Ares Capital sells add-on; Goldman Sachs firms; Morgan Stanley mixed; JPMorgan soft

By Aleesia Forni and Cristal Cody

Virginia Beach, Jan. 23 – Ares Capital Corp. made its way to the investment-grade bond market to close out the week on Friday.

The alternative asset management firm sold a $200 million add-on to its existing 3.875% senior notes due Jan. 15, 2020 with a spread of 250 basis points over Treasuries, an informed source said.

The notes (/BBB/BBB) sold in line with talk, which was unchanged from initial guidance.

Pricing was at 100.185 to yield 3.831%.

The bookrunners were BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC.

The Los Angeles-based firm sold the original $400 million offering of notes with a spread of 235 bps over Treasuries on Nov. 18.

Friday’s new issuance activity pushed the investment-grade primary market’s total supply to $21.45 billion for the week, coming in just above what was expected to be around a $20 billion week.

Secondary trading volume on Friday hit about $13 billion, while volume on Thursday was heavy at more than $17 billion, according to a market source.

Goldman Sachs Group Inc.’s senior notes (Baa1/A-/A) that priced on Tuesday “came in quite a bit” in the secondary market, a trader said.

Morgan Stanley’s senior notes (Baa2/A-/A) brought on Thursday headed out flat to stronger over the day.

JPMorgan Chase & Co.’s 3.125% notes due 2025 that priced a week ago widened about 5 bps over the past two sessions.

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