|Bid||35.07 x 1300|
|Ask||35.08 x 800|
|Day's Range||34.50 - 35.13|
|52 Week Range||20.20 - 41.88|
|Beta (5Y Monthly)||1.28|
|PE Ratio (TTM)||89.67|
|Earnings Date||Jul 29, 2020 - Aug 03, 2020|
|Forward Dividend & Yield||1.60 (4.56%)|
|Ex-Dividend Date||Jun 15, 2020|
|1y Target Est||37.17|
Ares Management Corporation ("Ares") announced today that it has changed the format of its 2020 Annual Meeting of Stockholders from a physical in-person meeting to a virtual webcast.
Ares Australia Management ("AAM"), the strategic joint venture between one of the leading global credit and alternative investment managers Ares Management Corporation (NYSE: ARES) ("Ares") and Fidante Partners, today launched its first Australian product, the Ares Global Credit Income Fund (the "Fund").
(Bloomberg) -- J.C. Penney Co. is negotiating a bankruptcy deal with lenders including KKR & Co., Ares Management Corp. and Sixth Street Partners that would slash the department-store chain’s debt in exchange for control of the company.The plan would be included in a Chapter 11 court filing that could come next week, according to people with knowledge of the matter. The lender group, which also includes Apollo Global Management Inc., could provide as much as $500 million to help J.C. Penney stay in business during the bankruptcy process, said the people. They asked not to be identified because discussions with the Plano, Texas-based company are private.H/2 Capital Partners is also in talks with the company on terms of the restructuring plan, though it’s been working separately from the lender group, the people said. The firm could provide a portion of the bankruptcy loan, also known as a debtor-in-possession financing, but plans haven’t been finalized, they said.Representatives for J.C. Penney, Ares, Apollo, KKR, and Sixth Street declined to comment. Attempts to reach H/2 Capital weren’t successful.J.C. Penney has missed two debt payments in the past month and is expected to seek court protection in the coming days when the grace periods expire. Like other retailers, it saw revenue evaporate when the Covid-19 outbreak forced stores to close.The situation remains fluid and the decision could change, depending on market conditions, the people said. Current plans call for J.C. Penney to close at least 200 locations, the people said. J.C. Penney had 846 department stores in 49 states and Puerto Rico as of Feb. 1. The store closings were reported earlier by Reuters.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Ares Management Corp (NYSE: ARES) co-owned high-end retailer Neiman Marcus has become the first large department store chain to file for bankruptcy.What Happened With Neiman Marcus The retailer announced Thursday that it had entered into a restructuring support agreement with a "significant majority" of its creditors to undergo financial restructuring. Neiman Marcus will file for Chapter 11 bankruptcy at the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. The restructuring is an effort to substantially reduce its debt burden and interest payments while continuing operations through the current pandemic and beyond. The agreement was reached with over two-thirds of creditors and Neiman Marcus claims it is a demonstration of "broad commitment across creditor classes."Expressing optimism for the future Geoffroy van Raemdonck, CEO of Neiman Marcus said, "We will emerge a far stronger company. In a world that is changing, we are uniquely positioned to give our brand partners access to our loyal luxury customers like no other company." He added, "We will deliver that through the strength of our associate relationships and digital solutions."Why It Matters For (NYSE: ARES) The luxury retailer expects to emerge from bankruptcy in early Fall 2020. Neiman Marcus' MyTheresa e-commerce business is not a part of the bankruptcy and would continue to operate independently, the company stated. Neiman Marcus has a debt of nearly $5 billion and was accused by a bondholder of moving its MyTheresa online business out of reach of creditors by the way of a corporate reorganization. The retailer's largest creditors have committed $675 million in Debtor-in-possession (DIP) financing during the bankruptcy proceedings. These creditors have additionally committed to a $750 million exit financing package that would fully refinance the DIP financing and infuse the business with additional liquidity.There will be no-near term maturities upon emergence and the bankruptcy will eliminate $4 billion of existing debt.Two of the company's debtor entities, Mariposa Intermediate Holdings LLC and Neiman Marcus Group LTD LLC have a new board of managers in place to lead them out of bankruptcy. Each board is chaired by Van Raemdonck.The high-end sector has been hit hard by COVID-19, J.C. Penney Company Inc. (NYSE: JCP) is also negotiating bankruptcy, while Macy's Inc. (NYSE: M) and Nordstorm Inc. (NYSE: JWN) are borrowing against their real estate assets. Price Action On Thursday, Ares Management shares closed flat at $35.01.See more from Benzinga * Fashion Retailer J.Crew May Declare Bankruptcy This Weekend * JCPenney Negotiating With Lenders Over Bankruptcy Funding * Macy's Looking To Raise Up To B In Debt To Avoid Bankruptcy(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg Opinion) -- Over the more than 100 years that luxury retailer Neiman Marcus has been in business, it’s quite likely some customers who shopped