By Kenneth Lim
Boston, March 22 - Ares Capital Corp. priced $200 million of new five-year convertible senior notes on Tuesday near the rich end of talk, to yield 5.125% with an initial conversion premium of 17.5%.
Price talk was at a coupon of 4.875% to 5.375% and an initial conversion premium of 15% to 20%.
The notes were priced at par.
Bookrunners Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch and Wells Fargo Securities LLC have an over-allotment option for an additional $30 million of notes.
The notes are non-callable and have no puts.
There is a contingent conversion threshold at 130% of the conversion price.
The notes have standard dividend and takeover protection.
Proceeds will be used to redeem the company's outstanding $161.2 million of 6% unsecured notes due April 1, 2012, to repay revolving debt and for other general corporate purposes.
Ares is a New York-based private equity firm targeting middle market companies.
| Issuer: | Ares Capital Corp.
|
| Issue: | Convertible senior notes
|
| Bookrunner: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch and Wells Fargo Securities LLC
|
| Amount: | $200 million
|
| Greenshoe: | $30 million
|
| Maturity: | June 1, 2016
|
| Coupon: | 5.125%
|
| Price: | Par
|
| Yield: | 5.125%
|
| Conversion premium: | 17.5%
|
| Conversion price: | $19.04
|
| Conversion ratio: | 52.5348
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable
|
| Puts: | None
|
| Price talk: | 4.875%-5.375%, up 15%-20%
|
| Pricing date: | March 22 after the close
|
| Settlement date: | March 28
|
| Distribution: | Rule 144A
|
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