Summary
Ares Management Corporation (ARES) announced via an 8-K filing on June 24, 2021, the pricing of a significant debt offering. The company's indirect subsidiary, Ares Finance Co. III LLC, successfully priced $450 million in fixed-rate resettable subordinated notes due in 2051, carrying a coupon of 4.125%. These notes are backed by guarantees from several Ares entities, including Ares Holdings L.P. and various Ares Finance Co. subsidiaries. The net proceeds from this offering are earmarked for general corporate purposes, which importantly include debt repayment and funding future growth initiatives. This move indicates a strategy to bolster its financial flexibility and support its expansion plans.
Key Highlights
- 1Ares Management Corporation (ARES) priced a $450 million offering of Fixed-Rate Resettable Subordinated Notes due 2051.
- 2The notes carry a fixed interest rate of 4.125% until reset dates.
- 3The offering was conducted through an indirect subsidiary, Ares Finance Co. III LLC.
- 4The notes are fully and unconditionally guaranteed by several key Ares entities, enhancing investor confidence.
- 5Proceeds are designated for general corporate purposes, including debt repayment and funding growth initiatives.
- 6This debt issuance provides Ares with additional capital to manage its balance sheet and pursue strategic opportunities.
- 7The filing was made on June 24, 2021, detailing events from June 23, 2021.
Frequently Asked Questions
The primary purpose of this debt offering is to raise $450 million for general corporate purposes. This includes repaying existing debt obligations and funding growth initiatives, which are key to Ares Management's strategic objectives.
The notes are fixed-rate resettable subordinated notes due in 2051, with an aggregate principal amount of $450 million. They carry a coupon rate of 4.125% and are guaranteed by several Ares entities.
This issuance provides Ares Management with significant capital, enhancing its financial flexibility. It allows the company to manage its debt structure, potentially lower its overall cost of capital, and secure funding for strategic growth opportunities, which can be accretive to shareholder value.
The notes are being issued by Ares Finance Co. III LLC, an indirect subsidiary of Ares Management Corporation. However, the notes are guaranteed by Ares Holdings L.P. and other Ares entities, indicating strong corporate backing.