Summary
Ares Management, L.P. (the "Partnership") filed an 8-K on June 3, 2016, to report the entry into a material definitive agreement for the issuance and sale of Series A Preferred Units. Specifically, on June 1, 2016, the Partnership entered into an Underwriting Agreement to issue and sell 11,000,000 units of its 7.00% Series A Preferred Units, with a liquidation preference of $25.00 per unit. The underwriters also have an option to purchase an additional 1,650,000 units to cover potential over-allotments. This offering is a significant capital-raising event for Ares Management, providing an opportunity to strengthen its balance sheet and fund future growth initiatives. The preferred units carry a fixed dividend of 7.00%, offering a predictable income stream to investors. The closing of this offering was expected on June 8, 2016, and was conducted under a previously filed shelf registration statement and a prospectus supplement.
Key Highlights
- 1Ares Management, L.P. entered into an Underwriting Agreement on June 1, 2016, for the sale of Series A Preferred Units.
- 2The offering includes 11,000,000 units of 7.00% Series A Preferred Units, with a liquidation preference of $25.00 per unit.
- 3Underwriters have an option to purchase an additional 1,650,000 Series A Preferred Units for over-allotments.
- 4The offering is being made pursuant to a shelf registration statement on Form S-3 filed on May 9, 2016.
- 5The closing of the offering was anticipated for June 8, 2016.
- 6The Underwriting Agreement contains standard provisions including representations, warranties, conditions to closing, indemnification, and termination clauses.
- 7The filing also includes an exhibit for the Computation of Ratio of Earnings to Fixed Charges.