MidCap Financial Investment Corporation (NASDAQ: MFIC) canceled its planned third-quarter earnings call because of its pending acquisition by Ares Capital Corporation (NASDAQ: ARCC), while keeping its results release scheduled for Nov. 5.
MFIC said in an Oct. 30 company release that its call and webcast, originally set for 8:30 a.m. ET Nov. 5, would not take place. The company still plans to issue results for the quarter ended Sept. 30 before trading begins on Nasdaq’s Global Select Market. The cancellation removes the scheduled management session as investors await the figures.
The parties signed the merger agreement Oct. 26 and announced it Oct. 27. The companies said in their Oct. 27 announcement that the cash-and-stock transaction has an enterprise value of approximately $2.6 billion.
At signing, the proposed consideration equated to about $10.88 for each fully diluted MFIC share: approximately $1.21 in cash and $9.67 in Ares Capital shares. The stock portion is subject to adjustment for an expected special dividend from MFIC before closing. The dividend amount has not been set.
MFIC is a business development company externally managed by Apollo Investment Management, L.P. Ares said it expects the transaction to add scale and diversification. Based on Sept. 30 figures, its projections for the combined portfolio at closing exceed 800 companies and $31 billion in investments at fair value. Ares also cited expected core earnings accretion and support for future dividends as benefits.
Ademi LLP said it is investigating whether the proposed acquisition provides fair value to MFIC’s public shareholders and whether the board adequately protected their interests. The joint announcement put MFIC’s preliminary net asset value at $12.86 per share as of Sept. 30, while noting that management’s estimate could differ materially from the final figure. EconoTimes previously covered Ademi’s review of the proposed Ares-MFIC transaction.
MFIC still plans to release its quarterly results before trading opens Nov. 5. The companies target closing in the first half of 2027, subject to MFIC stockholder and regulatory approvals and other conditions.
