UPDATE 1-Ares Capital to buy Allied Capital for $648 mln
Mon Oct 26, 2009 9:54am EDT
* Deal at 27 pct premium to Allied's Friday close
* Allied holders to get 0.325 Ares shares for each shr
* Allied shares up 20 pct; Ares up 4 pct
Oct 26 (Reuters) - Finance company Ares Capital Corp (ARCC.O) said it will buy rival Allied Capital Corp (ALD.N) in an all-stock deal valued at $648 million.
The $3.47 per-share offer represents a 27 percent premium to Allied's Friday close. Under the deal, Allied Capital shareholders will get 0.325 Ares Capital shares for each share held.
Shares of Allied Capital rose 20 percent, while Ares was up 4 percent.
The deal comes at a time when Allied Capital has been shedding assets to pay down debt and fight liquidity concerns.
Following the transaction, Ares Capital stockholders will own about 65 percent of the combined company.
The transaction is expected to close by the end of the first quarter of 2010, Ares said.
Separately, Ares Capital will also buy Allied Capital's interests in Senior Secured Loan Fund LLC, formerly known as Unitranche Fund, for $165 million in cash. (Reporting by Archana Shankar in Bangalore; Editing by Vinu Pilakkott)
Mon Oct 26, 2009 9:54am EDT
* Deal at 27 pct premium to Allied's Friday close
* Allied holders to get 0.325 Ares shares for each shr
* Allied shares up 20 pct; Ares up 4 pct
Oct 26 (Reuters) - Finance company Ares Capital Corp (ARCC.O) said it will buy rival Allied Capital Corp (ALD.N) in an all-stock deal valued at $648 million.
The $3.47 per-share offer represents a 27 percent premium to Allied's Friday close. Under the deal, Allied Capital shareholders will get 0.325 Ares Capital shares for each share held.
Shares of Allied Capital rose 20 percent, while Ares was up 4 percent.
The deal comes at a time when Allied Capital has been shedding assets to pay down debt and fight liquidity concerns.
Following the transaction, Ares Capital stockholders will own about 65 percent of the combined company.
The transaction is expected to close by the end of the first quarter of 2010, Ares said.
Separately, Ares Capital will also buy Allied Capital's interests in Senior Secured Loan Fund LLC, formerly known as Unitranche Fund, for $165 million in cash. (Reporting by Archana Shankar in Bangalore; Editing by Vinu Pilakkott)
