Ares Capital May Sell 10M Shares

Ares Capital ARCC, the diversified financial services company, said it may sell up to 10 million shares to raise capital to reduce debt and cover other corporate costs. Underwriters will be granted an allotment to purchase an additional 1.5 million shares. Ares said it expects to use the net proceeds of the offering to repay certain outstanding debts under its credit facilities and a revolving securitized facility, and for general corporate purposes, according to the Associated Press. Bank of America Merrill Lynch MER, Wells Fargo WFC and SunTrust STI Robinson Humphrey are the offering's book runners.