By Devika Patel
Knoxville, Tenn., Aug. 4 – Ares Capital Corp. sold an upsized $400 million add-on to its 2.875% notes (Baa3/BBB-/BBB) due June 15, 2028 at 147 basis points over Treasuries on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 102.696 for a yield of 2.435%.
Initial price talk for a $250 million offering was in the Treasuries plus 160 bps area, with guidance tightened to the Treasuries plus 150 bps area, plus or minus 3 bps.
The company sold $850 million of the notes in a sale that priced on June 3 and settled on June 10. The notes were sold at 99.534 to yield 2.949% at a spread of Treasuries plus 165 basis points.
BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to repay debt, specifically revolver debt.
Ares is a New York specialty finance company.
| Issuer: | Ares Capital Corp.
|
| Amount: | $400 million reopening
|
| Description: | Senior notes
|
| Maturity: | June 15, 2028
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
|
| Coupon: | 2.875%
|
| Price: | 102.696
|
| Yield: | 2.435%
|
| Spread: | Treasuries plus 147 bps
|
| Call features: | Make-whole call before April 15, 2028 at Treasuries plus 25 bps; thereafter at par
|
| Change of control: | At par
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 11
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Total outstanding: | $1.25 billion, including $850 million of notes issued June 10
|
| Distribution: | SEC registered
|
| Cusip: | 04010LBB8
|
| Guidance: | IPT in the Treasuries plus 160 bps area, guidance in the Treasuries plus 150 bps area
|
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