Ares Capital talks $300 million five-year convertibles at 5.75%-6.25%, up 17.5%-22.5% for Wednesday

By Kenneth Lim

Boston, Jan. 18 - Ares Capital Corp. plans to price $300 million five-year convertible senior notes on Wednesday after the market closes, talked at a coupon of 5.75% to 6.25% and an initial conversion premium of 17.5% to 22.5%, sources said.

The notes will be offered at par.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo and Deutsche Bank Securities Inc. are the bookrunners of the Rule 144A offering.

The notes will be non-callable and may not be put.

The notes will have a change-of-control put, and there will be divided protection for payments above $0.35 per share per quarter.

Proceeds will be used to repay outstanding debt and for general corporate purposes.

Ares is a New York-based private equity firm.

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