S&P rates Ares notes A-

Standard & Poor’s said it assigned an A- rating on Ares Management LP’s proposed 10-year senior unsecured note issuance due 2024.

The size of the offering has not been finalized and will be subject to market conditions, but for the purposes of the rating, the amount will be considered between $250 million and $300 million, S&P said.

The proceeds from the notes, which its indirect subsidiary Ares Finance Co. LLC will issue, will be used to pay down about $164 million of outstanding borrowings on its revolving credit facility and the remaining balance on its promissory notes issued in connection with a prior acquisition.

Ares recently announced that it entered into a non-binding letter of intent for this acquisition, but has not disclosed any further details about the target company.

The company’s A- issuer credit rating and stable outlook are unchanged.

The ratings reflect the company’s stable cash flows from management fees and strong investment performance, S&P said.

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