8-KMaterial AgreementsFinancial EventsExhibits & Filings

Ares Management Corp 8-K Report, Material Agreement (Jan 21, 2022)

Filed January 21, 2022For Securities:ARESARES-PB

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.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose the entry into a material definitive agreement, specifically the issuance of $500 million in Senior Notes by a subsidiary of Ares Management Corporation.

The notes have a principal amount of $500 million, a fixed interest rate of 3.650% per annum, mature on February 1, 2052, and are guaranteed by several indirect subsidiaries of Ares Management.

Investors are protected by the unsecured and unsubordinated nature of the notes, the full guarantee from multiple subsidiaries, covenants that restrict certain corporate actions (like incurring secured debt or selling assets), and provisions for redemption at a premium in specific circumstances, including a change of control.

This issuance increases Ares Management's long-term debt by $500 million, which will require regular interest payments and principal repayment at maturity. The indenture's covenants also introduce restrictions on certain future financial and operational decisions.