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SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No.)
ARES CAPITAL CORPORATION
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(Name of Issuer)
Common Stock, par value $0.001 per share
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(Title of Class of Securities)
04010L103
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(CUSIP Number)
December 31, 2007
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[X ] Rule 13d-1(b)
[ ] Rule 13d-1(c)
[ ] Rule 13d-1(d)
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class
of securities, and for any subsequent amendment containing information
which would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 or otherwise subject to the liabilities of that
section of the Act but shall be subject to all other provisions of the
Act (however, see the Notes).
CUSIP No. 04010L103 13G
_____________________________________________________________________________
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
MERRILL LYNCH & CO., INC. (MERRILL LYNCH)
_____________________________________________________________________________
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [_]
(b) [ ]
_____________________________________________________________________________
3. SEC USE ONLY
_____________________________________________________________________________
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
_____________________________________________________________________________
NUMBER OF 5. SOLE VOTING POWER
SHARES Disclaimed (See #9 below)
_________________________________________________________________
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY Disclaimed (See #9 below)
_________________________________________________________________
EACH 7. SOLE DISPOSITIVE POWER
REPORTING Disclaimed (See #9 below)
______________________________________________________________
PERSON 8. SHARED DISPOSITIVE POWER
WITH Disclaimed (See #9 below)
_____________________________________________________________________________
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
Merrill Lynch & Co., Inc. disclaims beneficial ownership in all shares of
Ares Capital Corporation held by Merrill Lynch International, Merrill Lynch,
Pierce, Fenner & Smith Incorporated. and Merrill Lynch Financial Markets, Inc.
_____________________________________________________________________________
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[_]
_____________________________________________________________________________
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
Disclaimed (See #9 above)
_____________________________________________________________________________
12. TYPE OF REPORTING PERSON*
HC, CO
_____________________________________________________________________________
*SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 04010L103 13G
_____________________________________________________________________________
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Merrill Lynch International
_____________________________________________________________________________
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [_]
(b) [_]
_____________________________________________________________________________
3. SEC USE ONLY
____________________________________________________________________________
4. CITIZENSHIP OR PLACE OF ORGANIZATION
England
____________________________________________________________________________
NUMBER OF 5. SOLE VOTING POWER
SHARES 49,224
_________________________________________________________________
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY 0
_________________________________________________________________
EACH 7. SOLE DISPOSITIVE POWER
REPORTING 49,224
______________________________________________________________
PERSON 8. SHARED DISPOSITIVE POWER
WITH 0
_____________________________________________________________________________
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
49,224
_____________________________________________________________________________
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[_]
_____________________________________________________________________________
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
.06%
_____________________________________________________________________________
12. TYPE OF REPORTING PERSON*
BD
_____________________________________________________________________________
CUSIP NO. 04010L103 13G
_____________________________________________________________________________
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Merrill Lynch Financial Markets, Inc.
_____________________________________________________________________________
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [_]
(b) [_]
_____________________________________________________________________________
3. SEC USE ONLY
____________________________________________________________________________
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
____________________________________________________________________________
NUMBER OF 5. SOLE VOTING POWER
SHARES 115,900
_________________________________________________________________
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY 0
_________________________________________________________________
EACH 7. SOLE DISPOSITIVE POWER
REPORTING 115,900
______________________________________________________________
PERSON 8. SHARED DISPOSITIVE POWER
WITH 0
_____________________________________________________________________________
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
115,900
_____________________________________________________________________________
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[_]
_____________________________________________________________________________
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
.15%
_____________________________________________________________________________
12. TYPE OF REPORTING PERSON*
BD
_____________________________________________________________________________
_____________________________________________________________________________
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Merrill Lynch Pierce, Fenner & Smith Incorporated
_____________________________________________________________________________
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [_]
(b) [_]
_____________________________________________________________________________
3. SEC USE ONLY
____________________________________________________________________________
4. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
____________________________________________________________________________
NUMBER OF 5. SOLE VOTING POWER
SHARES 4,485,095
_________________________________________________________________
BENEFICIALLY 6. SHARED VOTING POWER
OWNED BY 0
_________________________________________________________________
EACH 7. SOLE DISPOSITIVE POWER
REPORTING 4,485,095
______________________________________________________________
PERSON 8. SHARED DISPOSITIVE POWER
WITH 0
_____________________________________________________________________________
9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,485,095
_____________________________________________________________________________
10. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
[_]
_____________________________________________________________________________
11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
6.17%
_____________________________________________________________________________
12. TYPE OF REPORTING PERSON*
BD, IA
_____________________________________________________________________________
____________________________________________________________________________
Item 1(a). Name of Issuer:
Ares Capital Corporation.
