01—Abstract
Summary
Summary of the 8-K filed March 31, 2026. Cited figures are marked; the original filing is the authoritative source.
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 milliona 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 billionb. 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.
02—Key points
Key Highlights
- Ares Management Corp. secured a $400 million term loan facility via a new Credit Agreement.
- The facility was fully funded on March 27, 2026, with a maturity date of March 29, 2029.
- Proceeds will be used for debt refinancing, expenses, working capital, and general corporate purposes.
- The agreement includes a covenant requiring net debt to Adjusted EBITDA to not exceed 4.00x.
- A minimum Assets Under Management (AUM) threshold of approximately $179.8 billion must be maintained.
- Interest rates are variable, tied to Term SOFR or Base Rate plus an applicable margin based on debt ratings.
- Standard covenants and events of default are included, with potential for borrowing acceleration.
03—Questions
Frequently Asked Questions
What is the primary purpose of this new $400 million Credit Agreement?
The primary purpose of the Credit Agreement is to provide Ares Holdings L.P. with $400 million in funding. These proceeds are intended to refinance existing indebtedness, cover associated fees and expenses, and support ongoing working capital needs and general corporate purposes of the borrower.
What are the key financial covenants investors should be aware of?
Investors should pay close attention to two main financial covenants: 1) a maximum net debt to Adjusted EBITDA ratio of 4.00 to 1.00, which must be maintained at the end of any four fiscal quarter period, and 2) a requirement that Assets Under Management (AUM) remain equal to or greater than $179,825,526,099.
What is the interest rate structure for this term loan?
The interest rate on the loans is variable. At the borrower's option, it can be either the Term SOFR Rate plus an applicable margin or the Base Rate plus an applicable margin. The specific margin applied is determined by Ares Management Corporation's senior long-term unsecured debt ratings.
What happens if Ares Management Corp. violates any of the terms in the Credit Agreement?
The Credit Agreement includes various events of default. If such an event occurs, the lenders have the right to terminate their commitments under the facility, and outstanding borrowings may be accelerated, meaning they could become immediately due and payable.
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