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GoldenTree closes $493m CLO under GLM strategy

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GoldenTree Loan Management II (GLM II) and its affiliated investment manager GoldenTree Asset Management LP have closed a $493 million collateralised loan obligation (CLO), GoldenTree Loan Management US CLO 17 (GLM US CLO 17), to be managed by GLM II. 

GoldenTree Loan Management II (GLM II) and its affiliated investment manager GoldenTree Asset Management LP have closed a $493 million collateralised loan obligation (CLO), GoldenTree Loan Management US CLO 17 (GLM US CLO 17), to be managed by GLM II. 

Now GoldenTree has issued 23 CLOs totaling approximately $13 billion under its GLM CLO strategy. At 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 9 February, 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 regulations.

GLM US CLO 17 will initially be backed by a 98% ramped $490 million portfolio of primarily senior secured loans as of closing, and will have a five-year reinvestment period and a two-year non-call period. The CLO was arranged by a bank syndicate including 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 17 issued $320 million of AAA rated senior notes with a coupon of S+1.75%, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of S+2.41%.
 

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