Ares Capital (ARCC) - NASDAQ
  • Dec. 14, 2015, 11:20 AM
    • The price of oil has stabilized, but the major averages are moving lower, Treasury yields are moving higher in front of this week's expected Fed rate hike, and high-yield continues to sell off (with more funds gating withdrawals/selling holdings).
    • It all adds up to continued panicky liquidation in the business development complex. Prospect Capital (PSEC -4.8%), Fifth Street Finance (FSC -4.1%), Ares Capital (ARCC -4.9%), FS Investment (FSIC -3.4%), Triangle Capital (TCAP -4.8%), TICC Capital (TICC -9.1%), PennantPark Investment (PNNT -4.3%), New Mountain Finance (NMFC -5.8%), Monroe Capital (MRCC -4.5%), Oxford Lane (OXLC -10.4%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Dec. 14, 2015, 11:20 AM | 65 Comments
  • Dec. 11, 2015, 3:40 PM
    • Treasury yields are plunging, but high-yield is headed the other way again as investors mull a big selloff in the major averages and oil's plunge to below $36 per barrel.
    • The pain is widespread, but a panic in credit is particularly painful for BDCs. Hitting the tape a few minutes ago, Jeff Gundlach says "there's never just one cockroach" when credit melts down.
    • Prospect Capital (PSEC -5.5%), Ares Capital (ARCC -5.7%), FS Investment (FSIC -3.6%), BlackRock Capital (BKCC -3.8%), Apollo Investment (AINV -3.8%), PennantPark (PNNT -4.1%), Medley Capital (MCC -4.1%), TCP Capital (TCPC -2.5%), Gladstone Capital (GLAD -6.4%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Dec. 11, 2015, 3:40 PM | 57 Comments
  • Dec. 7, 2015, 12:27 PM
    • Triangle Capital (TCAP -9.7%) is leading the way lower in the sector as oil tumbles all the way down to $38 per barrel, the XLE slides 4.5%, and junk bonds sell off again.
    • OHA Investment (OHAI -6.4%), PennantPark Investment (PNNT -4.6%), Prospect Capital (PSEC -2.8%), Ares Capital (ARCC -2.5%), Apollo Investment (AINV -4.5%), KCAP Financial (KCAP -3.4%), Main Street Capital (MAIN -1.1%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Dec. 7, 2015, 12:27 PM | 42 Comments
  • Nov. 25, 2015, 2:14 PM
    • Ares Capital (ARCC -0.4%) CEO Kip deVeer has played down a whole lot of interest in launching some sort of consolidation wave in the BDC sector, but it could be the most logical buyer of American Capital (ACAS +8.2%) should the company put itself on the block, writes Gillian Tan.
    • Even though Ares trades at a lower P/E multiple than ACAS, on a relative book value basis, American Capital is the cheaper stock, so a deal could make sense. As always, it'll come down to price, and Elliot Capital's price target of at least $23 per share - a 60% premium to yesterday's close - looks very steep.
    • American Capital's board, and Elliot - whose average buy price is $13.30 - may have to settle for less.
    • Previously: American Capital gains on strategic review, boost to buyback (Nov. 25)
    | Nov. 25, 2015, 2:14 PM | 5 Comments
  • Nov. 4, 2015, 11:27 AM
    • The bad news for the beaten-down sector may already be priced in, say KBW's Tony Ward and Greg Mason, suggesting a scenario of weak results, but positive stock price reactions.
    • Indeed: Of the first four to report - ACSF, HRZN, SLRC, and ARCC - three are trading higher.
    • Ward and Mason also expect good things from BlackRock Capital Investment (BKCC -0.5%) when it reports after the close today.
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Nov. 4, 2015, 11:27 AM | 6 Comments
  • Nov. 4, 2015, 8:16 AM
    • Q3 core EPS of $0.41 per share vs. $0.40 one year ago. Net investment income of $130.5M or $0.42 per share vs. $105.3M and $0.34. Dividend is $0.38.
    • Net asset value per share of $16.79 vs. $16.82 at start of year. Last night's close was $15.48.
    • Gross commitments during quarter of $1.524B; exits of $1.34B.
    • Portfolio companies at quarter-end of 216 vs. 204 a year ago. Weighted-average yield on debt and other income-producing securities at fair value of 10.4%, up 50 basis points; on total investments of 9.3%, up 40 basis points.
    • Earnings call at 12 ET
    • Previously: Ares Capital beats by $0.03, beats on revenue (Nov. 4)
    • ARCC +0.7% premarket
    | Nov. 4, 2015, 8:16 AM | 3 Comments
  • Nov. 4, 2015, 8:09 AM
    • Ares Capital (NASDAQ:ARCC) declares $0.38/share quarterly dividend, in line with previous.
    • Forward yield 9.82%
    • Payable Dec. 31; for shareholders of record Dec. 15; ex-div Dec. 11.
    | Nov. 4, 2015, 8:09 AM
  • Nov. 4, 2015, 8:03 AM
    • Ares Capital (NASDAQ:ARCC): Q3 EPS of $0.41 beats by $0.03.
    • Revenue of $260.95M (+3.0% Y/Y) beats by $8.94M.
    | Nov. 4, 2015, 8:03 AM | 1 Comment
  • Nov. 3, 2015, 5:30 PM
  • Oct. 9, 2015, 3:27 PM
    • Ares Capital (ARCC -0.6%) CEO Kipp deVeer - speaking at the company investor day last week - poured a little bit of cold water on ideas of a wave of consolidation in the BDC sector.
