Summary
Ares Management Corp. (ARES) filed an 8-K on August 13, 2015, providing updates on significant corporate activities. The company is proceeding with its previously announced business combination and merger with Kayne Anderson Capital Advisors, L.P. (KACALP), a transaction that was initially agreed upon on July 23, 2015. This merger is a key strategic move for Ares Management, likely aimed at expanding its asset management capabilities and market presence. Furthermore, Ares Management announced the successful pricing of a $325 million offering of 5.250% Senior Notes due 2025 by its indirect subsidiary, Ares Finance Co. II LLC. The proceeds from this debt offering are intended to partially fund the aforementioned merger transactions. The notes are guaranteed by several Ares subsidiaries, underscoring the financial commitment to the deal. Investors should note the contingency: if the merger does not close by June 30, 2016, or if the agreement is terminated, the notes will be redeemed at a premium.
Key Highlights
- 1Ares Management Corp. is progressing with its previously announced merger and business combination with Kayne Anderson Capital Advisors, L.P. (KACALP).
- 2Ares Finance Co. II LLC, an indirect subsidiary, has priced a $325 million offering of 5.250% Senior Notes due 2025.
- 3The net proceeds from the notes offering are earmarked to partially finance the acquisition of Kayne Anderson.
- 4The notes are fully and unconditionally guaranteed on a joint and several basis by multiple Ares subsidiaries, indicating strong parent company support.
- 5There is a redemption clause for the senior notes: if the merger is not completed by June 30, 2016, or the agreement is terminated, the notes must be redeemed at 101% of their principal amount plus accrued interest.
- 6The filing incorporates by reference a press release dated August 13, 2015, which likely provides further details on the notes offering and the merger.