Ares Management amends, ups and extends $1.28 billion facility

By William Gullotti

Buffalo, N.Y., April 6 – Ares Management Corp. entered into amendment No. 11 to its sixth amended and restated credit agreement on March 31 with JPMorgan Chase Bank, N.A. as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility amendment extends the maturity of the facility to March 31, 2027, increases the revolver to $1,275,000,000 and upsizes the accordion to $375 million.

The amendment also updated certain currency reference rates, including replacing Libor with SOFR plus an applicable spread. The amendment also reduces the applicable margins.

SOFR-based revolver borrowings will have an applicable margin ranging 75 bps to 125 bps, dependent upon the company’s debt rating. Interest rates will be subject to a sustainability fee adjustment of plus or minus 5 bps based upon ESG performance.

Commitment fees remained unchanged, ranging from 6 basis points to 15 bps dependent upon the company’s debt rating, but are also subject to a sustainability fee adjustment of plus or minus 1 bp based upon ESG performance.

BofA Securities, Inc. is the sustainability coordinator as well as a joint lead arranger and joint bookrunner with J.P. Morgan Securities LLC and Wells Fargo Securities, LLC.

Bank of America, NA and Wells Fargo Bank, NA are the syndication agents with Morgan Stanley Senior Funding, Inc. and Truist Bank as documentation agents.

Ares is a New York-based investment company.

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