Ares greenshoe lifts 5.75% convertibles due 2016 to $575 million

By Melissa Kory

Cleveland, Jan. 28 - Ares Capital Corp. said the underwriters of its 5.75% convertible senior notes due Feb. 1, 2016 exercised the $75 million over-allotment option in full, lifting the offering to $575 million.

Ares priced an upsized $500 million of the five-year convertible notes after the close on Jan. 19 at par to yield 5.75% with a 17.5% initial conversion premium.

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

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

Conversions can be settled in cash, stock or a combination. The notes have a contingent conversion feature.

The $558.4 million of proceeds were used to pay down debts under the company's senior secured revolving credit facility.

Ares is a New York-based private equity firm.

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