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Ares Management (NYSE: ARES) adds $400M term loan maturing 2029

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Ares Management Corporation disclosed that its subsidiary Ares Holdings L.P. entered into a new Credit Agreement providing a fully funded $400 million term loan facility with Bank of America as administrative agent.

The loan bears floating interest, at Ares’ option, based on either the Term SOFR Rate plus a margin or the Base Rate plus a margin, in each case tied to the company’s senior long-term unsecured debt ratings. It matures on March 27, 2029 and is guaranteed by certain subsidiaries.

The Credit Agreement includes covenants limiting additional debt, liens, investments, asset sales and distributions, and requires a net debt to Adjusted EBITDA ratio not above 4.00 to 1.00. It also requires Assets Under Management of at least $179,825,526,099. Proceeds must be used to refinance existing indebtedness, pay fees and expenses, and fund working capital and general corporate purposes.

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Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Term loan facility size $400 million Aggregate commitment under new Credit Agreement
Final maturity date March 27, 2029 Term loan facility maturity
Leverage covenant 4.00 to 1.00 Maximum net debt to Adjusted EBITDA ratio
Minimum Assets Under Management $179,825,526,099 Required AUM level under Credit Agreement
Credit Agreement financial
"entered into a Credit Agreement (the “Credit Agreement”), by and among Ares Holdings"
A credit agreement is a written loan contract between a borrower and a bank or other lender that lays out how much money can be borrowed, the interest rate, repayment schedule, fees, and the rules the borrower must follow. For investors, it matters because those terms affect a company’s cash costs, borrowing flexibility and risk of default — similar to how a mortgage’s rules determine a homeowner’s monthly budget and freedom to make changes.
Term SOFR Rate financial
"either (a) the Term SOFR Rate (as defined in the Credit Agreement) plus an applicable margin"
Base Rate financial
"or (b) the Base Rate (as defined in the Credit Agreement) plus an applicable margin"
The base rate is the primary interest rate set by a central authority or used as a benchmark for pricing loans, savings and other financial products. Think of it as the anchor in a floating system: when the base rate moves, borrowing costs, corporate financing and consumer spending tend to shift too, which can change company profits and investor returns across the market.
Adjusted EBITDA financial
"net debt to Adjusted EBITDA (as defined in the Credit Agreement) ratio not to exceed 4.00 to 1.00"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Assets Under Management financial
"Assets Under Management (as defined in the Credit Agreement) must remain equal to or greater than $179,825,526,099"
Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.
Understanding 8-K Material Events →
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________________________________________
 
FORM 8-K
 CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported) March 27, 2026
 
ARES MANAGEMENT CORPORATION
(Exact Name of Registrant as Specified in Charter)
 
Delaware 001-36429 80-0962035
(State or Other Jurisdiction
of Incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)

1800 Avenue of the Stars, Suite 1400, Los Angeles, CA 90067
(Address of principal executive office) (Zip Code)
(310) 201-4100
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock, par value $0.01 per shareARESNew York Stock Exchange
6.75% Series B mandatory convertible preferred stock, par value $0.01 per shareARES.PRBNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


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Item 1.01 Entry into a Material Definitive Agreement.

On March 27, 2026 (the “Closing Date”), Ares Holdings L.P., a Delaware limited partnership (“Ares Holdings” or the “Borrower”) and certain subsidiaries of Ares Management Corporation (the “Company”) entered into a Credit Agreement (the “Credit Agreement”), by and among Ares Holdings, as borrower, the subsidiaries of the Company party thereto, as guarantors, the lenders party thereto and Bank of America, N.A., as administrative agent, that provides a term loan facility in an aggregate commitment amount of $400 million. The term loan facility under the Credit Agreement has a final maturity date of March 27, 2029 and was fully funded at closing.

