GLM III, LP (“GLM III”) and its affiliated investment manager, GoldenTree Asset Management LP (together with other affiliated investment managers, “GoldenTree”), today announced the successful closing of a $500 million collateralized loan obligation (“CLO”) managed under the GLM strategy. With this latest issuance, GoldenTree has now launched 30 CLOs totaling over $16 billion under its GLM CLO strategy.
Since the strategy’s inception in January 2017, GLM was designed to be in compliance with applicable Risk Retention regulations. Although a February 9, 2018, ruling by the US Court of Appeals led to the repeal of risk retention rules for open-market CLOs, GoldenTree’s GLM CLOs are structured to continue complying with Risk Retention regulations in both the European Union and the United Kingdom.
Details of GLM US CLO 23
The newly issued GLM US CLO 23 is backed by a $478 million portfolio of primarily senior secured loans, which was 96% ramped as of closing. The CLO features a five-year reinvestment period and a two-year non-call period.
The deal was arranged by a bank syndicate, with Morgan Stanley serving as the structuring lead, and BofA Securities and Wells Fargo Securities acting as co-leads. The syndicate distributed the investment-grade and BB-rated notes issued by the CLO globally. Meanwhile, GLM III invested in the CLO’s equity and the B-rated notes.
CLO Issuance and Structure
GLM US CLO 23 issued $320 million in AAA-rated senior notes with a coupon of S+1.27%, along with lower-rated senior, mezzanine, and junior notes. The overall weighted average coupon for the CLO is S+1.68%.
GoldenTree’s CLO Track Record
Since its founding in 2000, GoldenTree has issued over $26 billion in CLOs and collateralized bond obligations (CBOs), with more than $14 billion currently outstanding. GoldenTree’s structured credit team consists of nearly 100 professionals, each with an average of 15 years of experience and expertise covering more than 30 industries. The firm has been an active investor in structured credit since 2007 and currently manages over $7 billion in structured credit investments across its portfolio.
With the closing of GLM US CLO 23, GoldenTree continues to solidify its position as a leader in the CLO market, with a proven track record of delivering innovative investment solutions.
