New Issue: Ares Capital sells $250 million add-on to 4.2% notes due 2024 at 210 bps spread

By Rebecca Melvin

New York, Sept. 10 – Ares Capital Corp. priced a $250 million add-on to its 4.2% senior notes (Baa3/BBB-/BBB) due June 10, 2024 on Tuesday, lifting the size of that issue to $900 million, according to a Securities and Exchange Commission filing.

Pricing came at 102.2 for a yield of 3.68%, or spread over U.S. Treasuries of 210 basis points. Initial price thoughts were for yield in the 250 bps over Treasuries area.

Joint bookrunners of the SEC-registered deal were BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC.

The New York specialty finance company plans to use the proceeds to repay debt.

Issuer:	Ares Capital Corp.
Amount:	$250 million add-on
Description:	Senior notes
Maturity:	June 10, 2024
Bookrunners:	BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC
Coupon:	4.2%
Price:	102.2
Yield:	3.68%
Spread:	Treasuries plus 210 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:	Sept. 10
Settlement date:	Sept. 17
Ratings:	Moody’s: Baa3
	S&P: BBB-
	Fitch: BBB
Distribution:	SEC registered
Price guidance:	Treasuries plus 250 bps area
Total deal size:	$900 million, including $650 million issued June 10, 2019

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