GoldenTree Loan Management II (GLM II) and its affiliated investment manager GoldenTree Asset Management, closed a €411 million ($436.1 million) collateralized loan obligation to be managed by GLM II. With the closing of this CLO, GoldenTree Loan Management EUR CLO 6 (GLM EUR CLO 6), GoldenTree has issued 22 CLOs totaling more than $12.5 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 U.S. Court of Appeals ruling on Feb. 9, 2018 led to the repeal of U.S. 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 EUR CLO 6 will initially be backed by a 97% ramped €387 million ($410.7 million) portfolio of primarily senior secured loans as of closing and will have approximately a four and a half year reinvestment period and approximately a one and a half year non call period. The CLO was arranged by Merrill Lynch International as arranger and Wells Fargo Securities International Limited as placement agent. The arranger globally distributed the investment grade rated notes other than ‘BBB/BBB-’ rated notes. GLM II invested in the CLO’s equity and certain rated notes.
GLM EUR CLO 6 issued €240 million ($254.7 million) of AAA rated senior notes with a coupon of E+1.85%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average floating rate coupon of E+2.79%. The CLO also issued €8 million ($8.49 million) AA fixed rate notes with a coupon of 6.20%.
