GoldenTree Announces Closing of $ 698 Million CLO Under GLM Strategy
NEW YORK, March 8, 2021 / PRNewswire / – GoldenTree Loan Management II (“GLM II”) and its affiliated investment manager GoldenTree Asset Management (as well as other affiliated investment managers “GoldenTree”), have announced the closing of a $ 698 million guaranteed loan obligation (“CLO”) to be managed by GLM II. With the closing of this CLO, GoldenTree Loan Management US CLO 9 (“GLM US CLO 9”), GoldenTree issued 14 CLOs totaling more than 8 billion dollars as part of its GLM CLO strategy. Since its creation in january 2017, GLM’s strategy aimed to comply with applicable risk retention regulations. While a decision by the United States Court of Appeal on Feb. 9, 2018 Led to the repeal of risk retention for free market CLOs, GLM CLOs are intended to continue to comply with European Union and UK risk retention regulations.
GLM US CLO 9 will initially be backed by a $ 700 million senior secured loan portfolio at closing and will have a three-year reinvestment period and a one-year non-call period. The CLO was organized by a banking syndicate comprising BofA Securities as the structuring lead, and Morgan Stanley and Wells Fargo Securities as the co-lead. The syndicate globally distributed the investment grade notes issued by the CLO, while GLM II invested in the shares of the CLO and lower rated notes.
GLM US CLO 9 issued $ 455 million senior bonds rated AAA with a coupon of L + 1.07%, as well as senior, mezzanine and junior bonds rated less, for an overall weighted average coupon of L + 1.47%.
Since its inception in 2000, GoldenTree has issued more than $ 18 billion of CLO / CBO, with more than $ 10.5 billion currently pending. GoldenTree’s investment team is made up of over 60 people spanning 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 more than $ 6 billion investments in structured products throughout the company.
GoldenTree is a global, employee-owned asset management company specializing in opportunities in the credit world in industries such as high yield bonds, leveraged loans, distressed debt, structured products, emerging markets, private equity and credit-themed equities. GoldenTree was founded in 2000 and is one of the largest independent asset managers focused on credit. GoldenTree manages more 40 billion dollars for institutional investors, including major public and corporate pension plans, endowments, foundations, insurance companies and sovereign wealth funds. For more information, please visit www.goldentree.com.
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SOURCE GoldenTree Loan Management