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GoldenTree closes USD503m CLO under GLM strategy

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GoldenTree Loan Management (GLM) and its affiliated investment manager GoldenTree Asset Management (collectively GoldenTree), have cloed a USD503 million collateralised loan obligation (CLO) to be managed by GLM. With the closing of this CLO, GoldenTree Loan Management US CLO 7 (GLM US CLO 7), GoldenTree has issued 11 CLOs totalling USD6.5 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 7 will initially be backed by a 93 per cent ramped USD464 million portfolio of senior secured loans as of closing and will have a one-year reinvestment period and a one-year non call period. The CLO was arranged by a bank syndicate including Morgan Stanley as structuring lead, and BofA Securities and Wells Fargo Securities as co-leads. The syndicate globally distributed the investment grade rated notes other than ‘BBB-‘ rated notes. GLM invested in the CLO’s equity as well as ‘BBB-‘ and lower rated notes.

GLM US CLO 7 issued USD298 million of AAA rated senior notes with a coupon of L+1.90 per cent, along with lower rated senior, mezzanine and junior notes, for an overall weighted average coupon of L+2.33 per cent.

Since its inception in 2000, GoldenTree has issued over USD16 billion of CLOs/CBOs, with over USD9 billion currently outstanding. GoldenTree’s investment team is comprised of more than 50 individuals covering over 25 industries and having, on average, 17 years of experience. In addition, GoldenTree has been an active investor in structured credit since 2007 and currently manages over USD4 billion of structured products investments across the firm.

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