Published on 1/8/2020 in the Prospect News Investment Grade Daily.
New Issue: Ares Capital sells $750 million 3.25% long five-year notes at Treasuries plus 165 bps
By Cristal Cody
Tupelo, Miss., Jan. 8 – Ares Capital Corp. priced $750 million of 3.25% long five-year senior notes (Baa3/BBB-/BBB) on Wednesday at a spread of 165 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial guidance on the notes due July 15, 2025 was in the Treasuries plus 190 bps area.
The notes priced at 99.686 to yield 3.313%.
BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., BMO Capital Markets, LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC and Wells Fargo Securities, LLC were the bookrunners.
Lead managers were Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Natixis Securities Americas LLC, Regions Securities LLC, SG Americas Securities, LLC and SunTrust Robinson Humphrey, Inc.
Proceeds will be used to repay outstanding debt under the company’s debt facilities.
The specialty finance company is based in New York.
| Issuer: | Ares Capital Corp.
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Maturity: | July 15, 2025
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., BMO Capital Markets, LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG, RBC Capital Markets, LLC and Wells Fargo Securities, LLC
|
| Lead managers: | Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Natixis Securities Americas LLC, Regions Securities LLC, SG Americas Securities, LLC and SunTrust Robinson Humphrey, Inc.
|
| 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: | 3.25%
|
| Price: | 99.686
|
| Yield: | 3.313%
|
| Spread | Treasuries plus 165 bps
|
| Call features: | Make-whole call before June 15, 2025 at Treasuries plus 25 bps; thereafter at par
|
| Change-of-control put: | Par
|
| Trade date: | Jan. 8
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| Settlement date: | Jan. 15
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| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price talk: | Treasuries plus 190 bps area
|
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