Corporate ActionMay 15, 2026, 04:49 PM
Ares Capital Seeks Shareholder Approval to Issue Stock Below NAV
AI Summary
Ares Capital Corporation is holding a Special Meeting of Stockholders on August 13, 2026, to vote on a proposal to authorize the company to sell or issue up to 25% of its outstanding common stock at a price below its then current net asset value (NAV) per share. This authorization, if approved, would be effective for a twelve-month period and aims to provide financial flexibility for attractive investment opportunities, acquisitions, and compliance with regulatory and debt covenants. The company has received similar approvals for the past 17 years, using it only once in 2009 for an acquisition that was highly accretive to stockholders.
Key Highlights
- Special Meeting of Stockholders on August 13, 2026, at 1:30 p.m. ET.
- Proposal to authorize issuing common stock below net asset value (NAV).
- Authorization limited to 25% of outstanding common stock.
- Effective for a twelve-month period following the Special Meeting.
- Similar authorization sought for 17 years, used once in 2009.
- NAV as of March 31, 2026, was $19.59 per share.
- Closing price on May 14, 2026, was $18.94, a 3.32% discount to NAV.
- 718,022,845 shares of common stock outstanding as of May 15, 2026.
Price Impact
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