New Issue: Ares Capital prices $750 million of 3.875% notes due 2026 at 370 bps over Treasuries

By Cristal Cody

Tupelo, Miss., July 8 – Ares Capital Corp. priced $750 million of 3.875% senior notes due Jan. 15, 2026 (Baa3/BBB-/BBB) on Wednesday at 99.422 to yield 3.993%, or Treasuries plus 370 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes were talked to print in the Treasuries plus 387.5 bps area.

BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Wells Fargo Securities LLC, BMO Capital Markets Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc. were the bookrunners.

The New York specialty finance company intends to use the proceeds to repay some debt under its revolving credit facility, its revolving funding facility and its SMBC funding facility.

Issuer:	Ares Capital Corp.
Amount:	$750 million
Description:	Senior notes
Maturity:	Jan. 15, 2026
Bookrunners:	BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Wells Fargo Securities LLC, BMO Capital Markets Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC and SunTrust Robinson Humphrey, Inc.
Lead managers:	Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Natixis Securities Americas LLC, Regions Securities LLC and SG Americas Securities, LLC
Co-managers:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., ICBC Standard Bank plc, Santander Investment Securities Inc., U.S. Bancorp Investments, Inc., BNY Mellon Capital Markets, LLC, CIBC World Markets Corp., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, JMP Securities LLC, Keefe, Bruyette & Woods, Inc. and R. Seelaus & Co., LLC
Coupon:	3.875%
Price:	99.422
Yield:	3.993%
Spread:	Treasuries plus 370 bps
Call features:	Make-whole call before Dec. 15, 2025 at greater of par or Treasuries plus 50 bps; thereafter at par
Change-of-control put:	Par
Trade date:	July 8
Settlement date:	July 15
Ratings:	Moody’s: Baa3
	S&P: BBB-
	Fitch: BBB
Distribution:	SEC registered
Price guidance:	Treasuries plus 387.5 bps area

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