What is the purpose of this 8-K filing?

This 8-K filing announces a material definitive agreement regarding the issuance and sale of $500 million of Ares Management Corporation's 6.375% Senior Notes due 2028. It provides details on the terms of the notes, the indenture, the guarantors, and the underwriting agreement.

What are the key terms of the newly issued Senior Notes?

The notes have an aggregate principal amount of $500 million, mature on November 10, 2028, and bear interest at a rate of 6.375% per annum, payable semi-annually. They are unsecured and unsubordinated obligations of Ares Management Corporation and are guaranteed by several of its subsidiaries.

Are there any significant restrictions or covenants associated with these notes?

Yes, the indenture includes covenants that limit the ability of Ares Management Corporation and its guarantors to incur indebtedness secured by liens on certain assets or to merge, consolidate, or sell substantially all of their assets, subject to certain exceptions.

Under what conditions can the notes be redeemed?

The company has the option to redeem the notes in whole or in part on or after October 10, 2028, at 100% of the principal amount plus accrued interest. Prior to October 10, 2028, the notes may be redeemed at a price equal to the greater of 100% of the principal amount or the present value of remaining payments, discounted at the Treasury Rate plus 30 basis points, plus accrued interest.

ARES 8-K: Material Agreements & Financial Events

Summary

Ares Management Corporation (ARES) has filed an 8-K report detailing the issuance of $500 million in aggregate principal amount of 6.375% Senior Notes due 2028. These notes were issued on November 10, 2023, under an underwritten public offering and are governed by an indenture that includes the company and several of its subsidiaries as guarantors. The offering was made pursuant to a previously filed shelf registration statement. The notes are unsecured and unsubordinated obligations of the company, fully and unconditionally guaranteed by the specified guarantors. The indenture contains customary covenants restricting the company and its guarantors from incurring certain secured indebtedness or engaging in mergers or asset sales. The report also outlines provisions for redemption of the notes, including an option for early redemption under certain conditions.

Key Highlights

1Ares Management Corporation successfully issued $500 million in Senior Notes due 2028.
2The notes carry a coupon rate of 6.375% per annum.
3The issuance was completed through an underwritten public offering on November 10, 2023.
4The notes are fully and unconditionally guaranteed by several Ares subsidiaries, acting as Guarantors.
5The notes are unsecured and unsubordinated obligations of the company and its guarantors.
6The indenture includes covenants that limit the incurrence of secured debt and significant asset dispositions.
7The notes may be redeemed by the company on or after October 10, 2028, or earlier under specific conditions.

Ares Management Corp 8-K Report, Material Agreement (Nov 13, 2023)

Summary

Key Highlights

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