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NEW YORK - Ares Capital Corporation (NASDAQ: ARCC), a $15.25 billion market cap business development company trading at $21.97, has priced a public offering of $750 million in 5.500% notes due September 1, 2030, the company announced Tuesday. According to InvestingPro data, the company currently maintains a "GOOD" financial health score, suggesting solid fundamentals supporting this debt offering. The notes, which can be redeemed at any time at the company’s discretion for par plus a "make-whole" premium, are part of Ares Capital’s strategy to manage its debt obligations.
The transaction is being managed by a consortium of financial institutions, including BofA Securities, Inc., J.P. Morgan Securities LLC, and RBC Capital Markets, LLC, among others, serving as joint book-running managers. The offering is slated for closure on June 3, 2025, subject to standard closing conditions.
Ares Capital intends to allocate the net proceeds from the offering towards the repayment of certain outstanding debts under its existing debt facilities. The company also mentioned that it may reborrow under these facilities for general corporate purposes, which includes investing in portfolio companies in line with its investment objective.
Investors are encouraged to review the investment details, risks, and charges associated with Ares Capital before making investment decisions. The pricing term sheet, preliminary prospectus supplement, and the accompanying prospectus filed with the Securities and Exchange Commission contain important information and should be read thoroughly.
The company, a leading specialty finance entity established in 2004, focuses on providing direct loans and investments in private middle market companies in the U.S. As the largest publicly traded business development company by market capitalization as of March 31, 2025, Ares Capital aims to generate attractive income and potential capital appreciation for its investors. The company boasts an impressive 8.74% dividend yield and has demonstrated strong performance with 12.01% revenue growth in the last twelve months. Analysts maintain a bullish outlook, with price targets ranging from $21 to $26.
This offering is made through a preliminary prospectus supplement and an accompanying prospectus, and copies can be obtained from the managing financial institutions.
The information provided in the press release is based on statements from Ares Capital Corporation and may be subject to change. Forward-looking statements included in the announcement reflect the company’s expectations for future events and financial performance, and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially.
For further details, investors and interested parties can refer to Ares Capital’s filings with the Securities and Exchange Commission. The company does not have an obligation to update any forward-looking statements provided. For a comprehensive analysis of ARCC’s investment potential, including detailed financial metrics and expert insights, access the full Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with actionable intelligence for smarter investing decisions.
In other recent news, Ares Capital Corporation reported its Q1 2025 earnings, highlighting a GAAP net income per share of $0.60 and core earnings per share of $0.50, which marks a slight decline from the previous quarter. The total portfolio at fair value increased by 1.5% to $27.1 billion, while the company maintained its quarterly dividend of $0.48 per share, continuing its long-standing record of stable or increasing dividends. Ares Capital also expanded its revolving credit facility to $5.3 billion, reinforcing its financial flexibility amid market volatility. In another development, Ares Capital announced the election of three Class III directors to serve until the 2028 annual meeting and the ratification of KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025. The directors elected were Daniel G. Kelly, Jr., Eric B. Siegel, and R. Kipp deVeer. Analysts at Wells Fargo Securities and Compass Point have been actively engaging with Ares Capital, discussing the company’s strategic positioning amid market challenges. These recent developments reflect Ares Capital’s focus on maintaining financial stability and strategic growth despite economic uncertainties.
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