Ares Dynamic Credit (NYSE: ARDC) to sell $50M in preferred closings

Rhea-AI Filing Summary

Ares Dynamic Credit Allocation Fund, Inc. entered an agreement to sell mandatory redeemable preferred shares in two exempt private closings. The Fund agreed to issue 800,000 Series D and 1,200,000 Series E mandatory redeemable preferred shares, each with a $25.00 liquidation preference. The first closing for the Series D is currently expected on July 14, 2026 and the second closing for the Series E is currently expected on September 14, 2026, each subject to the satisfaction of customary closing conditions. Total gross proceeds to the Fund from these sales are anticipated to be $50 million. This Supplement amends and supplements the Fund's Prospectus and Statement of Additional Information dated August 26, 2024.

Insights

Fund Capital Markets Strategist

Private preferred issuance raises anticipated $50 million in two closings.

The Fund agreed to issue 800,000 Series D and 1,200,000 Series E mandatory redeemable preferred shares at a $25.00 liquidation preference per share, with closings targeted for July 14, 2026 and September 14, 2026.

Cash‑flow treatment is explicit: gross proceeds to the Fund are anticipated to be $50 million. The transactions are described as exempt private sales and are subject to customary closing conditions, so timing and completion depend on those conditions and purchaser performance.

Closed‑End Fund Operations Analyst

Issuance of mandatory redeemable preferred shares increases preferred capital on the balance sheet.

Each MRP share carries a $25.00 liquidation preference; the aggregate counts are 800,000 (Series D) and 1,200,000 (Series E). The agreement contemplates two separate closings rather than a single issuance.

Investors should note the offering is exempt under the Securities Act and the filing updates the Prospectus and SAI; subsequent filings may disclose final terms and closing confirmations.

Key Figures

Series D shares: 800,000 shares Series E shares: 1,200,000 shares Liquidation preference: $25.00 per share +3 more

6 metrics

Series D shares 800,000 shares Series D MRP Shares to be sold at closing

Series E shares 1,200,000 shares Series E MRP Shares to be sold at second closing

Liquidation preference <money>$25.00</money> per share applies to each Series D and Series E MRP Share

Total gross proceeds <money>$50 million</money> anticipated following the closings

First closing date July 14, 2026 expected closing for Series D

Second closing date September 14, 2026 expected closing for Series E

Key Terms

Mandatory Redeemable Preferred (MRP), Liquidation preference, Offering exempt from registration, Prospectus Supplement

4 terms

Mandatory Redeemable Preferred (MRP) financial

"800,000 Series D Mandatory Redeemable Preferred Shares"

Liquidation preference financial

"liquidation preference $25.00 per share"

A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.

Offering exempt from registration regulatory

"in an offering exempt from registration under the Securities Act"

Prospectus Supplement regulatory

"This Supplement is part of, and should be read in conjunction with, the Prospectus"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 06/11/2026 - 04:47 PM Accepted by SEC EDGAR 06/11/2026 - 04:40 PM Learn about SEC filing dates

FAQ

What is ARDC issuing in this June 11, 2026 supplement?

ARDC is issuing 800,000 Series D and 1,200,000 Series E mandatory redeemable preferred shares at $25.00 liquidation preference each.

How much gross proceeds will Ares Dynamic Credit (ARDC) receive?

The Fund anticipates receiving $50 million in total gross proceeds from the combined sale of the Series D and Series E MRP shares.

When are the closings for the preferred share issuances scheduled?

The first closing for Series D is currently expected on July 14, 2026 and the second for Series E on September 14, 2026, subject to customary conditions.

Will these preferred shares be registered under the Securities Act?

No; the Supplement states the sales are in an offering exempt from registration under the Securities Act, sold to certain institutional accredited investors.

Where can I find the Prospectus and SAI referenced by ARDC?

The Prospectus and SAI dated August 26, 2024 and supplements are filed with the SEC and available free at www.sec.gov or by calling the Fund at (888) 818-5298.

Filed Pursuant to Rule 424(b)(3)

Securities Act File No. 333-279977

Ares Dynamic Credit Allocation Fund, Inc.

Supplement dated June 11, 2026

To

Prospectus and Statement of Additional Information,
each dated August 26, 2024, as supplemented to date

This supplement (“Supplement”) contains information that amends, supplements or modifies certain information contained in the accompanying prospectus (the “Prospectus”) and statement of additional information (the “SAI”) of Ares Dynamic Credit Allocation Fund, Inc. (the “Fund”), each dated August 26, 2024, as supplemented to date. This Supplement is part of, and should be read in conjunction with, the Prospectus and SAI. Unless otherwise indicated, all other information included in the Prospectus and SAI that is not inconsistent with the information set forth in this Supplement remains unchanged. The Prospectus and SAI have been filed with the U.S. Securities and Exchange Commission and are available free of charge at www.sec.gov or by calling (888) 818-5298. Capitalized terms used in this Supplement have the same meanings as in the Prospectus and SAI, unless otherwise stated herein.

On June 11, 2026, the Fund entered into an agreement with certain institutional accredited investors to issue and sell, in an offering exempt from registration under the Securities Act of 1933, as amended, (i) 800,000 Series D Mandatory Redeemable Preferred Shares, liquidation preference $25.00 per share (“Series D MRP Shares”); and (ii) 1,200,000 Series E Mandatory Redeemable Preferred Shares, liquidation preference $25.00 per share (“Series E MRP Shares” and together with the Series D MRP Shares, the “MRP Shares”), with the sale and purchase of the MRP Shares to occur at two closings. The first closing (with respect to the Series D MRP Shares) is currently expected to be held on July 14, 2026, and the second closing (with respect to the Series E MRP Shares) is currently expected to be held on September 14, 2026, in each case subject to the satisfaction of customary closing conditions. Total gross proceeds to the Fund from the sale of the MRP Shares following the closing of the transactions described above are anticipated to be $50 million.

Please retain this Supplement with your Prospectus and SAI.