DEBT (Tables)

9 Months Ended

Sep. 30, 2019

As of September 30, 2019 and December 31, 2018, the following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs:



	As of September 30, 2019					As of December 31, 2018
	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)	$	7,225,041	$	7,162,677	10.99	$	6,642,616	$	6,391,643	10.94
Subordinated notes(2)	393,308		245,043		11.08	455,333		286,448		11.21
Total loan obligations of Consolidated CLOs	$	7,618,349	$	7,407,720		$	7,097,949	$	6,678,091


(1)	Original borrowings under the senior secured notes totaled $7.2 billion, with various maturity dates ranging from July 2028 to April 2032. The weighted average interest rate as of September 30, 2019 was 3.06%.


(2)	Original borrowings under the subordinated notes totaled $393.3 million, with various maturity dates ranging from July 2028 to April 2032. 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 and term loan outstanding as of September 30, 2019 and December 31, 2018:



				As of September 30, 2019				As of December 31, 2018
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	$	17,550	3.69%		$	14,953	3.98%
	12/29/2019(2)	—		—		—%		43,624		1.55%	(3)
	3/7/2020	71,500		71,500		3.47%		71,500		3.47%
	6/30/2021	190,785		11,818		1.00%	(3)	38,844		1.00%	(3)
	7/15/2028	75,000		22,000		4.75%		39,000		4.75%
Revolving Term Loan	1/31/2022	1,900		1,335		8.07%		1,363		8.07%
Total borrowings of Consolidated Funds				$	124,203			$	209,284


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


(2)	On August 27, 2019, the facility was terminated at the Consolidated Fund's discretion.

(3)

The effective rate is based on the three month EURIBOR or zero, whichever is higher, plus a spread of 1.00% or 1.55%.

The following table presents the activity of the Company's debt issuance costs:



	Credit Facility			Senior Notes
Unamortized debt issuance costs as of December 31, 2018	$	4,972		$	1,334
Debt issuance costs incurred	1,547			—
Amortization of debt issuance costs	(991		)	(174		)
Unamortized debt issuance costs as of September 30, 2019	$	5,528		$	1,160

The following table summarizes the Company’s and its subsidiaries’ debt obligations:



					As of September 30, 2019			As of December 31, 2018
	Debt Origination Date	Maturity	Original Borrowing Amount		Carrying Value		Interest Rate	Carrying Value		Interest Rate
Credit Facility(1)	Revolver	3/21/2024	N/A		$	—	N/A	$	235,000	4.00%
Senior Notes(2)	10/8/2014	10/8/2024	$	250,000	246,442		4.21%	245,952		4.21%
Total debt obligations					$	246,442		$	480,952

(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. On March 21, 2019, the Company amended the Credit Facility to, among other things, extend the maturity date from February 2022 to March 2024 and to reduce borrowing costs on the drawn and undrawn amounts. As of September 30, 2019, base rate loans bear interest calculated based on the base rate plus 0.25% and the LIBOR rate loans bear interest calculated based on LIBOR plus 1.25%. The unused commitment fee is 0.15% 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.