GoldenTree Loan Management II (GLM II) and its affiliated investment manager, GoldenTree Asset Management, closed a $640 million collateralized loan obligation to be managed by GLM II.
With the closing of this CLO, GoldenTree Loan Management US CLO 10 (GLM US CLO 10), GoldenTree has issued 16 CLOs totaling more than $9 billion under its GLM CLO strategy. Since its inception in January 2017, the GLM strategy has 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 risk retention for open market CLOs, GLM CLOs are intended to continue to comply with European Union and United Kingdom risk retention regulations.
GLM US CLO 10 will initially be backed by a 100% ramped $640 million portfolio of senior secured loans as of closing and will have a five-year reinvestment period and a two-year non-call period. A bank syndicate including Morgan Stanley as structuring lead and BofA Securities and Wells Fargo Securities as co-leads arranged the CLO. The syndicate globally distributed the rated notes issued by the CLO, while GLM II invested in the CLO’s equity.
GLM US CLO 10 issued $386 million of AAA rated senior notes with a coupon of L+1.10%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+1.7%.
Since its inception in 2000, GoldenTree has issued more than $19 billion of CLOs/CBOs, with more than $11.5 billion currently outstanding.
