Ares Capital to Acquire MidCap Financial Investment Corporation
Ares Capital (ARCC) has entered into an agreement to acquire MidCap Financial Investment Corporation, a move designed to strengthen its dominant position within the middle-market lending sector. To facilitate the transaction, Ares Management will contribute $1.21 per share in cash to subsidize the acquisition costs. The deal is structured such that ARCC shareholders will acquire the target's loan portfolio at an effective 25% discount to book value. This acquisition is supported by a strong balance sheet, with management maintaining a conservative net debt-to-equity leverage of 1.06x, providing sufficient liquidity for future opportunistic buyouts.
