Ares Management Corporation Prices Offering of Senior Notes
Ares Management (NYSE: ARES) has priced an offering of $750 million aggregate principal amount of 5.600% Senior Notes due 2054. The notes, fully guaranteed by several Ares entities, will bear interest at 5.600% per annum, payable semi-annually. The offering is expected to close on October 11, 2024, with net proceeds of approximately $737.7 million.
Ares intends to use the proceeds for (i) partial payment of the cash consideration for its acquisition of GLP Capital Partners 's international business (excluding Greater China operations) and related expenses, and/or (ii) general corporate purposes, including debt repayment and strategic acquisitions. Morgan Stanley & Co. , Citigroup Global Markets Inc., RBC Capital Markets, , SMBC Nikko Securities America, Inc., and Truist Securities, Inc. are acting as joint book-running managers for the offering.
Ares Management (NYSE: ARES) ha fissato un'offerta di 750 milioni di dollari di importo principale complessivo di note senior al 5,600% con scadenza nel 2054. Le note, completamente garantite da diverse entit脿 Ares, produrranno un interesse del 5,600% annuo, pagabile semestralmente. Si prevede che l'offerta si chiuda il 11 ottobre 2024, con proventi netti di circa 737,7 milioni di dollari.
Ares intende utilizzare i proventi per (i) il pagamento parziale della somma in contante per l'acquisizione della business internazionale di GLP Capital Partners (escludendo le operazioni nella Grande Cina) e spese correlate, e/o (ii) scopi aziendali generali, inclusi il rimborso del debito e acquisizioni strategiche. Morgan Stanley & Co., Citigroup Global Markets Inc., RBC Capital Markets, SMBC Nikko Securities America, Inc. e Truist Securities, Inc. stanno agendo come co-manager per l'offerta.
Ares Management (NYSE: ARES) ha establecido una oferta de 750 millones de d贸lares de monto principal agregada de notas senior al 5.600% con vencimiento en 2054. Las notas, totalmente garantizadas por varias entidades de Ares, devengar谩n intereses del 5.600% anual, pagaderos semestralmente. Se espera que la oferta se cierre el 11 de octubre de 2024, con ingresos netos de aproximadamente 737.7 millones de d贸lares.
Ares tiene la intenci贸n de utilizar los ingresos para (i) el pago parcial de la contraprestaci贸n en efectivo para su adquisici贸n del negocio internacional de GLP Capital Partners (excluyendo las operaciones en Gran China) y gastos relacionados, y/o (ii) prop贸sitos corporativos generales, que incluyen el reembolso de deudas y adquisiciones estrat茅gicas. Morgan Stanley & Co., Citigroup Global Markets Inc., RBC Capital Markets, SMBC Nikko Securities America, Inc. y Truist Securities, Inc. est谩n actuando como coadministradores de libros para la oferta.
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Ares電 鞚 靾橃澋鞚 (i) GLP Capital Partners鞚 甑牅 靷梾(雽毵 韽暔)鞚 鞚胳垬頃橁赴 鞙勴暅 順勱笀 雽臧鞚 鞚茧秬攵 氚 甏霠 牍勳毄鞙茧 靷毄頃橁碃, 霕愲姅 (ii) 鞚茧皹 旮办梾 氇╈爜, 歃 攵毂 靸來櫂 氚 鞝勲灥鞝 鞚胳垬 霌膘潉 鞙勴暣 靷毄頃 瓿勴殟鞛呺媹雼. Morgan Stanley & Co., Citigroup Global Markets Inc., RBC Capital Markets, SMBC Nikko Securities America, Inc. 氚 Truist Securities, Inc.電 鞚 瓿惦鞚 瓿惦彊 攵侂Μ霐 毵る媹鞝搿 頇滊彊頃橁碃 鞛堨姷雼堧嫟.
Ares Management (NYSE: ARES) a fix茅 une offre d'un montant principal global de 750 millions de dollars de billets senior 脿 5,600% 茅ch茅ant en 2054. Les billets, enti猫rement garantis par plusieurs entit茅s Ares, porteront un int茅r锚t de 5,600% par an, payable semestriellement. L'offre devrait se cl么turer le 11 octobre 2024, avec des produits nets d'environ 737,7 millions de dollars.
Ares a l'intention d'utiliser les produits pour (i) un paiement partiel de la contrepartie en esp猫ces pour l'acquisition de l'activit茅 internationale de GLP Capital Partners (脿 l'exception des op茅rations en Grande Chine) et les d茅penses connexes, et/ou (ii) des fins d'entreprise g茅n茅rales, y compris le remboursement de la dette et des acquisitions strat茅giques. Morgan Stanley & Co., Citigroup Global Markets Inc., RBC Capital Markets, SMBC Nikko Securities America, Inc. et Truist Securities, Inc. agissent en tant que co-managers pour l'offre.
