Published on 11/8/2023 in the Prospect News Investment Grade Daily.
New Issue: Ares Management details $500 million 6.375% senior notes due 2028
By Cristal Cody
Chicago, Nov. 8 – Ares Management Corp. detailed the $500 million sale of 6.375% senior notes due 2028 (BBB+/A-) priced on Tuesday, according to a FWP filing with the Securities and Exchange Commission.
The notes priced at 99.802 to yield 6.422%, or at Treasuries plus 187.5 basis points.
Price talk was in the Treasuries plus 212.5 bps area, according to a market source.
The notes are callable with a Treasuries plus 30 bps make-whole premium until the one-month par call before the maturity date.
The notes will be guaranteed by 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.
BofA Securities, Inc., Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC are joint bookrunners.
Proceeds will be used for general corporate purposes, including to repay debt and to fund growth initiatives.
Ares is a Los Angeles-based asset management firm.
| Issuer: | Ares Management Corp.
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| Guarantors: | 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
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| Amount: | $500 million
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| Issue: | Senior notes
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| Maturity: | Nov. 10, 2028
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Securities, Inc., SMBC Nikko Securities America, Inc. and Wells Fargo Securities, LLC
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| Senior co-managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and MUFG Securities Americas Inc.
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| Co-managers: | Academy Securities, Inc., Loop Capital Markets LLC, R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Kirkland & Ellis LLP
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| Counsel to underwriters: | Latham & Watkins LLP
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| Coupon: | 6.375%
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| Price: | 99.802
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| Yield: | 6.422%
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| Spread: | Treasuries plus 187.5 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps; callable at par starting Oct. 10, 2028
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| Pricing date: | Nov. 7
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| Settlement date: | Nov. 10
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| Ratings: | S&P: BBB+
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| Fitch: A-
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 212.5 bps area
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| Cusip: | 03990BAA9
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