Ares Capital ( ARCC ) said Tuesday it has agreed to sell $350 million of its 3.75% convertible notes due 2022 to initial purchasers in a private offering.
The company has granted the buyers an option to buy an additional $52.5 million convertible notes.
The notes are convertible into cash, shares or a combination of the two at an initial conversion rate of 51.5756 shares of common stock per $1,000 principal amount of convertible notes, equivalent to an initial conversion price of approximately $19.39 per share of Ares Capital's common stock, 15% above the $16.86 closing price on Jan. 23.
Ares said it plans to use proceeds to repay certain debt.
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