GoldenTree Loan Management II (GLM II) and its affiliated investment manager, GoldenTree Asset Management, closed a $698 million collateralized loan obligation (CLO) to be managed by GLM II.
With the closing of this CLO, GoldenTree Loan Management US CLO 9 (GLM US CLO 9), GoldenTree has issued 14 CLOs totaling more than $8 billion under its GLM CLO strategy. Since its inception in January 2017, the GLM strategy has been intended to be compliant with applicable risk retention regulations. While a U.S. Court of Appeals ruling on Feb. 9, 2018, led to a 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 US CLO 9 will initially be backed by a 100% ramped $700 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, which included BofA Securities as structuring lead and Morgan Stanley and Wells Fargo Securities 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 9 issued $455 million of AAA rated senior notes with a coupon of L+1.07%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+1.47%.
Since its inception in 2000, GoldenTree has issued more than $18 billion of CLOs/CBOs, with more than $10.5 billion currently outstanding.
