NEW YORK - Ares Capital Corporation (NASDAQ: ARCC), a specialty finance company, has priced an $850 million note offering, it was announced today. The 5.950% notes, due on July 15, 2029, are part of an underwritten public offering and may be redeemed at the company's discretion at par plus a make-whole premium, where applicable.
The transaction involves a consortium of financial institutions acting as joint book-running managers, including BofA Securities, Inc., J.P. Morgan Securities LLC, and several others. A diverse group of firms, including CIBC World Markets Corp., ICBC Standard Bank Plc, and Morgan Stanley & Co. LLC, among others, are serving as joint lead managers. Additional co-managers for the offering include ING Financial Markets LLC, R. Seelaus & Co., LLC, and Citigroup Global Markets Inc. The closing of the offering is anticipated on May 13, 2024, subject to standard closing conditions.
Ares Capital intends to utilize the net proceeds from the offering to repay existing debt under its credit facilities. The company also indicated that it could re-borrow under the same facilities for general corporate purposes, which may include investments in portfolio companies aligned with its investment objectives.
Investors are encouraged to review the investment details, risks, and charges associated with Ares Capital before making an investment decision. Relevant information is available in the pricing term sheet, the preliminary prospectus supplement, and the accompanying prospectus, all filed with the Securities and Exchange Commission.
Ares Capital, established in 2004, specializes in direct lending and investments in private middle-market companies in the United States, aiming to create economic growth and employment. The company, the largest publicly traded business development company by market capitalization as of March 31, 2024, is managed by a subsidiary of Ares Management Corporation (NYSE: NYSE:ARES).
InvestingPro Insights
As Ares Capital Corporation (NASDAQ: ARCC) makes strategic moves to strengthen its financial position through a significant note offering, current metrics from InvestingPro provide a snapshot of the company's robust fiscal health. With a solid market capitalization of $12.7 billion, ARCC exhibits a compelling P/E ratio of 7.01, suggesting that the stock may be attractively valued relative to its earnings. The company's revenue growth is also notable, with a substantial increase of 18.6% in the last twelve months as of Q1 2024, which could be indicative of effective business strategies and strong market demand for their financial services.
Investors considering ARCC will find its dividend yield particularly attractive. As of the latest data, the dividend yield stands at a substantial 9.32%, coupled with a consistent performance in the stock price, which is at 99.48% of its 52-week high. This could signal a stable investment with the potential for income through dividends, as well as capital appreciation.
With an eye on the future, Ares Capital's next earnings date is slated for July 23, 2024. Investors and analysts alike will be watching closely to see if the company's growth trajectory continues as forecasted. For those seeking deeper insights, InvestingPro offers additional tips on ARCC; there are 5 more InvestingPro Tips available that could further guide investment decisions. To access these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.