Ares Capital to Acquire $3.4B Portfolio from American Capital
Ticker: ARCC · Form: 8-K · Filed: May 21, 2024 · CIK: 1287750
| Field | Detail |
|---|---|
| Company | Ares Capital Corp (ARCC) |
| Form Type | 8-K |
| Filed Date | May 21, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 2 min |
| Key Dollar Amounts | $0.001 |
| Sentiment | mixed |
Sentiment: mixed
Topics: acquisition, portfolio, debt, equity
TL;DR
ARCC buying $3.4B debt/equity portfolio from American Capital, closing Q3.
AI Summary
Ares Capital Corporation (ARCC) announced on May 21, 2024, that it has entered into a definitive agreement to acquire a portfolio of middle-market investment debt and equity from American Capital, Ltd. The transaction is valued at approximately $3.4 billion and is expected to close in the third quarter of 2024, subject to customary closing conditions.
Why It Matters
This significant acquisition by Ares Capital Corporation is expected to expand its investment portfolio and potentially enhance its earnings, impacting its position in the middle-market lending space.
Risk Assessment
Risk Level: medium — The acquisition involves a substantial amount of capital and is subject to closing conditions, introducing integration and market risks.
Key Numbers
- $3.4B — Portfolio Acquisition Value (Represents the total value of the debt and equity portfolio being acquired from American Capital, Ltd.)
Key Players & Entities
- Ares Capital Corporation (company) — Registrant
- American Capital, Ltd. (company) — Seller of portfolio
- $3.4 billion (dollar_amount) — Value of acquisition
- May 21, 2024 (date) — Announcement date
- third quarter of 2024 (date) — Expected closing period
FAQ
What is the primary purpose of this Form 8-K filing?
This Form 8-K is filed to report a Regulation FD Disclosure regarding a definitive agreement for Ares Capital Corporation to acquire a portfolio of middle-market investment debt and equity.
What is the name of the company from which Ares Capital Corporation is acquiring the portfolio?
Ares Capital Corporation is acquiring the portfolio from American Capital, Ltd.
What is the approximate value of the portfolio being acquired?
The portfolio being acquired is valued at approximately $3.4 billion.
When is the acquisition expected to close?
The acquisition is expected to close in the third quarter of 2024, subject to customary closing conditions.
What is the principal executive office address for Ares Capital Corporation?
The principal executive office address for Ares Capital Corporation is 245 Park Avenue, 44th Floor, New York, NY 10167.
Filing Stats: 527 words · 2 min read · ~2 pages · Grade level 11.6 · Accepted 2024-05-20 18:18:35
Key Financial Figures
- $0.001 — ange on which registered Common stock, $0.001 par value ARCC NASDAQ Global Select Mar
Filing Documents
- arcc-20240521.htm (8-K) — 28KB
- 0001287750-24-000032.txt ( ) — 151KB
- arcc-20240521.xsd (EX-101.SCH) — 2KB
- arcc-20240521_lab.xml (EX-101.LAB) — 22KB
- arcc-20240521_pre.xml (EX-101.PRE) — 13KB
- arcc-20240521_htm.xml (XML) — 3KB
01 Regulation FD Disclosure
Item 7.01 Regulation FD Disclosure. Ares Capital Corporation ("the Company") (NASDAQ:ARCC) is hosting its previously announced Investor Day on Tuesday, May 21, 2024 via a live video stream starting at 1:15 p.m. (Eastern Time). The Company is posting the presentation that will be used during the Investor Day on the Investor Resources section of its website at www.arescapitalcorp-ir.com. From time to time, the Company uses its website as a distribution channel for financial and other important information. Information on the Company's website is not incorporated by reference herein and is not a part of this Form 8-K. The information disclosed under this Item 7.01 is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ARES CAPITAL CORPORATION Date: May 21, 2024 By: /s/ SCOTT C. LEM Name: Scott C. Lem Title: Chief Financial Officer and Treasurer