By Rebecca Melvin and Cristal Cody
Concord, N.H., Jan. 14 – Ares Management Corp. priced an upsized $500 million of 3.65% senior notes due 2052 to yield Treasuries plus 172 basis points, according to a market source on Friday.
The deal was initially talked at $400 million in size. Pricing came on top of guidance in the Treasuries plus 175 bps area plus or minus 3 bps. Initial price talk was in the Treasuries plus 200 bps area.
The notes will be issued by indirect subsidiary Ares Finance Co. IV LLC. They will be guaranteed by Ares Holdings LP, Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC, Ares Finance Co. II LLC and Ares Finance Co. III LLC.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC are bookrunners of the notes for which 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 Finance Co. IV LLC
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Guarantors: | Ares Holdings LP, Ares Management LLC, Ares Investments Holdings LLC, Ares Finance Co. LLC, Ares Finance Co. II LLC and Ares Finance Co. III LLC
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Amount: | $500 million, upsized from $400 million
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Issue: | Senior notes
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Maturity: | Feb. 1, 2052
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Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC
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Coupon: | 3.65%
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Spread: | Treasuries plus 172 bps
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Pricing date: | Jan. 13
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Price talk: | Guided to Treasuries plus 175 bps area from Treasuries plus 200 bps area initial talk
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