NEW YORK--(BUSINESS WIRE)--
Ares Capital Corporation (Nasdaq: ARCC) announced that it plans to make
a private offering of $200 million aggregate principal amount of its
Convertible Senior Notes due 2018. Ares Capital also plans to grant the
initial purchasers an option to purchase up to an additional $30 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, 2018, 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 indebtedness under its debt facilities and, to the
extent not applied for such purpose, for general corporate purposes,
including 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 the Company
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, 404-814-5204
Source: Ares Capital Corporation