Ares Management Corporation Announces Pricing of Fixed-Rate Resettable Subordinated Notes Offering

Rhea-AI Summary

Ares Management Corporation (NYSE: ARES) has priced an offering of $450 million in 4.125% Fixed-Rate Resettable Subordinated Notes due 2051. The notes, issued by Ares Finance Co. III LLC and guaranteed by multiple Ares entities, are intended to support general corporate purposes, including debt repayment and growth initiatives. Offered to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S, these notes are not registered under the Securities Act and cannot be sold in the U.S. without registration or exemption.

Positive

• Offering of $450 million in notes to support general corporate purposes.
• Proceeds intended for debt repayment and funding growth initiatives.

Negative

• Notes not registered under the Securities Act, limiting their sale in the U.S.
• Involvement of forward-looking statements introduces risk and uncertainty.

Ares Management Corporation (the “Company”) (NYSE: ARES) today announced the pricing of the previously announced offering of $450,000,000 of 4.125% Fixed-Rate Resettable Subordinated Notes due 2051 (the “notes”) by Ares Finance Co. III LLC, its indirect subsidiary. The notes will be fully and unconditionally guaranteed by Ares Holdings L.P., Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC and Ares Finance Co. II LLC. The offering is subject to customary closing conditions. The Company intends to use the net proceeds from this offering for general corporate purposes, including debt repayment and to fund growth initiatives.

The notes will be offered and sold to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the “Securities Act”).

The notes have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

This news release shall not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or the Company’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Ares Management Corporation undertakes no duty to update any forward-looking statements made herein.

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FAQ

What is the value of the notes offered by Ares Management Corporation?

Ares Management Corporation has offered $450 million in Fixed-Rate Resettable Subordinated Notes.

What is the interest rate of Ares Management's newly issued notes?

The notes have a fixed interest rate of 4.125%.

When are the subordinated notes due?

The subordinated notes are due in 2051.

What are the intended uses of the proceeds from the notes offering?

Proceeds will be used for general corporate purposes, including debt repayment and funding growth initiatives.

Under which regulations are the notes being offered?

The notes are offered under Rule 144A and Regulation S.