Summary
Ares Management Corp (ARES) filed an 8-K on April 1, 2020, reporting an amendment to its credit facility. The key event is the extension of the maturity date for its $1.065 billion revolving line of credit from March 21, 2024, to March 30, 2025. This extension provides the company with greater financial flexibility and a longer runway for its operations and strategic initiatives. Furthermore, the amendment includes favorable adjustments to the credit facility's terms, specifically a reduction in the unused commitment fee and, in certain circumstances, a reduction in the applicable margin for LIBOR rate loans. These changes indicate a potentially improved cost of capital for Ares Management, especially for its unsecured debt ratings below BBB+/Baa1, and signal continued confidence from lenders during a period of market uncertainty.
Key Highlights
- 1Extended maturity date of the $1.065 billion revolving credit facility from March 21, 2024, to March 30, 2025.
- 2Amended the credit agreement to reduce the unused commitment fee across various debt rating tiers.
- 3Reduced the applicable margin for LIBOR rate loans under certain conditions, with greater reductions for lower credit ratings.
- 4The amendment was entered into on March 30, 2020, and is the ninth amendment to the Sixth Amended and Restated Credit Agreement.
- 5The borrowing entity remains Ares Holdings L.P. and Ares Investments L.P.
- 6The credit facility is provided by JPMorgan Chase Bank, N.A., as agent.
- 7The filing includes the Credit Facility Amendment as an exhibit.