trending Market Intelligence /marketintelligence/en/news-insights/trending/SZrNRP-pAhO8p4cZEWzWyA2 content esgSubNav
In This List

Ares Capital plans private offering of convertible notes

Podcast

Street Talk | Episode 94: Recessionary fears in ’22 overblown, Fed could overtighten

Blog

Insight Weekly: Ukraine war impact on mining; US bank growth slowdown; cloud computing headwinds

Blog

Investment Banking Essentials Newsletter April Edition - 2022

Blog

Banking Essentials Newsletter April Edition - 2022


Ares Capital plans private offering of convertible notes

Ares Capital Corp. plans to make a private offering of $250 million of its convertible notes due 2022.

The company also plans to grant the initial purchasers an option to purchase up to an additional $37.5 million of the notes.

The notes are unsecured, expected to pay interest semiannually and will be convertible under specified circumstances. Upon conversion, Ares Capital will pay or deliver cash, shares of Ares Capital's common stock or a combination of cash and common shares. The company will not have the right to redeem the notes prior to maturity.

The notes are expected to mature Feb. 1, 2022, unless repurchased or converted. The interest rate, conversion rate and other financial terms of the notes will be determined by negotiations between Ares Capital and the initial purchasers.

Ares Capital expects to use the net proceeds of the offering to repay certain outstanding debt under its debt facilities. The company may reborrow under its debt facilities for general corporate purposes, which include investing in portfolio companies.