there were living beyond their means. A similar state afflicted the department store on Thursday, as it filed for bankrupty, overwhelmed by its billions of debt.With its filing, Neiman Marcus became the first major department store to succumb to bankruptcy amid the coronavirus pandemic, and the second retailer to do so this week after J. Crew filed for protection from creditors on Monday. The Chapter 11 process enables Neiman Marcus to shed about $4 billion of its existing borrowings. Less burdened by its debt, it will be able to slim its estate as needed and invest in the remaining stores as well as its online platform to better compete with the big fashion houses and e-commerce rivals. Even so, it faces challenges thriving in a transformed luxury landscape rocked by deep economic shocks, at a time when brick-and-mortar retailers have the additional burden of reopening while mitigating health risks.Neiman Marcus for decades was one of the few places where wealthy Americans could buy clothing, jewelry and the extravagant holiday gifts featured in its seasonal catalog. As such, it occupied a distinct position in the retail industry, sitting above more mid-market rivals such as Macy’s Inc. But a confluence of industry pressures — compounded by the lengthy Covid-19 shutdown as well as debt from its $6 billion buyout 2013 by Ares Management LLC and the Canada Pension Plan Investment Board — undermined the department store that began life in Dallas in 1907.When Herbert Marcus, his sister Carrie Marcus Neiman and her husband A.L. Neiman set out to fashionably dress the community, there weren’t a lot of options. As with London’s Selfridges, shoppers flocked to this shrine to the new consumerism. One of Neiman’s strengths was having a range of designer brands under one roof. To underline its fashion credentials, in 1938, Stanley Marcus, the oldest of the four Marcus sons, established an award for designers, with Coco Chanel and Yves Saint Laurent among its recipients. Today, the picture couldn’t be more different.Over the past decade or so, the big fashion houses have become less reliant on department stores such as Neiman. Wanting to take more control over their image, and concerned about their handbags and shoes being discounted, they moved to establish their own retail networks, with spectacular flagships. Then there is the rise of selling luxury goods online. In the early days of the internet it seemed inconceivable that men and women would buy everything from a Cartier watch to a Bottega Veneta handbag online. But that’s just what the likes of Richemont’s Net-a-Porter, have achieved. The luxury houses, such as Kering SA’s Gucci, have also been developing their own online presence, adding even more completion.Neiman is no laggard here itself, generating about 30% of its sales from online, and also owning e-commerce platform MyTheresa (which won’t be included in the Chapter 11 process). But this hasn’t brought in as many younger customers as might be expected. As with other storied retailers, its customers are ageing. While many older Americans have plenty of money to spend, they often prioritize other areas, such as dining out or travel — at least they did before Covid-19 — over spending on things. Meanwhile, the under-35 crowd accounted for all the growth in the luxury industry in 2019, according to Bain & Co.To tap into this demographic, Neiman needs to be more innovative and inclusive. Rival Nordstrom Inc. has done a good job here, from embracing less pricey designers to experimenting with smaller, neighborhood stores. These locations may be even more appealing to shoppers in a post-Covid world. Bringing in edgier designers, or those with cheaper price points, would be another option. This doesn’t mean mass market. But it could take a leaf out of London’s Selfridges. As well as Chanel bags costing thousands of dollars, and watches costing hundreds of thousands, it also offers more affordable clothing and accessories, such as Kurt Geiger shoes. All that helps to make the store more approachable. Collaborations to create exclusive collections and pop-up stores with quirky brands are other possibilities.All these actions take significant investment. And that’s not easy with a big debt burden. With that lessened, the group should have more scope to meet the required outlay. And of course, there may be stores that either need closing, or shrinking. Nordstrom said recently that it would permanently close 16 of its locations. Neiman is already closing most of its outlet stores.The path to recovery won’t be straightforward. Not only does it have the challenge of reopening stores, but the luxury goods market is facing the worst year in its history. Meanwhile, amid a tougher market, the fashion houses may be even choosier about where they allow their products to be sold.A rival group of creditors was urging Neiman to put itself up for sale. So it is still possible a buyer may come forward. If either can breathe fresh life into the historic department store, there is a viable retail business.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Ares Management Corporation (NYSE:ARES) is providing details on certain new financing commitments made across its U.S. direct lending strategies. Funds managed by Ares Management Corporation’s Credit Group (collectively "Ares") closed approximately $2.7 billion in commitments across 40 transactions during the first quarter of 2020.
