Summary
Ares Management Corporation (ARES) has announced the issuance of $750 million in aggregate principal amount of 5.600% Senior Notes due 2054. This debt offering, facilitated by an underwriting agreement with Morgan Stanley & Co. LLC and Citigroup Global Markets Inc., expands the company's long-term debt obligations. The notes are unsecured and unsubordinated, and are fully and unconditionally guaranteed by several of Ares' subsidiaries, providing an additional layer of security for noteholders. These notes mature in 2054 and carry a fixed interest rate of 5.600%, payable semi-annually. The issuance leverages a previously established shelf registration statement, indicating a strategic move to access capital markets to support its ongoing operations and growth initiatives. The indenture includes standard covenants related to debt incurrence and asset dispositions, along with provisions for default and early redemption options for the company. Investors should note the long-term nature of this debt and its implications for the company's capital structure.
Key Highlights
- 1Ares Management Corporation issued $750 million in 5.600% Senior Notes due 2054.
- 2The offering was conducted through an underwritten public offering.
- 3The Notes are unsecured and unsubordinated obligations of the Company.
- 4Several Ares subsidiaries fully and unconditionally guarantee the Notes.
- 5Interest on the Notes is payable semi-annually at a fixed rate of 5.600%.
- 6The Notes mature on October 11, 2054, unless redeemed earlier.
- 7The issuance was made under a previously filed shelf registration statement.