Ares Capital agreed to acquire MidCap Financial Investment Corporation (MFIC) in a stock-and-cash deal valued at approximately $2.6 billion. MFIC shareholders will receive $10.88 per share, comprising $1.21 in cash and $9.67 in Ares Capital shares. This represents a 30.1% premium to MFIC’s closing price on 26 October and a 25.8% premium to its 30-day volume-weighted average price.
However, the offer price is about 15% below MFIC’s preliminary net asset value of $12.86 per share as of 30 September. The cash portion is funded by Ares Management, not the BDC itself. According to Ares Capital’s latest quarterly filing, its investment adviser, Ares Capital Management, is a party to the merger agreement to facilitate the cash consideration.
Source: PE Insights · Summarized by HeadlinesBriefing