Ares Capital Corporation Prices Public Offering of $1 Billion 5.800% Unsecured Notes Due 2032
Ares Capital (ARCC) has priced a $1 billion public offering of unsecured notes with a 5.800% interest rate, maturing on March 8, 2032. The notes can be redeemed at any time at par plus a make-whole premium. The offering, led by multiple joint book-running managers including BofA Securities, J.P. Morgan Securities, and SMBC Nikko Securities, is expected to close on January 8, 2025.
The company plans to use the net proceeds to repay existing debt facilities, with the option to reborrow for general corporate purposes, including portfolio company investments. The offering is subject to customary closing conditions and is being made through a prospectus supplement and accompanying prospectus filed with the SEC.
Ares Capital (ARCC) ha annunciato un offerta pubblica di $1 miliardo di note non garantite con un tasso d'interesse del 5,800%, che scadranno il 8 marzo 2032. Le note possono essere rimborsate in qualsiasi momento al valore nominale pi霉 un premio di riacquisto. L'offerta, guidata da diversi manager responsabili della registrazione, tra cui BofA Securities, J.P. Morgan Securities e SMBC Nikko Securities, 猫 prevista per la chiusura il 8 gennaio 2025.
L'azienda prevede di utilizzare il ricavato netto per restituire i debiti esistenti, con la possibilit脿 di riutilizzare i fondi per scopi aziendali generali, comprese le investimenti in societ脿 del portafoglio. L'offerta 猫 soggetta a condizioni di chiusura consuete ed 猫 effettuata attraverso un supplemento di prospetto e un prospetto accompagnatorio depositato presso la SEC.
Ares Capital (ARCC) ha establecido una oferta p煤blica de $1 mil millones de notas no garantizadas con una tasa de inter茅s del 5.800%, que vencer谩n el 8 de marzo de 2032. Las notas se pueden redimir en cualquier momento al valor nominal m谩s una prima de recompra. La oferta, liderada por varios gerentes conjuntos de registro, incluidas BofA Securities, J.P. Morgan Securities y SMBC Nikko Securities, se espera que cierre el 8 de enero de 2025.
La empresa planea usar los ingresos netos para pagar las deudas existentes, con la opci贸n de volver a pedir prestado para fines corporativos generales, incluidas las inversiones en empresas de la cartera. La oferta est谩 sujeta a condiciones de cierre habituales y se realiza a trav茅s de un suplemento de prospecto y un prospecto acompa帽a depositada en la SEC.
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Ares Capital (ARCC) a annonc茅 une offre publique de 1 milliard de dollars d'obligations non garanties avec un taux d'int茅r锚t de 5,800%, arrivant 脿 茅ch茅ance le 8 mars 2032. Les obligations peuvent 锚tre rembours茅es 脿 tout moment 脿 leur valeur nominale plus une prime de rachat. L'offre, dirig茅e par plusieurs gestionnaires conjointe, notamment BofA Securities, J.P. Morgan Securities et SMBC Nikko Securities, devrait se cl么turer le 8 janvier 2025.
L'entreprise pr茅voit d'utiliser le produit net pour rembourser les dettes existantes, avec la possibilit茅 d'emprunter 脿 nouveau pour des besoins g茅n茅raux de l'entreprise, y compris des investissements dans des soci茅t茅s de portefeuille. L'offre est soumise aux conditions de cl么ture habituelles et se fait par le biais d'un suppl茅ment de prospectus et d'un prospectus d'accompagnement d茅pos茅 aupr猫s de la SEC.
Ares Capital (ARCC) hat eine 枚ffentliche Anleihe 眉ber 1 Milliarde USD zu einem Zinssatz von 5.800% emittiert, die am 8. M盲rz 2032 f盲llig wird. Die Anleihen k枚nnen jederzeit zum Nennwert plus einer Vorabpr盲mie zur眉ckgefordert werden. Das Angebot, das von mehreren gemeinsamen Buchf眉hrern geleitet wird, darunter BofA Securities, J.P. Morgan Securities und SMBC Nikko Securities, wird voraussichtlich am 8. Januar 2025 abgeschlossen.
Das Unternehmen plant, die Nettomittel zu verwenden, um bestehende Schulden zur眉ckzuzahlen, mit der Option, wieder f眉r allgemeine Unternehmenszwecke, einschlie脽lich Investitionen in Portfoliounternehmen, Kredite aufzunehmen. Das Angebot unterliegt den 眉blichen Abschlussbedingungen und erfolgt durch einen Prospektnachtrag sowie einen begleitenden Prospekt, der bei der SEC eingereicht wurde.
- Secured significant $1 billion in long-term financing
- Fixed interest rate of 5.800% provides cost certainty
- Flexibility to redeem notes at any time
- Potential for debt refinancing and portfolio investment expansion
- Additional $1 billion in long-term debt obligation
- Interest payments will increase financial expenses
- Make-whole premium required for early redemption
Insights
This
The planned use of proceeds to repay existing debt facilities demonstrates prudent liability management, potentially improving the company's debt maturity profile and maintaining financial flexibility. The option to reborrow under existing facilities for portfolio investments provides ARCC with additional operational agility. With a market cap of
The broad distribution network through major financial institutions like BofA Securities, JPMorgan and SMBC Nikko should ensure efficient price discovery and strong placement with institutional investors. The make-whole provision offers standard call protection while maintaining refinancing flexibility if market conditions improve.
The successful pricing of this note offering strengthens ARCC's capital structure at a important time. The
Breaking this down for retail investors: Think of this like refinancing a mortgage - ARCC is essentially securing long-term funding at a fixed rate, which helps protect against potential future interest rate volatility. The
The ability to redirect these funds into new portfolio investments through existing credit facilities maintains ARCC's investment flexibility and potential for continued portfolio growth. This transaction effectively balances the company's funding needs while maintaining financial discipline - a positive signal for both equity and debt investors.
BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, MUFG Securities Americas Inc., Mizuho Securities
Ares Capital expects to use the net proceeds of this offering to repay certain outstanding indebtedness under its debt facilities. Ares Capital may reborrow under its debt facilities for general corporate purposes, which include investing in portfolio companies in accordance with its investment objective.
Investors are advised to carefully consider the investment objective, risks, charges and expenses of Ares Capital before investing. The pricing term sheet dated January 2, 2025, the preliminary prospectus supplement dated January 2, 2025, and the accompanying prospectus dated May 1, 2024, each of which have been filed with the Securities and Exchange Commission, contain this and other information about Ares Capital and should be read carefully before investing.
The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of Ares Capital and are not soliciting an offer to buy such securities in any jurisdiction where such offer and sale is not permitted.
The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus. Copies of the preliminary prospectus supplement (and accompanying prospectus) may be obtained from BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street,
ABOUT ARES CAPITAL CORPORATION
Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in
FORWARD-LOOKING STATEMENTS
Statements included herein may constitute 鈥渇orward-looking statements,鈥� which relate to future events or Ares Capital鈥檚 future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital鈥檚 filings with the Securities and Exchange Commission. Ares Capital undertakes no duty to update any forward-looking statements made herein.
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INVESTOR RELATIONS CONTACTS
Ares Capital Corporation
John Stilmar or Carl Drake
888-818-5298
irarcc@aresmgmt.com
Source: Ares Capital Corporation
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