GoldenTree Loan Management II (GLM II) and its affiliated investment manager, GoldenTree Asset Management, closed a €402 million ($483.70 million) collateralized loan obligation to be managed by GLM II.
The CLO, GoldenTree Loan Management EUR CLO 5 (GLM EUR CLO 5), is the fifth European CLO and 15th overall CLO to be issued under GoldenTree’s GLM CLO strategy totaling more than $8.5 billion. Since its inception in January 2017, the GLM strategy has intended to be compliant with applicable risk retention regulations. While a U.S. Court of Appeals ruling on Feb. 9, 2018, led to repeal of risk retention for open market CLOs, GLM CLOs are intended to continue to comply with European Union and United Kingdom risk retention regulations.
GLM EUR CLO 5 will initially be backed by a 92% ramped €368 million ($442.79 million) portfolio of primarily senior secured loans as of closing and will have a four and a quarter year reinvestment period and a one and a quarter year non-call period. The CLO was arranged by a bank syndicate, including Barclays as structuring lead, Morgan Stanley as co-lead and Wells Fargo Securities as placement agent. 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 EUR CLO 5 issued €252 million ($303.22 million) of AAA rated senior notes with a coupon of E+0.82%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of E+1.62%.
Since its inception in 2000, GoldenTree has issued more than $18 billion of CLOs/CBOs, with more than $11 billion currently outstanding.
