New York, Jan. 19 - Ares Capital Corp. priced an upsized $500 million offering of five-year convertible senior notes after the close on Wednesday to yield 5.75% with a 17.5% initial conversion premium.
The notes priced at the rich end of talk for a coupon of 5.75% to 5.875%, tightened from the initial talk of 5.75% to 6.25%, and the cheap end of talk for the initial conversion premium of 17.5% to 20%, tightened from initial talk of 17.5% to 22.5%.
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.
There is a $75 million greenshoe.
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.
Conversions can be settled in cash, stock or a combination. The notes have a contingent conversion feature.
Proceeds will be used to repay outstanding debt and for general corporate purposes.
Ares is a New York-based private equity firm.
| Issuer: | Ares Capital Corp.
|
| Issue: | Convertible senior notes
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | Feb. 1, 2016
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Conversion premium: | 17.5%
|
| Conversion ratio: 52.2766, in cash, stock, or both
|
| Conversion price: | $19.13
|
| Contingent conversion: | Yes
|
| Call: | Non-callable
|
| Put: | No puts
|
| Pricing date: | Jan. 19, after close
|
| Settlement: | Jan. 25
|
| Bookrunners: | J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo and Deutsche Bank Securities Inc.
|
| Distribution: | Rule 144A
|
| Stock symbol: | Nasdaq: ARCC
|
| Stock price: | $16.28 at close on Jan. 19
|
| Market capitalization: | $3.13 billion
|
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