Ares Capital Corporation Prices $150 Million of Unsecured Convertible Senior Notes

Ares Capital Corporation

announced that 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. Ares Capital has also granted the initial purchasers an option to purchase 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 (as defined in the Securities Act of 1933, as amended (the “Securities Act”)) pursuant to Rule 144A under the Securities Act. The closing of the transaction is subject to customary closing conditions and the Convertible Senior Notes are expected to be delivered and paid for on March 14, 2012. The Convertible Senior Notes are unsecured and bear interest at a rate of 4.875% per year, payable semiannually. In certain circumstances, the Convertible Senior 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, at an initial conversion rate of 51.7050 shares of common stock per $1,000 principal amount of Convertible Senior Notes, which is equivalent to an initial conversion price of approximately $19.34 per share of Ares Capital's common stock, subject to customary anti-dilution adjustments. The conversion price is approximately 17.5% above the $16.46 per share closing price of Ares Capital's common stock on March 8, 2012. Ares Capital will not have the right to redeem the Convertible Senior Notes prior to maturity. The Convertible Senior Notes will mature on March 15, 2017, unless repurchased or converted in accordance with their terms prior to such date.