Ares Capital to Acquire Apollo's MidCap Financial, Sources Say
MFIC is trading near its 52-week low of $8.11 (2.8% above the low).
Summary
Ares Capital has agreed to buy MidCap Financial Investment Corp from Apollo in a stock-and-cash deal valued at roughly $2.6 billion, a takeout of a $2.5 billion BDC trading near its 52-week low of $8.11. The purchase price represents a 30.1% premium to MFIC's last closing price and a 25.8% premium to its 30-day VWAP. MidCap is the primary target here; Ares is the acquirer. The backdrop matters: MidCap posted a Q2 net loss with NAV down 3.2% to $13.37 on unrealized losses and non-accrual investments, and it has been shrinking equity through a completed $107.9M buyback. That weakness is likely why the stock sits at a steep discount to book and why Apollo is exiting.
At the time of this announcement, MFIC was trading at $8.34 on NASDAQ in the Finance sector, with a market capitalization of approximately $688.6M. The 52-week trading range was $8.11 to $12.50. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.