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Ares Capital Corporation (NASDAQ: ARCC) has announced a public offering of 8,000,000 shares of common stock, with an option for underwriters to purchase an additional 1,200,000 shares. The offering will utilize the company's shelf registration statement filed with the SEC on June 3, 2021. Proceeds from the offering are intended to repay certain outstanding debts, with potential reborrowing for general corporate purposes. Investors should review the preliminary prospectus and accompanying prospectus for comprehensive details on investment objectives and associated risks.
Positive
Proceeds will be used to repay certain outstanding indebtedness, potentially improving financial stability.
The offering allows for reborrowing under debt facilities for investment in portfolio companies, aligning with growth objectives.
Negative
The public offering could lead to shareholder dilution depending on demand and pricing.
Market reactions may vary, potentially affecting stock price adversely.
NEW YORK--(BUSINESS WIRE)--
Ares Capital Corporation (Nasdaq: ARCC) announced that it plans to make a public offering of 8,000,000 shares of its common stock. Ares Capital also plans to grant the underwriters an option to purchase up to an additional 1,200,000 shares of common stock. The offering of the shares will be made under Ares Capital’s shelf registration statement filed with the Securities and Exchange Commission on June 3, 2021, which became effective automatically upon filing.
Morgan Stanley & Co. LLC, BofA Securities, UBS Investment Bank, RBC Capital Markets, LLC and Wells Fargo Securities are acting as joint lead book-running managers for this offering. Keefe, Bruyette & Woods, A Stifel Company, and Raymond James & Associates, Inc. are acting as joint book-running managers for this offering. Goldman Sachs & Co. LLC, Janney Montgomery Scott LLC, J.P. Morgan and Oppenheimer & Co. Inc. are acting as co-managers for this offering.
Ares Capital expects to use the net proceeds of this offering to repay certain outstanding indebtedness under its debt facilities. Ares Capital may reborrow under its debt facilities for general corporate purposes, which include investing in portfolio companies in accordance with its investment objective.
Investors are advised to carefully consider the investment objective, risks, charges and expenses of Ares Capital before investing. The preliminary prospectus supplement dated July 28, 2022 and the accompanying prospectus dated June 3, 2021, which have been filed with the Securities and Exchange Commission, contain this and other information about Ares Capital and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of Ares Capital and are not soliciting an offer to buy such securities in any jurisdiction where such offer and sale is not permitted.
The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus. Copies of the preliminary prospectus supplement (and accompanying prospectus) may be obtained from Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, Attn: Prospectus Department; BofA Securities, NC1-004-03-43, 200 North College Street, 3rd floor, Charlotte NC 28255-0001, Attn: Prospectus Department, or email dg.prospectus_requests@bofa.com; UBS Securities LLC at 1285 Avenue of the Americas, New York, New York, 10019, Attn: Prospectus Department, by telephone at (888) 827-7275, or by email: ol-prospectusrequest@ubs.com; RBC Capital Markets, LLC at 200 Vesey Street, 8th Floor, New York, New York, 10281, Attn: Prospectus Department, or by telephone at (877) 822-4089; or Wells Fargo Securities at 500 West 33rd Street, New York, New York, 10001, Attn: Equity Syndicate Department, by calling toll free 1-800-326-5897, or by e-mail at cmclientsupport@wellsfargo.com.
ABOUT ARES CAPITAL CORPORATION
Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. Ares Capital’s objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which often leads to economic growth and employment. Ares Capital believes its loans and other investments in these companies can generate attractive levels of current income and potential capital appreciation for investors. Ares Capital, through its investment manager, utilizes its extensive, direct origination capabilities and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company (“BDC”) and is the largest publicly traded BDC by market capitalization as of June 30, 2022. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE: ARES), a publicly traded, leading global alternative investment manager.
FORWARD-LOOKING STATEMENTS
Statements included herein may constitute “forward-looking statements,” which relate to future events or Ares Capital’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including the impact of the COVID-19 pandemic and related changes in base interest rates and significant market volatility on Ares Capital’s business, Ares Capital’s portfolio companies, Ares Capital’s industry and the global economy. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital’s filings with the Securities and Exchange Commission. Ares Capital undertakes no duty to update any forward-looking statements made herein.
INVESTOR RELATIONS
Ares Capital Corporation Carl G. Drake or John Stilmar 888-818-5298
irarcc@aresmgmt.com
Source: Ares Capital Corporation
FAQ
What is the purpose of Ares Capital's stock offering?
Ares Capital plans to use the proceeds from the offering to repay outstanding indebtedness and may reborrow for general corporate purposes.
How many shares is Ares Capital offering in this public offering?
Ares Capital is offering 8,000,000 shares of its common stock, with an option for underwriters to purchase an additional 1,200,000 shares.
When was the registration statement for Ares Capital's stock offering filed?
The registration statement for the stock offering was filed with the SEC on June 3, 2021.
Who are the underwriters for Ares Capital's stock offering?
The underwriters include Morgan Stanley, BofA Securities, UBS Investment Bank, RBC Capital Markets, and Wells Fargo Securities, among others.
What risks should investors consider before investing in Ares Capital?
Investors should consider the investment objectives, risks, charges, and expenses as detailed in the preliminary prospectus supplement and accompanying prospectus.
