Summary
Ares Management Corporation (ARES) filed an 8-K on September 20, 2019, to report on a material definitive agreement, specifically an Underwriting Agreement entered into on September 18, 2019. This agreement outlines the terms for the issuance and sale of 7,000,000 shares of Class A common stock, with an option for the underwriters to purchase an additional 1,050,000 shares. The offering was expected to close on September 20, 2019, and was conducted under a previously filed shelf registration statement. This filing signals a capital-raising event for Ares Management. Investors should note the substantial number of shares being offered, which could impact existing shareholders through dilution. The agreement also includes standard provisions such as representations, warranties, conditions to closing, indemnification, and a 60-day lock-up period for the company on selling or transferring shares. The inclusion of forward-looking statements highlights the inherent risks and uncertainties associated with the offering and the company's future performance.
Key Highlights
- 1Ares Management Corporation entered into an Underwriting Agreement on September 18, 2019.
- 2The agreement pertains to the sale of 7,000,000 shares of Class A common stock.
- 3Underwriters have an option to purchase up to an additional 1,050,000 shares.
- 4The offering was expected to close on September 20, 2019.
- 5The issuance is being made under a shelf registration statement filed on February 27, 2017.
- 6A 60-day lock-up period is in effect, restricting Ares from selling additional shares without underwriter consent.
- 7The filing includes customary representations, warranties, and termination provisions.