Chicago, Nov. 15 – Ares Capital Corp. priced $300 million of additional 7% notes due Jan. 15, 2027 (Baa3/BBB-/BBB) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 100.17 to yield 6.936%, or 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 bps make-whole premium.
BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC are working as joint bookrunners.
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.
Ares is a New York specialty finance company.
| Issuer: | Ares Capital Corp.
|
| Amount: | $300 million
|
| Issue: | Notes add-on
|
| Maturity: | Jan. 15, 2027
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Kirkland & Ellis LLP, Eversheds Sutherland (US) LLP and Venable LLP
|
| Counsel to underwriters: | Freshfields Bruckhaus Deringer US LLP
|
| Coupon: | 7%
|
| Price: | 100.17
|
| Yield: | 6.936%
|
| Spread: | Treasuries plus 235 bps
|
| Call features: | Make-whole call at Treasuries plus 40 bps
|
| Change of control: | At par
|
| Trade date: | Nov. 14
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| Settlement date: | Nov. 17
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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
|
| Price talk: | Treasuries plus 250 bps area
|
| Cusip: | 04010LBE2
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| Original issue: | $600 million of notes issued on Aug. 3
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