Ares Capital Corp. said it has purchased the remaining loans of the Senior Secured Loan Fund LLC, completing an agreement that results in the wind-down of a joint venture between GE Global Sponsor Finance LLC and General Electric Capital Corp.
Under the agreement, Ares Capital purchased the remaining $1.6 billion portfolio of first lien senior secured loans outstanding at par plus accrued and unpaid interest and fees from the fund. Following the completion of the loan sale, the fund made a final distribution of $1.7 billion to the fund's subordinated certificates, of which Ares Capital received approximately $1.5 billion.
In 2009, Ares Capital completed the acquisition of Allied Capital Corp.'s interest in the fund for $165 million in cash. The fund has been in the process of winding down since June 2015, during which it has not made any investments related to new portfolio companies, Ares Capital said in a news release.
General Electric Co completed the sale of its U.S. sponsor finance business in 2015, through which the company participated with Ares Capital in the fund.