S&P gives BBB+ to Ares notes

S&P said it assigned its BBB+ debt rating to Ares Management Corp.'s issuance of senior unsecured notes due in 2028. The size of the issuance will be determined by market conditions, but for our analysis, we assume an issuance of $500 million.

The notes will be guaranteed on joint and several bases by each of Ares Holdings LP, Ares Investments Holdings LLC, Ares Management LLC, Ares Finance Co. LLC, Ares Finance Co. II LLC, Ares Finance Co. III LLC and Ares Finance Co. IV LLC.

Ares is expected to use the proceeds for general corporate purposes, including debt repayment and growth initiatives. “We expect the company to repay a portion of the amount outstanding on its revolving credit facility ($1.325 billion, due March 2027), which had $765 million drawn as of Sept. 30, 2023,” S&P said in a statement.

The outlook is stable.

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