GLM III and its affiliated investment manager GoldenTree Asset Management closed a €403 million collateralized loan obligation (CLO) to be managed by GLM III. With the closing of this CLO, GoldenTree Loan Management (GLM) EUR CLO 9, GoldenTree has issued 35 CLOs totaling nearly $19 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 comply with the European Union and/or United Kingdom Risk Retention frameworks.
GLM EUR CLO 9 will initially be backed by a 100% ramped €400 million portfolio of primarily senior secured loans as of closing and will have a four-and-a-half-year reinvestment period and a one and a half year non call period. The CLO was arranged by Merrill Lynch International as arranger and Wells Fargo Securities International as placement agent. The arranger globally distributed the rated notes, while GLM III invested in the CLO’s equity.
GLM EUR CLO 9 issued €248 million of AAA rated senior debt with a coupon of E+1.30%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of E+1.89%.
