GoldenTree Loan Management (GLM) and its affiliated investment manager GoldenTree Asset Management has closed a EUR405 million collateralised loan obligation (CLO) to be managed by GLM.
The CLO, GoldenTree Loan Management EUR CLO 1 (GLM EUR CLO 1), is the first European CLO to be issued under GoldenTree’s GLM CLO strategy announced at the start of last year whereby GLM raised USD600 million in commitments to invest in and manage CLOs that are intended to be compliant with US and European Risk Retention regulations. The first two US CLOs issued under this strategy announced last year in April and November, respectively, totalled USD1,445 million. In addition, GLM is managing a USD540 million reset of the GoldenTree Loan Opportunities XI CLO, originally issued in March 2015.
GLM EUR CLO 1 will initially be backed by a 98 per cent ramped EUR393 million portfolio of senior secured loans as of closing and will have a four year reinvestment period and a two year non call period. The CLO was arranged by a bank syndicate including Citigroup as structuring lead, Barclays and Morgan Stanley as co-leads, and Goldman Sachs and Wells Fargo Securities as placement agents. The syndicate globally distributed the rated notes and a small amount of equity issued by the CLO. GLM invested in nearly all of the CLO’s equity.
GLM EUR CLO 1 issued a EUR241 million AAA rated senior tranche, comprising floating rate and fixed rate notes with coupons of E+0.73 per cent and 1.37 per cent, respectively. The weighted average floating rate coupon on the capital structure is E+1.47 per cent.
