8-KOther EventsExhibits & Filings

Ares Management Corp 8-K Report, Corporate Update (Oct 1, 2014)

Filed October 1, 2014For Securities:ARESARES-PB

Summary

On October 1, 2014, Ares Management, L.P. (ARES) announced through an 8-K filing that its indirect subsidiary, Ares Finance Co. LLC, has priced an offering of $250 million in aggregate principal amount of 4.000% Senior Notes due 2024. These notes will be fully and unconditionally guaranteed by Ares Management, L.P. and several other Ares entities, providing investors with a strong layer of credit support. The company intends to utilize a portion of the net proceeds to reduce existing debt, specifically borrowings under its revolving credit facility and promissory notes related to a past acquisition. The remainder of the proceeds will be allocated towards general corporate objectives, which may include funding future strategic acquisitions, related transactions, and overall growth initiatives. Ares also disclosed a non-binding letter of intent for a potential acquisition, noting it is not material at this stage and its completion is uncertain.

Key Highlights

  • 1Ares Finance Co. LLC priced a $250 million offering of 4.000% Senior Notes due 2024.
  • 2The Senior Notes are fully and unconditionally guaranteed by Ares Management, L.P. and multiple other Ares entities.
  • 3Proceeds will be used to repay outstanding borrowings under the revolving credit facility and prior acquisition-related promissory notes.
  • 4Remaining net proceeds will fund general corporate purposes, including strategic acquisitions and growth initiatives.
  • 5Ares has entered into a non-binding letter of intent for an acquisition that is not currently material.
  • 6The offering is subject to customary closing conditions.

Frequently Asked Questions

The primary purpose is to refinance existing debt, specifically paying down borrowings under the company's revolving credit facility and promissory notes from a prior acquisition. Additionally, remaining proceeds will support general corporate activities, potential acquisitions, and growth efforts.

The notes are fully and unconditionally guaranteed by Ares Management, L.P. itself, along with a comprehensive list of its significant subsidiaries including Ares Holdings Inc., Ares Domestic Holdings Inc., Ares Real Estate Holdings LLC, Ares Holdings L.P., Ares Domestic Holdings L.P., Ares Investments L.P., Ares Real Estate Holdings L.P., Ares Management LLC, and Ares Investments Holdings LLC.

Yes, Ares Management has entered into a non-binding letter of intent for an acquisition. However, the company emphasizes that this acquisition is not material to its businesses at this time, and there is no certainty it will lead to a binding agreement or be completed.

The Senior Notes have a coupon rate of 4.000% and are due in 2024.