Summary
Ares Management Corporation (ARES) filed an 8-K on January 21, 2022, disclosing the entry into a material definitive agreement. Specifically, an indirect subsidiary, Ares Finance Co. IV LLC, along with several other subsidiaries acting as guarantors, entered into an indenture for the issuance of $500 million in aggregate principal amount of 3.650% Senior Notes due 2052. These notes are unsecured and unsubordinated obligations, fully guaranteed by the parent company's subsidiaries. This issuance represents a significant financing event for Ares Management. The notes carry a fixed interest rate of 3.650% and mature on February 1, 2052, with semi-annual interest payments commencing in August 2022. The indenture includes provisions for redemption at the issuer's option, including a make-whole provision and a premium for redemption following a Change of Control Repurchase Event. Covenants within the indenture place restrictions on the incurrence of secured debt and the sale or disposition of assets.
Key Highlights
- 1Ares Finance Co. IV LLC, an indirect subsidiary of Ares Management, issued $500 million in 3.650% Senior Notes due 2052.
- 2The notes are guaranteed by multiple indirect subsidiaries of Ares Management.
- 3Interest on the notes is payable semi-annually at a fixed rate of 3.650% per annum.
- 4The notes mature on February 1, 2052, unless redeemed earlier.
- 5The issuer has the option to redeem the notes at a premium, including a 'make-whole' provision and a 101% premium upon a Change of Control Repurchase Event.
- 6The indenture contains covenants that limit the ability to incur secured indebtedness and sell or merge assets.