_____________________________________________________________________________
Item 1(b). Address of Issuer's Principal Executive Offices:
280 Park Avenue, 22nd Floor
New York, NY 10017
_____________________________________________________________________________
Item 2(a). Name of Person Filing:
Merrill Lynch & CO., Inc. (ML&CO)
Merrill Lynch International (MLI)
Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPF&S)
Merrill Lynch Financial Markets, Inc (MLFM)
___________________________________________________________________________
Item 2(b). Address of Principal Business Office, or if None, Residence:
MERRILL LYNCH & CO. INC. MERRILL LYNCH INTERNATIONAL
4 WORLD FINANCIAL CENTER 2 KING EDWARD STREET
250 VESEY ST. LONDON EC1A 1HQ, ENGLAND
NEW YORK, NEW YORk 10080
Merrill Lynch, Pierce, Fenner & Smith Merrill Lynch Financial Markets, Inc
4 World Financial Center, 4 World Financial Center
250 VESEY ST. 250 VESEY ST.
New York, New York 10080 New York, New York 10080
_____________________________________________________________________________
Item 2(c). Citizenship:
SEE ITEM 4 OF COVER PAGES
_____________________________________________________________________________
Item 2(d). Title of Class of Securities:
Common Stock, par value $0.001 per share
_____________________________________________________________________________
Item 2(e). CUSIP Number:
04010L103
_____________________________________________________________________________
Item 3. If This Statement is Filed Pursuant to Rule 13d-1(b), or 13d-2(b)
or (c), Check Whether the Person Filing is a:
ML & Co. is a parent holding company in accordance with Rule
13d-1(b)(1)(ii)(G).
MLI, a London-based broker-dealer in securities, is a member of the
International Securities Markets Association and its activities are
regulated by the U.K. Securities and Futures Authority Limited and the
London Stock Exchange. MLI is eligible to file this statement of
beneficial ownership on Schedule 13G pursuant to a November 24, 1993
no-action letter from the United States Securities and Exchange Commission's
Division of Corporation Finance (1993 SEC No-Act. LEXIS 1121 (November
24, 1993)).
Merrill Lynch, Pierce, Fenner & Smith is a:
(a) [X] Broker or dealer registered under Section 15 of the Exchange Act.
(e) [X] An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E)
Merrill Lynch Financial Markets, Inc , a wholly owned subsidiary of ML&Co.,
Inc., is registered with the U.S. SEC as an OTC Derivatives Dealer.
CUSIP No. 04010L103 13G
Item 4. Ownership.
Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.
(a) Amount beneficially owned:
4,650,219.
(b) Percent of class:
6.39%
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote:
SEE ITEM 5 OF COVER PAGES
(ii) Shared power to vote or to direct the vote:
SEE ITEM 6 OF COVER PAGES
(iii) Sole power to dispose or to direct the disposition of:
SEE ITEM 7 OF COVER PAGES
(iv) Shared power to dispose or to direct the disposition of
SEE ITEM 8 OF COVER PAGE
_____________________________________________________________________________
Item 5. Ownership of Five Percent or Less of a Class.
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more
than 5 percent of the class of securities, check the following [ ]
_______________________________________________________________________________
Item 6. Ownership of More Than Five Percent on Behalf of Another Person.
NOT APPLICABLE
_______________________________________________________________________________
Item 7. Identification and Classification of the Subsidiary Which Acquired the
Security Being Reported on by the Parent Holding Company.