    • Why wouldn't he be interested in picking up a BDC selling for 0.7x NAV for, say 0.9x? 1) It's a mess, which is what we're watching right now (referring to the TICC deal); 2) Making a few points on $300M of assets isn't material enough for the effort necessary; 3) If management were to go to a board asking to sell the company at 0.9x NAV, the board would rightly go "You're fired," we're bringing in someone to liquidate at NAV because that's what you told us it was worth.
    • The TICC board faces plenty of challenges in that TICC isn't facing credit quality issues, so why would it be interested in selling to TPG Specialty (NYSE:TSLX) at 0.87x book? On the other hand, turning the company over to Benefit Street Partners may not be a great deal either (there's still NexPoint).
    • The major takeaway: Barring any real industry stress, don't expect a lot of deals to get done. Why would management teams - in the chips just for showing up for work each day - give that up unless they were about to lose it all anyway. As the BDC team at Wells Fargo says, the events surrounding TICC "make us sad for the industry."
    • Source: Jordan Wathan at The Motley Fool
    • ETFs: BDCL, BDCS, BIZD, FGB
    • Previously: TICC Capital sued by NexPoint Advisors (Oct. 9)
    • Previously: Wells Fargo excoriates TICC Capital board (Oct. 7)
    | Oct. 9, 2015, 3:27 PM
  • Oct. 1, 2015, 10:22 AM
    | Oct. 1, 2015, 10:22 AM | 1 Comment
  • Sep. 30, 2015, 9:47 AM
    • DA Davidson launches coverage on a number of names in the brutally beaten-up sector, and sees a number of buys.
    • Initiated at Buy are Ares Capital (ARCC +3.2%), BlackRock Capital (BKCC +3.7%), FS Investment (FSIC +2.9%), PennantPark Investment (PNNT +0.5%), and Solar Capital (SLRC +3.4%).
    • Started at Neutral is Apollo Investment (AINV -0.2%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Sep. 30, 2015, 9:47 AM | 13 Comments
  • Sep. 29, 2015, 3:24 PM
    • It's not just about energy anymore, according to a BAML report. "The malaise is spreading." High-yield, says the team, "[is] a slow-moving train wreck that just seems to be accelerating."
    • Equity-type proxies for the high-yield market, business development companies are under major selling pressure again today, with already large discounts to NAVs growing even wider.
    • Previously: Ares Capital greenlighted for $100M in buybacks (Sept. 28)
    • Prospect Capital (PSEC -3.6%), Ares Capital (ARCC -2.7%), Apollo Investment (AINV -4%), TCP Capital (TCPC -5.4%), Monroe Capital (MRCC -4.5%), Oxford Lane Capital (OXLC -5.4%), PennantPark Investment (PNNT -1.8%), American Capital (ACAS -2.5%), Medley Capital (MCC -4.1%), Harris & Harris (TINY -5.4%)
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Sep. 29, 2015, 3:24 PM | 45 Comments
  • Sep. 28, 2015, 9:22 PM
    • Ares Capital (NASDAQ:ARCC) becomes the latest BDC to respond to the plunge in its stock price to well below book value. At today's close of $14.32 - off 4.3% on the session and nearly 18% since early March - $100M would be enough to buy back almost 7M shares, or just 2.2% of the float.
    • June 30 net asset value per share was $16.80, putting the current price at 0.85x book.
    • Previously: Horizon Technology buying the dip in its stock (Sept. 28)
    | Sep. 28, 2015, 9:22 PM | 4 Comments
  • Sep. 28, 2015, 11:16 AM
    • A weekend WSJ story highlighting growing spreads in the high-yield market and the solvency of commodity giant Glencore being called into question are possibly teaming to spook investors in BDCs today.
    • On Friday, Altice sold $4.8B of junk bonds to fund its purchase of Cablevision, well less than the $6.3B it hoped to sell. The 10-year paper on the deal priced to yield 10.875%, more than 100 bps higher than what had been initially expected. Olin on Friday sold $1.2B of paper to fund an acquisition. It had hoped to sell $1.5B. For the privilege, Olin is paying 10% for the 10-year notes, up from 7% expected earlier this month.
    • Prospect Capital (PSEC -4.2%), Fifth Street (FSC -3%), Ares (ARCC -3.2%), FS Investment (FSIC -2.3%), Main Street (MAIN -3.4%), Triangle (TCAP -5.6%), Medley (MCC -2.5%), KCAP (KCAP -3.7%), Gladstone (GLAD -3.9%), WhiteHorse (WHF -5.6%).
    • ETFs: BDCL, BDCS, BIZD, FGB
    | Sep. 28, 2015, 11:16 AM | 60 Comments
  • Aug. 28, 2015, 9:51 AM
    • The BDC sector is mostly in the red today, but Ares Capital (ARCC +0.1%) is edging higher after an upgrade to Outperform at Raymond James. The $17 price target is about 10% above the current price.
    • The stock has slid roughly 13% since hitting the year's high in early March.
    | Aug. 28, 2015, 9:51 AM | 2 Comments
Company Description
Ares Capital Corp., a business development company, seeks investment opportunities in middle market companies located in the US with EBITDA of $10 - $250 million. The fund targets companies operating across a broad range of sectors, including healthcare services, business services, education,... More
Sector: Financial
Industry: Diversified Investments
Country: United States