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Ares Capital Receives Shareholder Approval for American Capital Merger

December 16, 2016, 07:38 AM

Ares Capital Corporation announced it has received shareholder approval on all proposals for its definitive merger agreement under which Ares Capital will acquire American Capital, Ltd.
An overwhelming majority of Ares Capital's shareholders who voted at the meeting approved the issuance of shares of ARCC common stock (at a price below net asset value per share in the merger, if applicable) as well as the issuance of shares of ARCC common stock in the merger, in accordance with NASDAQ listing rule requirements.

At a separate meeting today, a near-unanimous percentage of American Capital shareholders who voted cast their votes in favor of adopting the merger agreement, among other proposals.

“We would like to thank both our shareholders and American Capital’s shareholders for their very strong support throughout this process and the high confidence they have placed in us,” said Kipp deVeer, Chief Executive Officer of Ares Capital. “We are excited to move towards closing this merger, which we believe will generate many financial and strategic benefits for both shareholder bases.”

The transaction is expected to close as early as the first week of January 2017, subject to receipt of certain consents and customary closing conditions.

Ares Capital Corporation (“Ares Capital”) is a leading specialty finance company that provides one-stop debt and equity financing solutions to U.S. middle market companies, venture capital backed businesses and power generation projects. Ares Capital originates and invests in senior secured loans, mezzanine debt and, to a lesser extent, equity investments through its national direct origination platform. Ares Capital’s investment objective is to generate both current income and capital appreciation through debt and equity investments primarily in private companies. Ares Capital has elected to be regulated as a business development company (“BDC”) and as of September 30, 2016, was the largest BDC by total assets and market capitalization.

American Capital, Ltd. is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance and structured products. American Capital manages $10 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers.

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