Convertibles Calendar: Ares Capital, Forest City to price $250 million deals

JULY 15

ARES CAPITAL CORP. (Nasdaq: ARCC): $250 million of 5.5-year convertible senior notes; pricing at a 1% discount to par; after the market close Monday; talked at a coupon of 4.125%-4.375%, up 15% fixed; Rule 144A; $37.5 million greenshoe; joint bookrunners BofA Merrill Lynch, Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC (active) and Deutsche Bank Securities Inc. (passive); non-callable for life; proceeds to repay debt and for general corporate purposes; New York-based private equity firm.

FOREST CITY ENTERPRISES INC. (NYSE: FCE-A): $250 million of seven-year convertibles; after the market close Monday; talked to yield 3.375%-3.875%, up 32.5%-37.5%; Rule 144A; $50 million greenshoe; bookrunners BofA Merrill Lynch and Barclays, Citigroup Capital Markets Inc., Goldman Sachs & Co. and Morgan Stanley & Co. Inc.; freely convertible; provisionally callable for five years until Aug. 15, 2018 at par plus interest subject to shares being at least 130% of the conversion price, and then feely callable after that; proceeds to repay 6.5% senior notes due 2017 and other debt; proceeds to be held in escrow and invested; Cleveland-based real estate developer.

On The Horizon

ALLY FINANCIAL INC.: U.S. Treasury Department is offering tangible equity units of Ally; concurrent initial public offering of common stock; Ally will not receive proceeds from the sale; timing, talk and deal sizes weren't yet available; bookrunners Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, Barclays and Deutsche Bank Securities; shares to be listed on the NYSE under symbol ALLY; bank holding company focused on auto financing based in Detroit.

SOLARCITY CORP. (Nasdaq: SCTY): $175 million of five-year convertible senior notes; registered deal; concurrent borrowed share offering; no talk or timing; to select investors in exchange for non-disclosure agreement; via Goldman Sachs & Co., Credit Suisse Securities (USA) LLC and BofA Merrill Lynch; company is lending up to 2.8 million shares of common stock to Goldman Sachs Financial Markets LP; proceeds for general corporate purposes, including working capital, capital expenditures, potential acquisitions and strategic transactions; San Mateo, Calif., provider of clean distributed energy.

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