Published on 1/6/2021 in the Prospect News Investment Grade Daily.
New Issue: Ares sells $650 million of 2.15% 5.5-year senior notes at 180 bps over Treasuries
By Cady Vishniac
Detroit, Jan. 6 – Ares Capital Corp. priced $650 million of 2.15% 5.5-year senior notes (Baa3/BBB-/BBB) on Wednesday at 99.593 to yield 2.229%, or Treasuries plus 180 basis points, according to an FWP filing with the Securities and Exchange Commission.
BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC and Truist Securities, Inc. were the bookrunning managers.
Joint lead managers were Barclays, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Regions Securities LLC and SG Americas Securities Inc.
Proceeds will be used to repay outstanding debt under the company’s revolving credit facility.
Ares is a specialty finance company based in New York.
| Issuer: | Ares Capital Corp.
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| Amount: | $650 million
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| Description: | Senior notes
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| Maturity: | July 15, 2026
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| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC and Truist Securities, Inc.
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| Joint lead managers: | Barclays, Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Regions Securities LLC and SG Americas Securities Inc.
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| Co-managers: | Natixis Securities Americas LLC, 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
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| Coupon: | 2.15%
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| Price: | 99.593
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| Yield: | 2.229%
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| Spread: | Treasuries plus 180 bps
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| Call feature: | Make-whole before June 15, 2026 at Treasuries plus 30 bps; thereafter at par
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| Trade date: | Jan. 6
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| Settlement date: | Jan. 13
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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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