By Rebecca Melvin
New York, Nov. 7 - Ares Capital Corp. said it priced a $40 million add-on to its existing 4.75% convertible senior notes due Jan. 15, 2018, which was made in response to an "inbound inquiry from a fundamental institutional investor," according to a news release.
The add-on, which is slated to close Nov. 13, will raise the total issue to $270 million in size.
The conversion price is about 15.9% above the $17.15 per share closing price on Nov. 7.
As previously reported, the company sold the initial issue at 99.25 on Oct. 3 in a Rule 144A offering via joint bookrunners J.P. Morgan Securities LLC and Goldman Sachs & Co., with Deutsche Bank Securities Inc. as a passive bookrunner.
The convertibles have an initial conversion premium of 17.5% over the initial conversion price of $19.87, which equals an initial conversion rate of 50.3290.
The notes are non-callable with no puts. There is one-way dividend protection in the form of a conversion rate adjustment for dividends above $0.38, and there is change-of-control protection. Conversions can be settled in cash, stock or a combination.
Ares is a New York-based private equity firm.
| Issuer: | Ares Capital Corp.
|
| Issue: | Add-on to convertible senior notes
|
| Amount: | $40 million
|
| Maturity: | Jan. 15, 2018
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. and passive bookrunner Deutsche Bank Securities Inc.
|
| Coupon: | 4.75%
|
| Initial conversion premium: | 15.9%
|
| Initial conversion price: | $19.87
|
| Initial conversion rate: | 50.3290 in cash, stock or both
|
| Calls: | Non-callable
|
| Puts: | No puts
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes, in the form of a conversion rate adjustment for dividend above $0.38
|
| Distribution: | Rule 144A
|
| Pricing date: | Nov. 7
|
| Settlement date: | Nov. 13
|
| Stock symbol: | Nasdaq: ARCC
|
| Stock price: | $17.15, as of close Nov. 7
|
| Total amount: | $270 million, including $230 million priced previously
|
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