Ares Capital Corporation Agrees to Acquire MidCap Financial Investment Corporation
Key Highlights
- ➤$2.6 billion enterprise-value stock-and-cash acquisition of MFIC announced
- ➤MFIC shareholders receive $10.88 per share, including approximately $1.21 cash
- ➤$10.88 consideration represents 30.1% premium to MFIC’s last closing price
- ➤Ares Capital expects modest core-earnings accretion and support for future dividends
- ➤Combined portfolio expected to exceed 800 companies and $31 billion investments
Expert Statements
Kort Schnabel, Chief Executive Officer of Ares Capital
“We’re excited to announce our acquisition of MFIC, which we believe reinforces our leading competitive position, advances our strategic goals and enhances the earnings power of our company”
Kort Schnabel, Chief Executive Officer of Ares Capital
“The MFIC transaction brings a diversified portfolio and valuable borrower and sponsor relationships, which, when combined with our differentiated private credit investment capabilities, we expect will bolster the long-term growth profile of Ares Capital.”
Kort Schnabel, Chief Executive Officer of Ares Capital
“In addition, we believe this transaction will further build on our successful track record of acquiring publicly traded BDCs and supporting attractive risk-adjusted returns over time.”
Scott Lem, Chief Financial Officer and Treasurer of Ares Capital
“We believe the financial merits of this transaction are compelling”
Scott Lem, Chief Financial Officer and Treasurer of Ares Capital
“We expect the transaction to be accretive to core earnings and supportive of our future dividends, while preserving the balance sheet strength and financial flexibility that have been central to Ares Capital’s long-term performance.”
Scott Lem, Chief Financial Officer and Treasurer of Ares Capital
“Importantly, the financial support from Ares Management will provide MFIC stockholders with additional cash value alongside attractive equity in Ares Capital’s industry-leading business.”
Tanner Powell, Executive Chairman and Chief Executive Officer of MFIC
“This agreement with Ares Capital represents a value-maximizing transaction that we are pleased to deliver for MFIC stockholders”
Tanner Powell, Executive Chairman and Chief Executive Officer of MFIC
“It provides value meaningfully above MFIC’s current stock price and gives our stockholders an investment in the largest publicly traded BDC, which has a history of creating stockholder value through successful acquisitions.”
Tanner Powell, Executive Chairman and Chief Executive Officer of MFIC
“MFIC’s investment adviser and Board, upon recommendation of its Special Committee, have concluded that this transaction represents the best path forward for MFIC’s stockholders.”
John Zito, Co-President of Apollo Asset Management
“Apollo has long been committed to delivering positive outcomes wherever we manage investor capital.”
John Zito, Co-President of Apollo Asset Management
“Throughout this year we have taken active steps to support stockholder value across our public vehicles, including through this transaction.”
John Zito, Co-President of Apollo Asset Management
“Importantly, Apollo will continue to invest in and grow our middle-market direct lending franchise, including through the MidCap Financial platform.”
Ares Capital Corporation Agrees to Acquire MidCap Financial Investment Corporation
Transaction Expected to Be Accretive to Ares Capital’s Core Earnings and Support Future Dividends
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