Ares Capital talks $350 million five-year convertible notes to yield 4.125%-4.625%, up 15%-20%

By Abigail W. Adams

Portland, Me., March 5 – Ares Capital Corp. plans to price $350 million of five-year convertible notes after the market close on Tuesday with price talk for a coupon of 4.125% to 4.625% and an initial conversion premium of 15% to 20%, according to a market source.

J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets LLC are joint bookrunners for the registered offering, which carries a greenshoe of $52.5 million.

The notes are non-callable and have no put features.

There is dividend and takeover protection.

Proceeds will be used to repay outstanding debt under the company’s debt facilities.

Ares Capital is a New York-based specialty finance company.

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