GoldenTree Loan Management II and its affiliated investment manager GoldenTree Asset Management, announced the closing of a $390m collateralized loan obligation to be managed by GLM II.
With the closing of this CLO, GoldenTree Loan Management US CLO 15, GoldenTree has issued 20 CLOs totaling over $11.5 billion under its GLM CLO strategy. Since its inception in January 2017, the GLM strategy was intended to be compliant with applicable Risk Retention regulations. While a US Court of Appeals ruling on February 9, 2018 led to the repeal of US risk retention rules for open market CLOs, GLM CLOs are intended to continue to comply with European Union and United Kingdom Risk Retention regulations.
GLM US CLO 15 will initially be backed by a 100% ramped $399 million portfolio of primarily senior secured loans as of closing and will have a three-year reinvestment period and a one-year non call period. The CLO was arranged by a bank syndicate including Morgan Stanley as structuring lead, and BofA Securities and Wells Fargo Securities as co-leads. The syndicate distributed the investment grade rated notes issued by the CLO, while GLM II invested in the CLO’s equity and lower rated notes.
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GLM US CLO 15 issued $256 million of AAA rated senior notes with a coupon of S+2.13%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+2.74%.
GoldenTree is an employee-owned, global asset management firm that specializes in opportunities across the credit universe in sectors such as high yield bonds, leveraged loans, private credit, distressed debt, structured products, emerging markets, private equity and credit-themed equities.
Since its inception in 2000, GoldenTree has issued over $21 billion of CLOs/CBOs, with over $14 billion currently outstanding. GoldenTree’s investment team is comprised of approximately 80 individuals covering around 20 industries and having, on average, 14 years of experience. In addition, GoldenTree has been an active investor in structured credit since 2007 and currently manages over $5 billion of structured products investments across the firm.
Source: Business Wire
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