GLM III and its affiliated investment manager GoldenTree Asset Management closed a €403 million collateralized loan obligation (CLO) to be managed by GLM III. With the closing of this CLO, GoldenTree Loan Management EUR CLO 8, GoldenTree has issued 31 CLOs totaling nearly $17 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 US Court of Appeals ruling on February 9, 2018 led to the repeal of US risk retention rules for open market CLOs, GLM CLOs are intended to continue to comply with European Union and United Kingdom Risk Retention frameworks.
GLM EUR CLO 8 will initially be backed by a 95% ramped €382 million portfolio of primarily senior secured loans as of closing and will have a four-and-a-half-year reinvestment period and a one and a half 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 as placement agent. The syndicate globally distributed the rated notes, while GLM III invested in the CLO’s equity.
GLM EUR CLO 8 issued €248 million of AAA rated senior notes with a coupon of E+1.28%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of E+2.01%.