Moody's Investors Service (Moody's) assigned a Caa2 rating to CPG International LLC's d/b/a The AZEK Company's (AZEK) proposed $320 million senior unsecured note offering due 2025. At the same time Moody's affirmed the company's B3 Corporate Family Rating (CFR), B3-PD Probability of Default Rating (PDR), B2 rating on its first lien senior secured term loan due May 2024, and Caa2 rating on its senior unsecured notes due October 2021.
Moody's Investors Service ("Moody's") downgraded EPIC Crude Services, LP's (EPIC Crude) Corporate Family Rating (CFR) to Caa1 from B3, Probability of Default Rating (PDR) to Caa1-PD from B3-PD, super-priority revolver rating to B1 from Ba3 and senior secured Term Loan B rating to Caa1 from B3. "The downgrade of EPIC Crude's ratings reflects elevated leverage and reliance on external capital amid a weak oil price environment," said Jonathan Teitel, a Moody's analyst.
Moody's Investors Service ("Moody's") downgraded EPIC Y-Grade Services, LP's (EPIC Y-Grade) CFR to Caa2 from B3, PDR to Caa2-PD from B3-PD, super-priority revolver rating to B1 from Ba3 and senior secured Term Loan B rating to Caa2 from B3. The negative outlook reflects risks from capital funding shortfalls, weak liquidity and elevated leverage as well as the challenges to volume growth posed by the weak commodity price environment and reduced upstream capital spending.
Ares Management (ARES) delivered earnings and revenue surprises of 12.50% and 11.35%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
Ares Management (ARES) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
(Bloomberg Opinion) -- Even as some retailers begin to open stores again, the pain across malls and main streets continues to take its toll.J. Crew Group Inc. on Monday said it would begin pre-arranged Chapter 11 bankruptcy proceedings and enter into a $1.65 billion debt-for-equity swap with its lenders, becoming the first major U.S. retailer to succumb to the economic convulsions caused by the coronavirus pandemic. It won’t be the only casualty. Other chains are grappling with the same issues: heavy debt loads, compounded by the damage done from locations closed for weeks. Neiman Marcus Group Inc. is closing in on a bankruptcy deal with a group of lenders, Bloomberg News reported on Monday, citing people with knowledge of the matter, and J.C. Penney Co. is reportedly in talks on a loan that would fund it through a restructuring. Meanwhile, Victoria’s Secret-owner L Brands Inc. said late Monday that it agreed to terminate plans to sell a majority stake in the lingerie chain to private equity firm Sycamore Partners. Jefferies analyst Randal Konik had warned last month of potential medium-term solvency issues at L Brands after Sycamore sued to get out of the transaction, citing a collapse in sales and looming debt maturities.Every brand has its own story. In the case of J. Crew, it was one of the first mainstream U.S. retailers to gain real traction with the fashion crowd, and in its heyday was also ahead of its time in areas such as store design. The leadership of former chief executive Mickey Drexler and creative director Jenna Lyons took its preppy styles from classic to cutting edge, all helped by the brand being a favorite of Michelle Obama. But its trendy designs eventually alienated some customers, and when the power partnership came to an end in 2017, it never regained its stride. With cheaper competitors such as Inditex’s Zara and a resurgent Ralph Lauren Corp at the top end, J. Crew had to rely on incessant discounting.J. Crew had hoped in recent months to spin off its faster-growing, denim-focused Madewell arm as it sought to cut borrowings of almost $1.7 billion as of February. But plans for the initial public offering were scuppered by the pandemic, and it was left struggling to deal with its debt, a legacy from its 2011 leveraged buyout by TPG Capital LP and Leonard Green & Partners LP.Neiman Marcus, meanwhile, was acquired in a $6 billion leveraged buyout by Ares Management LLC and the Canada Pension Plan Investment Board almost six years ago. The chain has been in a race with its luxury rivals, such as Nordstrom Inc. to turn stores into temples of indulgence. That all takes investment, made harder with a debt load of $4.3 billion, according to Bloomberg News. J.C. Penney is at the other extreme. It must deal with shabby stores as it struggles to stay relevant while managing total borrowings of $3.6 billion excluding store leases as of Feb. 1.All three chains are facing pressure from online rivals. For J.C. Penney, that’s Amazon. For J. Crew and Neiman, it’s the likes of Richemont’s Net-a-Porter. The latter two are no laggards to online themselves, so this challenge should be manageable. Their capital structures, however, are proving more of a hurdle.Some stronger groups, including Gap Inc., have tapped the credit markets. In the U.K., a number of retailers such as Asos Plc, have turned to shareholders. American chains may follow suit. But the steep falls in many retailers’ share prices may make that difficult. A buyer also can’t be ruled out for Neiman or J. Crew, which will continue to trade after also reaching agreement on $400 million of financing. After all, both have recognizable brands. But with valuations uncertain, a rescuer can’t be counted on either.While the lockdown, and likely tepid recovery is most worrying for those companies with fragile finances, stronger chains will also emerge weaker. Gap, for instance, revealed that with physical stores shuttered, it would burn through half of its cash pile in less than two months, eroding its financial position at a time when it was seeking to revive its core Gap brand.Gap had $1.25 billion of long-term debt as of Feb. 1, less than one times its Ebitda of $1.6 billion and seemingly manageable. But with the pandemic, cash reserves — which stood at $1.7 billion on Feb. 1 — have dwindled to an estimated $750 million to $850 million as of May 2.After the struggle to survive, there will be little left over to invest, a problem when consumers are likely to be even more discerning and addicted to online shopping. So for those retailers that do make it through the crisis, prospering afterwards will be another thing entirely.