Ares Capital Corp. on Sept. 17 issued an additional $250 million aggregate principal amount of its 4.200% notes due June 10, 2024.
The notes are a further issuance of the 4.200% notes due 2024 that were issued June 10 in the aggregate principal amount of $650 million. The new 2024 notes are being treated as a single series with the existing 2024 notes under an indenture between the company and US Bank NA, as trustee, and they have the same terms as the existing 2024 notes.
The new 2024 notes were issued at a premium of 102.200% of their principal amount, resulting in estimated net proceeds, after estimated offering expenses, of about $252.8 million. Aggregate estimated offering expenses in connection with the offering of the new 2024 notes, including the underwriting discount of $1.5 million, were approximately $2.7 million.
Ares Capital expects to use the net proceeds to repay certain outstanding debt under its debt facilities. It may re-borrow under its debt facilities for general corporate purposes, which include investing in portfolio companies.
The new 2024 notes are senior unsecured obligations of the company. These may be redeemed in whole or in part at the company's option at any time at the redemption prices set forth in a supplemental indenture. Interest on the notes will be paid semiannually on June 10 and Dec. 10 of each year, beginning Dec. 10.
