Ares Capital Corporation (NASDAQ: ARCC) and Ares Strategic Income Fund announced renewals and expansions of their bank-led revolving credit facilities with extended maturities to May 2031.

Ares Capital increased its facility commitment by approximately $170 million to $5.5 billion. The company reduced funded borrowing costs by 0.10% annually through elimination of the SOFR credit spread adjustment. The facility's accordion feature expanded to allow incremental increases up to $2.7 billion under certain circumstances. JPMorgan, Bank of America, RBC, SMBC, Truist and Wells Fargo lead the facility, which includes 40 total lenders.

Ares Strategic Income Fund increased its facility commitment by $850 million to $4.1 billion. The fund also reduced borrowing costs by 0.10% annually and extended maturity to May 2031. Its accordion feature allows expansion to a maximum of $6.15 billion under certain conditions. The facility is led by JPMorgan, Barclays, BNP Paribas, RBC, SMBC, Truist and Wells Fargo with 24 total lenders.

"The successful extension of these facilities, and in particular a significant increase in new capital to the ASIF facility, underscores the depth of our relationships, the confidence that our banking partners have in Ares' direct lending credit capabilities and our long-term differentiated performance," said Scott Lem, Chief Financial Officer of Ares Capital and ASIF.

Both companies are business development companies externally managed by subsidiaries of Ares Management Corporation. The facilities' other terms remained materially unchanged according to the companies' joint statement.