Summary
Ares Management, L.P. (ARES) announced a significant financing event via an 8-K filing on August 18, 2015. The company, through its indirect subsidiary Ares Finance Co. II LLC, issued $325 million in aggregate principal amount of 5.250% Senior Notes due 2025. These notes are guaranteed by various Ares subsidiaries and are intended to partially fund the previously announced business combination and merger agreement with Kayne Anderson Capital Advisors, L.P. The issuance of these senior notes represents a material financing activity for Ares Management, providing capital for strategic growth initiatives. Investors should note the fixed interest rate and maturity date, as well as the conditions under which the notes may be redeemed or repurchased, including provisions related to the closing of the Kayne Anderson transaction and potential change of control events.
Key Highlights
- 1Ares Management, L.P. (ARES) subsidiary, Ares Finance Co. II LLC, issued $325 million in 5.250% Senior Notes due 2025.
- 2The Notes are guaranteed by several indirect subsidiaries of Ares Management, L.P.
- 3Proceeds from the Notes offering are earmarked to partially fund the company's business combination and merger with Kayne Anderson Capital Advisors, L.P. (KACALP).
- 4The Notes bear a fixed interest rate of 5.250% per annum, payable semi-annually.
- 5The Notes mature on September 1, 2025, unless earlier redeemed or repurchased.
- 6Redemption provisions exist, including a make-whole provision before June 1, 2025, and a redemption at 100% of principal thereafter.
- 7A change of control repurchase event triggers a repurchase price of 101% of the principal amount, and failure to close the Kayne Anderson transaction by June 30, 2016, requires redemption of all Notes at 101%.