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Ares Capital to Float New Stock Issue

By Eric Volkman - Apr 2, 2013 at 6:52PM

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The business development company makes a move to strengthen its capital base.

Ares Capital (ARCC 5.19%) is making a new attempt to expand its capital base. The company will float a 16.65 million share common stock issue in an underwritten public offering. The firm also plans to offer its underwriters an option to purchase up to an additional 2.4975 million common shares collectively.

Ares Capital said it intends to use the proceeds of the issue to pay down debt and for "general corporate purposes, which may include investing in portfolio companies in accordance with its investment objective."

The joint book-running managers of the issue are Bank of America's Merrill Lynch, JPMorgan Chase unit J.P. Morgan, UBS, and Morgan Stanley. Ares Capital did not specify the time frame for the offering.

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