Annaly Capital Management Sells Middle Market Lending Portfolio to Ares Capital
Posted on 04/25/2022
Annaly Capital Management, Inc. (NYSE: NLY) agreed to sell its Middle Market Lending portfolio to Ares Capital Management LLC on behalf of funds managed by the Credit Group of Ares Management Corporation (NYSE: ARES). The transaction is valued at approximately US$ 2.4 billion and represents substantially all of Annaly Capital’s Middle Market Lending assets held on balance sheet as well as assets managed for third parties. Annaly Capital’s Middle Market Lending portfolio is comprised of predominantly 1st and 2nd lien loans focused on defensive, counter-cyclical industries.
Annaly Capital intends to use proceeds from the sale to repay its financing facilities related to the Middle Market Lending assets being sold and to purchase targeted assets in accordance with its capital allocation policy, including Agency MBS, Mortgage Servicing Rights, and Residential Credit assets.
Subject to customary closing conditions, the transfer of the Middle Market Lending portfolio is expected to be completed by the end of the second quarter of 2022.
Wells Fargo Securities, LLC is serving as financial advisor and Hunton Andrews Kurth LLP is serving as legal advisor to Annaly. Latham & Watkins LLP is serving as legal advisor to Ares.
Keywords: Ares Management Corporation.