ARES · Ares Management Corporation

Ares Management Corporation, through its subsidiary Ares Holdings L.P., has entered into a significant new credit agreement, establishing a $400 million term loan facility. This financial maneuver is material as it involves a substantial capital injection that was fully funded at the closing on March 27, 2026. The facility, arranged with Bank of America, N.A. as the administrative agent, carries a three-year term with a final maturity date of March 27, 2029. The interest rate structure is flexible, offering a choice between Term SOFR or Base Rate, each augmented by an applicable margin that is dynamically pegged to the company's senior long-term unsecured debt ratings. This aligns borrowing costs with the company's creditworthiness.

The agreement imposes specific financial covenants that investors should monitor. Notably, the company must maintain a net debt to Adjusted EBITDA ratio of no more than 4.00 to 1.00. Additionally, there is a substantial minimum Assets Under Management (AUM) covenant set at approximately $179.8 billion, reflecting the operational scale of Ares Management. The Credit Agreement also includes standard restrictive covenants limiting the borrower's ability to incur additional debt, grant liens, make investments, and pay dividends, among other restrictions, subject to various exceptions. The proceeds from this facility are designated for refinancing existing indebtedness, covering transaction fees, and supporting general corporate purposes, suggesting a strategic optimization of the company's capital structure.