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DEBT (Tables) | 9 Months Ended
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Sep. 30, 2023
Debt Disclosure [Abstract] |
Schedule of Borrowings Outstanding | The following table summarizes the Company’s and its subsidiaries’ debt obligations:
|  |  |  |  |  |  | As of September 30, 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 |  | $ | 765,000 |  |  | 6.37% |  | $ | 700,000 |  |  | 5.37%
2024 Senior Notes(2) | 10/8/2014 |  | 10/8/2024 |  | $ | 250,000 |  |  | 249,240 |  |  | 4.21 |  | 248,693 |  |  | 4.21
2030 Senior Notes(3) | 6/15/2020 |  | 6/15/2030 |  | 400,000 |  |  | 396,937 |  |  | 3.28 |  | 396,602 |  |  | 3.28
2052 Senior Notes(4) | 1/21/2022 |  | 2/1/2052 |  | 500,000 |  |  | 484,101 |  |  | 3.77 |  | 483,802 |  |  | 3.77
2051 Subordinated Notes(5) | 6/30/2021 |  | 6/30/2051 |  | 450,000 |  |  | 444,895 |  |  | 4.13 |  | 444,757 |  |  | 4.13
Total debt obligations |  |  |  |  |  |  | $ | 2,340,173 |  |  |  |  | $ | 2,273,854 |  |  |
(1)The revolver commitments were $1.325 billion as of September 30, 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 (“ESG”)-related targets, with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of September 30, 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. Due to the achievement of the ESG-related targets, the Company’s base rate and unused commitment fee have been reduced by 0.05% and 0.01%, respectively, from July 2023 through June 2024. 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 | (973) |  |  | (586) |  |  | (138) |  |  |  |  |
Unamortized debt issuance costs as of September 30, 2023 | $ | 4,537 |  |  | $ | 7,807 |  |  | $ | 5,105 |  |  |  |  |
The following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs:
|  |  | As of September 30, 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 |  |  | $ | 10,781,168 |  |  | 6.44% |  | 8.2 |  |  | $ | 10,142,545 |  |  | 4.84% |  | 8.8
Subordinated notes(1) |  |  | 679,795 |  |  | N/A |  | 7.0 |  |  | 559,175 |  |  | N/A |  | 7.8
Total loan obligations of Consolidated CLOs |  |  | $ | 11,460,963 |  |  |  |  |  |  |  | $ | 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 September 30, 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(2) |  | $ | 112,817 |  | (2) | N/A | (2) | N/A | (2) |  | $ | 77,496 |  |  | 5.89% |
|  | 7/1/2024 |  | 18,000 |  |  | $ | 15,241 |  |  | 6.94% |  |  | 15,550 |  |  | 6.25 |
|  | 7/23/2024 |  | 100,000 |  |  | 65,500 |  |  | 8.28 |  |  | 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 |  |  |  |  |  | $ | 80,741 |  |  |  |  |  | $ | 168,046 |  |  |  |
(1)The fair values of the borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate. (2)Represents a credit facility of a Consolidated Fund that was deconsolidated during the three months ended June 30, 2023. The total capacity represents the balance as of December 31, 2022.

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- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
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