Ares Capital Corporation Announces Tax Reporting Information for Calendar Year 2020

Rhea-AI Summary

Ares Capital Corporation (NASDAQ:ARCC) announced the tax treatment of its 2020 common stock distributions. The total distribution paid per share is $1.60, with ordinary income at $0.4000 per share for each quarter. The record dates and payable dates for distributions are provided, with a notable ordinary income rate of up to 90.3327%. None of the distributions qualify as capital gain dividends. The press release emphasizes the importance of consulting tax advisors for individualized guidance.

Positive

• Total distribution of $1.60 per share for 2020.
• Ordinary income distributions per share reached $0.4000 quarterly.
• High ordinary income rate of 90.3327% for some distributions.

Negative

• No portion of the distributions is classified as capital gain dividends.

Ares Capital Corporation (“Ares Capital” or the “Company”) (NASDAQ:ARCC) announced today the tax treatment of the Company’s 2020 common stock distributions (CUSIP #: 04010L103).

						Ordinary Income Per Share
Record Date		Payable Date		Total Paid Per Share		Ordinary Rate		20% Rate (1)		Long Term Capital Gains per Share (2)		Interest - Related Dividends (3)
3/16/2020		3/31/2020		$0.4000		$0.3947		$0.0053		$0.0000		90.3327%
6/15/2020		6/30/2020		$0.4000		$0.3947		$0.0053		$0.0000		90.3327%
9/15/2020		9/30/2020		$0.4000		$0.3968		$0.0032		$0.0000		87.4885%
12/15/2020		12/30/2020		$0.4000		$0.3982		$0.0018		$0.0000		85.5663%
				$1.6000		$1.5844		$0.0156		$0.0000
% of Total Dividends Paid Per Share				100.0000%		99.0250%		0.9750%		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 and information provided at www.arescapitalcorp.com 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 utilizes its extensive, direct origination platform 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 BDC by market capitalization as of December 31, 2020. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a publicly traded, leading global alternative investment manager. For more information about Ares Capital, visit www.arescapitalcorp.com.

FORWARD-LOOKING STATEMENTS

Statements included herein 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/20210128006136/en/

FAQ

What is the total distribution per share announced by Ares Capital for 2020?

The total distribution per share for Ares Capital in 2020 is $1.60.

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

The record and payable dates for Ares Capital's distributions vary; each distribution has specific dates outlined in the press release.

Is any part of the distributions from Ares Capital eligible for capital gains treatment?

No, none of the distributions from Ares Capital are designated as capital gain dividends.

What percentage of the distributions constitutes ordinary income for Ares Capital?

Ordinary income per share is $0.4000, with rates reaching up to 90.3327% for certain distributions.