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MFIC MidCap Financial Investment+22.7%Stock moveEarnings and guidance

MidCap Financial Stock Jumps 22.7% After Agreeing to Ares Capital Acquisition

MFIC holders would receive $10.88 per share in cash and Ares Capital stock, a 30.1% premium to the prior close.

By Zintick Team · Editor: Kratik Mehta
Published

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Key points

  • MFIC rose 22.7% on Oct. 27 after agreeing to be acquired by Ares Capital
  • Holders would receive $1.21 in cash plus Ares Capital stock, total $10.88 per share
  • The price is a 30.1% premium to the Oct. 26 close
  • Deal expected to close in the first half of 2027, subject to MFIC stockholder approval

MidCap Financial Investment Corp (Nasdaq: MFIC) shares rose 22.7% on Tuesday, Oct. 27, 2026, closing at $10.26 against a previous close of $8.36, after the company agreed to be acquired by Ares Capital Corp. The S&P 500 ETF (SPY) rose 0.56% in the same session. Trading volume was about 13.7 times normal.

The deal was disclosed in an 8-K and a related 425 filing by Ares Capital. Under the Agreement and Plan of Merger signed Oct. 26, each MFIC share would convert into $1.21 in cash and a number of Ares Capital shares, for total consideration of $10.88 per fully diluted share, according to the filing.

A 30.1% premium to the last close

The joint press release said the price represents a premium of about 30.1% to MFIC's closing price on Oct. 26, the last trading day before the announcement, and about 25.8% to its 30-day volume-weighted average price. MFIC's preliminary net asset value per share as of Sept. 30, 2026, was about $12.86, a figure the company said may differ from its final results.

Stock consideration depends on Ares Capital's price

The exchange ratio depends on Ares Capital's net asset value and share price before closing. MFIC holders would share in 50% of any premium of Ares Capital's share price above NAV, up to 104.5% of NAV. MFIC is also expected to pay a special dividend before closing, which would reduce the stock portion of the consideration.

Closing expected in the first half of 2027

The transaction requires approval by MFIC stockholders and regulatory clearances, and is expected to close in the first half of 2027. Apollo affiliates that together own about 5.2% of MFIC have agreed to vote in favor. The filing includes a $31.4 million termination fee payable by MFIC in certain circumstances.

The company's third-quarter 2026 results are expected Nov. 5, 2026.

Sources

Written with AI from SEC filings and market data, and checked against those sources before publishing. Our editorial standards.

MFIC page →

Filings, figures and price history are on the MidCap Financial Investment page.