Ares Management (NYSE: ARES) hat ein Angebot 眉ber 750 Millionen Dollar Gesamtwert von 5,600% Senior Notes, die 2054 f盲llig sind, festgelegt. Die Notes, die vollst盲ndig von mehreren Ares-Einheiten garantiert werden, tragen Zinsen von 5,600% pro Jahr, zahlbar halbj盲hrlich. Das Angebot wird voraussichtlich am 11. Oktober 2024 abgeschlossen, mit einem Nettoerl枚s von etwa 737,7 Millionen Dollar.
Ares beabsichtigt, die Erl枚se f眉r (i) die Teilzahlung des Barkaufpreises f眉r die 脺bernahme des internationalen Gesch盲fts von GLP Capital Partners (ohne die Gesch盲fte in Gro脽china) sowie damit verbundene Kosten zu verwenden und/oder (ii) allgemeine Unternehmenszwecke, einschlie脽lich der R眉ckzahlung von Schulden und strategischen Akquisitionen. Morgan Stanley & Co., Citigroup Global Markets Inc., RBC Capital Markets, SMBC Nikko Securities America, Inc. und Truist Securities, Inc. fungieren als gemeinsame Bookrunner f眉r das Angebot.
- Successful pricing of $750 million senior notes offering
- Net proceeds of approximately $737.7 million to be raised
- Funds to be used for strategic acquisition and general corporate purposes
- Strong interest rate of 5.600% per annum for the notes
- Increased long-term debt with notes due in 2054
- Potential dilution of shareholder value due to new debt issuance
Insights
Ares Management 's pricing of
The net proceeds of approximately
For investors, this debt offering demonstrates Ares' ability to access capital markets efficiently. However, it also increases the company's long-term debt obligations, which may impact future financial flexibility. The success of the GCP International acquisition and effective deployment of the remaining proceeds will be important in determining the long-term value creation for shareholders.
The pricing of Ares Management's
The
The strategic use of proceeds for the GCP International acquisition aligns with Ares' global expansion plans. This move could diversify the company's revenue streams and enhance its competitive position in the international alternative asset management market. Investors should monitor the integration process and the resulting synergies to assess the acquisition's impact on Ares' future performance and market valuation.
The notes will bear interest at a rate of
The net proceeds from the Offering will be approximately
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., and Truist Securities, Inc. are acting as joint book-running managers for the Offering. Ares Management Capital Markets LLC, Barclays Capital Inc., BNY Mellon Capital Markets, LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG Securities Americas Inc., UBS Securities LLC,
The Offering is being made only by means of a preliminary prospectus supplement and accompanying prospectus. An electronic copy of the preliminary prospectus supplement, together with the accompanying prospectus, is available on the SEC鈥檚 website at . Alternatively, copies of the preliminary prospectus supplement and accompanying prospectus may be obtained by contacting Morgan Stanley, 180 Varick Street, 2nd Floor,
This press release does not constitute an offer to sell or a solicitation of an offer to purchase the notes or any other securities, nor does it constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2024, Ares Management Corporation's global platform had over
Forward-Looking Statements
Statements included herein contain forward-looking statements within the meaning of the federal securities laws. You can identify these forward-looking statements by the use of forward-looking words such as 鈥渙utlook,鈥 鈥渂elieves,鈥 鈥渆xpects,鈥 鈥減otential,鈥 鈥渃ontinues,鈥 鈥渕ay,鈥 鈥渨ill,鈥 鈥渟hould,鈥 鈥渟eeks,鈥 鈥渁pproximately,鈥 鈥減redicts,鈥 鈥渋ntends,鈥 鈥減lans,鈥 鈥渆stimates,鈥 鈥渁nticipates,鈥 鈥渇oresees鈥 or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Such forward-looking statements are subject to various risks and uncertainties, including our ability to consummate the Offering and the GCP Acquisition and to effectively integrate GCP International into our operations and to achieve the expected benefits therefrom, and assumptions, including those relating to the GCP Acquisition, the Offering and the intended use of proceeds, our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Some of these factors are described in the Annual Report on Form 10-K for the year ended December 31, 2023, including under the headings 鈥淚tem 1A. Risk Factors鈥 and 鈥淚tem 7. Management鈥檚 Discussion and Analysis of Financial Condition and Results of Operations鈥 and in the Quarterly Report on Form 10-Q filed with the SEC on August 7, 2024, including under the heading 鈥淚tem 2. Management鈥檚 Discussion and Analysis of Financial Condition and Results of Operations.鈥 These factors should not be construed as exhaustive and should be read in conjunction with the risk factors and other cautionary statements that are included in this report and in our other periodic filings. If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from those indicated in these forward-looking statements. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect us. Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Ares does not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
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Investors:
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irares@aresmgmt.com
+1-888-818-5298
Source: Ares Management Corporation
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