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.