Ares Capital (ARCC) share: why it fell 3.58%

  • Ares Capital (ARCC) stock price fell 3.58% in the last trading session. That is why.

Ares Capital (ARCC) stock price fell 3.58% in the last trading session. Investors had responded to Ares Capital by announcing that it had priced a public offering of 8 million shares of its common stock. And Ares Capital has granted the underwriters an option to purchase up to 1.2 million additional common shares.

This offering is subject to customary closing conditions and is expected to close on August 2, 2022. And the stock offering is being made pursuant to Ares Capital’s shelf registration statement filed with the SEC on June 3, 2021, which entered into force automatically upon filing. On July 28, 2022, the official closing price of Ares Capital common stock on the NASDAQ Global Select Market under the symbol “ARCC” was $20.11 per share.

Morgan Stanley & Co. LLC, BofA Securities, UBS Investment Bank, RBC Capital Markets, LLC and Wells Fargo Securities are acting as co-lead bookkeepers for this offering. And Keefe Bruyette & Woods, A Stifel Company, and Raymond James & Associates are acting as co-bookkeepers for this offering. Goldman Sachs & Co. LLC, Janney Montgomery Scott LLC, JP Morgan, Oppenheimer & Co. Inc., Academy Securities, Inc., Compass Point Research & Trading, LLC, Loop Capital Markets LLC, Samuel A. Ramirez & Company, Inc. , Siebert Williams Shank & Co., LLC and R. Seelaus & Co., LLC are acting as co-managers of this offering.

The Underwriters may offer the Common Shares from time to time for sale in one or more transactions on the NASDAQ Global Select Market, over-the-counter market, through negotiated transactions or otherwise at prevailing market at the time of sale, at prices related to prevailing market prices or at negotiated prices.

Ares Capital expects to use the net proceeds of this offering to repay certain outstanding debts under its credit facilities. And Ares Capital may re-borrow under its credit facilities for general corporate purposes, which includes investing in portfolio companies in accordance with its investment objective.

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