GoldenTree Loan Management II (GLM II) and its affiliated investment manager, GoldenTree Asset Management, closed a $443 million collateralized loan obligation to be managed by GLM II. With the closing of this CLO, which is labeled GoldenTree Loan Management US CLO 8 (GLM US CLO 8), GoldenTree has issued 13 CLOs totaling $7.5 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 in 2018 led to a repeal of risk retention for open market CLOs, GLM CLOs are intended to continue to comply with European risk retention regulations.
GLM US CLO 8 will initially be backed by a 93% ramped $419 million portfolio of senior secured loans as of closing and will have a three-year reinvestment period and a one-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 rated notes issued by the CLO, while GLM II invested in the CLO’s equity and lower rated notes.
GLM US CLO 8 issued $279 million of AAA rated senior notes with a coupon of L+1.55%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average floating rate coupon of L+2.12%. The CLO also issued $14 million AA fixed rate notes with a coupon of 2.44%.
Since its inception in 2000, GoldenTree has issued more than $17.5 billion of CLOs/CBOs, with $10 billion currently outstanding. In addition, GoldenTree has been an investor in structured credit since 2007 and currently manages more than $5.5 billion of structured products investments.
