The new debt issuance aims to refinance existing credit lines while aligning interest payments with floating rate exposure.

January 30, 2026

Ares Strategic Income Fund Launches $700 Million Notes Offering with 2031 Maturity

On January 29, Ares Strategic Income Fund completed a $700 million offering of unsecured notes, locking in a fixed 5.550% annual interest rate through April 2031. The deal supports the Fund’s financing strategy by providing capital to repay outstanding credit facility borrowings, with flexibility to reborrow as needed for future investments.

The notes are structured under a new supplemental agreement to the Fund’s existing indenture and come with standard investor protections. Ares can redeem the notes early under certain conditions, while investors benefit from semiannual interest payments and protections tied to credit ratings and control changes.

Managing Rate Exposure

In the background, the Fund took an extra step to manage interest rate exposure. On the same day as the offering, Ares entered into a swap agreement with Wells Fargo Bank. Under the terms of the agreement, the Fund receives the fixed rate and pays a floating rate tied to one-month SOFR plus 1.875%.

The swap matches the full $700 million notional amount and runs through the bond’s maturity, helping Ares manage duration risk in a changing rate environment.

Liquidity Planning and Registration Rights

To prepare for future secondary liquidity, Ares also signed a registration rights agreement with the lead purchasers. That agreement commits the Fund to register a public exchange for the notes within a year, swapping the existing securities for new, nearly identical notes that can be more broadly traded. If that exchange doesn’t happen on time, investors are entitled to additional interest.

The deal was placed privately with qualified institutional buyers and certain offshore investors, in line with Rule 144A and Regulation S.

This structure gives Ares the tools it needs—upfront capital, investor safeguards, and rate flexibility—all aligned with its broader investment strategy.