Ares Capital Corporation Announces Tax Reporting Information for Calendar Year 2021

Rhea-AI Summary

Ares Capital Corporation (NASDAQ:ARCC) announced the tax treatment of its 2021 common stock distributions. The total paid per share is $1.6200, with ordinary income at $1.5737 (97.142% of total dividends) and interest-related dividends designated. No portion qualifies as capital gain dividends. Record dates for distributions were on 3/15, 6/15, 9/15, and 12/15 of 2021, with payable dates following shortly. Investors are advised to consult tax advisors for specific guidance.

Positive

• Total distributions paid per share of $1.6200.
• Ordinary income distributions constitute 97.142% of total dividends.

Negative

• No distributions designated as capital gain dividends.

NEW YORK--(BUSINESS WIRE)-- Ares Capital Corporation (“Ares Capital” or the “Company”) (NASDAQ:ARCC) announced today the tax treatment of the Company’s 2021 common stock distributions (CUSIP #: 04010L103).

Record Date	Payable Date	Total Paid Per Share	Ordinary Income Per Share		Long Term Capital Gains per Share (2)	Interest - Related Dividends (3)
			Ordinary Rate	20% Rate (1)
3/15/2021	3/31/2021	$0.4000	$0.3853	$0.0147	$0.0000	85.5654%
6/15/2021	6/30/2021	$0.4000	$0.3853	$0.0147	$0.0000	85.5654%
9/15/2021	9/30/2021	$0.4100	$0.3987	$0.0113	$0.0000	84.9398%
12/15/2021	12/30/2021	$0.4100	$0.4044	$0.0056	$0.0000	83.8763%
		$1.6200	$1.5737	$0.0463	$0.0000
% of Total Dividends Paid Per Share		100.0000%	97.1420%	2.8580%	0.0000%

1. The Company hereby designates these distributions as amounts eligible for treatment as qualified dividend income in accordance with IRC section 854(b) as well as eligible for the dividends received deduction available to certain U.S. domestic corporations.
2. No portion of the Company’s distributions is designated as an amount eligible for treatment as a capital gain dividend in accordance with IRC sections 852(b)(3) and 854(a).
3. The Company hereby designates the above percentages of each of the total dividends by payment date as “interest-related dividends” within the meaning of IRC section 871(k).

This press release is not intended to constitute tax, legal, investment, or other professional advice. This is general information and should not be relied upon for tax purposes. Stockholders should consult their tax advisor for tax guidance pertinent to specific facts and circumstances.

ABOUT ARES CAPITAL CORPORATION

Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. Ares Capital’s objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which often leads to economic growth and employment. Ares Capital believes its loans and other investments in these companies can generate attractive levels of current income and potential capital appreciation for investors. Ares Capital, through its investment manager, utilizes its extensive, direct origination capabilities and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company (“BDC”) and is the largest publicly traded BDC by market capitalization as of December 31, 2021. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a publicly traded, leading global alternative investment manager.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Capital Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220131005867/en/

Ares Capital Corporation

Carl G. Drake

John Stilmar

888-818-5298

Source: Ares Capital Corporation

FAQ

What is the total distribution paid per share by Ares Capital for 2021?

The total distribution paid per share by Ares Capital for 2021 is $1.6200.

What percentage of Ares Capital's total dividends for 2021 is ordinary income?

Ordinary income constitutes 97.142% of Ares Capital's total dividends for 2021.

What are the record and payable dates for Ares Capital's 2021 distributions?

Record dates for Ares Capital's 2021 distributions were on 3/15, 6/15, 9/15, and 12/15, with payable dates shortly after.

Are any portions of Ares Capital's distributions eligible for capital gain treatment?

No portions of Ares Capital's distributions are designated as eligible for capital gain treatment.

What should investors consider regarding Ares Capital's tax treatment of distributions?

Investors should consult their tax advisors for guidance specific to their circumstances regarding Ares Capital's distribution tax treatment.