Why Ares Capital (ARCC) Stock Is Down Today

NEW YORK (TheStreet) -- Ares Capital  (ARCC) fell Wednesday after the specialty finance company priced its offering of shares of its common stock.

The company increased its offering to 13.5 million shares from 11.85 million and priced the offering at $16.99 a share. The offering, which the company expects to close on Monday, July 21, includes an option for underwriters to purchase up to an additional 2.025 million shares.

Ares Capital plans to use the net proceeds to repay some outstanding indebtedness. 

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The stock was down 2.3% to $17 at 10 a.m. More than 10.9 million shares had changed hands by that point, compared to the average volume of 2,735,100.

Separately, TheStreet Ratings team rates ARES CAPITAL CORP as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate ARES CAPITAL CORP (ARCC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."

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