Published on 1/8/2018 in the Prospect News Investment Grade Daily.
New Issue: Ares Capital prices $600 million 4.25% seven-year notes with 190 bps spread
By Cristal Cody
Tupelo, Miss., Jan. 8 – Ares Capital Corp. sold $600 million of 4.25% long seven-year senior notes (/BBB/BBB) at 99.621 to yield 4.311%, a spread of 190 basis points over Treasuries on Monday, according to a market source and a company news release.
The notes priced on the tight side of guidance that had been set in the Treasuries plus 195 bps area.
BofA Merrill Lynch, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc. were the bookrunners.
The New York specialty finance company intends to use the proceeds to repay debt under its revolving credit facility, revolving funding facility and SMBC funding facility.
| Issuer: | Ares Capital Corp.
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| Amount: | $600 million
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| Description: | Notes
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| Maturity: | March 1, 2025
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| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC and SMBC Nikko Securities America, Inc.
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| Lead managers: | Barclays, Citigroup Global Markets Inc., Goldman Sachs | & Co. LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
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| Co-managers: | Credit Suisse Securities (USA) LLC, MUFG, Santander Investment Securities Inc., U.S. Bancorp Investments, | Inc., BNY Mellon Capital Markets, LLC, Capital One Securities, Comerica Securities, Inc., HSBC Securities (USA) Inc., | ICBC Standard Bank, JMP Securities LLC and Keefe, Bruyette | & Woods
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| Coupon: | 4.25%
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| Price: | 99.621
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| Yield: | 4.311%
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| Spread: | Treasuries plus 190 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps
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| Trade date: | Jan. 8
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| Settlement date: | Jan. 11
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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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| Price talk: | Treasuries plus 195 bps area
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