Ares Capital Corporation Announces $750 Million Sale of 5.500% Unsecured Bonds Maturing in 2030
Ares Capital Corporation, a public middle market lender in the United States, has announced the pricing of an underwritten public offering. The offering consists of $750 million in aggregate principal amount of 5.500% unsecured notes due 2030. The maturity date is set for September 1, 2030, with an optional redemption at any time, subject to certain premiums.
This offering is led by a syndicate of joint book-running managers, including BofA Securities, J.P. Morgan, RBC Capital Markets, SMBC Nikko Securities America, Wells Fargo Securities, Barclays Capital, BNP Paribas, CIBC World Markets, Mizuho Securities USA, MUFG Securities Americas, and Truist Securities. A group of joint lead managers and co-managers are also part of the offering.
The offering is expected to close on June 3, 2025, subject to customary closing conditions. The proceeds from the offering will be used for general corporate purposes, such as repaying outstanding debt and funding new investments to manage refinancing risk and allocate capital towards more promising private credit opportunities.
Investors are advised to consider the investment objectives, risks, charges, and expenses of Ares Capital before investing. Additional information can be found in the pricing term sheet, preliminary prospectus supplement, and accompanying prospectus, which have been filed with the Securities and Exchange Commission.
Ares Capital Corporation, founded in 2004, is a leading specialty finance company known for providing direct loans and other investments to private middle market companies. Their objective is to support high-quality borrowers in achieving their business goals, potentially contributing to economic growth and job creation. By investing in these companies, Ares Capital aims to generate attractive current income and potential capital appreciation for investors.
It should be noted that statements in this press release containing future events or financial performance may be considered forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially.
For more information, investors can contact Ares Capital Corporation's Investor Relations at 888-818-5298 or [email protected].
[1] From the original text: The offering is expected to close on June 3, 2025, subject to customary closing conditions. The joint book-running managers include several major financial institutions.[2] From the original text: The notes may be redeemed at Ares Capital's option at any time at par plus a "make-whole" premium, if applicable.[3] From the original text: The proceeds from the offering are earmarked for general corporate purposes, including repaying outstanding debt and funding new investments.[4] From the original text: By locking in a fixed 5.5% interest rate for the 2030 notes, Ares Capital is insulating itself from short-term borrowing cost volatility and positioning itself favorably in the current uncertain interest rate environment.
[1] The cloud of closing conditions looms over the anticipated date of June 3, 2025, for the offering to be finalized.[2] The notes are flexible, offering Ares Capital the luxury of optional redemption with a premium.[3] The investment proceeds will contribute towards general corporate purposes, with a focus on debt repayment and funding new opportunities.[4] With a fixed 5.5% interest rate, Ares Capital is tilting its hat towards stability and advantage in today's shaky interest rate climate.
