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.