Ares Capital offers notes due 2027 at Treasuries plus 165 bps area

By Cristal Cody

Chicago, Jan. 6 – Ares Capital Corp. is marketing new notes due June 15, 2027 talked to yield in the Treasuries plus 165 basis points area, according to a market source and additional details from a 424B2 filing with the Securities and Exchange Commission.

The notes have a make-whole call and a par call a number of months before the maturity date.

Should there be a change of control, the company will need to make an offer to repurchase the notes at par.

BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC are the bookrunners.

U.S. Bank NA is the trustee.

Kirkland & Ellis LLP is working as counsel to the issuer.

Venable LLP is advising the underwriters.

Proceeds will be used to repay outstanding debt under two revolving facilities with $1.8 billion and $763 million outstanding as of Dec. 29 and repay borrowings on an SMBC funding facility for which there was $401 million outstanding on Dec. 29.

Ares is a New York specialty finance company.

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