UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): November 25, 2013
Ares Multi-Strategy Credit Fund, Inc.
(Exact name of Registrant as specified in its charter)
Maryland |
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001-36147 |
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46-2796427 |
(State or other jurisdiction of |
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(Commission File Number) |
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(I.R.S. Employer Identification |
2000 Avenue of the Stars
12th Floor
Los Angeles, California 90067
(Address of principal executive offices and zip code)
Registrants telephone number, including area code: (310) 201-4100
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01 Other Events
Ares Multi-Strategy Credit Fund, Inc. (the Fund) has declared its initial monthly distributions of the Fund for the first three months of 2014.
The following dates apply to the distributions declared:
Ex-Dates: |
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January 21, 2014 |
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February 18, 2014 |
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March 18, 2014 |
Record Dates: |
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January 23, 2014 |
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February 20, 2014 |
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March 20, 2014 |
Payable Dates: |
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January 31, 2014 |
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February 28, 2014 |
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March 31, 2014 |
Per Share Amount: |
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$0.1525 |
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$0.1525 |
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$0.1525 |
As required by Section 19(a) of the Investment Company Act of 1940, a notice will be distributed to the Funds stockholders in the event that a portion of a monthly distribution is derived from sources other than undistributed net investment income, such as from short-term capital gain, long-term capital gain, or return of capital.
A copy of the Funds press release is attached hereto as Exhibit 99.1and is incorporated herein by reference.
Credit Facility
On or about November 25, 2013 (the Closing Date), Ares Multi-Strategy Credit Fund, Inc. (the Fund) expects to enter into a $62,000,000 credit facility (the Credit Facility) with State Street Bank and Trust Company (State Street), as lender, other lending institutions party thereto, and State Street, as agent. The Fund may borrow under the Credit Facility on a revolving basis. All outstanding loans under the Credit Facility must be repaid in full in November 2015. The loans generally bear interest at a rate of the 3-month London Interbank Offered Rate (LIBOR) plus an applicable margin rate initially set at 1.10%. The Credit Facility contains customary affirmative and negative covenants, including limitations on debt, liens and restricted payments, as well as certain portfolio limitations and prepayment provisions, including a requirement to prepay loans or take certain other actions if certain asset value tests are not met. In addition, amounts borrowed under the Credit Facility generally can be prepaid at the option of the Fund. As a result of entering into the Credit Facility, the Fund expects to incur leverage in an aggregate amount of approximately 28.57% of the Funds Managed Assets (as such term is defined in the Funds Prospectus). There can be no guarantees that the Fund will maintain this level of leverage for the full term of the Credit Facility.
Item 9.01 Financial Statements and Exhibits
(a) Not Applicable.
(b) Not Applicable.
(c) Not Applicable.
(d) Exhibits
Exhibit 99.1 Press Release regarding January 2014, February 2014 and March 2014 distributions, dated November 25, 2013.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ARES MULTI-STRATEGY CREDIT FUND, INC. | |
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Date: November 25, 2013 |
By: |
/s/ Anthony Dell |
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Anthony Dell |
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Chief Compliance Officer |
Exhibit 99.1
ARES MULTI-STRATEGY CREDIT FUND, INC. DECLARES INITIAL MONTHLY DISTRIBUTIONS OF $0.1525 PER SHARE
NEW YORKNovember 25, 2013Ares Multi-Strategy Credit Fund, Inc. (the Fund) (NYSE: ARMF) announced the declaration of initial monthly distributions of the Fund for the first three months of 2014 of $0.1525 per common share, payable as noted below.
Ex-Dates: |
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January 21, 2014 |
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February 18, 2014 |
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March 18, 2014 |
Record Dates: |
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January 23, 2014 |
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February 20, 2014 |
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March 20, 2014 |
Payable Dates: |
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January 31, 2014 |
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February 28, 2014 |
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March 31, 2014 |
Per Share Amount: |
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$0.1525 |
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$0.1525 |
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$0.1525 |
Based on the Funds initial public offering price of $25.00 per share and current share price of $20.56 (as of its close on November 22, 2013), the distributions represent an annualized distribution rate of 7.32% and 8.90%, respectively (calculated by annualizing the distribution amount and dividing it by the IPO share price or current price, as the case may be). Information regarding the distribution rate is included for informational purposes only and is not necessarily indicative of future results, the achievement of which cannot be assured. The distribution rate should not be considered the yield or total return on an investment in the Fund.
Ares Multi-Strategy Credit Fund, Inc. has invested approximately 75% of the proceeds (equity and assumed debt proceeds) received at the closing of its initial public offering on October 31, 2013. As of November 21, 2013, the Fund had an effective duration of 1.66 years with approximately 39% of assets invested in senior secured bank loans, 53% in high yield bonds and 8% in collateralized loan obligations.
We continue to see significant opportunities to generate attractive risk-adjusted returns in these asset classes, and we are diligently selecting investments as we put capital to work, said Seth Brufsky, President, Chief Executive Officer and Director of Ares Multi-Strategy Credit Fund and Senior Partner of Ares Management LLC. While we recognize that many investorsincluding ourselvesare concerned about the overall market price performance story of closed-end funds, we are comforted by the credit quality of the underlying assets within which ARMF invests as well as the strength of the Ares platform and view these as significant advantages as we strive to position the Fund defensively with respect to interest rates, but opportunistically with respect to credit.
As required by Section 19(a) of the Investment Company Act of 1940, a notice will be distributed to the Funds stockholders in the event that a portion of a monthly distribution is derived from sources other than undistributed net investment income, such as from short-term capital gain, long-term capital gain, or return of capital.
The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Funds investment performance during the remainder of its fiscal year and may be subject to change based on tax regulations. The final determination of the source of these distributions will be made after the Funds fiscal year end. If necessary, the Fund will pay an adjusting distribution in December that includes any additional income and net realized capital gains in excess of the monthly distributions for that year to satisfy the minimum distribution requirements of the Internal Revenue Code. In January or February of each year, investors will be sent a Form 1099-DIV for the previous calendar year that will define how to report these distributions for federal income tax purposes.
About Ares Multi-Strategy Credit Fund, Inc.
Ares Multi-Strategy Credit Fund, Inc. is a non-diversified, closed-end management company that is externally managed by a wholly-owned subsidiary of Ares Management LLC, a global alternative asset manager and SEC- registered investment adviser with approximately $68 billion of committed capital under management as of September 30, 2013. ARMF seeks to provide an attractive risk-adjusted level of total return, primarily through current income and, secondarily, through capital appreciation, by investing primarily in a broad, dynamically managed portfolio of below investment grade senior secured loans, high yield corporate bonds, other similar fixed-income instruments, including derivatives, collateralized loan obligations, and other asset backed securities. There can be no assurance that the Fund will achieve its investment objective. The Funds net asset value may be accessed through its NASDAQ ticker symbol, XAMFX.
Forward-Looking Statements
Statements included herein may constitute forward-looking statements within the meaning of the U.S. securities laws, and may relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and others beyond the Funds control. Ares Multi-Strategy Credit Fund, Inc. undertakes no duty to update any forward-looking statements made herein.
This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted. An investor should consider the Funds investment objective, risks, charges and expenses carefully before investing.
Ares Multi-Strategy Credit Fund, Inc. is a closed-end fund, which does not engage in a continuous offering of its shares. Since its initial public offering, the Fund has traded on the New York Stock Exchange under the symbol ARMF. Investors wishing to purchase or sell shares may do so by placing orders through a broker dealer or other intermediary.
Contact
Destra Capital Investments
ARMF@destracapital.com
(877) 855-3434