By Devika Patel
Knoxville, Tenn., Sept. 16 – Ares Capital Corp. priced a $400 million add-on to its 3.875% senior notes (Baa3/BBB-/BBB) due Jan. 15, 2026 on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced the notes at 101.446 to yield 3.569%, or 330 basis points over Treasuries.
The company originally issued $750 million of the 3.875% notes on July 15 in an offering that priced on July 8 at 99.422 to yield 3.993% with a Treasuries plus 370 bps spread.
BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC were the bookrunners.
The New York specialty finance company intends to use the proceeds to repay debt under its revolving credit facility, its revolving funding facility, its SMBC funding facility and/or its BNP funding facility.
| Issuer: | Ares Capital Corp.
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| Amount: | $400 million reopening
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| Description: | Senior notes
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| Maturity: | Jan. 15, 2026
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| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
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| Coupon: | 3.875%
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| Price: | 101.446
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| Yield: | 3.569%
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| Spread: | Treasuries plus 330 bps
|
| Call features: | Make-whole call before Dec. 15, 2025 at greater of par or Treasuries plus 50 bps; thereafter at par
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| Trade date: | Sept. 16
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| Settlement date: | Sept. 23
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB
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| Distribution: | SEC registered
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| Total outstanding: | $1.2 billion, including $750 million of notes issued July 15 at 99.422 to yield 3.993%, or a spread of 370 bps over Treasuries
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