(Updates third paragraph to show Neiman Marcus is close to a bankruptcy deal, and L Brands terminated a sale of Victoria’s Secret.)This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- A group of Revlon Inc. lenders opposing the company’s refinancing plans claims the company violated the terms of its debt agreements last year in a transaction that could complicate its efforts to rework borrowings, according to people with knowledge of the situation.Revlon fired back, vowing to “aggressively fight” the dissenting lenders if they continue their campaign. Revlon still expects to have the necessary votes to close its deal by the deadline of 5 p.m. Friday in New York.The lenders group sent notice of an alleged default to Citigroup Inc. as administrative agent, with respect to a borrowing transaction that occurred last August, said the people, who asked not to be identified because the matter was private. The notice sent Wednesday and signed by lenders accounting for about 40% of the loan amount claims there was a breach of covenants after Revlon moved certain intellectual property to secure a $200 million loan provided by Ares Management Corp.Lenders opposing the plans by billionaire Ronald Perelman’s cosmetics empire earlier directed Citigroup to resign as agent, which the bank refused to do, the people said. The company is moving forward with its plans and continues to believe it isn’t in violation of its loan agreements, they said.Revlon contends a default didn’t take place because the asset transfer was allowed under the debt documents with respect to the intellectual property of its American Crew brand, the people said.“This group of objecting lenders has made one baseless accusation after another to try to block the company from securing financing that would strengthen our balance sheet and weather the Covid crisis,” a representative for the company said in an emailed statement. “Their disgraceful tactics are intended to hurt the company and its employees and their accusations are misleading and without basis.”A representative for Citigroup declined to comment.Revlon’4 2025 bonds fell 2.5 cents to 16.25 cents on the dollar Friday after Bloomberg reported on the plans, according to Trace bond trading data. Revlon shares fell 8% to close at $12.26.Voting DeadlineSome of Revlon’s lenders have objected to its $1.8 billion refinancing package because it would allow the company to siphon off collateral currently pledged to them to back the new debt. The debt deal needs more than 50% of the holders to participate for it to close.The group of opposing lenders represented by the law firm Arnold & Porter includes Brigade Capital Management, HPS Investment Partners and Symphony Asset Management, Bloomberg has reported. Lenders in favor of the plans include Ares, Angelo Gordon & Co. and King Street Capital Management, the people said.A representative for Ares, Angelo Gordon and King Street declined to comment.The refinancing plan is the latest by Revlon to ease its debt load and buy time to focus on a business turnaround. Discussions with the company over solutions to rework the debt had been ongoing, but were complicated by the coronavirus pandemic as some lenders, including Brigade and HPS, split off to form a dissenting group, the people said.The company got some financial breathing room this week after it closed and drew on a new $65 million revolving credit facility provided by supporting lenders. That revolver will be included in the total holdings amount and could be the tipping point, giving Revlon the necessary votes to reach the consent threshold, the people said.‘Serious Effects’Lawyers for Revlon at Paul Weiss Rifkind Wharton & Garrison LLP said in a letter last week that the company’s debt documents allow it to take out the new loans and warned that opponents to the borrowing would face “potential liability,” according to the document reviewed by Bloomberg.“Because of Revlon’s need for liquidity, any delay in the transactions could have serious effects,” according to the letter. Revlon Chief Financial Officer Victoria Dolan said in a separate statement that the company was confident it would overcome the opposing lenders and “secure the financing and liquidity necessary to support Revlon” and protect its employees.Read More: Revlon on Track to Close $1.8 Billion Debt-Refinancing PackageRevlon, controlled by Perelman’s MacAndrews & Forbes Inc., has struggled to remain relevant and stem falling sales amid competition from Estee Lauder Cos. and a host of smaller companies that have used social media to lure away customers. Revlon has more than 15 brands, including Elizabeth Arden and Elizabeth Taylor, which it markets in more than 150 countries.If the deal closes by the Friday deadline, lenders who don’t choose to participate will be stripped of their first-lien protections and left with third-lien positions, the people said. The dissenting lender-group had signed a co-operation agreement to oppose the deal that applies through July, said the people.(Updates with Citigroup response, bond trading from seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Ares Management (ARES) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Ares Capital Management II LLC today announced that monthly fund composition and performance data for Ares Dynamic Credit Allocation Fund, Inc. (NYSE: ARDC) as of March 31, 2020 is now available via www.arespublicfunds.com.
