NEW YORK--(BUSINESS WIRE)--
Ares Capital Corporation (Nasdaq: ARCC) announced that it plans to make
a private offering of $250 million aggregate principal amount of its
Convertible Senior Notes due 2019 (the “Convertible Senior Notes”). Ares
Capital also plans to grant the initial purchasers an option to purchase
up to an additional $37.5 million principal amount of the Convertible
Senior Notes to cover overallotments, if any. The Convertible Senior
Notes will be offered only to qualified institutional buyers (as defined
in the Securities Act of 1933, as amended (the “Securities Act”))
pursuant to Rule 144A under the Securities Act.
The Convertible Senior Notes are unsecured, expected to pay interest
semiannually and will be convertible under specified circumstances based
on a conversion rate to be determined. Upon conversion, Ares Capital
will pay or deliver, subject to the terms of the documents governing the
Convertible Senior Notes, cash, shares of Ares Capital’s common stock or
a combination of cash and shares of common stock, at Ares Capital’s
election. Ares Capital will not have the right to redeem the Convertible
Senior Notes prior to maturity. The Convertible Senior Notes will mature
on January 15, 2019, unless repurchased or converted in accordance with
their terms prior to such date. The interest rate, conversion rate and
other financial terms of the Convertible Senior Notes will be determined
by negotiations between Ares Capital and the initial purchasers.
Ares Capital expects to use the net proceeds of this offering to repay
or repurchase certain outstanding indebtedness, which may include
repaying outstanding borrowings under its debt facilities, and for other
general corporate purposes, which include investing in portfolio
companies in accordance with its investment objective.
Neither the Convertible Senior Notes nor the common stock that may be
issued upon conversion thereof will be registered under the Securities
Act. Neither the Convertible Senior Notes nor the common stock that may
be issued upon conversion thereof may be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the Securities Act.
This press release is not an offer to sell any securities of Ares
Capital and is not soliciting an offer to buy such securities in any
state where such offer and sale is not permitted. It is issued pursuant
to Rule 135c under the Securities Act.
FORWARD-LOOKING STATEMENTS
Statements included herein may constitute “forward-looking statements,”
which relate to future events or our 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 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 our filings with the Securities and Exchange
Commission. Ares Capital undertakes no duty to update any
forward-looking statements made herein.
Ares Capital Corporation
Carl Drake, 888-818-5298
Source: Ares Capital Corporation