DEBT (Tables)

9 Months Ended

Sep. 30, 2020

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


					As of September 30, 2020			As of December 31, 2019
	Debt Origination Date	Maturity	Original Borrowing Amount		Carrying Value		Interest Rate	Carrying Value		Interest Rate
Credit Facility(1)	Revolver	3/30/2025	N/A		$	—	—%	$	70,000	3.06%
2024 Senior Notes(2)	10/8/2014	10/8/2024	$	250,000	247,112		4.21	246,609		4.21
2030 Senior Notes(3)	6/15/2020	6/15/2030	400,000		395,553		3.28	—		—
Total debt obligations					$	642,665		$	316,609

(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 30, 2020, the Company amended the Credit Facility to, among other things, extend the maturity date from March 2024 to March 2025 and to reduce borrowing costs on the undrawn amounts. As of September 30, 2020, 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 0.13% per annum. There is a base rate and LIBOR floor of zero.

(2)The 2024 Senior Notes were issued in October 2014 by Ares Finance Co. LLC, an indirect subsidiary of the Company, at 98.27% of the face amount with interest paid semi-annually. The Company may redeem the 2024 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2024 Notes.

(3)The 2030 Senior Notes were issued in June 2020 by Ares Finance Co. II LLC, an indirect subsidiary of the Company, at 99.77% of the face amount with interest paid semi-annually. The Company may redeem the 2030 Senior Notes prior to maturity, subject to the terms of the indenture governing the 2030 Notes.

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, 2019	$	5,255	$	1,102
Debt issuance costs incurred	1,217		3,677
Amortization of debt issuance costs	(932)		(297)

Unamortized debt issuance costs as of September 30, 2020	$	5,540	$	4,482

The following loan obligations were outstanding and classified as liabilities of the Consolidated CLOs:


	As of September 30, 2020					As of December 31, 2019
	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)	$	9,679,210	$	9,361,670	10.2	$	7,738,337	$	7,700,038	11.0
Subordinated notes(2)	523,459		246,457		10.4	449,877		273,710		11.0
Total loan obligations of Consolidated CLOs	$	10,202,669	$	9,608,127		$	8,188,214	$	7,973,748

(1)Original borrowings under the senior secured notes totaled $9.7 billion, with various maturity dates ranging from July 2028 to October 2032. The weighted average interest rate as of September 30, 2020 was 1.88%.

(2)Original borrowings under the subordinated notes totaled $523.5 million, with various maturity dates ranging from July 2028 to October 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, 2020				As of December 31, 2019
Consolidated Funds' Debt Facilities	Maturity Date	Total Capacity		Outstanding Loan(1)		Effective Rate		Outstanding Loan(1)		Effective Rate
Credit Facilities:
	3/5/2021	$	71,500	$	71,500	1.59%		$	71,500	3.14%
	6/30/2021	117,195		67,324		1.00	(2)	—		N/A	(2)
	1/1/2023	18,000		17,909		1.77		17,550		3.44
	7/15/2028	75,000		6,000		2.72		17,000		4.75
Revolving Term Loan	2/9/2022(3)	—		—		—		1,194		7.70
Total borrowings of Consolidated Funds				$	162,733			$	107,244

(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 a spread of 1.00%.

(3)On July 15, 2020, the revolving term loan was terminated at the Consolidated Fund's discretion.