ARESAres Management Corp
Oct 10, 4:50 PM ET
Ares Management issues $1.5 billion of 6.75% Series B mandatory convertible preferred stock
On October 10, 2024, Ares Management issued 30,000,000 shares of new Series B mandatory convertible preferred stock, a $1.5 billion aggregate liquidation preference, through a previously announced underwritten public offering. The underwriters also exercised in full their option for 3,000,000 additional shares, and the company says it will use the net proceeds mainly to pay part of the cash consideration for its GLP Capital Partners international business acquisition, with the rest for general corporate purposes. The preferred ranks senior to common stock on dividends and liquidation, and carries a 6.75% cumulative dividend, so it adds a senior claim ahead of common shareholders.
- Issued 30,000,000 shares, or $1.5 billion liquidation preference, on October 10, 2024; underwriters' 3,000,000-share over-allotment option was fully exercised
- Dividend rate 6.75% per year, payable quarterly, with the company able to pay in cash, common stock, or a mix
- Mandatory conversion around October 1, 2027 into between 0.2717 and 0.3260 common shares per preferred share
- Proceeds intended for part of the GCP Acquisition cash consideration and general corporate purposes