MidCap Financial Investment Corporation (MFIC) has entered into a definitive merger agreement to be acquired by Ares Capital Corporation (ARCC). The transaction values MFIC at approximately $10.88 per share and is expected to close in the first half of 2027, subject to stockholder and regulatory approvals.

Key Highlights

  • Total consideration of $10.88 per share consists of $1.21 in cash and approximately $9.67 in ARCC common stock.
  • A termination fee of $31.36 million is payable by MFIC under specific cancellation circumstances.
  • Regular quarterly dividends are permitted during the interim period but are capped at $0.31 per share.
  • The company has suspended its share repurchase program and dividend reinvestment plan effective immediately.