Ares Capital Corp. moved five borrowers to non-accrual during the quarter ended June 30, including several consumer-facing and animal-care businesses.
The largest new non-accrual in Q2 was an $84.6 million subordinated loan to AmeriVet Veterinary Partners, a veterinary practice platform backed by AEA Investors and the Abu Dhabi Investment Authority. FS KKR had moved AmeriVet to non-accrual during the quarter ended Dec. 31, 2025.
The subordinated loan, which had been priced at 8.25% PIK, was marked down to a fair value of roughly 62 cents on the dollar.
ARCC also moved a $55.9 million second-lien loan to Aventine Intermediate LLC, dba BMG Creative, to non-accrual in Q2 and marked the loan at roughly 73 cents. BMG Creative is a branding and advertising agency.
Pricing on the loan was 5.13% PIK per year in Q1, down from 10.25% PIK in Q4 2025. ARCC also held a first-lien loan to BMG Creative (S+600, including 3.50% PIK), which continued to accrue interest.
Airport restaurant operator OTG Concessions Management LLC, dba OTG Experience, saw its second-lien notes move to non-accrual. ARCC held $9.7 million of the notes, marked at 75 cents. Pricing was 10% PIK per year.
ARCC also moved four first-lien loans to Nationwide Marketing Group to non-accrual, totaling $12.5 million. Nationwide Marketing Group provides marketing services for consumer electronics, appliance and furniture dealers.
The four loans, which were set to mature in May 2026, were collectively marked at roughly 85 cents. Pricing was S+650.
Lastly, ARCC moved a first-lien revolving loan to Manna Pro Products, LLC to non-accrual during the recent quarter. Manna Pro Products manufactures specialty nutrition and care products for animals, specializing in poultry, horses, livestock and pets. The loan was marked at 72 cents.
Manna drew $1.1 million on its $7.0 million revolving credit facility during Q2, although in the previous quarter, Ares had reported that its revolver commitments to the borrower were unavailable due to borrowing base or covenant restrictions.
One borrower was taken off non-accrual in the recent quarter. Eagle Football, a multi-club sports platform, was first put on non-accrual status during the quarter ended Sept. 30, 2025. Several subordinated loans, including loans paying 20% PIK per year, were replaced with a common stock position valued at $2.6 million.
ARCC reported a realized loss on Eagle Football of $70 million in Q2.
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