GLM III and its affiliated investment manager GoldenTree Asset Management closed a $500 million collateralized loan obligation (CLO), GLM US CLO 20, to be managed by GLM III. With the closing of this CLO, GoldenTree has issued 26 CLOs totaling over $14 billion under its GLM CLO strategy.

GLM US CLO 20 will initially be backed by an 80% ramped $445 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 rated notes issued by the CLO, while GLM III invested in the CLO’s equity.

GLM US CLO 20 issued $308 million of AAA rated senior notes with a coupon of S+1.45%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+1.91%.