Ares Capital Corporation Prices Public Offering of $350 Million of Its 4.625% Unsecured Convertible Notes Due 2024

NEW YORK–(BUSINESS WIRE)–Ares Capital Corporation (“Ares Capital”) (Nasdaq: ARCC) announced that
it has priced an underwritten public offering of $350 million aggregate
principal amount of its 4.625% Convertible Notes due 2024 (the
“Convertible Notes”). Ares Capital has also granted the underwriters an
option to purchase up to an additional $52.5 million aggregate principal
amount of the Convertible Notes.

J.P. Morgan, BofA Merrill Lynch and RBC Capital Markets are acting as
joint book-running managers for this offering. BMO Capital Markets,
MUFG, Mizuho Securities, SMBC Nikko, SunTrust Robinson Humphrey and
Wells Fargo Securities are acting as joint lead managers for this
offering. The offering is expected to close on March 8, 2019, subject to
customary closing conditions.

The Convertible Notes are unsecured and bear interest at a rate of
4.625% per year, payable semiannually. In certain circumstances, the
Convertible Notes will be convertible into cash, shares of Ares
Capital’s common stock or a combination of cash and shares of Ares
Capital’s common stock, at Ares Capital’s election, based on an initial
conversion rate of 50.2930 shares of common stock per $1,000 principal
amount of Convertible Notes, which is equivalent to an initial
conversion price of approximately $19.88 per share of Ares Capital’s
common stock, subject to customary anti-dilution adjustments. The
conversion price is approximately 15% above the $17.29 per share closing
price of Ares Capital’s common stock on March 5, 2019. Ares Capital will
not have the right to redeem the Convertible Notes prior to maturity.
The Convertible Notes will mature on March 1, 2024, unless repurchased
or converted in accordance with their terms prior to such date.

Ares Capital expects to use the net proceeds of this offering to repay
or repurchase 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.

Investors are advised to carefully consider the investment objective,
risks, charges and expenses of Ares Capital before investing. The
pricing term sheet dated March 5, 2019, the preliminary prospectus
supplement dated March 5, 2019 and the accompanying prospectus dated
September 4, 2018, each of which have been filed with the Securities and
Exchange Commission, contain this and other information about Ares
Capital and should be read carefully before investing.

The information in the pricing term sheet, the preliminary prospectus
supplement, the accompanying prospectus and this press release is not
complete and may be changed.
 The pricing term sheet, the
preliminary prospectus supplement, the accompanying prospectus and this
press release are not offers to sell any securities of Ares Capital and
are not soliciting an offer to buy such securities in any jurisdiction
where such offer and sale is not permitted.

The offering may be made only by means of a preliminary prospectus
supplement and an accompanying prospectus, copies of which may be
obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, by calling
1-866-803-9204 or by email at,
BofA Merrill Lynch, NC1-004-03-43, 200 North College Street, 3rd floor,
Charlotte NC
28255-0001, Attn: Prospectus Department, email:,
or RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY
10281-8098, Attention: Equity Syndicate, phone: 877-822-4089, email:


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. Ares Capital originates and
invests in senior secured loans, mezzanine debt and, to a lesser extent,
equity investments through its national direct origination platform.
Ares Capital’s investment objective is to generate both current income
and capital appreciation through debt and equity investments primarily
in private companies. Ares Capital has elected to be regulated as a
business development company (“BDC”) and is the largest BDC by both
market capitalization and total assets. Ares Capital is externally
managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a
publicly traded, leading global alternative asset manager. For more
information about Ares Capital Corporation, visit
However, the contents of such website are not and should not be deemed
to be incorporated by reference herein.


Statements included herein may constitute “forward-looking statements,”
which relate to future events or our future performance or financial
condition. These statements are not guarantees of future performance,
condition or results and involve a number of risks and uncertainties.
Actual results and conditions may differ materially from those in the
forward-looking statements as a result of a number of factors, including
those described from time to time in our filings with the Securities and
Exchange Commission. Ares Capital undertakes no duty to update any
forward-looking statements made herein.


Ares Capital Corporation
Carl G.
Drake or John Stilmar

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