MLI is a London-based broker-dealer in securities which provides its customers
with general investment banking, advisory, dealing and corporate finance
services, organized under the laws of England and Wales. MLI, is an indirect
wholly owned subsidiary of ML & Co., Inc. MLPF&S and MLFM are wholly owned
subsidiaries of ML&Co., Inc.
_______________________________________________________________________________
Item 8. Identification and Classification of Members of the Group.
NOT APPLICABLE
_______________________________________________________________________________
Item 9. Notice of Dissolution of Group.
NOT APPLICABLE
_______________________________________________________________________________
CUSIP No. 04010L103 13G
Item 10. Certifications.
By signing below I certify that, to the best of my knowledge and belief,
the securities referred to above were acquired and are held in the
ordinary course of business and were not acquired and are not held for
the purpose of or with the effect of changing or influencing the control
of the issuer of the securities and were not acquired and are not held in
connection with or as a participant in any transaction having that
purpose or effect.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
February 14, 2008
MERRILL LYNCH & CO., INC. MERRILL LYNCH INTERNATIONAL
By: /s/ Pia Thompson By: /s/ Andrew Briski
-------------------------------- -------------------------------------
Name: Pia Thompson Name: Andrew Briski
Title: Assistant Secretary Title: Managing Director
MERRILL LYNCH FINANCIAL MARKETS, INC.
By: /s/ Jonathan Beebe
-------------------------------------
Name: Jonathan Beebe
Title: Senior Vice President
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
By: /s/ Pia Thompson
--------------------------------
Name: Pia Thompson
Title: Assistant Secretary
* Executed pursuant to a Power of Attorney, dated November 17, 1995, a copy
of which is attached hereto as Exhibit A.
Schedule 13G
Exhibit A
Power of Attorney
The undersigned, Merrill Lynch & Co., Inc. (the "Corporation"), a
corporation duly organized under the laws of Delaware, with its principal
place of business at World Financial Center, North Tower, 250 Vesey Street,
New York, New York 10281 does hereby make, constitute and appoint Richard B.
Alsop, Richard D. Kreuder, Andrea Lowenthal, Gregory T. Russo, or any
individual from time to time elected or appointed as secretary or an
assistant secretary of the Corporation, acting severally, each of whose
address is Merrill Lynch & Co., Inc., World Financial Center, North Tower,
250 Vesey Street, New York, New York 10281, as its true and lawful attorneys-
in-fact, for it and in its name, place and stead (i) to execute on behalf of
the Corporation and cause to be filed and/or delivered, as required under
Section 13(d) of the Securities Exchange Act of 1934 (the "Act") and the
regulations thereunder, any number, as appropriate, of original, copies, or
electronic filings of the Securities and Exchange Commission Schedule 13D or
Schedule 13G Beneficial Ownership Reports (together with any amendments and
joint filing agreements under Rule 13d-1(f)(1) of the Act, as may be required
thereto) to be filed and/or delivered with respect to any equity security (as
defined in Rule 13d-1(d) under the Act) beneficially owned by the undersigned
and which must be reported by the undersigned pursuant to Section 13(d) of
the Act and the regulations thereunder, (ii) to execute on behalf of the
Corporation and cause to be filed and/or delivered, any number, as
appropriate, of original, copies or electronic filings of any forms
(including without limitation), Securities and Exchange Commission Forms 3, 4
and 5) required to be filed pursuant to Section 16(a) of the Act and the
regulations thereunder, and (iii) generally to take such other actions and
perform such other things necessary to effectuate the foregoing as fully in a
all respects as if the undersigned could do if personally present.
This Power of Attorney shall remain in effect until revoked, in writing,
by the undersigned.
IN WITNESS WHEREOF, the undersigned has executed this Power of Attorney,
this 17th day of November 1995.
MERRILL LYNCH & CO., INC.
By: /s/ David H. Komansky
_____________________________________________
Name: David H. Komansky
Title: President and Chief Operating Officer