Ares Capital’s $750 Million Notes Offering


Kirkland & Ellis represented Ares Capital Corporation in the offering.

Ares Capital Corporation (Nasdaq: ARCC) has priced an underwritten public offering of $750.0 million in aggregate principal amount of 3.250% notes due 2025. The notes will mature on July 15, 2025 and may be redeemed in whole or in part at Ares Capital’s option at any time at par plus a “make-whole” premium, if applicable.

BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., BMO Capital Markets, LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for this offering. Barclays Capital Inc., BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Natixis Securities Americas LLC, Regions Securities LLC, SG Americas Securities, LLC and SunTrust Robinson Humphrey, Inc. are acting as joint lead managers for this offering. Capital One Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., ICBC Standard Bank Plc, Santander Investment Securities Inc., U.S. Bancorp Investments, Inc., BNY Mellon Capital Markets, LLC, CIBC World Markets Corp., Comerica Securities, Inc., Credit Suisse Securities (USA) LLC, JMP Securities LLC and Keefe, Bruyette & Woods, Inc. are acting as co-managers for this offering. The offering is expected to close on January 15, 2020, subject to customary closing conditions.

Ares Capital expects to use the net proceeds of this offering to repay certain outstanding indebtedness under its debt facilities. Ares Capital may reborrow under its debt facilities for general corporate purposes, which include investing in portfolio companies in accordance with its investment objective.

Ares Capital is a leading specialty finance company that provides one-stop debt and equity financing solutions to U.S. middle market companies and power generation projects.

The Kirkland team was led by transactional partners Monica Shilling (Picture) and Christopher Wu, with assistance from associates Yoona Kim, Zach Glasser and Colleen Bazak; and tax partners Mike Beinus and Meredith Levy and associate Amanda Milhet.

Involved fees earner: Colleen Bazak – Kirkland & Ellis; Michael Beinus – Kirkland & Ellis; Zachary Glasser – Kirkland & Ellis; Yoona Kim – Kirkland & Ellis; Meredith Levy – Kirkland & Ellis; Amanda Milhet – Kirkland & Ellis; Monica Shilling – Kirkland & Ellis; Christopher Wu – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Ares Capital Corporation ;

Author: Ambrogio Visconti