Published on 10/28/2021 in the Prospect News Investment Grade Daily.
New Issue: Ares Capital sells $700 million 3.2% 10-year notes at 99.379
Chicago, Oct. 28 – Ares Capital Corp. sold $700 million of 3.2% 10-year notes (Baa3/BBB-/BBB) at 99.379 to yield 3.273% on Thursday, according to multiple filings with the Securities and Exchange Commission.
The notes priced with a 170 basis points spread. Initial price talk was higher at Treasuries plus 185 bps, with the notes guided to Treasuries plus 170 bps where they ultimately priced.
The notes will have a make-whole call option at Treasuries plus 30 bps and then a par call three months before the maturity date.
BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC are the bookrunners.
Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC and Truist Securities, Inc. were also listed as bookrunners.
Proceeds will be used to repay outstanding bank debt.
Ares is a New York specialty finance company.
| Issuer: | Ares Capital Corp.
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| Issue: | Notes
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| Amount: | $700 million
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| Maturity: | Nov. 15, 2031
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| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
|
| Joint lead managers: | BNP Paribas Securities Corp., Capital One Securities, Inc., CIBC World Markets Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., ICBC Standard Bank Plc, Natixis Securities Americas LLC, R. Seelaus & Co., LLC, Regions Securities LLC, SG Americas Securities, LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Barclays Capital Inc., BNY Mellon Capital Markets, LLC, ING Financial Markets LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc., Academy Securities, Inc., Citigroup Global Markets Inc., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., JMP Securities LLC and Keefe, Bruyette & Woods, Inc.
|
| Trustee: | U.S. Bank NA
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| Counsel to issuer: | Kirkland & Ellis LLP, Eversheds Sutherland (US) LLP and Venable LLP
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| Counsel to bookrunners: | Freshfields Bruckhaus Deringer US LLP
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| Coupon: | 3.2%
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| Price: | 99.379
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| Yield: | 3.273%
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| Spread: | Treasuries plus 170 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps until Aug. 15, 2031, thereafter at par
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| Change of control: | At par
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| Trade date: | Oct. 28
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| Settlement date: | Nov. 4
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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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| Price talk: | Initial talk at Treasuries plus 185 bps, guidance at Treasuries plus 170 bps
|
| Cusip: | 04010LBC6
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