GoldenTree Loan Management II (GLM II) and its affiliated investment manager, GoldenTree Asset Management, closed a $487 million collateralized loan obligation (CLO) to be managed by GLM II. With the closing of this CLO, GoldenTree Loan Management US CLO 14, GoldenTree has issued 19 CLOs totaling more than $11 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 US CLO 14 will initially be backed by a 97% ramped $478 million portfolio of primarily 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 a bank syndicate including BofA Securities as structuring lead, and Morgan Stanley and Wells Fargo Securities as co-leads. The syndicate globally distributed the investment grade 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 14 issued $315 million of AAA rated senior notes with a coupon of S+1.70%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+2.39%.
Since its inception in 2000, GoldenTree has issued more than $21 billion of CLOs/CBOs, with more than $13.5 billion currently outstanding. GoldenTree’s investment team is comprised of more than 70 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 more than $5 billion of structured products investments across the firm.
