DEBT (Tables)

3 Months Ended

Mar. 31, 2023

The following table summarizes the Company’s and its subsidiaries’ debt obligations:


					As of March 31, 2023			As of December 31, 2022


	Debt Origination Date	Maturity	Original Borrowing Amount		Carrying Value		Interest Rate	Carrying Value		Interest Rate
Credit Facility(1)	Revolving	3/31/2027	N/A		$	795,000	5.88%	$	700,000	5.37%
2024 Senior Notes(2)	10/8/2014	10/8/2024	$	250,000	248,872		4.21	248,693		4.21
2030 Senior Notes(3)	6/15/2020	6/15/2030	400,000		396,713		3.28	396,602		3.28
2052 Senior Notes(4)	1/21/2022	2/1/2052	500,000		483,904		3.77	483,802		3.77
2051 Subordinated Notes(5)	6/30/2021	6/30/2051	450,000		444,803		4.13	444,757		4.13
Total debt obligations					$	2,369,292		$	2,273,854

(1)The revolver commitments were $1.325 billion as of March 31, 2023. Ares Holdings is the borrower under the Credit Facility. The Credit Facility has a variable interest rate based on Secured Overnight Financing Rate (“SOFR”) or a base rate plus an applicable margin, which is subject to adjustment based on the achievement of certain environmental, social and governance-related targets, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of March 31, 2023, base rate loans bear interest calculated based on the base rate and the SOFR loans bear interest calculated based on SOFR plus 1.00%. The unused commitment fee is 0.10% per annum. There is a base rate and SOFR floor of zero.

(2)The 2024 Senior Notes were issued in October 2014 by Ares Finance Co. LLC, an indirect subsidiary of the Company, at 98.27% of the face amount with interest paid semi-annually. The Company may redeem the 2024 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2024 Notes.

(3)The 2030 Senior Notes were issued in June 2020 by Ares Finance Co. II LLC, an indirect subsidiary of the Company, at 99.77% of the face amount with interest paid semi-annually. The Company may redeem the 2030 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2030 Notes.

(4)The 2052 Senior Notes were issued in January 2022 by Ares Finance Co. IV LLC, an indirect subsidiary of the Company, at 97.78% of the face amount with interest paid semi-annually. The Company may redeem the 2052 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2052 Notes.

(5)The 2051 Subordinated Notes were issued in June 2021 by Ares Finance Co. III LLC, an indirect subsidiary of the Company with interest paid semi-annually at a fixed rate of 4.125%. Beginning June 30, 2026, the interest rate will reset on every fifth year based on the five-year U.S. Treasury Rate plus 3.237%. The Company may redeem the 2051 Subordinated Notes prior to maturity or defer interest payments up to five consecutive years, subject to the terms of the indenture governing the 2051 Subordinated Notes.

The following table presents the activity of the Company’s debt issuance costs:


	Credit Facility		Senior Notes		Subordinated Notes




Unamortized debt issuance costs as of December 31, 2022	$	5,510	$	8,393	$	5,243

Amortization of debt issuance costs	(324)		(198)		(46)

Unamortized debt issuance costs as of March 31, 2023	$	5,186	$	8,195	$	5,197

The following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs:


	As of March 31, 2023				As of December 31, 2022


	Fair Value of Loan Obligations		Weighted Average Interest Rate	Weighted Average Remaining Maturity (in years)	Fair Value of Loan Obligations		Weighted Average Interest Rate	Weighted Average Remaining Maturity (in years)
Senior secured notes	$	10,293,114	5.46%	8.5	$	10,142,545	4.84%	8.8
Subordinated notes(1)	624,893		N/A	7.5	559,175		N/A	7.8
Total loan obligations of Consolidated CLOs	$	10,918,007			$	10,701,720

(1)The notes do not have contractual interest rates; instead, holders of the notes receive distributions from the excess cash flows generated by each Consolidated CLO.

The Consolidated Funds had the following revolving bank credit facilities outstanding:


				As of March 31, 2023			As of December 31, 2022


Consolidated Funds’ Debt Facilities	Maturity Date	Total Capacity		Outstanding Loan(1)		Effective Rate	Outstanding Loan(1)		Effective Rate
Credit Facilities:
	10/13/2023	$	112,817	$	77,496	6.31%	$	77,496	5.89%
	7/1/2023	18,000		15,550		6.50	15,550		6.25
	7/23/2024	100,000		10,000		7.78	75,000		7.28
	9/24/2026	150,000		—		N/A	—		N/A
	9/12/2027	54,000		—		N/A	—		N/A
Total borrowings of Consolidated Funds				$	103,046		$	168,046

(1)The fair values of the borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate.