GLM III and its affiliated investment manager, GoldenTree Asset Management, closed a $753 million collateralized loan obligation (CLO) to be managed by GLM III. With the closing of this CLO, GoldenTree Loan Management US CLO 27 (GLM US CLO 27), GoldenTree has issued 36 CLOs totaling nearly $20 billion under its GLM CLO strategy.
GLM US CLO 27 will initially be backed by a 98% ramped $736 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 Wells Fargo Securities as structuring lead, and BofA Securities and Morgan Stanley 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 27 issued $480 million of senior AAA rated notes with a coupon of S+1.19%, along with junior AAA rated notes and other lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+1.61%.
