Ares Capital Corporation Announces $1 Billion Public Offering of 5.800% Unsecured Notes Due 2032
Ares Capital Corporation, a premier specialty finance company, has announced the successful pricing of its underwritten public offering of $1 billion in aggregate principal amount of 5.800% notes set to mature on March 8, 2032. These notes come with the option to be redeemed, either wholly or partially, at Ares Capital’s discretion. Redemption would occur at par value, plus a “make-whole” premium, if applicable.
Details of the Offering
The transaction is supported by an impressive lineup of financial institutions acting as joint book-running managers. These include:
- BofA Securities, Inc.
- J.P. Morgan Securities LLC
- SMBC Nikko Securities America, Inc.
- Wells Fargo Securities, LLC
- MUFG Securities Americas Inc.
- Mizuho Securities USA LLC
- RBC Capital Markets, LLC
- Truist Securities, Inc.
Additionally, a robust group Ares Capital Corporation of joint lead managers includes BNP Paribas Securities Corp., CIBC World Markets Corp., Morgan Stanley & Co. LLC, SG Americas Securities, LLC, Regions Securities LLC, Barclays Capital Inc., and others. This diverse roster of financial institutions underscores the strength and credibility of the offering.
The transaction is expected to close on January 8, 2025, pending customary closing conditions.
Use of Proceeds
Ares Capital Corporation plans to use the net proceeds from this offering to repay outstanding debt under its existing facilities. These facilities can then be utilized for general corporate purposes, which include investments in portfolio companies aligned with Ares Capital’s investment objectives. This strategic allocation is designed to further solidify the company’s position as a leading lender to private middle-market companies in the U.S.
Investment Considerations
Potential investors are urged to carefully evaluate the details of the offering, including Ares Capital’s investment objectives, risks, charges, and expenses. This information is comprehensively outlined in the pricing term sheet dated January 2, 2025, the preliminary prospectus supplement, and the accompanying prospectus dated May 1, 2024. These documents are available Ares Capital Corporation through the Securities and Exchange Commission (SEC) and should be reviewed before any investment decision is made.
It is essential to note that the information contained in the pricing term sheet, preliminary prospectus supplement, and accompanying prospectus is not final and may be subject to change. Furthermore, these documents, along with this announcement, do not constitute an offer to sell or solicit an offer to buy securities in any jurisdiction where such activities are not permitted.
Obtaining Documentation
Investors interested in the offering can obtain copies of the preliminary prospectus supplement and the accompanying prospectus through the following sources:
- BofA Securities, Inc.: Attn: Prospectus Department, 201 North Tryon Street, Charlotte, NC 28255-0001, or via email at [email protected]. Call 1-800-294-1322.
- J.P. Morgan Securities LLC: Attn: Investment Grade Syndicate Desk, 383 Madison Avenue, New York, NY 10179, or call 1-212-834-4533.
- SMBC Nikko Securities America, Inc.: Attn: Debt Capital Markets, 277 Park Avenue, New York, NY 10172, or call 1-888-868-6856.
- Wells Fargo Securities, LLC: Call 1-800-645-3751.
About Ares Capital Corporation
Founded in 2004, Ares Capital Corporation (NASDAQ: ARCC) has established itself as a leader in the specialty finance sector. Focused on providing direct loans and other investments, the company serves private middle-market companies across the United States. Its investment philosophy centers on sourcing high-quality borrowers who require capital to drive business growth, ultimately fostering economic development and job creation.
Ares Capital’s portfolio primarily consists of senior secured loans, complemented by subordinated debt and equity investments. By leveraging its extensive origination capabilities and deep relationships with borrowers, Ares Capital has consistently delivered attractive levels of current income and potential capital appreciation for investors.
As a business development company (BDC), Ares Capital adheres to stringent regulatory frameworks, ensuring transparency and investor protection. As of December 31, 2024, Ares Capital was the largest publicly traded BDC by market capitalization, further solidifying its leadership position in the industry.
The company is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a global leader in alternative investment management. Ares Management’s expertise and resources provide a strong foundation for Ares Capital’s continued success.
Commitment to Excellence
This $1 billion offering reflects Ares Capital’s commitment to financial stability, growth, and innovation. By strategically using the proceeds to reduce existing debt and reinvest in its portfolio companies, Ares Capital ensures its alignment with investor interests and its mission of fostering economic growth.
For additional information about Ares Capital Corporation and its offerings, please visit the company’s website or consult the detailed prospectus materials available through the SEC.
