GoldenTree Announces Closing of $651m CLO Under GLM Strategy

Dec 11, 2021 | News

GoldenTree Loan Management II and its affiliated investment manager GoldenTree Asset Management along with other affiliated investment managers, announced the closing of a $651m collateralized loan obligation to be managed by GLM II.

With the closing of this CLO, GoldenTree Loan Management US CLO 11, GoldenTree has issued 17 CLOs totaling over $10bn 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 repeal of US risk retention for open market CLOs, GLM CLOs are intended to continue to comply with European Union and United Kingdom Risk Retention regulations.

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GLM US CLO 11 will initially be backed by a 94% ramped $609 million portfolio of senior secured loans as of closing and will have a five-year reinvestment period and a two-year non call period. The CLO was arranged by Credit Suisse as sole lead. The arranger globally distributed the investment grade, ‘BB+’ and ‘BB-‘ rated notes issued by the CLO, while GLM II invested in the CLO’s equity as well as ‘B-‘ rated notes.

GLM US CLO 11 issued $403 million of AAA rated senior notes with a coupon of L+1.13%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+1.70%.

Since its inception in 2000, GoldenTree has issued nearly $20 billion of CLOs/CBOs, with over $12.5 billion currently outstanding. GoldenTree’s investment team is comprised of over 70 individuals covering over 20 industries and having, on average, 15 years of experience. In addition, GoldenTree has been an active investor in structured credit since 2007 and currently manages approximately $6 billion of structured products investments across the firm.

Source: Delaware Business Times

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