DEBT (Tables)

6 Months Ended

Jun. 30, 2016


				As of June 30, 2016				As of December 31, 2015
		Original Borrowing		Carrying			Carrying
	Maturity	Amount		Value		Interest Rate	Value		Interest Rate
Credit Facility(1)	4/30/2019		—	$	—	—	$	110,000	2.11%
Senior Notes (2)	10/8/2024	$	250,000		244,377	4.21%		244,077	4.21%
Term Loan(3)	7/29/2026	$	35,250		35,053	2.49%		35,043	2.18%
Total debt obligations				$	279,430		$	389,120

(1)

The Ares Operating Group entities are borrowers under the Credit Facility, which provides a $1.03 billion revolving line of credit with the ability to upsize to $1.28 billion (subject to obtaining commitments for any such additional borrowing capacity). It has a variable interest rate based on either LIBOR or a base rate plus an applicable margin with an unused commitment fee paid quarterly, which is subject to change with our underlying credit agency rating. Currently, base rate loans bear interest calculated based on the base rate plus 0.75% or and the LIBOR rate loans bear interest calculated based on LIBOR plus 1.75%. The unused commitment fee is 0.25% per annum. There is a base rate and LIBOR floor of zero.

(2)

The Senior Notes were issued in October 2014 by Ares Finance Co. LLC (“AFC”), a subsidiary of the Company, at 98.268% of the face amount with interest paid semi-annually. The Company may redeem the Senior Notes prior to maturity, subject to the terms of the indenture.

(3)

In connection with risk retention requirements, the Term Loan was entered into in August 2015 by a subsidiary of the Company that acts as a manager to a CLO. The Term Loan is secured by collateral in the form of CLO senior tranches owned by the Company. To the extent the assets are not sufficient to cover the Term Loan, there is no further recourse to the Company to fund or repay the remaining balance. Interest is paid quarterly, and the Company also pays a fee of 0.025% of a maximum investment amount.

Consolidated Funds

DEBT

Schedule of borrowings outstanding


				As of June 30, 2016			As of December 31, 2015
	Maturity	Total		Outstanding			Outstanding
Type of Facility	Date	Capacity		Loan(1)		Effective Rate	Loan(1)		Effective Rate
Consolidated Funds credit facility	01/01/23	$	18,000	$	12,484	2.19%	$	11,734	2.00%
Total borrowings of Consolidated Funds				$	12,484		$	11,734

(1)

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

Consolidated Funds | Collateralized loan obligation

DEBT

Schedule of borrowings outstanding


	As of June 30, 2016						As of December 31, 2015
					Weighted Average					Weighted Average
	Loan		Fair Value of		Remaining		Loan		Fair Value of	Remaining
	Obligations		Loan Obligations		Maturity In Years		Obligations		Loan Obligations	Maturity In Years
Senior secured notes(1)	$	2,068,119	$	2,040,235	9.05	$	2,101,506	$	2,054,123	9.55
Subordinated notes / preferred shares(2)		197,059		128,111	9.04		194,443		120,229	9.53
Total loan obligations of Consolidated CLOs	$	2,265,178	$	2,168,346		$	2,295,949	$	2,174,352

(1)

Original borrowings under the senior secured notes totaled $2.2 billion, with various maturity dates ranging from October 2024 to December 2025. The weighted average interest rate as of June 30, 2016 was 3.55%.

(2)

Original borrowings under the subordinated notes totaled $197.1 million, with various maturity dates ranging from October 2024 to December 2025. They do not have contractual interest rates, but instead receive distributions from the excess cash flows generated by each Consolidated CLO.