Ares Capital Posts Gain, Allied Capital Posts Loss

(Reuters) – Small-business lender Ares Capital Corp (ARCC.O) posted a quarterly profit that beat analysts’ estimates by a cent, while struggling rival Allied Capital Corp (ALD.N), which Ares agreed to buy last month, posted a quarterly loss.

Ares Capital posted a net profit of $63.3 million, or 62 cents a share, for the third quarter, compared with a loss of $41.4 million, or 43 cents a share, a year earlier.

Excluding professional fees related to the acquisition of Allied Capital and dilution from a recent offering, the company earned 36 cents a share.

Analysts were looking for a profit of 35 cents a share, excluding items, according to Thomson Reuters I/B/E/S.

Ares gained $30.4 million from investments and foreign currency transactions during the quarter, compared with $74.2 million it lost in the same quarter last year.

Separately, Allied Capital said it had a quarterly net loss of $140.7 million, or 79 cents a share, hurt by a $117.5 million loss on extinguishment of debt.

Ares Capital agreed to buy Allied Capital in October in an all-stock deal valued at $648 million, providing relief to the debt-laden company. 

Ares shares were up about 4 percent at $10.87 Thursday on Nasdaq, while those of Allied were up about 4 percent at $3.27 on the New York Stock Exchange.

(Reporting by Anurag Kotoky in Bangalore; Editing by Ratul Ray Chaudhuri)