Loans under the Credit Agreement bear interest, at the Borrower’s option, at a floating rate, which can be, at the Borrower’s option, either (a) the Term SOFR Rate (as defined in the Credit Agreement) plus an applicable margin or (b) the Base Rate (as defined in the Credit Agreement) plus an applicable margin, in each case, determined based on the Company’s senior long-term unsecured debt ratings. The obligations under the Credit Agreement are guaranteed by certain subsidiaries of the Company.

The Credit Agreement contains various covenants, including, but not limited to, restrictions on the Borrower and its subsidiaries’ ability to incur indebtedness, grant liens, make investments, merge or consolidate into other companies, dispose of material assets and make dividends or other distributions, in each case, subject to various exceptions. The Credit Agreement requires the maintenance of a net debt to Adjusted EBITDA (as defined in the Credit Agreement) ratio not to exceed 4.00 to 1.00 as of the end of any four fiscal quarter period of the Company, and Assets Under Management (as defined in the Credit Agreement) must remain equal to or greater than $179,825,526,099.

The Credit Agreement also includes various events of default. Upon an event of default, commitments under the Credit Agreement may be terminated and outstanding borrowings may be accelerated.

Proceeds from the Credit Agreement must be used to refinance existing indebtedness, pay certain fees and expenses or fund ongoing working capital needs and general corporate purposes of the Borrower.

A copy of the Credit Agreement is attached to this Current Report on Form 8-K as Exhibit 10.1 and is incorporated by reference into this Item 1.01 as though fully set forth herein. The foregoing summary description of the Credit Agreement is not intended to be complete and is qualified in its entirety by the complete text of the Credit Agreement.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 is hereby incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits.
 
(d)                               Exhibits:
 
Exhibit Number Description
   
10.1
 Credit Agreement, dated as of March 27, 2026, by and among Ares Holdings L.P., the Guarantors party thereto, the Lenders party thereto and Bank of America, N.A., as administrative agent
104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document



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SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   ARES MANAGEMENT CORPORATION
   
Dated: March 31, 2026   
    
  By:/s/ Jarrod Phillips
  Name:Jarrod Phillips
  Title:Chief Financial Officer
(Principal Financial & Accounting Officer)



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Source: View Original Filing on SEC EDGAR

FAQ

What did Ares Management (ARES) announce in this Form 8-K?

Ares Management reported that subsidiary Ares Holdings L.P. entered a new $400 million term loan Credit Agreement. The facility was fully funded at closing and is intended for refinancing existing debt, paying related fees, and supporting working capital and general corporate purposes.

How large is the new credit facility for Ares Management (ARES)?

The new Credit Agreement provides a $400 million term loan facility to Ares Holdings L.P. This amount was fully funded on the March 27, 2026 closing date, giving the company additional committed debt capital for refinancing, fees, and ongoing corporate and working capital needs.

When does Ares Management’s new $400 million term loan mature?

The term loan under the Credit Agreement has a final maturity date of March 27, 2029. This gives Ares Holdings L.P. a multi-year debt structure, aligning the borrowing with longer-term corporate and working capital purposes described in the agreement.

What are the key financial covenants in Ares Management’s new Credit Agreement?

The Credit Agreement requires a net debt to Adjusted EBITDA ratio not exceeding 4.00 to 1.00 and minimum Assets Under Management of $179,825,526,099. These covenants aim to maintain leverage discipline and scale, with additional restrictions on incurring debt, liens, investments, asset sales and distributions.

How is interest determined on Ares Management’s new $400 million term loan?

Interest is floating and chosen by the borrower as either the Term SOFR Rate plus an applicable margin or the Base Rate plus an applicable margin. The applicable margin in each case is determined based on Ares Management Corporation’s senior long-term unsecured debt ratings.

What can Ares Management (ARES) use the new term loan proceeds for?

Proceeds must be used to refinance existing indebtedness, pay certain related fees and expenses, and fund ongoing working capital needs and general corporate purposes of Ares Holdings L.P. This directs the borrowing toward balance sheet management and everyday operational funding.

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