By Abigail W. Adams
Portland, Me., March 6 – Ares Capital Corp. priced $350 million 4.625% five-year convertible notes after the market close on Tuesday at 98 with an initial conversion premium of 15%, according to a 497AD filing with the Securities and Exchange Commission.
The yield to maturity is 5.085%.
Pricing came at the cheap end of revised price talk for a reoffer price of 98 to 98.5, a coupon of 4.625% and an initial conversion premium of 15%.
Initial price talk had the deal coming at par with a coupon of 4.125% to 4.625% and an initial conversion premium of 15% to 20%.
J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets LLC were joint bookrunners for the registered offering, which carries a greenshoe of $52.5 million.
Joint lead managers were BMO Capital Markets Corp., MUFG, Mizuho Securities USA Inc., SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
The notes are non-callable and have no put features.
There is dividend and takeover protection.
Net proceeds are expected to be $339.6 million, or $390.7 million if the greenshoe is exercised in full.
Proceeds will be used to repay outstanding debt under the company’s debt facilities.
Ares Capital is a New York-based specialty finance company.
| Issuer: | Ares Capital Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $350 million
|
| Greenshoe: | $52.5 million
|
| Maturity: | March 1, 2024
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch and RBC Capital Markets LLC
|
| Joint lead managers: | BMO Capital Markets Corp., MUFG, Mizuho Securities USA Inc., SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
|
| Coupon: | 4.625%
|
| Price: | 98
|
| Yield to maturity: | 5.085%
|
| Conversion premium: | 15%
|
| Conversion price: | $19.88
|
| Conversion rate: | 50.2930
|
| Call options: | Non-callable
|
| Put options: | None
|
| Pricing date: | March 5
|
| Settlement date: | March 8
|
| Distribution: | SEC registered
|
| Talk: | Revised talk for a reoffer price of 98 to 98.5, a coupon of 4.625% and an initial conversion premium of 15%. Initial talk for a coupon of 4.125% to 4.625% and an initial conversion premium of 15% to 20%
|
| Stock symbol: | Nasdaq: ARCC
|
| Stock price: | $17.29 at market close March 6
|
| Market capitalization: | $7.37 billion
|
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