GoldenTree Loan Management II (GLM II) and its affiliated investment manager GoldenTree Asset Management, has closed a USD443 million collateralised loan obligation (CLO) to be managed by GLM II. With the closing of this CLO, GoldenTree Loan Management US CLO 8 (GLM US CLO 8), GoldenTree has issued 13 CLOs totalling USD7.5 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 9 February, 2018 led to repeal of risk retention for open market CLOs, GLM CLOs are intended to continue to comply with European Risk Retention regulations.
GLM US CLO 8 will initially be backed by a 93 per cent ramped USD419 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 including Wells Fargo Securities as structuring lead, and BofA Securities and Morgan Stanley 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 8 issued USD279 million of AAA rated senior notes with a coupon of L+1.55 per cent, along with lower rated senior, mezzanine and junior notes, for an overall weighted average floating rate coupon of L+2.12 per cent. The CLO also issued USD14 million AA fixed rate notes with a coupon of 2.44 per cent.
Since its inception in 2000, GoldenTree has issued over USD17.5 billion of CLOs/CBOs, with $10 billion currently outstanding. GoldenTree’s investment team is comprised of 60 individuals covering over 20 industries and having, on average, 16 years of experience. In addition, GoldenTree has been an active investor in structured credit since 2007 and currently manages over USD5.5 billion of structured products investments across the firm.