Ares Capital Prices $750M Unsecured Notes Due 2031 for Debt Refinancing

summarizeSummary

Ares Capital Corporation priced a $750 million public offering of 5.250% unsecured notes due 2031, with proceeds intended to repay existing debt facilities.

check_boxKey Events

• Debt Offering Priced

  Ares Capital Corporation priced an underwritten public offering of $750 million in 5.250% unsecured notes due 2031.

• Use of Proceeds

  Net proceeds are expected to be used to repay outstanding indebtedness under existing debt facilities, with potential reborrowing for general corporate purposes.

• Maturity and Interest Rate

  The notes will mature on April 12, 2031, and carry an interest rate of 5.250%.

auto_awesomeAnalysis

Ares Capital Corporation has successfully priced a substantial $750 million offering of unsecured notes. This capital raise, while adding to the company's debt, is primarily intended to refinance existing indebtedness, which can optimize its capital structure by potentially extending maturities or securing more favorable terms. For a business development company (BDC) like Ares Capital, effective capital management and access to debt markets are crucial for funding its investment activities and maintaining liquidity. This offering demonstrates the company's ability to access significant capital, supporting its ongoing operations and investment objectives.