral, including additional collateral from the Company.

ADL CLO 7 Debt Securitization

The following table presents information on the ADL CLO 7 Debt Securitization as of June 30, 2026:

ClassTypePrincipal OutstandingMaturity DateInterest Rate
January 2038 Class A-1 CLO Notes(1)Senior Secured Floating Rate$570 January 20, 2038
SOFR+1.40%
January 2038 Class A-2 CLO Notes(1)Senior Secured Floating Rate50 January 20, 2038
SOFR+1.65%
January 2038 Class B CLO Notes(1)
Senior Secured Floating Rate80 January 20, 2038
SOFR+1.85%
Total January 2038 CLO Secured Notes700 
SOFR+1.47%
January 2038 CLO Subordinated Notes(2)
Subordinated303 January 20, 2038None
Total January 2038 CLO Notes$1,003 
________________________________________

(1)The January 2038 Class A-1 CLO Notes, the January 2038 Class A-2 CLO Notes and the January 2038 Class B CLO Notes are referred to collectively as the January 2038 CLO Secured Notes and are the secured obligations of ADL CLO 7 and are backed by a diversified portfolio of first lien senior secured loans contributed by the Company to ADL CLO 7.

(2)The Company retained all of the January 2038 CLO Subordinated Notes, as such, the January 2038 CLO Subordinated Notes are eliminated in consolidation.

The indenture governing the January 2038 CLO Secured Notes contains customary covenants and events of default as well as certain conditions pursuant to which additional loans can be acquired by ADL CLO 7. Through January 20, 2038, all principal collections received on the underlying collateral may be used by ADL CLO 7 to purchase new collateral, including additional collateral from the Company.

The interest rate charged on the April 2036 CLO Secured Notes, the October 2036 CLO Secured Loans and the January 2038 CLO Secured Notes is based on SOFR plus a blended weighted average spread of 1.86%, 1.58% and 1.47%, respectively. For the three and six months ended June 30, 2026 and 2025, the components of interest expense, cash paid for interest expense, average stated interest rates (i.e., rate in effect plus the spread) and average outstanding balances for the April 2036 CLO Secured Notes, the October 2036 CLO Secured Loans and the January 2038 CLO Secured Notes were as follows.

 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2026202520262025
Stated interest expense$24 $15 $47 $31 
Amortization of debt issuance costs— 1 — 1 
Total interest expense$24 $16 $47 $32 
Cash paid for interest expense$28 $21 $43 $29 
Average stated interest rate5.29 %5.90 %5.31 %6.04 %
Average outstanding balance$1,720 $1,020 $1,720 $1,020 

Unsecured Notes
 
The Company has issued certain unsecured notes (the Company refers to each series of unsecured notes using the defined term set forth under the “Unsecured Notes” column of the table below and collectively refers to all such series as the
“Unsecured Notes”), that pay interest semi-annually and all principal amounts are due upon maturity. Each of the Unsecured Notes may be redeemed in whole or in part at any time at the Company’s option at a redemption price equal to par plus a “make whole” premium, if applicable, as determined pursuant to the indentures governing each of the Unsecured Notes, plus any accrued and unpaid interest. Certain key terms related to the features of the Unsecured Notes as of June 30, 2026 are listed below.


Unsecured Notes		Aggregate Principal Amount IssuedEffective Stated Interest RateOriginal Issuance DateMaturity Date
July 2026 Notes$1,000 2.150%January 13, 2021July 15, 2026
January 2027 Notes(1)$900 6.206%August 3, 2023January 15, 2027
June 2027 Notes $500 2.875%January 13, 2022June 15, 2027
June 2028 Notes$1,250 2.875%June 10, 2021June 15, 2028
March 2029 Notes(1)$1,000 5.643%January 23, 2024March 1, 2029
July 2029 Notes(1)$850 5.268%May 13, 2024July 15, 2029
January 2030 Notes(1)$800 5.324%May 11, 2026January 15, 2030
September 2030 Notes(1)$750 5.391%June 3, 2025September 1, 2030
January 2031 Notes$650 5.100%September 9, 2025January 15, 2031
April 2031 Notes(1)$750 5.343%January 12, 2026April 12, 2031
November 2031 Notes$700 3.200%November 4, 2021November 15, 2031
March 2032 Notes(1)$1,000 5.313%January 8, 2025March 8, 2032
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(1)The effective stated interest rates for the January 2027 Notes, the March 2029 Notes, the July 2029 Notes, the January 2030 Notes, the September 2030 Notes, the April 2031 Notes and the March 2032 Notes include the impact of interest rate swaps.

In January 2026, the Company repaid in full the $1,150 in aggregate principle amount outstanding of unsecured notes (the “January 2026 Notes”) upon their maturity. The January 2026 Notes bore interest at a rate of 3.875% per annum. See Note 15 for a subsequent event relating to the July 2026 Notes.

In connection with certain of the unsecured notes issued by the Company, the Company has entered into interest rate swaps to more closely align the interest rates of such liabilities with the Company’s investment portfolio, which consists primarily of floating rate loans. Under the interest rate swaps, the Company receives a fixed interest rate and pays a floating interest rate of one-month SOFR plus an applicable spread. The Company designated these interest rate swaps and the associated unsecured notes as qualifying fair value hedge accounting relationships. See Note 6 for more information on the interest rate swaps.

For the three and six months ended June 30, 2026 and 2025, the components of interest expense and cash paid for interest expense for the Unsecured Notes, as well as any other unsecured notes outstanding during the periods presented, were as follows:
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2026202520262025
Stated interest expense(1)$112 $108 $217 $215 
Amortization of debt issuance costs4 4 7 8 
Net amortization of original issue discount/premium1 (1)3 (2)
Net gain on interest rate swaps accounted for as hedge instruments and the related hedged items— (1)— (2)
Total interest expense$117 $110 $227 $219 
Cash paid for interest expense(1)$109 $81 $239 $192 
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(1)Includes the impact of the interest rate swaps.
 
The Unsecured Notes contain certain covenants, including covenants requiring the Company to comply with Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act, or any successor provisions, and to provide financial information to the holders of such notes under certain circumstances. These covenants are subject to important limitations and exceptions set forth in the indentures governing such notes. As of June 30, 2026, the Company was in compliance in all material respects with the terms of the respective indentures governing each of the Unsecured Notes.
 
The Unsecured Notes are the Company’s senior unsecured obligations and rank senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not expressly subordinated; effectively junior in right of payment to any of its secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries, financing vehicles or similar facilities.