Ares Dynamic Credit Allocation Fund Announces $ 100 Million Private Placement of Preferred Shares

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LOS ANGELES–(COMMERCIAL THREAD) – Ares Dynamic Credit Allocation Fund, Inc. (NYSE: ARDC) (the “Fund”) announced today that it has completed an initial close of $ 20 million in the first of two closings for a total of $ 100 million in Mandatory Redeemable Preferred Stock (“MRPS”). The second closing for the remaining $ 80 million of MRPS is expected to be completed in the third quarter of 2021. The net proceeds of the MRPS will be used to repay existing debt and for investment and general corporate purposes.

The table below summarizes the key terms of the MRPS.

Series

Cut

Dividend

Rate

Obligatory

Repayment date

Series A

$ 20 million

2.58%

July 15, 2026

B series

$ 30 million

2.58%

September 15, 2026

C series

$ 50 million

3.03%

September 15, 2028

Total

$ 100 million

2.81% *

* Represents the weighted average fixed rate of the MRPS.

The MRPS will not be and has not been registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities law and may not be offered or sold without registration under the Securities Act, or in accordance with applicable law. exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell any securities and does not solicit an offer to buy any securities in any jurisdiction where the offering or selling is not permitted. An investor should carefully consider the investment objective, risks, charges and expenses of the Fund before investing.

Statements included in this document may constitute “forward-looking statements” within the meaning of US securities laws and may relate to future events or our future financial performance or conditions. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in interest rates and significant volatility. market impact on our portfolio companies, our industry and the global economy. Actual results may differ materially from forward-looking statements due to a number of factors, including those described from time to time in our documents filed with the Securities and Exchange Commission and others beyond the control of the Fund. The Fund assumes no obligation to update any forward-looking statements contained herein.

About Ares Dynamic Credit Allocation Fund, Inc.

ARDC is a closed-end management company managed externally by Ares Capital Management II LLC, a subsidiary of Ares Management Corporation. ARDC seeks to provide an attractive level of total return primarily through current income and secondarily through capital appreciation. ARDC invests in a large portfolio of dynamically managed credit investments. There can be no assurance that ARDC will achieve its investment objective. ARDC’s NAV can be accessed through its NASDAQ ticker symbol, XADCX. Additional information is available at www.arespublicfunds.com.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager providing clients with complementary primary and secondary investment solutions in the asset classes of Credit, Private Equity, real estate and infrastructure. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By working with our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2021, including the acquisition of Landmark Partners, which closed on June 2, 2021, and the acquisition of Black Creek Group, which closed on July 1, 2021, Ares Management’s global platform had approximately $ 239 billion in assets under management. with approximately 2,000 employees operating in North America, Europe, Asia-Pacific and the Middle East. For more information, please visit www.aresmgmt.com. Follow Ares on Twitter @Ares_Management.


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