Ares Capital (ARCC) has agreed to acquire MidCap Financial (MFIC) in a cash-and-stock deal valuing MidCap at $2.6 billion including debt. The offer is $10.88 per share, a 30.1% premium to the pre-announcement close, with $1.21 in cash and the rest in stock, adjusted dollar-for-dollar for MidCap's expected special dividend. The combined portfolio would exceed $31 billion across over 800 companies, and Ares expects the deal to be modestly accretive to core EPS, which was $0.46 in Q3 against a $0.48 quarterly dividend. The article says the deal supports Ares' dividend but also adds risk, as MidCap cut its quarterly dividend from $0.38 to $0.31 per share and its net asset value per share fell 3.2% in Q2 on credit weakness.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Ares Capital is Making a $2.6 Billion Acquisition. Here’s What it Means for its 10%-Yielding Dividend.
Read the original on Yahoo Finance ↗
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