A fresh block of Ares Capital (NASDAQ:ARCC) common stock will soon hit the market. The business development company announced that it plans to float 11 million shares in an underwritten public flotation. Additionally, it plans to grant the offering's underwriters a purchase option for up to an additional 1.65 million shares.
Ares Capital said it plans to use the proceeds of the issue to retire debt "and, to the extent not used for such purpose, for general corporate purposes, which may include investing in portfolio companies in accordance with its investment objective."
The joint book-running managers of the offering are Morgan Stanley, Bank of America unit Merrill Lynch, and the Securities arm of Wells Fargo.
At the moment, Ares Capital has 268.3 million shares outstanding, and its stock most recently closed at $17.56 per share.
Fool contributor Eric Volkman owns shares of Ares Capital. The Motley Fool recommends and owns shares of Bank of America and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.