Published on 6/5/2019 in the Prospect News Investment Grade Daily.
New Issue: Ares Capital sells $650 million 4.2% five-year senior notes at 237.5 bps spread
By Cristal Cody
Tupelo, Miss., June 5 – Ares Capital Corp. sold $650 million of 4.2% five-year senior notes (Baa3/BBB-/BBB) on Wednesday at 99.808 to yield 4.243%, according to 497AD filings with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 237.5 basis points.
Initial price thoughts were in the 250 bps over Treasuries area.
BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., Mizuho Securities USA Inc., MUFG, SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.
Lead managers were Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, RBC Capital Markets, LLC, Regions Securities LLC and SG Americas Securities, LLC.
The New York specialty finance company plans to use the proceeds to repay debt.
| Issuer: | Ares Capital Corp.
|
| Amount: | $650 million
|
| Description: | Senior notes
|
| Maturity: | June 10, 2024
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., Mizuho Securities USA Inc., MUFG, SMBC Nikko Securities America, Inc. and SunTrust Robinson Humphrey Inc.
|
| Lead managers: | Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Natixis Securities Americas LLC, RBC Capital Markets, LLC, Regions Securities LLC and SG Americas Securities, LLC
|
| Co-managers: | Capital One Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., ICBC Standard Bank plc, Santander Investment Securities Inc., U.S. Bancorp Investments, Inc., BNY Mellon Capital Markets, LLC, CIBC World Markets Corp., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, JMP Securities LLC and Keefe, Bruyette & Woods, Inc.
|
| Coupon: | 4.2%
|
| Price: | 99.808
|
| Yield: | 4.243%
|
| Spread: | Treasuries plus 237.5 bps
|
| Call features: | Make-whole call before May 10, 2024 at greater of par or Treasuries plus 40 bps; thereafter at par
|
| Change-of-control put: | Par
|
| Trade date: | June 5
|
| Settlement date: | June 10
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 250 bps area
|
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