Published on 8/7/2017 in the Prospect News Investment Grade Daily.
New Issue: Ares Capital sells $750 million of 3.5% senior notes due 2023 at 170 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 7 – Ares Capital Corp. sold $750 million of 3.5% senior notes due Feb. 10, 2023 (/BBB/BBB) on Monday at 99.921 to yield 3.516%, according to a press release and a 497AD filing with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 170 basis points.
BofA Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and RBC Capital Markets, LLC were the bookrunners.
The New York specialty finance company intends to use the proceeds to repay debt under its revolving credit facility, its revolving funding facility and/or its SMBC funding facility.
| Issuer: | Ares Capital Corp.
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| Amount: | $750 million
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| Description: | Senior notes
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| Maturity: | Feb. 10, 2023
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| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and RBC Capital Markets, LLC
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| Lead managers: | Barclays, BMO Capital Markets Corp., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
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| Co-managers: | BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Citigroup Global Markets Inc., Comerica Securities, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., ICBC Standard Bank, Keefe, Bruyette & Woods, MUFG, Santander Investment Securities Inc., SMBC Nikko Securities America, Inc. and U.S. Bancorp | Investments, Inc.
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| Coupon: | 3.5%
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| Price: | 99.921
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| Yield: | 3.516%
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| Spread: | Treasuries plus 170 bps
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| Call features: | Make-whole call at greater of par or Treasuries plus 30 bps; on or after Jan. 10, 2023 at par
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| Change-of-control put: | Par
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| Trade date: | Aug. 7
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| Settlement date: | Aug. 10
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| Ratings: | S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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