Ares Capital Corp.’s half-billion-dollar convertible bond offering in 2011 broke ground through its size and structure, and the company turned to the attorneys at Sutherland to guide the deal to completion. The transaction not only represented the largest convertible bond offering ever by a business development company, it was only the second time that the U.S. Securities and Exchange Commission allowed a convertible bond offering off of the shelf offering, which created a universal shelf to provide debt and equity. The first such offering the SEC approved consisted of a much smaller amount, approximately $70 million.
Ares Capital’s private offering involved 5.75 percent Convertible Senior Notes due 2016. The company also granted initial purchasers an option to buy up to an additional $75 million of the Convertible Senior Notes to cover any over-allotments. Sutherland Partner Steven B. Boehm, head of the firm’s Capital Markets and Investments Team, and Partner John J. Mahon, along with Payam Siadatpour and Sylvia N. Harris, spearheaded the deal.