Ares Capital launches $300 million 7% add-on notes due 2027 at Treasuries plus 235 bps

Chicago, Nov. 14 – Ares Capital Corp. was in the Tuesday market with a $300 million add-on offering of 7% senior notes due Jan. 15, 2027 (Baa3/BBB-/BBB), according to a 424B2 filing with the Securities and Exchange Commission and more information on a 497AD filing.

The notes launched at Treasuries plus 235 basis points. Initial price talk was in the Treasuries plus 250 bps area.

The original $600 million deal, which will be fungible with the new notes, settled on Aug. 3.

The notes will be optionally callable with a Treasuries plus 40 basis points make-whole premium.

Any change of control will make the notes putable at par.

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

U.S. Bank NA will be the trustee.

Kirkland & Ellis LLP, Eversheds Sutherland (US) LLP and Venable LLP are advising the issuer.

Freshfields Bruckhaus Deringer US LLP is working as counsel for the underwriters.

Proceeds will be used to repay debt, namely bank loan debt including $1.4 billion outstanding under a revolving credit facility, $888 million outstanding under a revolving funding facility, $410 million outstanding under a funding facility and $500 million under a second funding facility.

Settlement will be on Nov. 17. The notes (Cusip: 04010LBE2) were expected to price on Tuesday.

Ares is a New York specialty finance company.

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