In a significant move highlighting its strategic focus, Ares Capital Corporation, a leading U.S. business development company (BDC), finalized a substantial credit facility with biotechnology firm Moderna in November. The deal underscores the financier’s targeted approach towards high-growth industries and its expertise in arranging sophisticated corporate financing.
Strategic Expansion into Life Sciences
The engagement with Moderna represents a strategic expansion for Ares Capital into the life sciences sector. This addition further diversifies the BDC’s already broad portfolio, which held a market value of approximately $28.7 billion as of the end of September 2025. The transaction demonstrates Ares Capital’s capacity to structure and execute large-scale, complex financings for established corporations with significant growth prospects.
Terms of the $1.5 Billion Credit Facility
The agreement provides Moderna with a total credit facility of $1.5 billion. This financing is structured to offer flexible access, comprising an immediate draw of $600 million alongside two subsequent tranches totaling $900 million that are available at a later date. This arrangement is designed to supply Moderna with predictable liquidity to support its research and development initiatives, particularly within the fast-paced vaccine approval landscape.
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Revealed publicly in late November, the credit agreement is secured by Moderna’s assets and includes specific financial covenants. A key stipulation requires Moderna to maintain a minimum liquidity threshold of $500 million. This requirement escalates to $750 million if more than $1 billion of the facility is drawn down.
Consistent Returns for Shareholders
Alongside its investment activities, Ares Capital continues its established practice of returning capital to shareholders. The company has declared a dividend of $0.48 per share for the fourth quarter of 2025, scheduled for payment on December 30. This distribution is expected to mark the 65th consecutive quarter of a stable or increased dividend.
Investors should note the upcoming key dates: the record date for dividend eligibility is December 15, with the payment following on December 30. Market attention now turns to the forthcoming quarterly earnings report, which will provide further insights into the overall performance of the company’s investment portfolio.
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