Summary
Ares Management Corp. (ARES) has announced the entry into a new Credit Agreement, dated March 27, 2026, through its subsidiary Ares Holdings L.P. This agreement provides a $400 million term loan facility, which was fully funded at closing and matures on March 27, 2029. The facility's proceeds are designated for refinancing existing debt, covering fees and expenses, and supporting ongoing working capital and general corporate purposes. This new debt issuance is accompanied by financial covenants that investors should monitor. Key among these are a maximum net debt to Adjusted EBITDA ratio of 4.00 to 1.00 and a minimum Assets Under Management (AUM) threshold of approximately $179.8 billion. The agreement also includes standard provisions for events of default, which could lead to commitment termination and acceleration of borrowings. The interest rate on the loans is variable, based on either the Term SOFR Rate or the Base Rate, plus an applicable margin determined by ARES's senior unsecured debt ratings.
Key Highlights
- 1Ares Management Corp. secured a $400 million term loan facility via a new Credit Agreement.
- 2The facility was fully funded on March 27, 2026, with a maturity date of March 29, 2029.
- 3Proceeds will be used for debt refinancing, expenses, working capital, and general corporate purposes.
- 4The agreement includes a covenant requiring net debt to Adjusted EBITDA to not exceed 4.00x.
- 5A minimum Assets Under Management (AUM) threshold of approximately $179.8 billion must be maintained.
- 6Interest rates are variable, tied to Term SOFR or Base Rate plus an applicable margin based on debt ratings.
- 7Standard covenants and events of default are included, with potential for borrowing acceleration.