Ares Capital Corp.'s $250 Million Convertible Senior Unsecured Notes Due 2022 Rated 'BBB'

NEW YORK (S&P Global Ratings) Jan. 23, 2017- S&P Global Ratings today said it assigned its 'BBB' rating on Ares Capital Corp.'s (ARCC) $250 million of convertible senior unsecured notes due 2022. The terms of the notes allow the initial purchasers an option to purchase an additional $37.5 million. ARCC intends to use the proceeds for general corporate purposes, including paying down outstanding borrowings on its revolver. Therefore, we expect the transaction to be leverage neutral. We believe the company will eventually draw upon the revolver again to fund growth. As of Sept. 30, 2016, ARCC's debt to adjusted total equity (ATE) was 1.19x. Despite high leverage relative to peers, we maintain a favorable view of the company's capital, leverage,

...NEW YORK (S&P Global Ratings) Jan. 23, 2017- S&P Global Ratings today said it assigned its '###' rating on Ares Capital Corp.'s (ARCC) $250 million of convertible senior unsecured notes due 2022. The terms of the notes allow the initial purchasers an option to purchase an additional $37.5 million. ARCC intends to use the proceeds for general corporate purposes, including paying down outstanding borrowings on its revolver. Therefore, we expect the transaction to be leverage neutral. We believe the company will eventually draw upon the revolver again to fund growth. As of Sept. 30, 2016, ARCC's debt to adjusted total equity (ATE) was 1.19x. Despite high leverage relative to peers, we maintain a favorable view of the company's capital, leverage, and earnings due to good realized returns and non-deal-dependent income. We affirmed the ratings and removed them from CreditWatch with negative implications on January 4, 2017, following the closing of ARCC's acquisition of American Capital Ltd. (ACAS)....

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