ARES CAPITAL CORP current report, 19 January 2011

Business Context and Reporting Period

Company: Ares Capital Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: January 19, 2011
Event: Announcement of a private offering of convertible senior notes.

Key Financial Metrics

This filing reports a specific capital raising event rather than periodic financial performance metrics (e.g., revenue, profit, or cash flow).

  • Debt Issuance: $500 million aggregate principal amount of unsecured 5.75% Convertible Senior Notes due 2016.
  • Over-allotment Option: Initial purchasers granted an option to purchase up to an additional $75 million aggregate principal amount.
  • Interest Rate: 5.75%.
  • Maturity Date: 2016.

Material Changes

The filing discloses a material change in the company's capital structure through the pricing of the new debt offering. The filing text does not provide comparative financial data against prior periods as this is a transaction-specific report.

Guidance, Outlook, and Risks

Closing Conditions: The transaction closing is subject to a number of customary closing conditions.
Registration Status: Neither the Convertible Senior Notes nor the common stock issuable upon conversion are registered under the Securities Act of 1933.
Resale Restrictions: The notes and underlying stock may not be offered or sold in the United States absent registration or an applicable exemption.
Legal Status: The information in this Item 8.01 is furnished and not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934.

Investor Verification Checklist

  • Verify the final closing of the $500 million offering and whether the $75 million over-allotment option was exercised.
  • Review the definitive indenture for the 5.75% Convertible Senior Notes due 2016 to understand conversion terms and covenants.
  • Confirm the use of proceeds from the offering as detailed in the accompanying press release (Exhibit 99.1).
  • Monitor subsequent filings for any updates on the customary closing conditions.