What was the main purpose of Amendment No. 6 to the Credit Agreement?

Amendment No. 6 to the Credit Agreement was primarily designed to update the company's financing terms. Key changes included modifying the definition of 'Adjusted EBITDA' to include pro forma adjustments for acquisitions, allowing greater investment flexibility, and incorporating provisions for European regulatory requirements. It also revised how management fee deferrals are calculated in relation to new acquisitions.

How does the amendment affect Ares Management's ability to make acquisitions?

The amendment enhances acquisition flexibility by allowing for pro forma adjustments to 'Adjusted EBITDA' for up to four consecutive quarters following an acquisition by a portfolio company or managed fund. It also permits the investment of up to $275.0 million in cash consideration for each such acquisition, potentially enabling larger and more strategic deals.

What is the significance of the Transaction Support and Fee Waiver Agreement?

The Transaction Support and Fee Waiver Agreement is significant because it relates to Ares Capital Corporation's (ARCC) proposed acquisition of American Capital, Ltd. (ACAP). Ares Capital Management LLC (ACM LLC), an investment adviser to ARCC, is a party to this agreement, indicating Ares Management's involvement and support for this major strategic transaction in the asset management space.

Are there any European regulatory considerations mentioned in the filing?

Yes, the amendment to the Credit Agreement includes certain provisions addressing regulatory requirements in the European Economic Area. Specifically, it addresses the broad powers EU member state bank regulators have to modify the liabilities of failing financial institutions, suggesting an awareness of and adaptation to the European regulatory landscape.

ARES/ARES-PB 8-K: Material Agreements

Summary

Ares Management, L.P. filed an 8-K on May 26, 2016, reporting key events from May 23, 2016. The filing primarily concerns an amendment to the company's credit facility and related activities concerning Ares Capital Corporation's (ARCC) proposed acquisition of American Capital, Ltd. (ACAP). These events indicate ongoing operational and strategic adjustments within the company and its related entities, important for understanding their financing structures and strategic partnerships.

Key Highlights

1Amendment No. 6 to the Sixth Amended and Restated Credit Agreement was entered into on May 23, 2016, impacting the company's financing terms.
2Key changes to the Credit Agreement include adjustments to the 'Adjusted EBITDA' definition to accommodate pro forma adjustments for acquisitions by portfolio companies or managed funds.
3The amendment permits up to $275.0 million in cash consideration for specific acquisitions per event, potentially enabling larger strategic investments.
4Provisions were added to address regulatory requirements in the European Economic Area related to the modification of liabilities of failing financial institutions.
5A financial covenant related to management fee deferrals was revised to exclude those made in connection with new acquisitions.
6Ares Capital Management LLC (ACM LLC), an ARCC subsidiary, entered into a Transaction Support and Fee Waiver Agreement with ARCC on May 23, 2016.
7This agreement is in connection with ARCC's proposed acquisition of American Capital, Ltd. (ACAP).

Ares Management Corp 8-K Report, Material Agreement (May 26, 2016)

Summary

Key Highlights

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