Ares Capital announces offering of 19 million shares of common stock

By Toni Weeks

San Diego, Aug. 16 - Ares Capital Corp. will sell 19 million shares of common stock, according to a 497 filing with the Securities and Exchange Commission. The deal has a 30-day over-allotment option for an additional 2.85 million shares.

The specialty finance company, a closed-end, non-diversified management investment company, seeks to generate current income and capital appreciation through debt and equity investments by investing primarily in first- and second-lien senior loans and mezzanine debt of U.S. middle-market companies.

The joint bookrunners are Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC. Goldman Sachs & Co., J.P. Morgan Securities LLC and UBS Investment Bank are the joint lead managers, with RBC Capital Markets LLC and Stifel, Nicolaus & Co., Inc. acting as co-managers.

The portfolio management team includes Michael J. Arougheti, Eric B. Beckman, R. Kipp deVeer, Mitchell Goldstein, John Kissick, Bennett Rosenthal, David Sachs and Michael L. Smith.

Total annual expenses are expected to be 10.68%. The sales load was not specified in the filing.

New York-based Ares Capital Management LLC is the investment adviser.

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