S&P assigns BBB to Ares Capital convertibles

S&P said it assigned its BBB rating on Ares Capital Corp.'s $250 million of convertible senior unsecured notes due 2022. The terms of the notes allow the initial purchasers an option to purchase an additional $37.5 million.

The company intends to use the proceeds for general corporate purposes, including paying down outstanding borrowings on its revolver.

“Therefore, we expect the transaction to be leverage neutral,” S&P said in a news release.

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