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DEBT (Tables)
 6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Schedule of borrowings outstanding
The following table presents the activity of the Company's debt issuance costs:
 
Credit Facility
 
Senior Notes
 
Term Loans
 
Repurchase Agreement Loan
Unamortized debt issuance costs as of December 31, 2017
$
6,543

 
$
1,571

 
$
1,171

 
$
—

Debt issuance costs incurred
—

 
—

 
173

 
259

Amortization of debt issuance costs
(786
)
 
(121
)
 
(56
)
 
(7
)
Debt extinguishment expense
—

 
—

 
(1,288
)
 
(252
)
Unamortized debt issuance costs as of June 30, 2018
$
5,757

 
$
1,450

 
$
—

 
$
—



he Consolidated Funds had the following revolving bank credit facilities and term loan outstanding as of June 30, 2018 and December 31, 2017:
 
 
 
 
 
 
As of June 30, 2018
 
As of December 31, 2017
 
Consolidated Funds' Debt Facilities
 
Maturity Date
 
Total Capacity
 
Outstanding
Loan(1)
 
Effective Rate
 
Outstanding Loan(1)
 
Effective Rate
 
Credit Facilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1/1/2023
 
$
18,000

 
$
13,376

 
3.88%
 
$
12,942

 
2.88%
 
 
 
6/29/2019
 
46,632

 
46,632

 
EURIBOR + 1.55%
(2)
48,042

 
1.55%
(2)
 
 
3/7/2019
 
71,500

 
71,500

 
3.47%
 
71,500

 
2.88%
 
Revolving Term Loan
 
1/31/2022
 
1,900

 
1,216

 
8.07%
 
—

 
—%
 
 
 
8/19/2019
 
11,429

 
5,714

 
9.32%
 
5,714

 
5.86%
 
Total borrowings
 
 
 
 
 
$
138,438

 
 
 
$
138,198

 
 
 
 
(1)
The fair values of the borrowings approximate the carrying value as the interest rate on the borrowings is a floating rate.
(2)
The effective rate is based on the three month EURIBOR or zero, whichever is higher, plus an applicable margin.
s of June 30, 2018 and December 31, 2017 the following loan obligations were outstanding and classified as liabilities of the Company’s Consolidated CLOs:
 
As of June 30, 2018
 
As of December 31, 2017
 
Loan
Obligations
 
Fair Value of
Loan Obligations
 
Weighted 
Average
Remaining Maturity 
In Years 
 
Loan
Obligations
 
Fair Value of Loan Obligations
 
Weighted
Average
Remaining
Maturity 
In Years 
Senior secured notes(1)
$
6,189,246

 
$
6,111,930

 
11.00
 
$
4,801,582

 
$
4,776,883

 
10.57
Subordinated notes(2)
319,840

 
221,309

 
11.40
 
276,169

 
186,311

 
11.25
Total loan obligations of Consolidated CLOs
$
6,509,086

 
$
6,333,239

 
 
 
$
5,077,751

 
$
4,963,194

 
 
 
(1)
Original borrowings under the senior secured notes totaled $6.2 billion, with various maturity dates ranging from October 2024 to October 2030. The weighted average interest rate as of June 30, 2018 was 5.21%.
(2)
Original borrowings under the subordinated notes totaled $319.8 million, with various maturity dates ranging from October 2024 to October 2030. 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 following table summarizes the Company’s and its subsidiaries’ debt obligations:
 
 
 
 
 
 
 
As of June 30, 2018
 
As of December 31, 2017
 
Debt Origination Date
 
Maturity
 
Original Borrowing Amount
 
Carrying
Value
 
Interest Rate
 
Carrying
Value
 
Interest Rate
Credit Facility(1)
Revolver
 
2/24/2022
 
N/A

 
$
125,000

 
3.63%
 
$
210,000

 
3.09%
Senior Notes(2)
10/8/2014
 
10/8/2024
 
$
250,000

 
245,628

 
4.21%
 
245,308

 
4.21%
2015 Term Loan(3)
9/2/2015
 
7/29/2026
 
—

 
—

 
N/A
 
35,037

 
2.86%
2016 Term Loan(4)
12/21/2016
 
1/15/2029
 
—

 
—

 
N/A
 
25,948

 
3.08%
2017 Term Loan A(4)
3/22/2017
 
1/22/2028
 
—

 
—

 
N/A
 
17,407

 
2.90%
2017 Term Loan B(4)
5/10/2017
 
10/15/2029
 
—

 
—

 
N/A
 
35,062

 
2.90%
2017 Term Loan C(4)
6/22/2017
 
7/30/2029
 
—

 
—

 
N/A
 
17,078

 
2.88%
2017 Term Loan D(4)
11/16/2017
 
10/15/2030
 
—

 
—

 
N/A
 
30,336

 
2.77%
Total debt obligations
 
 
 
 
 
 
$
370,628

 
 
 
$
616,176

 
 
 
(1)
The AOG entities are borrowers under the Credit Facility, which provides a $1.065 billion revolving line of credit. It has a variable interest rate based on LIBOR or a base rate plus an applicable margin with an unused commitment fee paid quarterly, which is subject to change with the Company’s underlying credit agency rating. As of June 30, 2018, base rate loans bear interest calculated based on the base rate plus 0.50% and the LIBOR rate loans bear interest calculated based on LIBOR plus 1.50%. The unused commitment fee is 0.20% 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, 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)
The 2015 Term Loan was entered into in August 2015 by a subsidiary of the Company that acts as a manager to a CLO. The 2015 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.
(4)
The 2016 and 2017 Term Loans (“Term Loans”) were entered into by a subsidiary of the Company that acts as a manager to CLOs. The Term Loans are secured by collateral in the form of CLO senior tranches and subordinated notes owned by the Company. Collateral associated with one of the Term Loans may be used to satisfy outstanding liabilities of another Term Loan should the collateral fall short. To the extent the assets associated with these Term Loans are not sufficient to cover the Term Loans, 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 0.03% of a maximum investment amount.