New Issue: Ares prices upsized $400 million 3.875% five-year senior notes at 235 bps spread

By Aleesia Forni

Virginia Beach, Nov. 18 – Ares Capital Corp. sold an upsized $400 million offering of 3.875% senior notes due Jan. 15, 2020 with a spread of 235 basis points over Treasuries, according to an informed source and a 497AD filed with the Securities and Exchange Commission.

The notes (/BBB/BBB) sold in line with talk, which had firmed around 15 bps compared to initial guidance.

Pricing was at 99.6 to yield 3.96%.

The bookrunners were BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Deutsche Bank Securities Inc., Mizuho Securities (USA) Inc., Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc.

Proceeds will be used for general corporate purposes.

The alternative asset management firm is based in Los Angeles.

Issuer:	Ares Capital Corp.
Amount:	$400 million, upsized from $300 million
Description:	Senior notes
Maturity:	Jan. 15, 2020
Bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Deutsche Bank Securities Inc., Mizuho Securities (USA) Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc.
Coupon:	3.875%
Price:	99.6
Yield:	3.96%
Spread:	Treasuries plus 235 bps
Make-whole call:	Treasuries plus 35 bps prior to Dec. 15, 2019, then callable at par
Change-of-control put:	At par plus accrued interest
Trade date:	Nov. 18
Settlement date:	Nov. 21
Ratings:	Standard & Poor's: BBB
	Fitch: BBB
Price talk:	Treasuries plus 235 bps area, tightened from Treasuries plus 250 bps area

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