Published on 6/3/2021 in the Prospect News Investment Grade Daily.
New Issue: Ares Capital sells $850 million of 2.875% seven-year notes at 165 bps over Treasuries
By Devika Patel and Cristal Cody
Knoxville, Tenn., June 3 – Ares Capital Corp. priced $850 million of 2.875% seven-year notes (Baa3/BBB-/BBB) at Treasuries plus 165 basis points on Thursday, according to an FWP and 497ADs filed with the Securities and Exchange Commission.
The notes priced at 99.534 to yield 2.949%.
The notes were talked in the area of 190 bps over Treasuries,
BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc., MUFG, RBC Capital Markets, LLC and Truist Securities Inc. were the bookrunners.
Proceeds will be used to repay debt under the company’s revolving credit facility, its revolving funding facility, its SMBC funding facility and/or its BNP funding facility, according to a 424B2 filed with the SEC.
Ares is a New York specialty finance company.
| Issuer: | Ares Capital Corp.
|
| Amount: | $850 million
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| Description: | Notes
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| Maturity: | June 15, 2028
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| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc., Wells Fargo Securities LLC, Mizuho Securities USA Inc., MUFG, RBC Capital Markets, LLC and Truist Securities Inc.
|
| Co-managers: | Barclays, ING Financial Markets LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc., BNY Mellon Capital Markets LLC, Citigroup Global Markets Inc., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, JMP Securities LLC and Keefe, Bruyette & Woods Inc.
|
| Coupon: | 2.875%
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| Price: | 99.534
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| Yield: | 2.949%
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| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole call at Treasuries plus 10 bps until March 15, 2028, then a par call
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| Change-of-control put: | At 101
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| Trade date: | June 3
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| Settlement date: | June 10
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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
|
| Guidance: | Treasuries plus 190 bps area
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