Published on 1/16/2024 in the Prospect News Investment Grade Daily.
New Issue: Ares Capital sells $1 billion 5.875% five-year notes at 210 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, Jan. 16 – Ares Capital Corp. priced $1 billion of 5.875% long five-year notes (Baa3/BBB-/BBB) at Treasuries plus 210 basis points on top of price guidance on Tuesday, according to filings with the Securities and Exchange Commission.
The notes priced at 99.165 to yield 6.065%.
J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, Santander US Capital Markets LLC and Truist Securities, Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, which may include investing in portfolio companies and repaying debt.
Ares is a New York specialty finance company.
| Issuer: | Ares Capital Corp.
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| Amount: | $1 billion
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| Issue: | Notes
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| Maturity: | March 1, 2029
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| Bookrunners: | J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, Santander US Capital Markets LLC and Truist Securities, Inc.
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| Joint lead managers: | CIBC World Markets Corp. and ICBC Standard Bank plc, Morgan Stanley & Co. LLC, Barclays Capital Inc., BNP Paribas Securities Corp., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Goldman Sachs & Co. LLC, Natixis Securities Americas LLC, Regions Securities LLC and SG Americas Securities, LLC
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| Co-managers: | ING Financial Markets LLC, R. Seelaus & Co., LLC, Academy Securities, Inc., Citigroup Global Markets Inc., Comerica Securities, Inc., Deutsche Bank Securities Inc., Keefe, Bruyette & Woods, Inc., Loop Capital Markets LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
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| 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 underwriters: | Freshfields Bruckhaus Deringer US LLP
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| Coupon: | 5.875%
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| Price: | 99.165
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| Yield: | 6.065%
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| Spread: | Treasuries plus 210 bps
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| Call: | Make-whole call at Treasuries plus 35 bps until Feb. 1, 2029, then a par call
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| Change-of-control put: | At par
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| Trade date: | Jan. 16
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| Settlement date: | Jan. 23
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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 guidance: | Treasuries plus 210 bps
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| Cusip: | 04010LBF9
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