WASHINGTON (dpa-AFX) - Ares Capital Corp. (ARCC) said it has agreed to sell to initial purchasers in a private offering $150 million aggregate principal amount of its 4.875% Convertible Senior Notes due 2017.
Besides, the company has granted the initial purchasers an option to buy up to an additional $22.5 million aggregate principal amount of the Convertible Senior Notes to cover over-allotments, if any. The Convertible Senior Notes will be offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act.
The Convertible Senior Notes are expected to be delivered and paid for on March 14, 2012, Ares Capital noted.
The company expects to use the net proceeds of this offering to repay or repurchase certain outstanding indebtedness, which may include repaying outstanding borrowings, if any, under its revolving funding facility, SMBC funding facility and revolving credit facility and for other general corporate purposes, including funding investments in its investment backlog and pipeline.
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