GLM III and its affiliated investment manager GoldenTree Asset Management closed a $500 million collateralized loan obligation (CLO) to be managed by GLM III. With the closing of this CLO, GoldenTree Loan Management US CLO 23, GoldenTree has issued 30 CLOs totaling over $16 billion under its GLM CLO strategy.
GLM US CLO 23 will initially be backed by a 96% 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 Morgan Stanley as structuring lead and BofA Securities and Wells Fargo Securities as co-leads. The syndicate globally distributed the investment grade and BB rated notes issued by the CLO, while GLM III invested in the CLO’s equity as well as B rated notes.
GLM US CLO 23 issued $320 million of AAA rated senior notes with a coupon of S+1.27%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+1.68%.
