Summary
Ares Management Corporation (ARES) announced the pricing of a $400 million offering of 3.250% Senior Notes due 2030 by its indirect subsidiary, Ares Finance Co. II LLC. These notes are guaranteed by several key Ares entities, providing a strong layer of financial backing for investors in the notes. The offering's successful pricing is a positive development, indicating continued access to capital markets for the company.
Key Highlights
- 1Ares Management Corp (ARES) subsidiary priced $400 million in Senior Notes due 2030.
- 2The notes carry a coupon rate of 3.250%.
- 3The offering is backed by full and unconditional guarantees from multiple Ares Holdings entities.
- 4Proceeds are intended for general corporate purposes, including potential strategic acquisitions, growth initiatives, and debt/equity management.
- 5The event date was June 9, 2020, and the filing date was June 10, 2020.
- 6A press release dated June 10, 2020, is included as an exhibit.
Frequently Asked Questions
This 8-K filing announces the pricing of a new debt offering by Ares Management Corporation's subsidiary, raising $400 million through Senior Notes due 2030. It also provides details on the guarantees and intended use of proceeds.
The company intends to use the net proceeds for general corporate purposes. This includes funding potential strategic acquisitions, growth initiatives, and possibly repaying, repurchasing, redeeming, or exchanging outstanding equity or debt securities.
The notes are fully and unconditionally guaranteed by several key Ares entities, including Ares Holdings L.P., Ares Investments L.P., Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC, and Ares Offshore Holdings L.P. This provides significant credit support for the noteholders.
The successful pricing of a significant debt offering at a 3.250% interest rate suggests that Ares Management has access to capital markets and that investors have confidence in the company's creditworthiness and future prospects.