Ares Management Corp (NYSE: ARES)- and Canada Pension Plan Investment Board-owned retailer Neiman Marcus Group, could file for bankruptcy as early as this week, Reuters reported Sunday, citing people familiar with the matter. Neiman Marcus Could Be Retail Casualty Neiman Marcus, the Dallas-based operator of 43 luxury department stores including Bergdorf Goodman and Last Call branded stores, would be the first major retailer to declare bankruptcy during the coronavirus pandemic-driven downtown, the news agency said. The retailer is negotiating a loan worth hundreds of millions with its creditors that would allow it to remain operational during the bankruptcy process, according to Reuters. Neiman Marcus has furloughed a substantial number of its 14,000 employees, the news agency said. The bankruptcy could lead to Neiman Marcus' acquisition or to some of its assets being sold at bargain prices.Neiman Marcus Weighed Down By Debt Neiman Marcus has debt of nearly $5 billion, in part as a result of the leveraged buyout carried out in 2013 by Ares Management Corp and CPPIB.Last year, the retailer pushed back due dates for its debt in a restructuring agreement with some of its creditors at the price of incurring more interest costs.Marble Ridge, holders of Neiman Marcus-issued bonds, sent a letter to the company on Thursday, stating that Neiman Marcus had failed to make interest payments due on the instruments.The retailer was also accused of depriving Marble Ridge the value of its MyTheresa e-commerce business, moving it beyond the reach of creditors in a corporate reorganization.Hudson Bay Co. (OTC: HBAYF), the owner of Saks Fifth Avenue, had considered bidding for Neiman Marcus, but it is unclear if the Canadian firm remains interested, according to Reuters. Other major retailers are also undergoing financial hardship due to the coronavirus pandemic. Macy's Inc. (NYSE: M) and Nordstrom Inc. (NYSE: JWN) are securing new financing and are borrowing against their real estate holdings. JC Penney Company Inc. (NYSE: JCP) is considering filing for bankruptcy to restructure its finances and mitigate expensive debt obligations.ARES Price Action Ares Management shares closed 3.98% higher at $33.20 on Friday. Public domain photo via Wikimedia. See more from Benzinga * Mark Cuban Proposes Plan To Save America's Small Businesses After Federal Relief Fund Is Exhausted * Boeing To Restart Production Of All Commercial Aircraft At Washington State Facilities * Apple Reopening Store In Seoul, First Outside China(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Neiman Marcus Group is preparing to file for bankruptcy as soon as this week, Reuters reported Sunday, a casualty of the coronavirus-related economic shutdown. The department-store chain is carrying almost $5 billion in debt and has been forced to temporarily close all its stores and furlough most of its employees due to the pandemic. Citing people familiar with the matter, Reuters reported the company is close to securing a loan worth hundreds of millions of dollars to keep some of its operations afloat during bankruptcy proceedings. Neiman Marcus was acquired in 2013 by Ares Management LLC and the Canada Pension Plan Investment Board.
Moody's Investors Service ("Moody's") affirmed DG Investment Intermediate Holdings 2, Inc.'s (dba "Convergint") credit ratings, including a B3 corporate family rating ("CFR"), a B3-PD probability of default rating, and respective B2 and Caa2 instrument ratings on the security-systems integrator's first- and second-lien credit facilities. The outlook change to negative, from stable, reflects Moody's expectation for weaker operating performance and higher than anticipated leverage in 2020 due to revenue challenges stemming from the effects of the COVID-19 crisis.
Ares Management Corporation (NYSE:ARES) announced today that it will report earnings for the first quarter ended March 31, 2020 on Wednesday, May 6, 2020 prior to the opening of the New York Stock Exchange. Ares Management Corporation will hold its webcast and conference call on the same day at 12:00 p.m. (Eastern Time) to discuss its first quarter ended March 31, 2020 financial results.